Tlou Energy Ltd · ASX:TOU
Tlou Energy — Investor Presentation (May 2018)
25 slides from Tlou Energy's investor presentation, May 17, 2018
Slide 1: Corporate Presentation Q2 2018
0 Corporate Presentation Q2 2018 For personal use only
Slide 2: Disclaimer
1 Disclaimer 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 For personal use only contained in this disclaimer does not c
Slide 3: Company Information
2 Company Information For personal use only Tlou Energy is an onshore gas exploration and power generation company with operations located in Botswana. The Company aims to produce gas-fired electricity for sale into the regional power market in Botswana and Southern Africa. STOCK MARKET ASX / AIM /
Slide 4: Board
3 Board For personal use only Martin McIver • Over 17 years experience in finance Gabaake • Geologist, former Botswana Permanent Chairman and mining services Gabaake Secretary at Ministry of Minerals • Currently CFO of the WorkPac group Executive Energy & Water Director • Former Director of Debswana
Slide 5: Who is Tlou Energy?
4 Who is Tlou Energy? For personal use only Onshore Gas-to-power developer • Clean natural CBM gas • 8,300 km2 project acreage, 100% owned and operated, De-risked project Significant Gas Reserves and Contingent Resources • Large gas asset, independently certified • Sufficient gas in place for initia
Slide 6: What does Tlou Energy do?
5 What does Tlou Energy do? For personal use only The Company extracts CBM natural gas from coal, using horizontal drilling techniques. This CBM gas can then be used for electricity generation. ➢ Tlou’s CBM extraction method ✓ Dual Lateral Pods, each comprising one vertical and two horizontal wells
Slide 7: Where is the project?
6 Where is the project? For personal use only Botswana - The leading economy in Sub-Saharan Africa Ideal investment destination Stable, democratic government No foreign exchange controls One of the worlds largest diamond producers Growing economy No “BE” or ownership restrictions Excellent credit ra
Slide 8: Botswana Project Map
7 Botswana Project Map For personal use only www.tlouenergy.com
Slide 9: Initial Development Plan
8 Initial Development Plan For personal use only ➢ Develop up to 10 MW of power: ❖ Targets first revenue while minimising initial capex requirement ❖ Sufficient gas reserves already in place ❖ Achieves grid connection and facilitates simple expansion ❖ Easily integrate Solar generation ➢ Strategy: ❖
Slide 10: Project Benefits
9 Project Benefits Creating employment in ➢ For Investors For personal use only Botswana since 2009 ❖ Leading CBM project in the region ❖ Significantly de-risked ❖ Enormous potential upside as the project moves into development and generates first revenue ❖ Much larger projects planned post the init
Slide 11: Generating power from CBM in Botswana
… generating power from CBM in Botswana For personal use only 10 www.tlouenergy.com
Slide 12: Reserves & Contingent Resources
11 Reserves & Contingent Resources For personal use only Independent Gas Reserves Certification Technical Fundamentals (1) 0.35 40.8 426.6 Coal Depth ~350-800m BCF BCF BCF Gas Contents (Average) ~6 m3/t (DAF) (1P) (2P) (3P) Gas compositions ~90% methane (1) (2) Gas Reserves Gas Contingent Resources
Slide 13: Gas Reserves Summary
12 Gas Reserves Summary For personal use only ✓ Sufficient Reserves already in place for initial project development ✓ Further Reserves and Resources in place for significant expansion 2P Gas Reserves in place: 3P Gas Reserves in place: 3C Contingent Resources ~41 BCF ~426 BCF ~3,043 BCF • a 10 MW p
Slide 14: Power Market with enormous demand
13 Power Market with enormous demand SAPP Electricity Shortfall For personal use only ➢ Southern African Power Pool (SAPP) South Africa ▪ 12 member countries ~5,994 MW ▪ Aimed at developing a competitive electricity market in the region ▪ Facilitates transmission of power across all member states Re
Slide 15: Environmental Impact Statement (EIS)
14 Environmental Impact Statement (EIS) For personal use only Field Development EIS approved Project to create Only CBM Gas local direct and EIS approved in indirect Botswana employment EIS involved Project will have extensive minimal impact engagement on agricultural with local land population Powe
Slide 16: Potential Synergies
15 Potential Synergies For personal use only Complement Solar Power Feedstock to CBM support new Industry Natural Rural electrification Gas Clean cooking to reduce illness from unclean fuels www.tlouenergy.com
Slide 17: Field operations: Lesedi CBM Project, Botswana
Field operations Lesedi CBM Project, Botswana For personal use only 16 www.tlouenergy.com
Slide 18: How Have We Got Here?
17 How Have We Got Here? For personal use only 2012 2014 2016 2018 First Contingent First Gas Upstream Significant Increase in Gas Resources Environment Gas Reserves and approval Contingent Resources First Gas Reserves 2009 2013 2015 2017 Botswana ASX Listing Increased First gas fired power operatio
Slide 19: Ongoing Workstreams
18 Ongoing Workstreams For personal use only Direct discussions with Botswana Power Corporation for a small scale pilot project Power Purchase Government 100 MW re-tender proposal being considered, subject to terms Agreements (PPA) Regional 3rd party off-takers Inception report and local stakeholder
Slide 20: Other Planned Workstreams
19 Other Planned Workstreams* For personal use only Drilling Rig acquisition Pilot Well Drilling Seismic Surveys Expanded Reserves Project Development * Subject to funding. www.tlouenergy.com
Slide 21: Existing power distribution network in place
20 Existing power distribution network in place For personal use only World class power network in place and access to neighbouring countries www.tlouenergy.com
Slide 22: Aeromagnetic and Seismic Coverage
21 Aeromagnetic and Seismic Coverage For personal use only www.tlouenergy.com
Slide 23: Coal Cross-Section
22 Coal Cross-Section For personal use only Coal cross-section corresponds to line A-A’ on the Aeromagnetic Map on the previous slide. www.tlouenergy.com
Slide 24: Investment Case
23 Investment Case For personal use only Independently Certified Gas Reserves & Contingent Resources Huge electricity Supportive Low cost Significant Mining licence market government drilling CBM experience granted Aiming to provide power for Botswana and Southern Africa www.tlouenergy.com
Slide 25: For personal use only
For personal use only Tlou Energy Limited 210 Alice St Brisbane QLD 4000 Australia +61 7 3012 9793 Ground Floor, Victoria House 132 Independence Avenue Gaborone Botswana +267 316 0857 www.tlouenery.com info@tlouenergy.com ASX: TOU AIM: TLOU BSE: TLOU