Renergen — Investor Presentation (August 2020)
29 slides from Renergen's investor presentation, August 2020
Slide 1: Investor Update: Emerging natural gas and helium producer
RENERGER FUTURE ENERGY, TODAY Investor Update Emerging natural gas and helium producer
Slide 2: Overview
Overview SS= @BASX » Founded in 2014 & listed on the JSE Alternate Exchange (Alt®) in 2015, and ASX in 2019 * Sole asset is its 100% shareholding in Tetra4 which holds the first and currently only, onshore petroleum production right in South Africa (Virginia Gas Project) - located in the Free State,
Slide 3: Capital Structure and Shareholding
RENERGE Capital Structure at 30 July 2020 Shareholding as at 28 February 2020 are Pric A$1.20/R14.60 sone sate ena Shares on is: -117.5M 12.8% ~61M Management otto ~A$I4IM/RI7B Family interest free loan NPV ZAR39M undrawn OPIC loan of US$7.5M Financial drawn OPIC loan of US$32.5M Virginia Production
Slide 4: Management & Board
Management & Board Stefano Marani CEO BSc Actuarial Hons with +15 years experience working in structured finance for institutions including Deutsche Bank and Morgan Stanley. Instrumental in the acquisition of Tetra and founding shareholder in Renergen. Brett Kimber Chairman Senior executive with +25
Slide 5: Executive Summary
RENERGERN FUTURE ENERGY, TODAY Executive Summary O66 Gas producer in SA Exposure to heliumon Experienced team with _ Significant gas and with helium & LNG the ASX material ownership helium reserves production in 2021 Helium is a rare Strong helium Helium prices have Helium concentrations element wit
Slide 6: RENERGERN
RENERGERN FUTURE ENERGY, TODAY
Slide 7: Reserves, Contingent and Prospective Resources
RENERGER FUTURE ENERGY, TODAY Proved + Proved + Reserves Probable Probable Possible Probable + (2P) Possible (3P) ~7bn diesel 40.76 98.23 138.99 145.18 28418 litre equivalent 1.01 239 3.41 3.45 6.86 Contingent Low Case Best Case High case Resources ()) (c2) (c3) ~16bn diesel 2373 435.9 cae litre equ
Slide 8: Surface
RENERGERN FUTURE ENERGY, TODAY Surface Karoo Meteor trapped heavy metals in the crater @ Pretoria ini He Peminion He KrugersdorP@) @Johannesburg w om Ww Potchefstroom® ___veredhiging Vredefort fi © Heilbron Carbonaceous @kroonstad A Rock A Welkom Bacteria Bacteria
Slide 9: RENERGERN
RENERGERN FUTURE ENERGY, TODAY
Slide 10: Helium uses
Helium uses Helium is a vital and irreplaceable element in many modern industries Why is helium important? * Helium is a rare commodity * Helium becomes economically viable to extract from natural gas at concentrations as low as 0.1% * The Virginia Gas Project's average concentration of helium is 3.
Slide 11: Strong Supply & Demand Dynamics
RENERGERN FUTURE ENERGY, TODAY “Strong Supply & Demand Dynamics” Demand * Estimates vary but annual usage is 6-7BCF (28m - 32m kg) worth $US6bn » US is the largest user of helium, accounting for 41% of current global demand * Increased penetration of MRI in emerging markets * Growth in electronics,
Slide 12: Global Helium Supply & Demand
RENERGERN FUTURE ENERGY, TODAY Global Helium Supply & Demand Global supply and forecast, Edison Investment Research compiled November 2017 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 4,000 mmefilyr 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 mums US|BLM S
Slide 13: Helium price history
400 900 800 700 300 600 500 200 400 300 100 200 100 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 • • • • •
Slide 14: Helium concentration comparison
400 4.0% 350 3.5% 300 3.0% 250 2.5% 200 2.0% 150 1.5% 100 1.0% 50 0.5% 0 0.0% Qatar Algeria Russia US Canada China Australia Poland Renergen Proven Contingent Prospective % Concentration • • • •
Slide 15: South African Gas Market
RENERGERN FUTURE ENERGY, TODAY South African Gas Market W ges
Slide 16: The South African Gas Market
RENERGERN FUTURE ENERGY, TODAY The South African Gas Market » Natural gas is currently imported via pipeline from Mozambique by Sasol * Pipeline runs to Johannesburg - reticulated to customers via low pressure pipeline Mapacasca * Majority of imported gas is used by Sasol for its petrochemicals busi
Slide 17: Business Verticals - Wellhead to Tank
RENERGE FUTURE ENERGY, TODAY Business Verticals - “Wellhead to Tank” Ownership of end user in 4 market segments Power generation * Gas to power using small generators, with heat recapture for steam generation for clients * Combined sale of heat and power yields highly competitive economics Verticall
Slide 18: Operation - Commencement
RENERGERN FUTURE ENERGY, TODAY Operation — Commencement
Slide 19: Plant After Expansion
RENERGERN FUTURE ENERGY, TODAY Plant After Expansion Helium Production: Phase I: 350kg/day Phase 2: up to 10,000kg/day LNG Production: Phase |: 50tpd Phase 2: up to 300tpd Pipeline capacity exceeds production capacity LNG 12 produci wetnserg Sales and Delivery Trucks up to more a Pan 100 Delivery Cy
Slide 20: Plant 3D Images
RENERGERN FUTURE ENERGY, TODAY Plant 3D Images
Slide 21: LNG Vehicle Options
LNG Vehicle Options Diesel Dual Fuel (DDF) Bee oe tttt oTooue © oe @ ® '® '®@ Developed over 50 years ago and today, over 24m vehicles use NG ‘Plug and Play’ system for most trucks 1-2 days for installation Kit can be transferred from the same engine type to another Up to 60% diesel substitution Hig
Slide 22: LNG Routes and Stations
LNG Routes and Stations fe) TOTAL Artist illustration of LNG dispensing station RENERGEN RENERGEN RENERGEN Pretoria vohannasbura BT ey Bloemfontein NB 3/0) rT Ne ast London No Port Elizabeth The Total joint marketing agreement focuses on the N3 The N3 joins Johannesburg and Durban, the busiest highw
Slide 23: RENERGERN
RENERGERN FUTURE ENERGY, TODAY
Slide 24: Sandstone Drill Success
Sandstone Drill Success * In 2016, hole 2057 was drilled vertically and intersected 11% helium just below the Vryheid formation in the sandstone * In October 2019 it was decided to drill a horizontal well into the sandstone around 2057 to explore the potential for high concentration helium » Decembe
Slide 25: Spudded Well
Spudded Well * The field doesn’t have a conventional reservoir, but rather gas permeating New Well up through faults and fissures * The announced well has now spudded, expectation is approximately | month to reach the base of the Karoo * This well will prove the efficacy of drilling slanted wells to
Slide 26: Spudded and Planned New Wells
RENERGEN => Spudded Well =» Planned New Wells Over the past 18 months, the Company has been working with Shango Solutions and Sproule to define the reservoir TETRAS Tetra4 (Pty) Ltd A comprehensive data base of holes, Production Right drilled by the gold mining in the area, produced lithography whic
Slide 27: RENERGERN
RENERGERN FUTURE ENERGY, TODAY
Slide 28: FAQ
RENERGERN FAQ Why list on the ASX when already listed on the JSE? How has COVID-19 impacted the business? * Despite the market cap of the ASX and JSE being relatively» Operations: similar (12th vs 19th ranked globally as of November 2018), - We halted the supply of gas temporarily in the pilot ASX h
Slide 29: Important Notice and Disclaimer
RENERGERN FUTURE ENERGY, TODAY Important Notice and Disclaimer Not an Offer for Securities This presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any security in Renergen Limited (the Company) nor does it constitute financia