Tower Resources Plc · LSE:TRP
Tower Resources — Investor Presentation (April 2016)
20 slides from Tower Resources's investor presentation, April 2016
Slide 1: African Exploration: From Frontier to Proven Basins
African Exploration From Frontier to Proven Basins April 2016 Photo courtesy of Dolphin Geophysical
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: Moving from Frontier to Proven Basins
Tower Resources Moving from Frontier to Proven Basins Tower today Strong portfolio – Geared towards low risk exploration and appraisal Low commitments; large upside Significant “running room” within current portfolio • Cameroon Thali block (Proven) • Namibia/South Africa (Emerging) • Zambia (F
Slide 4: Capital Structure
Tower Resources Capital Structure Capital Structure Shareholders Listing AIM Share price 14.5p Market capitalisation ~ US$6m Issued share capital 27.23m Options & warrants‡ 1.48m (5.1%) Balance sheet ~ US$3.5m cash Directors’, staff and 15.9% consultants’ holdings Average Daily Volume† 54,000 12 mon
Slide 5: Tower's Team
Tower Resources Tower’s Team Board strengthened in 2015 for new challenges Directors, employees and consultants own ~16% of issued share capital Jeremy Asher Dr Philip Frank Philip Swatman Peter Taylor Non-Executive Non-Executive Independent Non- Non-Executive Strategic partnership with PDF Li
Slide 6: Tower's Exploration Strategy
Tower Resources Tower’s Exploration Strategy Transformational returns through material discovery – via a risk-managed portfolio ACCESS New Acreage • Typically Frontier or Emerging Basins DE-RISK • Operated in early Partnering phases maintaining • Farm-outs at critical control stages TRADE RISK • Add
Slide 7: Exploration Portfolio Reflects Strategy
Tower Resources Exploration Portfolio Reflects Strategy Proven Basins Cameroon Thali block – New Country Entry as Operator in September 2015 with discoveries already on block Emerging Basins Namibia – New Licence Applications South Africa – renewal granted Frontier Basins Zambia – Source roc
Slide 8: Thali Block
Cameroon, Rio del Rey Basin Thali Block – PSC Signed 15 September 2015 Thali Block New exploration/appraisal licence in the Rio del Rey sub-basin of the prolific Niger Delta basin Two discoveries on-block in shallow water Opportunity to acquire modern 3D seismic to unlock low-risk upside in the prov
Slide 9: Thali Block – proven plays in Niger Delta
Cameroon, Rio del Rey Basin Thali Block – proven plays in Niger Delta Rio Del Rey Basin Regional Hydrocarbon Provinces Nigeria Cameroon Extensional Province Underexplored sub- Mobile Shale Belt RIO DEL REY BASIN Fold-Thrust Belt > 2 Billion bbl / >1.4 TCF basin of the prolific Niger Delta >> 34.
Slide 10: Proven Oil and Gas on Block
Cameroon, Rio del Rey Basin - Thali Block Proven Oil and Gas on Block Low-Risk Fault-Blocks Close to Existing Infrastructure 25 MMbbl Thali North field lies immediately north of the Thali block DISSONI NORTH 25 MMbbl Developed by Perenco – planned peak production 12,500 bopd 35o API oil Camero
Slide 11: Shallow Production – Deeper Exploration
Cameroon, Rio del Rey Basin Shallow Production – Deeper Exploration GROWTH FAULT ZONE MOBILE SHALE BELT FOLD-THRUST BELT OONGUE KARA ASOMA ERONG DISSONI NJOM DBM1 NORTH NB: LOCATIONS OF WELLS IS SCHEMATIC TO HIGHLIGHT PLAYS TESTED NNW THALI BLOCK SSE 1km MAJORITY OF DISCOVERED RESERVES APPROXIMATE D
Slide 12: Significant Exploration Potential
Cameroon, Thali Block Significant Exploration Potential Underexplored Sandstone Plays Billion barrel fields along trend in Eq. Guinea >400 MMbbl & 1.5 TCF identified in Thali Marathon oil discoveries in Equatorial Guinea extend fairway Forward Programme Acquire new 3D seismic to update 20 ye
Slide 13: Thali Block - Licence Overview
Cameroon, Rio del Rey Basin Thali Block - Licence Overview Thali Block Licence Commitments Offshore, Rio del Rey Basin Initial Exploration Period G&G studies Area: 119 km² - 3 years 3D seismic acquisition (100 km²) Water Depth: 8 - 48 m - Min expenditure $13MM x1 well (>1100m) Tower interest: 100% F
Slide 14: Namibia - New Licence(s)
Tower Resources Namibia - New Licence(s) Regional review post MID - LATE CRETACEOUS TURBDITE PLAYS Welwitschia has high- Cretaceous sands graded Walvis and Namibe 60m net thickness >24% av. porosity Basins in north of offshore Late Cretaceous sands 35-90m net thickness area >25% av. porosity Win
Slide 15: Namibia Offshore - 'Northern Area' Play Concepts
Namibia Offshore - ‘Northern Area’ Play Concepts Multiple plays identified NAMIBE BASIN (SCHEMATIC CROSS-SECTION) Proven source reservoir and seal elements from existing wells Extremely underexplored with less than one well every 10,000 km2. Good 2D seismic coverage, but recent data offers i
Slide 16: Why Zambia? 'There is no oil there….'
Zambia, Blocks 40 and 41 Why Zambia? ‘There is no oil there….’ But has anyone really looked? No The Mid-Zambezi Basin: Historic focus 25-30yrs ago in Luangwa Basin – A 25,000+ km2 rift basin with source Only two wells drilled and reservoir but no oil & gas exploration wells, nor even any seismic
Slide 17: Proven Source Rocks & Reservoirs
Zambia, Blocks 40 and 41 Proven Source Rocks & Reservoirs Key play elements proven in Blocks 40 & 41 Play Stratigraphy of Blocks 40 & 41 by initial field work in 2014, with additional work in 2015: AGE SUPER- (Ma) STAGE GROUP Widespread source rocks TERT. KALAHARI SSTS JURA. BATOKA BASALT Exce
Slide 18: Well placed in areas targeted by Majors
South Africa – Rift Portfolio Well placed in areas targeted by Majors 2014 Acquisition of Rift Petroleum Algoa-Gamtoos (50%, Operator: New Age) 3D acquired in 2014 1st Renewal Period of Algoa-Gamtoos granted in Sept 2015 – additional geophysical data planned in 2017 Oil-majors in neighbourin
Slide 19: Anticipated Activity
Tower Resources Anticipated Activity © 2016 Tower Resources plc 19
Slide 20: Summary
Tower Resources Summary An Optimised Exploration Portfolio Moving towards Proven from Frontier Basins Cameroon entry in Sept 2015 with existing discoveries Focussed team Risk management Flexible portfolio • Low near-term commitments • High potential Defined plan for growth and near-term