A Uniquely Differentiated Portfolio 26 June 2017
Disclaimer This presentation may contain forward-looking statements. Forward-looking statements refer to events and conditions which are not historical facts and include, for example, statement concerning our objectives, goals, strategies, future events, future performance, capital expenditures, financing needs and business trends. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. You should not place undue reliance on these forward-looking statements. Any forward-looking statements are based upon information available to us on the date of this presentation. Actual results may differ materially from those anticipated in these statements. This presentation does not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for, any shares in Solo Oil plc, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision. Corporate Presentation 2
Management team NEIL RITSON FERGUS JENKINS DAN MALING DONALD STRANG EXECUTIVE CHAIRMAN TECHNICAL DIRECTOR FINANCE DIRECTOR NON-EXECUTIVE DIRECTOR Has a BSc in Geophysics and has Is a Chartered Engineer with a Has over 15 years of senior A member of the Australian worked in the energy sector for over BEng (Hons) degree in Mining commercial management Institute of Chartered 39 years, initially with BP plc for 23 Engineering and a MEng in experience primarily in the oil and Accountants, holding senior years, before managing the Petroleum Engineering. He has gas and resources sectors. Dan has financial and management international operations of Burlington over 25 years of experience worked with several AIM, ASX and positions in both publicly listed Resources Inc. Most recently, he was working in industry, initially in TSX listed companies providing and private enterprises in Chairman and CEO at LGO Energy mining before moving to petroleum. corporate finance, business Australia, Europe and Africa. plc. Prior to which he founding He has worked in a variety of development and corporate Considerable corporate and Vanguard Energy Group, where he technical and increasingly senior governance advice. He is currently international expertise in the oil was Chairman and CEO. As Founder managerial positions in mid-sized director of a number of private and gas and natural resources and Chairman of VE Resources independent oil companies, companies and is Managing sectors. He is currently a Director Limited he oversaw the rapid growth including Enterprise Oil, LASMO, Director of boutique investment of a number of AIM listed of a company in the oil services OMV (UK) Ltd and Afren plc. bank East Star Capital (UK) Limited. companies including Rare Earth sector, before which he was CEO at Currently COO of LGO Energy plc. Dan is a member of the Chartered Minerals Plc, Doriemus Plc, and Regal Resources plc. Accountants Australia & New Polemos Plc. Zealand. Corporate Presentation 3
Investment highlights Proven track record for executing investment strategy. 5 out of 6 wells resulted in commercial discoveries Diverse portfolio of assets mitigates risks and provides multiple catalysts through an active work programme Significant upside potential from high-impact exploration assets Experience Network Cash generative and debt free Low corporate and operating cost structure Corporate Presentation 4
Solo’s portfolio UK: Interests in Weald Basin, including Horse Hill and licence 6.5% award on the Isle of Wight 28.6% Horse Hill Ausable, Ontario 30% Isle of Wight 7.175% Kiliwani North CANADA: Enhanced Oil Recovery project 25% in Ausable Field (dormant) Ruvuma Basin PSA TANZANIA: WEST AFRICA: Major stake in the prolific Ruvuma Strategic investment in Burj 20% Basin, producing Kiliwani North gas Africa with applications for Burj Africa development on Songo Songo Island field development projects in 10% and 10% equity in Helium One Helium One Nigeria Corporate Presentation 5
Investment case study: Ruvuma Solo Oil 75% Aminex 25% (operator) 2010 2011 2014 2015 2016 2017 2017 - 2019 Expec ected d news ws flow ow • 25-year development First well well Further App pprais isal l we well ll pro program NT-2 was drilled and licence Likonde-1 1 dril ille led: 2D D seismic ic ac acquir ired successfully tested. Resources increased to • Early production scheme excellent shows for 466 bcf gas in place with an upside od 1.1 tcf engineering residual oil and gas • CPR • Technical work including 3D Second well well Ntorya-1 1 made made a a gas as an and cond ondensate CPR CPR by Senergy: seismic discovery y of of comm ommercia ial interest: Potential 4.7 tcf of gas within the Ruvuma • NT-3 appraisal well • Gas Flow 20.1 mmscfd through a 1-inch choke; project (153 bcf of gas in place for Ntorya 1; • Solo assessing options with • Formation pressure of 5,424 psi; and some 70bcf of 2C.) Upgrade of 4 “drillable regards to monetising its • Liquids Production 139 bopd of condensate at a targets” accounted for 3 tcf of gas in place interest in Ruvuma gas rate of 20 mmscfd Corporate Presentation 6
Ntorya – Access to Markets 500 mmscfd Infrastructure – access to market through regional Dis Distri ribution network progressing in order to satisfy a Chinese built/financed gas pipeline connecting Mnazi large domestic demand for natural gas estimated at Bay to Dar es Salaam. Operational since 2015, over 500 mmscfd currently below 25% utilisation Liq Liquids in the gas found in the discovery well Lar Large-scale ele electricity pr prod oducers, other industrial NT-1 potentially provides access to alternate users and major population centres to receive the markets gas in fast growing economy Corporate Presentation 7
Ntorya Discovery Source: Aminex Corporate Presentation 8
NT-2 Petrophysics Result esults: • Cretaceous age fluviatile sandstone reservoir intersected at 2596 metres • Total 51 metres gross interval with approx 30 metres net gas sand • Excellent quality reservoir with average porosity over 20% • Gas in flux during drilling, due to higher than expected pressures • Test results did not represent full potential of reservoir Corporate Presentation 9
Helium One Helium One is an Helium One’s Rukwa Project in First mover advantage into independent specialist helium market positions Solo to Tanzania has independently certified explorer focused on capitalise on an anticipated most likely unrisked prospective becoming a major supplier surge in helium demand and recoverable helium volume of 98.9 to the global helium market billion cubic feet (“ bcf ”) weak supply fundamentals Corporate Presentation 10
A non-renewable resource with unique properties Multi tiple ap applic licati tion ons Hel eliu ium is s iner nert t and and wi will l no not acr acros oss man many y ind ndustr trie ies reac eact t wi with th othe other r el eleme ements ts, and critically there is nor burn or explode Helium is the second no substitute most abundant element in the universe: BUT on Earth a limited Onl Only 14 14 field elds Low w Ato tomic ic Weig eight t and and commodity with acros acr oss 12 12 cou ountrie ies small ato small toms commercial demand actively produce and – the “Houdini element” contribute to the world’s supply of helium It has has a a boi boilin ing poi point of -269 269°C C and is a Super-Fluid at 270°C (2.7°K) (NB Absolute Zero -273°C) Corporate Presentation 11
Geological Source Electron Igne gneous Rocks, prim imar arily ily gr granit anites contai taini ning Tec ectonic ic Activity tivity – Volc lcan anoes Rad adio ioact activ ive Dec ecay 238U an 238U and 232 232Th Proton Neutron 232 Th 228 Ra + α + 2e - 238 U 224 Th + α Pri rimary migr igration Sec econdary Gen eneration out out of of sou ource rock ock mig igration Trapping Corporate Presentation 12
Uses and applications Cryogenics (primarily in medical applications) is the largest use of the gas and accounts for around 23% of global demand 8% 8% 3% 3% Used in infrastructure, such as the Large Cryogenics 5% 5% Hadron Collider at CERN, which requires 23% 3% Lifting 120 tonnes of superfluid helium to maintain Electronics 6% 6% its magnets at their operating temperature Optical Fiber Heliu elium and further helium each week to keep it Welding productio tion by 6% 6% topped up. Leak Detection sec ector: Analytical Other applications include arc welding, 15% 5% Purging 9% 9% purging, leak detection, chromatography, Diving super-conduction, breathing mixtures, Other 11% 1% heat transfer, gas lift; and used 14% 4% extensively as a purge gas in the oxygen/hydrogen propulsion units used for space rocketry and nuclear ICBMs. Source: TechSci Research Google X Project Loon – “Balloon powered internet for everyone” Corporate Presentation 13
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