Tower Resources Plc · LSE:TRP

Tower Resources — Investor Presentation (January 2015)

25 slides from Tower Resources's investor presentation, January 2015

  1. Slide 1: Building a High Impact Exploration Portfolio in Africa

    January 2015 Building a High Impact Exploration Portfolio in Africa © 2015 Tower Resources plc 1

  2. Slide 2: Disclaimer

    Disclaimer Important Notice DISCLAIMER The information contained in these slides has been prepared by Tower Resources plc (the “Company”). This Presentation is being made for information purposes only and does not constitute an offer or invitation for the sale or purchase of securities or any of the

  3. Slide 3: Building a High Impact African Portfolio

    Tower Resources Building a High Impact African Portfolio Key Existing Assets Tower in 2015 In Acquisition Blocks  Strong portfolio built in last two years  Track record of deal making SADR  Access to capital  Low commitments – large upside  Mostly frontier acreage but now entering established b

  4. Slide 4: Tower Resources in 2012

    Tower Resources Tower Resources in 2012 Diagnosis: Post Traumatic Drill Disorder SADR  Unsuccessful exploration in Uganda 50% of 3 Blocks 1 Onshore  One remaining active asset - Namibia 2 Offshore 72,698 km2 Operator: Wessex Uganda  Deep water well to spud by Q3 2013 Representative office  Inter

  5. Slide 5: Outsourced Exploration Department OExD

    Tower Resources Outsourced Exploration Department OExD®  Strategic partnership provides a ready-made and scalable exploration group integrated within the Tower corporate organisation  Highly experienced team with successful track record of value-creation through new ventures, exploration & apprais

  6. Slide 6: Acquisition of Wilton Petroleum

    Tower Resources Acquisition of Wilton Petroleum  Acquisition announced July 2013  20% carried interest for two wells in Marovoay Block-2102 onshore Madagascar  Reputable operator - Ophir Energy  First exploration well to be spudded mid-2014  Multiple play types – considerable upside  First wel

  7. Slide 7: Acquisition of Wilton Petroleum

    Tower Resources Acquisition of Wilton Petroleum Nothing ever goes exactly according to plan:  Immediately after our capital raise of ~US$15 million, at 1.1p per share, Ophir announced their intention to withdraw from the licence But there is always a solution:  Settlement Agreement announced Septe

  8. Slide 8: Dissoni Block, Offshore Cameroon

    Tower Resources Dissoni Block, Offshore Cameroon Dissoni Block - Rio del Rey Sub-basin of the Niger Delta DISCOVERED RESERVES - DATA SOURCES  Rio del Rey basin identified as underexplored NIGER DELTA - USGS (1999) RIO DEL REY - WOODMAC (2013) + CORPORATE PRESENTATIONS (2013-14) sub-basin of Niger D

  9. Slide 9: Dissoni Block, Offshore Cameroon

    Tower Resources Dissoni Block, Offshore Cameroon Exciting because:  Exploration concept is to acquire new 3D seismic to update 20 year old data set and allow better resolution of shallow plays and imaging of deeper section  Multiple play types identified Frustrating because:  Negotiations still o

  10. Slide 10: Portfolio End 2013

    Tower Resources Portfolio End 2013 Uganda SADR Representative 50% of 3 Blocks office 1 Onshore East Africa 2 Offshore regional base 72,698 km2 Operator: Wessex Cameroon Negotiating PSC terms for Dissoni Block (offshore) Madagascar Onshore In negotiation Namibia 30% of PEL010 3 Blocks offshore Operat

  11. Slide 11: Transformational Transactions in 2014

    Tower Resources Transformational Transactions in 2014 All Share Acquisition of Rift Petroleum  Privately-owned exploration company with exposure to oil & gas opportunities in South Africa & Zambia  Founder: Julian McIntyre – Successful investor in Sub-Saharan Africa  Vendor shareholder injected U

  12. Slide 12: South Africa - Rift Portfolio

    Tower Resources South Africa - Rift Portfolio Well placed in areas targeted by Majors © 2015 Tower Resources plc 12

  13. Slide 13: Transformational Transactions in 2014: Kenya Farm-in

    Tower Resources Transformational Transactions in 2014 Farm-in to 15% Anza Basin: An Underexplored Branch of the Mesozoic and Tertiary Age Rift Systems of East Africa of Block 2B, Kenya Tertiary East African Gardim-1 Sabisa-1 Rift System in Kenya  Drilling of Badada-1 well Tultule-1 early Jan 2015 o

  14. Slide 14: Transformational Transactions in 2014: Equity Capital Markets

    Tower Resources Transformational Transactions in 2014  In addition to the Rift acquisition and the Kenya farm-in, Tower was successful in raising US$32 million at 3.5p per share  This was in addition to the capital raised in 2013 at 1.125p per share  This was despite adverse market conditions in

  15. Slide 15: Transformational Transactions in 2014

    Tower Resources Transformational Transactions in 2014  As a percentage of market capitalisation, Tower was one of the most successful fund raisers among AIM oil and gas companies © 2015 Tower Resources plc 15

  16. Slide 16: Namibia – Welwitschia-1/1A

    Tower Resources Namibia – Welwitschia-1/1A  Welwitschia-1A drilled to 2,454 metres TVDRT GAZANIA Awarded new PA & commits WESTBRIDGE  Younger reservoirs poorly developed to US$40MM exploration prog. (June 2013) Awarded additional licences (July 2013)  Problems with rig and weather Oil shows TULLO

  17. Slide 17: Tower Resources in 2015

    Tower Resources Tower Resources in 2015 Key A Balanced Exploration Portfolio Existing Assets In Acquisition Blocks  Refocused and replenished  Namibia well disappointing, but SADR not terminal  Now active in five countries  Funded through current CAMEROON commitments KENYA  Expanded management

  18. Slide 18: Capacity for Growth

    Tower Resources Capacity for Growth  Experienced Board  Strong management team  Outsourced exploration department providing excellence with flexibility  In 2014 provided 45 personnel with 750 years of collective experience  Approximately 11 FTE utilised  Low overheads  Everyone incentivised t

  19. Slide 19: Capital Structure

    Tower Resources Capital Structure Capital Structure Shareholders Listing AIM 9.8% Quantum Pacific Finance Holdings Limited Share price 0.53p 7.9% Rift Petroleum Group Holdings Limited Market capitalisation ~ US$30m 7.5% Morgan Stanley Issued share capital 3,804.9m Options & warrants 252.5m (6.3%) 7.

  20. Slide 20: Zambia, Blocks 40 & 41

    Tower Resources Zambia, Blocks 40 & 41 Operator: Tower (80%) Initial Period Work Programme:  Geological Fieldwork: Presence & evaluation of source rock and reservoir COMPLETED  Geophysical Data: Reprocessing and evaluation of existing gravity and magnetics COMPLETED  Remote Sensing: Identify pote

  21. Slide 21: SADR – Western Sahara

    Tower Resources SADR – Western Sahara SADR – Guelta, Imlili & Bojador Blocks  3 blocks under Assurance Agreement HALO/Tower  Two offshore, one onshore Premier/Ophir Premier Morocco licences New Age/Glencore  Entry: 2007 3D Seismic (under negotiations)  Area: 77,023 km²  Tower: 50% working inter

  22. Slide 22: Kenya, Block 2B - 'String of Pearls'

    Tower Resources Kenya, Block 2B - ‘String of Pearls’  The Anza Basin and Lokichar Basin compared  Analogous “String of Pearls” plays exist along the Block 13T&10BB basin-bounding-faults of both basins Tullow Oil & Africa Oil Corp Number of Recent Discoveries with Gross Contingent Resources estimat

  23. Slide 23: Kenya - Badada & Ngamia Comparison

    Tower Resources Kenya - Badada & Ngamia Comparison Anza Basin (Block 2B) – Badada Structure Lokichar Basin (Block 13T) – Ngamia Structure Badada Structure Ngamia Structure 0 Kilometres 2 Middle Miocene Time (rotated view) Planed Wells Depth Map Near Mid Auwerwer Unrisked Prospective Pools 3-4 Pmean

  24. Slide 24: Anticipated Activity

    Tower Resources Anticipated Activity Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Namibia - PEL0010 Drilling Well Results Integration Drilling (Welwitschia 1) & planning for follow-up drilling (contingent ) Shell, OMV, Murphy farm-ins Chariot drilling in PE

  25. Slide 25: Tower Resources in 2015

    Tower Resources Tower Resources in 2015 Key A Balanced Exploration Portfolio Existing Assets In Acquisition  Active in five countries Blocks  Continuing new ventures activity  Negotiating in four countries SADR  Funded through current commitments Structured for growth CAMEROON  Expanded managem

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