Tlou Energy Ltd · ASX:TOU
Tlou Energy — Shareholder Meeting (November 2011)
24 slides from Tlou Energy's shareholder meeting presentation, Nov 8, 2011
Slide 1: Annual General Meeting
Annual General Meeting 8 November 2011
Slide 2: Agenda
Agenda 1. Introduction • Last 12 Months for Tlou Energy 2. Botswana CBM Project • Summary of Work Completed • CBM Resource Delineation 3. Operations • Masama Area • Karoo Central • Pre-Pilot Program 4. New Business • Opportunities • Zimbabwe expansion 5. Forward Plan
Slide 3: Introduction
Introduction
Slide 4: Last 12 months for Tlou
Last 12 months for Tlou • Tlou Energy has cemented itself as a leading CBM operator in southern Africa • Completed analysis of well data acquired from initial exploration program in Botswana • High graded area for next phase of operation • Began 2 + 2 pre-pilot drilling program to assess well produc
Slide 5: Botswana CBM Project
Botswana CBM Project
Slide 6: Botswana CBM project
Botswana CBM project • Tlou Energy has completed an extensive exploration program, across its Botswanan portfolio • Most advanced CBM operation in the region
Slide 7: Summary of work completed
Summary of work completed Tlou Energy Botswana CBM project has the most comprehensive exploration dataset of any project in southern Africa: • Wells drilled Core holes: 30 from which the gas content and its quality were tested Stratigraphic holes: 41 to determine the lateral extent of the coal a
Slide 8: CBM Resource delineation
CBM Resource delineation Tlou’s exploration program has aggressively targeted Botswana’s vast CBM potential • Tlou has engaged Netherland Sewell & Associates (NSAI) to produce a resource assessment of the Botswana Gas Project • A Contingent Resource statement is expected to be completed by end 2011
Slide 9: Operations
Operations
Slide 10: Masama Area
Masama Area • Program began in October 2009 • 5 wells drilled and tested • Low gas content coals intersected • Have moved towards relinquishment of non- prospective areas • Discovered a prospective coal package in south of permit area • Extension of known1.3bt non-JORC compliant coal resource (Asenj
Slide 11: Karoo Central – main focus area
Karoo Central – main focus area • 5 wells completed and tested in last program: • Karoo Central was primary target for Saber • Tlou introducing new testing methods to assess CBM suitability • 18 DST’s completed delineating fair to good permeability • 200+ Coal and shale tests complete • Pre-Pilot te
Slide 12: Pre-pilot program
Pre-pilot program • Pre-pilot drilling program began in July 2011 • Drilling of pilot/monitoring wells (Mopani 1P/1M & 2P/2M) was completed in September 2011 • Well program under budget • Completed running well completions in early November • Well testing to commence within the next week • Estimated
Slide 13: Pre-pilot program location
Pre-pilot program location Mopani 2P/2M Mopani 1P/1M Camp Location
Slide 14: 2011 Pre-pilot Drilling programme
2011 Pre-pilot Drilling programme Pilot Well Locations • 1 x pilot/monitoring well at D2 • 1 x pilot/monitoring well at C5 Resource Map (BCF/km2) Optimum depth, permeability, Gas content and coal / carbonaceous thickness occurs in this Morupule coal interval in the Karoo Central area
Slide 15: Botswana Gas Project: Indicative Project Schedule
Botswana Gas Project: Indicative Project Schedule 2011 2012 2013 Operational Phase Activity Description 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Finalise Data Analysis (coal) Exploration Interpretation & Review Select Pre-Pilot Locations Well De
Slide 16: New Business
‘\ ef ra t 7New Busine — i Qe =— »v
Slide 17: New Business opportunities
New Business opportunities • Tlou is actively seeking additional CBM acreage in Botswana and surrounding countries in southern Africa including: • Elsewhere in Botswana • Zimbabwe • Mozambique • Tanzania • Malawi • In addition, Tlou has identified other opportunities within Botswana as part of its i
Slide 18: Zimbabwe expansion
Zimbabwe expansion • Tlou has recently signed a deal to acquire a controlling share in 3 highly prospective CBM Special Grants in Zimbabwe • ~3000km2 acreage position • Geological potential of Zimbabwe superior to Botswana • Transaction provides significant option value for the company with minimal
Slide 19: Forward Plan
Forward Plan “4 Neat’ TITS . “> yd ; is — y | / / / y, / y, / ni eile lf y Vi Lm a a 4s “ by . 4 i"
Slide 20: Forward work program
Forward work program Tlou is currently finalising its independent resource review and is expected to be completed by end 2011 Operations for Tlou will focus on the following: • Commencement of pre-pilot well testing within the Botswana Gas Project • Monitoring of communication between pre pilot well
Slide 21: Rights Issue: Capital Raising
Rights Issue: Capital Raising Tlou was pleased to announce the completion of the Renounceable 2 for 15 Rights Issue last month • A total of $3.93m raised • Represented a 77% take up of rights by current shareholders • Cash at bank ~$6.5m as at 1 November 2011 These additional funds allow the company
Slide 22: Commercial environment
Commercial environment Supply-Demand dynamics in southern Africa continue to improve… • Several proposed transmission projects have been proposed however the mining industry is dispersed with no easy access to the electrical grid. • At present Botswana imports approximately 75% of its energy needs f
Slide 23: Next 12 months for Tlou
Next 12 months for Tlou Tlou is well positioned and has first mover advantage in the southern Africa CBM space. Management is focussed on delivering value across several fronts: • Completion of resource review for Botswana CBM project • Commencement of pre-pilot well testing program to ascertain gas
Slide 24: Slide 24