Slide 1: Corporate Presentation: Appraisal and development in Cameroon
Corporate Presentation Appraisal and development in Cameroon September 2019
Slide 2: 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: Summary
Tower Resources Summary Appraisal/development in Cameroon ! 18 million bbls of Pmean recoverable contingent resources at Njonji ! 18 million bbls+ of additional Pmean prospective resources in Njonji alone ! Planning for production of 8,000 b/d by end of 2020, estimated chance of success 80% ! Curren
Slide 4: Thali Block
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 2022 SITE SURVEY ANTICI
Slide 8: Cash Flow Impact per OIL Reserve Report
Cameroon, Thali Block Cash Flow Impact per OIL Reserve Report • October 2018 Reserve Report based on NJOM-3 spud in Q2 2019, and $69.80-67.00 Brent in 2020/21 • Phase 1 development with 3 further wells in 2019/20 to deliver 8,000 bbls/day production in 2020 • Best Estimate (2C) subject to successful
Slide 9: Cash Flow Impact per company projection
Cameroon, Thali Block Cash Flow Impact per company projection • Based on $60/bbl Brent price • Based on current AFE of $15 million for NJOM-3, dry hole cost of $10 million for further wells • Reduces total capex (excluding MOPU) from $79 million to $61 million plus prepayments • Based on NJOM-3 spud
Slide 10: Cash Flow Impact including Njonji PR
Cameroon, Thali Block Cash Flow Impact including Njonji PR • This scenario assumes the deeper Njonji reservoirs are oil-bearing south of the E-W fault • Increases Pmean recoverable resources from 18 million to 36 million bbls • Additional capex funded from cash flow • Results in peak production of 1
Slide 11: Cash Flow is robust to lower Brent price
Cameroon, Thali Block Cash Flow is robust to lower Brent price • This scenario reverts to the base case, 8,000 b/d from 18 million bbls of Pmean recoverable resources • Assumes Brent falls to $40 per barrel • Project can still pay back all capex including further exploration by mid-2022 • Q4 2022 ex
Slide 12: South Africa
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 13: 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 14: Tower's Team
Tower Resources Tower’s Team ! Small committed board with significant personal investment ! Directors own 18% of issued shares Peter Taylor Jeremy Asher David M Thomas Non-Executive Chairman & Non-Executive Director ! Director CEO UK staff with the company since 2013 ! Cameroon General Manager Honor
Slide 15: Summary
Tower Resources Summary Appraisal/development in Cameroon ! 18 million bbls of Pmean recoverable contingent resources at Njonji ! 18 million bbls+ of additional Pmean prospective resources in Njonji alone ! Planning for production of 8,000 b/d by end of 2020, estimated chance of success 80% ! Curren
Slide 16: Appendix
APPENDIX
Slide 17: Capital Structure
Tower Resources Capital Structure Capital Structure Shareholders Listing AIM Share price 0.72p Market capitalisation ~ £4.2m Issued share capital 580.7m Employee options‡ 71.6m (7.9%) Warrants‡ 252.9m (27.8%) Director, staff and 18.3% consultant holdings Average Daily Volume† 2,437,619 12 month low
Slide 18: 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 19: 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 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: www.towerresources.co.uk
www.towerresources.co.uk © 2019 Tower Resources plc 27