Tlou Energy Ltd · ASX:TOU
Tlou Energy — Investor Presentation (October 2015)
30 slides from Tlou Energy's investor presentation, Oct 28, 2015
Slide 1: Gas to Power in Botswana
For personal use only “Gas to Power in Botswana” Admission to AIM and Placing of ordinary shares October 2015
Slide 2: Disclaimer
Disclaimer For personal use only These presentation slides and the accompanying verbal presentation (together the “Presentation Materials”) are confidential and have been issued in connection with the proposed placing of new ordinary shares (“Placing Shares”) in the capital of Tlou Energy Limited (t
Slide 3: Disclaimer Continued
Disclaimer Continued For personal use only Brandon Hill (“Brandon Hill”) is acting in the provision of corporate finance business to the Company, within the meaning of the Financial Conduct Authority’s Conduct of Business Sourcebook (“COBS”), and no-one else in connection with the proposals containe
Slide 4: Disclaimer continued
Disclaimer continued For personal use only To the fullest extent permitted by law, Integra Advisory Partners Pty Ltd (“Integra”) and Morgans Corporate Limited (“Morgans”), disclaim any obligation or undertaking to release any updates or revisions to the Presentation Materials to reflect any change i
Slide 5: Transaction Overview
Transaction Overview For personal use only Target Listing on AIM – 30 November 2015 General Meeting required to approve placing Placing minimum of £1.2m (A$2.6m), up to £1.5m (A$3.2m) Current cash ~ A$2.2m (£1.0m) Use of funds (based on minimum raise and current cash): Gas production tes
Slide 6: Company Snapshot
Company Snapshot For personal use only ASX Listed (Ticker TOU) ASX Trading – last 6 months Volume ('000s) Close Price 8,300km² CBM permits in Botswana $0.25 6,000 Volume traded ('000s) $0.20 5,000 Close Price (A$) Energy deficit in Botswana and wider 4,000 $0.15 Southern Africa region 3,000 $0
Slide 7: Botswana CBM Project
Botswana CBM Project For personal use only 7
Slide 8: Management Team
Management Team For personal use only Executive Board NED’s & Management Anthony (Tony) Gilby – MD & CEO Nathan Mitchell – Chairman • Geologist with >30 years industry experience • 25 years in resource exploration and drilling • Co-founder of a number of CBM companies • Pioneer of CBM drilling techn
Slide 9: Strong Track Record
Strong Track Record For personal use only The founders of Tlou were pioneers of the CBM industry in Queensland Tony Gilby developed ASX-listed Sunshine Gas from a small exploration company to its eventual takeover by QGC (BG) in 2008 Nathan Mitchell, CEO of Mitchell Drilling, pioneered Surface
Slide 10: Peer Group
Peer Group For personal use only 2P + 2C EV to Company Country Type Stage EV resources 2P+2C US$m Bcf US$/Bcf Green Dragon Gas China CBM Production 699.7 446.8 1.57 Wentworth Resources Tanzania Conventional Development 90.7 95.5 0.95 Aminex Tanzania Conventional Development 53.1 68.9 0.77 Victoria O
Slide 11: Valuation & Risk
Valuation & Risk For personal use only US $ EV/ 2P+2C Resources AIM Listed Gas $1.80 1.57 $1.60 $1.40 $1.20 $1.00 0.95 0.77 $0.80 0.62 $0.60 $0.40 0.20 $0.20 0.06 0.02 $0.00 Sunbird Energy Tlou Energy Great Eastern Energy Victoria Oil & Gas Aminex Wentworth Resources Green Dragon Gas Pre-Development
Slide 12: Key Steps to Unlock Value
Key Steps to Unlock Value Risk use only LOW Gas Production H2 2016 to power Reserve H1 2016 certification Development For personal Sustained gas Q4 2015 production Dewater multi-well pilots Multi-well pilot pod expansion Flowed gas from single pilot pod HIGH 12
Slide 13: Market & Commercialisation
For personal use only Market & Commercialisation 13
Slide 14: Electricity Supply & Demand
Electricity Supply & Demand For personal use only Source: Norconsult Market Report, 2013 Botswana is looking to increase the supply of power from the Morupule B power station commissioned in 2013 Morupule B consists of 4x132 MW units of net capacity at a cost of P11 billion (>US1 billion); only
Slide 15: Investment Proposition
Investment Proposition For personal use only Tlou provides the entry point into the most advanced gas project in Botswana Botswana has a severe energy shortage and is relying on non-firm imports and diesel generation Tlou has an immediate and long term opportunity to provide domestic gas/power
Slide 16: Proposed Sales Routes
Proposed Sales Routes For personal use only Phase Market Opportunity Strategy 1 Compressed • Off-grid power solution for Production testing Selemo multi-well pilot pods Natural Gas (CNG) mining companies (~1- 5 Install 1MW compressed natural gas (CNG) MW’s) equipment Convert Selemo wells and f
Slide 17: Investor Highlights
Investor Highlights For personal use only Most advanced Highly A$43m project CBM gas project experienced investment (as in Botswana team at June 2015) Key milestones Premium gas to deliver Multiple routes price shareholder to monetise gas environment value 17
Slide 18: Company Summary
18 For personal use only Company Summary
Slide 19: History
History For personal use only Listed on ASX in April 2013 A$43m project investment as at June 2015 Vertical Pilot Contingent Tlou farm-in: Wells: Lateral Pilot Wells: Resource Upgrade: 1,321 desorption Pre-feasibility pilot 2 lateral pilot pods at Certified by SRK – samples from wells (2 vertica
Slide 20: Botswana CBM Project
Botswana CBM Project For personal use only 20
Slide 21: Reserves and Contingent Resources
Reserves and Contingent Resources For personal use only Certified Resource Statement Unrisked Gross Unrisked Net OGIP(1) (100 Percent) (100 Percent) Certified Contingent Resource Category (BCF) (BCF) (BCF) Contingent Resources (SRK, 2015) 4.9 BCF (1C) Low Estimate (1C) 7.6 4.9 4.9 239 BCF (2C) B
Slide 22: Lesedi CBM Project Technical Fundamentals
Lesedi CBM Project For personal use only Technical Fundamentals Coal depth ~260-764m Cumulative net coal thickness 24m (Average) Gas contents 4-6 m3/t (DAF) (Average) Unstimulated reservoir ~2-5mD permeability per DST Gas compositions 80-95% methane 22
Slide 23: Lesedi Operations
Lesedi Operations For personal use only Aerial view of Operations Selemo Pod Gas flare - Selemo Pod December 2014 23
Slide 24: Lesedi Project
24 For personal use only Lesedi Project
Slide 25: Thank You
Thank You For personal use only 210 Alice St Brisbane QLD 4000 Australia Tel: +61 7 3012 9793 Ground Floor, Victoria House 132 Independence Avenue Gaborone Botswana Tel: +267 316 0857 www.tlouenery.com info@tlouenergy.com ASX: TOU
Slide 26: Appendix
26 For personal use only Appendix
Slide 27: Coal Bed Methane (CBM)
Coal Bed Methane (CBM) For personal use only CBM is chemically identical to other sources of gas but is produced by non-conventional methods CBM is extracted from coal seams rather than from sandstone reservoirs The main component of natural gas is methane CBM is produced by drilling into an
Slide 28: The Global CBM Industry
The Global CBM Industry For personal use only China First CBM project in 1995 By end of 2015 2850 MW will supply 3.2 Million households with CBM/CMM fuels Australia CBM contributed 87% USA of Queensland gas Pioneered CBM production in 2014 industry in 1970-80’s CBM expected to Approx. 7%
Slide 29: Horizontal Pilot Design
Horizontal Pilot Design For personal use only • Horizontal wells (~750m in-seam) with vertical pumping well • Lesedi pod completed as a dual lateral • Selemo pod completed as a single lateral • Target Reservoir: Basal Morupule coal seam (~6m) 29
Slide 30: Botswana
Botswana For personal use only Stable jurisdiction Extensive coal resources Gassy coal Attractive operating and regulatory regime Major energy shortfall in the Botswana and the South Africa region High energy prices Large mining industry to power 30