Slide 1: Tower Resources plc (TRP) - Exploring for Oil in Africa
Tower Resources Tower Resources plc (TRP) Exploring for Oil in Africa October 2005
Slide 2: Company Description
Tower Company Description Resources • Tower Resources (TRP) is an oil & gas exploration company focused on frontier areas in Africa with potential to deliver major new discoveries • Portfolio was assembled by Neptune Petroleum (NPL) (TM Services) who have a proven track record • NPL’s founding share
Slide 3: Company Description Cont'd
Tower Company Description Cont’d Resources – Early frontier developments including: • Planet Oil (inc offshore Mauritania) now owned by Hardman Resources • Star Petroleum (offshore Kenya) now Global Petroleum with 20% carry through 2 wells • Dampier (Falklands) now Falklands Oil & Gas/Falklands Gold
Slide 4: Leveraged to Success
Tower Leveraged to Success Resources • Tower will have market capitalisation post-capital raising of £8.5 m plus £2.5 m cash and no debt • Great upside from early licence positions in lightly explored but potentially highly prospective areas • Owns 100% of licences • Ability to joint venture e.g. Ke
Slide 5: Two Key Areas
Tower Two Key Areas Resources • Namibia – 3 offshore blocks • Uganda – 1 onshore block
Slide 6: Namibia
Tower Namibia Resources • Three offshore blocks granted 24 August 2005 • Cover huge 23,000 km2 (equivalent to 90 North Sea blocks) • Frontier exploration basin • Namibia one of the current world hot spots – BHP Billiton and Hunt Oil also awarded blocks in August
Slide 7: Walvis Basin Blocks
Tower Walvis Basin Blocks Resources
Slide 8: Past Exploration
Tower Past Exploration Resources • 2 wells drilled by Norsk Hydro • Both wells TD’ed in Lower Cretaceous volcanics • Encountered Campanian & Albian reservoir units and Cenomanian & Turonian source rocks • No test of Palaeocene or deeper Jurassic • Objectives difficult to identify
Slide 9: 1911/15-1 Well Tie
Tower 1911/15-1 Well Tie Resources
Slide 10: Walvis Basin - Undrilled Plays 1
Tower Walvis Basin - Undrilled Plays 1 Resources
Slide 11: Walvis Basin - Undrilled Plays 2
Tower Walvis Basin - Undrilled Plays 2 Resources
Slide 12: PSA Terms in Namibia
Tower PSA Terms in Namibia Resources • Phase 1 (2 years) Studies plus 1,000 km seismic ($1.15m) • Phase 2 (2 years) 1 firm well ($10.0m) • Phase 3 (2 years) 1 firm well plus 1,000 km seismic ($11.0m) • Bank guarantee – 5% on Phase 1
Slide 13: Uganda
Tower Uganda Resources • 1 Onshore block (Block 5) secured under favourable PSA terms • Licence signed 27 Sep 05 • Little historical exploration • Neighbouring countries are prolific oil producers
Slide 14: Block 5 Location
Tower Block 5 Location Resources • Block 5 due south of Sudan • Oil & gas found in Blocks 3 & 4 (Heritage and Tullow) • Main play is Albertine Graben • Surface oil seeps along margins • Block 5 has no seismic • Waki Butiaba-1 well (1930’s) found mature paraffinic & waxy source rocks
Slide 15: Albertine Graben Cross-Section
Tower Albertine Graben Cross-Section Resources
Slide 16: Waki Butiaba-1 Well
Tower Waki Butiaba-1 Well Resources
Slide 17: Block 5 PSA Terms
Tower Block 5 PSA Terms Resources • Signature bonus $100,000 • Phase 1 (2 years) 200km seismic & geological studies ($700k) • Phase 2 (2 years) 1 firm well plus 1 contingent well ($3m) • Phase 3 (2 years) 1 firm well plus 1 contingent well ($3m)
Slide 18: Ugandan Production Terms
Tower Ugandan Production Terms Resources • 20 year term plus 5 year renewals • 12.5% Royalty • 53% Production share @ 5,000 BOPD falling to 25% @ 40,000 BOPD • Cost recovery – 50% on oil – 60% on gas
Slide 19: Corporate Details
Tower Corporate Details Resources AIM code: TRP Listed as cashbox December 2004 Merged with Neptune Petroleum Ltd October 2005 No. shares (post-merger & raising) 425 million Directors 48 % Market capitalisation (@ 2p) £8.5 million Cash £2.5 million
Slide 20: Management
Tower Management Resources • Russell Langusch – Executive Chairman – Over 30 years’ experience in international oil & gas industry both in upstream operations and finance sector – Wide experience in Australasia, Far East and NW Europe • Peter Blakey & Peter Taylor – Directors – Joint chairmen of TM
Slide 21: Management Cont'd
Tower Management Cont’d Resources • Mark Savage – Director – Former senior executive of number of US banks before joining an Australian based merchant bank – Experience in debt and equity markets as well as corporate advisory area – Director of Global Petroleum Ltd, which is ASX/AIM listed with sign
Slide 22: Summary
Tower Summary Resources • Exciting groundfloor exploration in two highly prospective areas • Proven track record of management and board • Own 100% of licences hence flexibility in farmin arrangements • Huge market leverage • An exciting new exploration company chasing high potential plays in one of
Slide 23: Contact Details
Tower Contact Details Resources Tower Resources plc 5 Charterhouse Square London EC1M 6PX Tel: 0207 867 8600 Fax: 0207 867 8787 Russell Langusch Mob 07840 523771
Slide 24: Thank you
Tower Thank you Resources