Tlou Energy Ltd · ASX:TOU
Tlou Energy — Investor Presentation (March 2016)
20 slides from Tlou Energy's investor presentation, Mar 1, 2016
Slide 1: Gas to Power in Botswana: Investor Presentation Q1 2016
For personal use only Gas to Power in Botswana: Investor Presentation Q1 2016
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation (Presentation) has been prepared by Tlou Energy Limited (Tlou). The Presentation and information contained in it is being provided to shareholders and investors for information purposes only. The information contained in this disclaimer does not con
Slide 3: Overview: Delivering gas-to-power via CBM in a market with huge demand
OVERVIEW Delivering gas-to-power via CBM in a market with huge demand For personal use only • Huge market – chronic energy shortage MARKET ASX / AIM locally & regionally EPIC TOU/ TLOU • High power price – replace expensive imported power and diesel generation SHARES IN ISSUE 206M • De-risked projec
Slide 4: Vision & Strategy
VISION & STRATEGY Long term vision to build a mid-tier energy provider in Southern Africa For personal use only • Current focus – Lesedi Gas to Power pilot project Export • Develop a 10MW pilot plant power • Upscale pilot to ~50MW Greenfield IPP 300MW • Supply Orapa 90MW power station • 300MW greenf
Slide 5: Production Testing
PRODUCTION TESTING For personal use only Complete Complete In Progress Q1 2016 Q2 2016 Optimum Well Commence Well Sustained gas flow and preparation Flow tests response gas reserves •Stabilise wells •Drop well pressure •Measure water influx •Stabilise water level •Increase gas flow •Calibrate equipm
Slide 6: 10MW Pilot Project Timetable
10MW PILOT PROJECT TIMETABLE Plan to deliver first gas to market via a 10MW pilot project For personal use only H1 2016 H2 2016 H1 2017 H2 2017 Gas Flows Mining Licence Core-holes – post Field Development seismic results operations EIA Preparation: PPA (10-50 MW pilot Field Development: project) Mid
Slide 7: 10MW Pilot Project - Key Steps
10 MW PILOT PROJECT - KEY STEPS For personal use only 7
Slide 8: Strong Track Record
STRONG TRACK RECORD Led by an experienced team including a pioneer of CBM in Queensland For personal use only Anthony (Tony) • Geologist with >30 years industry experience Gilby • Co-founder of a number of CBM companies including Sunshine Gas • Previous technical roles for ESSO & Exxon • Took Sunshi
Slide 9: Botswana's Power Dynamic
BOTSWANA’S POWER DYNAMIC As Botswana’s reliance on non-firm imports and on-going diesel generation increases, For personal use only the support for domestic sources of energy is strong • 68% increase in power demand to 1,030MW by 2022 • Botswana’s ‘Morupule B’ power station • Currently operating at
Slide 10: Gas to Power Plans in Botswana
GAS TO POWER PLANS IN BOTSWANA Lesedi is ideally located for access to supporting infrastructure For personal use only 10
Slide 11: Overview of Lesedi
OVERVIEW OF LESEDI For personal use only Large licence area, significantly de-risked, Tlou operating since 2009 Most advanced CBM project in Botswana A$43million invested to date First gas flared December 2014 Gas flow testing in progress Multiple market opportunities exist 11
Slide 12: Lesedi in Numbers
LESEDI IN NUMBERS For personal use only Certified Resource Statement Certified Contingent Resource Unrisked Gross Unrisked Net OGIP(1) (100 Percent) (100 Percent) Category (BCF) Contingent Resources (SRK, 2015) (BCF) (BCF) 4.9 239 3,295 Low Estimate (1C) 7.6 4.9 4.9 BCF BCF BCF Best Estimate (2C) 36
Slide 13: Proposed Market Opportunities
PROPOSED MARKET OPPORTUNITIES Multiple market opportunities – significant demand for Tlou’s product endorses For personal use only strategy to scale Lesedi following successful commissioning of 10MW pilot plant Phase Market Opportunity Strategy 1 Pipeline or • Grid-connected power Complete product
Slide 14: Investment Case
INVESTMENT CASE For personal use only Most advanced gas project in Botswana Huge regional demand for Premium power power price Multiple Low cost Experienced market environment team opportunities 14
Slide 15: Contact
CONTACT Tlou Energy Limited For personal use only Colm Cloonan, Finance Director 210 Alice St Brisbane QLD 4000 Australia T:+61 7 3012 9793 Ground Floor, Victoria House 132 Independence Avenue Gaborone Botswana T:+267 316 0857 W:www.tlouenery.com E: info@tlouenergy.com ASX: TOU AIM: TLOU St Brides P
Slide 16: Appendix
For personal use only APPENDIX 16
Slide 17: Coal Bed Methane (CBM)
COAL BED METHANE (CBM) • Chemically identical to other For personal use only sources of gas but is produced by non-conventional methods • Extracted from coal seams rather than sandstone reservoirs • Main component from natural gas is methane • Typically found at depths of 400m – 1,000m enabling lowe
Slide 18: The Global CBM Industry
THE GLOBAL CBM INDUSTRY For personal use only China First CBM project in 1995 By end of 2015 2,850 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 19: Operating in Botswana
OPERATING IN BOTSWANA For personal use only Major power High deficiency in energy the region prices Attractive Large operating Extensive Stable Supportive mining and coal jurisdiction government industry to regulatory resources power regime 19
Slide 20: Gas to Power in Botswana
For personal use only Gas to Power in Botswana: Investor Presentation Q1 2016