Corporate Presentation January 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
Investment Case and USP Oil & Gas Investment Company focused on acquiring and developing a diverse global non-operated portfolio of strategic assets to deliver value to our shareholders INVEST IDENTIFY AND EVALUATE SELECT oil & gas opportunities FOCUS BUILD A VALUE FOR ACTIVE NON– LEVERAGE PORTFOLIO OPERATOR: SHAREHOLDERS OF ASSETS: strategic investments to CAPITAL spread risk and leverage access assist projects that have to more opportunities excellent potential MONITOR RE-INVEST CORPORATE PRESENTATION value created from building assets back into portfolio 3
Corporate Overview SOLO: AIM Share Price over the past 6 months Market Capitalisation: £16.71m (at 0.33p) Shares in Issue: 6,987,691,682 Significant Shareholders over 3% TD Direct Investing Nominees (Europe) Limited HSDL Nominees Limited Hargreaves Lansdown (Nominees) Limited Barclayshare Nominees Limited CORPORATE Investor Nominees Limited PRESENTATION HSBC Client Holdings Nominee (UK) Limited 4
Investment Portfolio Canada: Enhanced Oil Recovery project in Auable Field. Ontario currently shut in due to operator issues UK: Horse Hill Interests in Weald Basin 6.5% including Horse Hill and 28.6% licence award on the Isle 30% of Wight Ausable, Oil & Gas Investment Isle of Wight Ontario Company specifically focused on acquiring and developing a diverse Kiliwani North 7.175% global 20% non-operated portfolio of assets Burj Africa Tanzania: 25% Major stake in the prolific Ruvuma Basin and producing Kiliwani West Africa: North gas development on Songo Ruvuma Basin PSA Strategic investment in Burj Africa Songo Island CORPORATE with applications for field PRESENTATION development projects in Nigeria 5
Management Team NEIL RITSON FERGUS JENKINS DAN MALING DONALD STRANG CHAIRMAN TECHNICAL DIRECTOR FINANCE DIRECTOR NON-EXECUTIVE DIRECTOR Has a BSc in Geophysics and Is a Chartered Engineer with a Has over 15 years of senior A member of the Australian has worked in the energy BEng (Hons) degree in commercial management Institute of Chartered sector for over 38 years, Mining Engineering and a experience primarily in the oil Accountants, holding senior initially with BP plc for 23 MEng in Petroleum and gas and resources sectors. financial and management years, before managing the Engineering. He has over 20 Dan has worked with several positions in both publicly international operations of years of experience working AIM, ASX and TSX listed listed and private enterprises in Burlington Resources Inc. in industry, initially in mining companies providing Australia, Europe and Africa. More recently, he was CEO at before moving to petroleum. corporate finance, business Considerable corporate and Regal Petroleum plc, before He has worked in a variety of development and corporate international expertise in the founding Vanguard Energy technical and increasingly governance advice. He is oil and gas and natural Group, where he was senior managerial positions in currently director of a number resources sectors. He is Chairman and CEO. As mid-sized independent oil of private companies and is currently a Director of a Founder and Chairman of VE companies, including Managing Director of number of AIM listed Resources Limited he oversaw Enterprise Oil, LASMO, boutique investment bank companies including Rare the rapid growth of a company OMV (UK) Ltd and Afren East Star Capital (UK) Earth Minerals Plc, Doriemus in the oil services sector. plc. Currently COO of LGO Limited. Dan is a member of Plc, and Polemos Plc. Currently CEO of LGO Energy plc. the Chartered Accountants Energy plc and Non-Executive Australia & New Zealand. Director of Enovation CORPORATE Resources Limited. PRESENTATION 6
Tanzanian Gas Opportunity Sub-Saharan Africa projected potential annual natural gas demand 6.5 tcf 2030, 11.4 tcf 2040 and 19.2 tcf 2050 Tanzania (Sustainable Engineering Lab et al-2014) Significant LNG G overnment support Proven natural Significant Investment exporter by 2020 to energy/gas industry gas reserves of in Infrastructures: over 55 tcf Major players are • Gas pipeline with capacity (largest in East Africa highly active in the offshore of over 800 mmscf per day after Mozambique) gas province • Additional pipeline network planned to export gas resources to East African states (Uganda, Kenya) 1500 KILIWANI NORTH TOTAL DEMAND RUVUMA PSA 1000 POWER DEMAND INDUSTRIAL DEMAND 500 PRODUCTION CAPABILITY 0 2016 2017 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 CORPORATE PRESENTATION -500 7 SUPPLY GAP -1000
Ntorya - Access to Markets The Ntorya discovery and the wider Ruvuma PSA benefit from excellent access to the market through the regional gas pipeline connecting Mnazi Bay to Dar es Salaam Natural gas will be $1.33 billion project: largely transported to large-scale financed by Chinese loans electricity producers, other industrial users and major population centres 532-km pipeline linking Mnazi Bay gas field production in southern Tanzania to Dar es The pipeline will allow Salaam in the north is now production from existing completed and operational fields to be ramped up and future fields to be commercially developed 36” gas pipeline & gas processing plants are part of a Large, unsatisfied domestic plan to increase Tanzania's demand for natural gas is generating capacity to 10,000 CORPORATE estimated at over 500 mmscfd MW by 2025 PRESENTATION 8
Ruvuma PSA – Ntorya Discovery Aminex Solo Oil (operator) 25% 75% Solo-Aminex joint venture is appraising the Ntorya (“NT”) gas and condensate discovery with NT-2 due to spud in December 2016 2010 2011 2012 2013 2014 2015 2016 2017 First well Likonde-1 CPR by Senergy : Potential 4.7 tcf of drilled : excellent shows gas within the Ruvuma project (153 for residual oil and gas bcf of gas in place for Ntorya 1; some 70bcf of 2C.) Upgrade of 4 “drillable targets” accounted for 3 tcf of gas in Second well Ntorya-1 made a gas and condensate place. discovery of commercial interest: • Gas Flow 20.1 mmscfd through a 1-inch choke; Appraisal well program is planned for • Formation pressure of 5,424 psi; and two wells on the Ntorya gas and • Liquids Production 139 bopd of condensate at condensate discovery in 2016/2017 (NT- Further 2D a gas rate of 20 mmscfd 2 & NT-3). NT-2 spudded during seismic acquired CORPORATE December 2016 PRESENTATION 9
Ruvuma PSA – Ntorya Discovery Aminex Solo Oil (operator) 25% 75% Ruvuma licence schematic cross section showing Ntorya-1 discovery well, and location of planned Ntorya-2 and 3 wells CORPORATE PRESENTATION 10 Source: Aminex
Ruvuma PSA – Prospective Resources Aminex Solo Oil (operator) 25% 75% The Ntorya-2 appraisal well has prospective resources of 100 bcf in addition to the 70 bcf discovered at Ntorya-1 Source: Ntorya 1,2, LR Senergy (May 2015), others: Aminex estimates of GIIP and recovery factor CORPORATE PRESENTATION 11
Solo Oil Kiliwani North Gas Field interest 7.175% Kiliwani Development Licence First Gas 4 th April 2016 ü Daily Production Rate up to 30 mmscfd in early July 2016 (~ 5,000 barrels of oil equivalent per day) Gas produced flows through the 2 km tie-in pipeline from KN-1 to the Songo Songo gas processing plant & via 36-inch pipeline to Dar es Salaam, where the gas is used for domestic, industry and power generation Gas Sales Agreement signed with TPDC for US$3.00 per mmbtu (~ US$3.07 per mscf), pays in US$ with bank guarantees. CORPORATE PRESENTATION 12
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