Tlou Energy Ltd · ASX:TOU
Tlou Energy — Petroleum Exploration Society of Australia (PESA) QLD Chapter Technical Luncheon (March 2015)
27 slides from Tlou Energy's conference presentation, Mar 19, 2015
Slide 1: Overview of Tlou Energy's CBM Project, Botswana
For personal use only Overview of Tlou Energy’s CBM Project, Botswana Petroleum Exploration Society of Australia (PESA) QLD Chapter Technical Luncheon Thursday 19th March, 2015 Mark Di Bacco, Exploration Manager
Slide 2: Disclaimer
Disclaimer For personal use only Disclaimer Future performance This presentation (Presentation) has been prepared by Tlou Energy Limited (Tlou). The Presentation and This Presentation contains certain “forward-looking statements”. Forward looking words such as, “expect”, information contained in it
Slide 3: About Tlou Energy
About Tlou Energy For personal use only Who we ASX listed coalbed methane (CBM) company are What CBM in Botswana we do Our Provide a clean and reliable energy Goal source to Botswana & southern Africa “Tlou” is the Setswana word for Elephant 3
Slide 4: Company Overview
Company Overview For personal use only Market Cap: Share Price: $0.15 ~$22m (12 Mar 2015) 148m shares Operations: Acreage: Botswana 10 Permits 100% owned 4 pilot locations HQ: Brisbane ASX: TOU 4
Slide 5: Key Information
Key Information For personal use only Botswana CBM Project • ~8,300km2, 100% owned • ~100 well database Certified Contingent Resources • 152 BCF (2C) • 2,322 BCF (3C) Significant market opportunity • Botswana’s most advanced project • High energy demand Location • Low cost • Supportive government 5
Slide 6: Botswana at a glance
Botswana at a glance • Former British protectorate, gaining independence in 1966. For personal use only • Land area roughly 1/3 the size of Queensland • Diamonds discovered early 1970s • Currently world’s largest producer of gem diamonds • Population ~ 2.1M • Over 80% literacy rate • Moody’s A2 Cred
Slide 7: Southern African Karoo Basins
Southern African Karoo Basins For personal use only Botswana (Morupule area) Tlhabala Fm Serowe Fm Morupule Fm Kamotaka Fm Catuneanu et al. 2005 Makoro Fm Adapted from Dukwi Fm 7 Cairncross, 2001
Slide 8: Karoo Kalahari basin covers approximately 70% of Botswana
For personal use only Karoo Kalahari basin covers approximately 70% of Botswana Permo-Triassic aged Karoo sequence overlain by Tertiary Kalahari basin sequence Permian Karoo coal targets Part of the Gondwana supersequence Similarities drawn to time equivalent sediments in: Cooper Basin Bowen Basin G
Slide 9: Tlou licences straddle the Mmashoro low and the Lephephe low
For personal use only Tlou licences straddle the Mmashoro low and the Lephephe low Both are sub-basins within the larger Karoo-Kalahari Basin Tlou’s current main focus is on the southern flank of the Mmashoro low. Annotated after Haddon, 2005 Originally from Pretorius, 1984
Slide 10: Acreage Footprint
Acreage Footprint For personal use only • ~8,300km2 • ~100 well database • 2 x Horizontal pilot well locations • Permanent field camp ~20 pax 10
Slide 11: Lesedi Project
For personal use only 11 Lesedi Project
Slide 12: Reservoirs
Reservoirs Laterally continuous coal For personal use only packages across three formations Serowe Formation Morupule Formation Kamotaka Formation Reflective of stable basin development and subsidence rates Bituminous coal rank ~0.8VR Rank varies on basin-wide scale, and due to localised volca
Slide 13: Lesedi CBM Project Technical Fundamentals
Lesedi CBM Project For personal use only Technical Fundamentals Coal depth ~300-700m Cumulative net coal thickness ~25m (Average) Gas contents 4-6 m3/t (DAF) (Average) Unstimulated reservoir ~2-5mD permeability per DST Gas compositions 75%+ methane 13
Slide 14: Independently Certified Contingent Resources
Independently Certified Contingent Resources For personal use only Resource Statement Contingent Resource OGIP(2) Unrisked Gross (100 Percent) Unrisked Net (100 Percent) Category (BCF) (BCF) (BCF) • 152 BCF (2C) Contingent Resources Low Estimate (1C) (1) 0.0 0.0 0.0 • 2,322 BCF (3C) Best Estimate (2
Slide 15: Past Drilling Programs
Past Drilling Programs For personal use only 2010 Coring Program • 5 coreholes 2011 Mopani Pilot Drilling • 2 pilot locations and monitoring wells 2013 Lesedi and Selemo Horizontal Drilling • 2 pilot locations 2014 Coring Program • 3 delineation / in-fill coreholes 15
Slide 16: Exploration / Delineation Coring Programs
Exploration / Delineation Coring Programs 3 coring campaigns For personal use only ~3000 metres of core cut ~330 Validated desorption samples ~20 DST conducted Exploration Corehole - Acoustic scanner image 16
Slide 17: Mopani Pilot Drilling
Mopani Pilot Drilling Objective For personal use only • Test a simple completion methodology • Provide unstimulated flow potential of the seams: • Morupule and Kamotaka seams Well Construction • Single vertical well, • co-mingled, multi-seam completion • Under ream, barefoot Results • Water rate ~20
Slide 18: Horizontal Drilling Pilot Program
Horizontal Drilling Pilot Program For personal use only • Horizontal wells (~750m in-seam) with vertical pumping well • Lesedi completed as a dual lateral • Selemo completed as a single lateral • Target Reservoir Lower Morupule coal seam (~6m) • First of its kind drilling in Botswana 18
Slide 19: Horizontal Drilling Pilot Program
Horizontal Drilling Pilot Program For personal use only Selemo 1P Landing Well Selemo 1AR No Vertical Exaggeration ~750m in-seam length No intersection into landing well, used for stratigraphic and wellbore positioning only 19 Gas/water production from toe-intercept well (Selemo 1P)
Slide 20: Gas flows
Gas flows For personal use only Selemo Pilot - Short term test – December 2014* • Peak recorded gas flow of ~400,000 cfd • Average recorded gas flow of ~200,000 cfd • Results suggest a commercial development is achievable. • First in Botswana to flow CBM gas at these rates *As detailed in Tlou’s ASX
Slide 21: Botswana Field Operations
Botswana Field Operations For personal use only Aerial view of Operations Selemo Pod Gas flare - Selemo Pod December 2014 21
Slide 22: Operating in Botswana
Operating in Botswana Remoteness For personal use only • Lead-times need to be considered • Logistical expertise Relatively immature industry • Borrow from mining focussed expertise, and then up-skill - Skilled Workforce - Service Companies • Bring in specialist services - Eg. on-site laboratory ser
Slide 23: Commercial Opportunities
Commercial Opportunities For personal use only 23
Slide 24: Commercialisation
Commercialisation For personal use only Sequence • Initial Gas Delivery – School & substation • Existing Orapa Power Station – 90MW Gas or Diesel • Proposed Power Station – 300MW Gas &/or Coal • Export Existing Power Grid • 33kV close to Lesedi Project • 220kV to the east • 400kV Interconnect to nei
Slide 25: Commercialisation: Initial Gas Delivery
Commercialisation For personal use only Initial Gas Delivery • Uses otherwise flared gas • Pipeline or CNG to Kodibeleng ~80km • Connect local school • Substation inter-connect Flared gas Pipeline Power School Connect to grid 25
Slide 26: Forward Plan
Forward Plan For personal use only MOU for Reserve Expanded Flow gas FID gas supply certification program • Achieved • In progress • Target • Additional Pilot • Target mid 2015 wells end 2015 • Operations • Seismic ongoing Acquisition • Step-out coring program 26
Slide 27: 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 Thank You Tel: +267 316 0857 www.tlouenery.com info@tlouenergy.com ASX: TOU