Slide 1: Corporate Presentation: Preparing for First Oil in Cameroon
Corporate Presentation Preparing for First Oil in Cameroon April 2019
Slide 2: Disclaimer: Important Notice
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
Slide 3: Tower Resources Summary
Tower Resources Summary Focus on Sub-Saharan Africa ! Cameroon – drilling on the Thali license ! Other exploration assets with longer time horizon • South Africa, Namibia and more Preparing for first oil in Cameroon ! Drilling NJOM-3 well on Thali license in Q2 2019 ! Aiming to unlock ~18 million bb
Slide 4: Thali Block, Cameroon, Rio del Rey Basin
Tower Resources Cameroon, Rio del Rey Basin Thali Block THALI PSC © 2019 Tower Resources plc 4
Slide 5: Local Infrastructure
Cameroon, Thali Block Local Infrastructure DISSONI NORTH (PERENCO OPERATED) 20 THALI PSC PERENCO / ADDAX Contingent OPERATED FIELDS OAK 30 Prospective (PERENCO AQUIRED 50% INTEREST IN 2018) 40 (FSO) 50 THALI Fields: MASSONGO TERMINAL 5 Water depth (m) © 2019 Tower Resources plc 5
Slide 6: Updated Pmean Resource Estimates
Cameroon, Thali Block Updated Pmean Resource Estimates DISSONI NORTH FIELD SHALLOW PLAYS 25 MMbbl Contingent Prospective XX MMbbl = DISSONI SOUTH arithmetically summed FAULT BLOCK A total unrisked gross 37.8 MMbbl Pmean recoverable oil (Reserves Report, 2018) IDENAO EAST FOI 1 AKONO ERONG 37.1 MMbbl
Slide 7: Njonji Development
Cameroon, Thali Block Njonji Development ! NJOM3 drill & extended well test - confirm development strategy ! Phased approach, low upfront costs - leased MOPU* & shuttle tanker ! Wells deviated from centralised hub(s) - reduce surface infrastructure requirements 2019 2020 2021 FINAL PLANNING, CONTRAC
Slide 8: Njonji Economics per Reserve Report
Cameroon, Thali Block Njonji Economics per Reserve Report • Best estimate Contingent Resources NPV10 of $158 million and EMV10 of $118 million • NPV10 and EMV10 take into account costs of development including Q2 2019 well • Over $100 million of further NPV10 in Njonji South if the prospective deepe
Slide 9: Cash Flow Impact per Reserve Report
Cameroon, Thali Block Cash Flow Impact per Reserve Report • Reserve Report is based on Brent price of $69.80 in 2020 and $67.00 in 2021 • Phase 1 is a 4 well development in 2019-2020 delivering production of 8,000 bbls/day in early 2020 • Best Estimate (2C) is subject to successful flow test of Q2 2
Slide 10: South Africa: Operated by New Age, 50% interest
South Africa Operated by New Age, 50% interest Substantial Prospective Resources in three basins ! Gamtoos Basin: Roan, Reedbuck and Steenbock prospects covered by extensive 2D ! Algoa Basin: Canyon prospect, already covered by 3D ! Outeniqua Basin: Brulpadda gas condensate discovery by Total succes
Slide 11: Namibia: New Petroleum Agreement Signed
Namibia New Petroleum Agreement Signed New License Covers Blocks 1910A, 1911 & 1912B EXXON / SONANGOL MOU (DEC 2018) ! Operator: Tower with 80% interest ! Local partner and Namcor to hold 20% Significant hydrocarbon shows ! Subject to JOA and ancillary documents ANGOLA NAMIBIA KUNENE 1 ! Very large
Slide 12: Tower's Team
Tower Resources Tower’s Team ! Small committed board with significant personal investment ! Directors own ~17% of issued shares Jeremy Asher Peter Taylor Graeme Thomson David M Thomas Chairman & Non-Executive Non-Executive Non-Executive Director Director Director ! CEO UK staff with the company sinc
Slide 13: Tower Resources Summary
Tower Resources Summary Focus on Sub-Saharan Africa ! Cameroon – drilling on the Thali license ! Other exploration assets with longer time horizon • South Africa, Namibia and more Preparing for first oil in Cameroon ! Drilling NJOM-3 well on Thali license in Q2 2019 ! Aiming to unlock ~18 million bb
Slide 14: Appendix
APPENDIX
Slide 15: Capital Structure
Tower Resources Capital Structure Capital Structure Shareholders Listing AIM Share price 0.875p Market capitalisation ~ £4.95m Issued share capital 565.7m Employee options‡ 71.6m (8.1%) Warrants‡ 245.7m (27.8%) Director, staff and 16.7% consultant holdings Average Daily Volume† 2,740,426 12 month lo
Slide 16: Existing Discoveries on Block
Cameroon, Thali Block Existing Discoveries on Block Njonji Discovery ! Two proven fault blocks (+ add-on prospects) ! Average 35° API oil ! Shallow drilling depths (900 - 1100m) ! 30m water depth NJONJI - CONTINGENT RESOURCES (Recoverable Oil, MMbbl) Low Best High Mean Estimate Estimate Estimate Pha
Slide 17: Additional Shallow Prospectivity
Cameroon, Thali Block Additional Shallow Prospectivity Dissoni South & Idenao East Prospects ! Multiple shallow prospects (< 1200m depth) identified ! Adjacent to the producing Dissoni North field ! Stacked reservoir targets DISSONI & IDENAO - PROSPECTIVE RESOURCES (Recoverable Oil, MMbbl) Low Best
Slide 18: Njonji – Contingent Resources
Cameroon, Thali Block Njonji – Contingent Resources STOIIP (MMSTB) Recoverable Oil (MMSTB) Fault Block Reservoir P90 P50 P10 Mean P90 P50 P10 Mean Njonji 1 PS9_R1_R1X_R2 11.06 24.93 43.55 26.37 2.38 6.87 14.84 7.89 Njonji 1 PS3_R1 7.21 17.75 35.50 19.91 1.53 4.91 11.85 6.02 Njonji 1 PS3_R2 0.86 1.91
Slide 19: Njonji – Prospective Resources
Cameroon, Thali Block Njonji – Prospective Resources STOIIP (MMSTB) Recoverable Oil (MMSTB) Fault Block Reservoir P90 P50 P10 Mean P90 P50 P10 Mean Njonji South PS9_R1_R1X_R2 1.68 4.46 15.39 4.96 0.16 0.71 2.02 0.94 Njonji South PS3_R1 18.73 49.73 96.00 54.68 4.29 13.67 32.22 16.58 Njonji South PS3_
Slide 20: Northern area Prospective Resources
Cameroon, Thali Block Northern area Prospective Resources STOIIP (MMSTB) Recoverable Oil (MMSTB) Fault Block Reservoir P90 P50 P10 Mean P90 P50 P10 Mean Dissoni South Fault Block A S5 35.29 112.69 228.31 123.87 8.33 30.86 76.21 37.81 Dissoni South Fault Block B S5 5.76 20.25 53.20 25.81 1.34 5.62 16
Slide 21: Deeper Prospectivity
Cameroon, Thali Block Deeper Prospectivity Map WEST EAST DISSONI showing Dissoni South Fault Blocks SOUTH low risk analogous to Dissoni North (1000-1500m) Pliocene Channels shallow Zafiro-type play, Idenao leads (1500-2500m) LINE fault blocks Toe Thrust Anticline Idenao High (2000-3000m) IDENAO Mini
Slide 22: South Africa: Algoa Gamtoos background and context
South Africa Algoa Gamtoos background and context Tower’s 50% interest in Algoa-Gamtoos was acquired with Rift Petroleum ! Operator: New Age ! 3D acquired in 2014 ! 1st Renewal Period granted in Sept 2015, agreed in August 2017 ! Additional geophysical work planned in 2019 ! Total, Exxon, BHP, Stato
Slide 23: Namibia: Multiple Plays, Stacked Targets
Namibia Multiple Plays, Stacked Targets ! Norsk Hydro wells (mid-1990s) proved presence of: ! Thick Palaeocene, Maastrichtian & Campanian turbidite sands ! Good quality Albian carbonate reservoirs ! Multiple large structural traps identified and mapped on existing 2D seismic Giant 4-way Dip Closures
Slide 24: www.towerresources.co.uk
www.towerresources.co.uk © 2019 Tower Resources plc 24