Tower Resources Plc · LSE:TRP
Tower Resources — Investor Presentation (February 2020)
24 slides from Tower Resources's investor presentation, February 2020
Slide 1: Corporate Presentation: Appraisal and development in Cameroon
Corporate Presentation Appraisal and development in Cameroon February 2020
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
Slide 3: Tower Resources Summary
Tower Resources Summary Appraisal and development in Cameroon ! 18 million bbls of Pmean recoverable contingent resources in Njonji structure on Thali block ! 18 million bbls+ of additional Pmean prospective resources in Njonji alone, much more on block ! Planning for production of 8,000 b/d in 2021
Slide 4: Thali Block, Cameroon, Rio del Rey Basin
Tower Resources Cameroon, Rio del Rey Basin Thali Block THALI PSC © 2020 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) © 2020 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 2020 2021 2022 NJOM3 SITE ANTICIPATED
Slide 8: Cash flow impact and financing
Cameroon, Thali Block Cash flow impact and financing • October 2018 Reserve Report based on NJOM-3 spud in Q2 2019 so timings are at least a year out but are still a good indication of future cash flow potential for 2021/22 – Report being updated now • Phase 1 development with 3 further wells to del
Slide 9: 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 10: 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 11: Tower's Team
Tower Resources Tower’s Team ! Small committed board with significant personal investment ! Directors own 29% 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 12: Tower Resources Summary
Tower Resources Summary Appraisal and development in Cameroon ! 18 million bbls of Pmean recoverable contingent resources in Njonji structure on Thali block ! 18 million bbls+ of additional Pmean prospective resources in Njonji alone, much more on block ! Planning for production of 8,000 b/d in 2021
Slide 13: Appendix
APPENDIX
Slide 14: Capital Structure
Tower Resources Capital Structure Capital Structure Major Shareholders 31st January 2020 Listing AIM Share price 0.525p Jeremy Asher* 27.3% Robert Finch 9.5% Market capitalisation ~ £5.8m Lansdowne Partners 4.6% Peter Taylor* 1.7% Issued share capital 1,104.6m Market-makers & others 56.9% Employee o
Slide 15: 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 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: 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 © 2020 Tower Resources plc 24
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