Corporate presentation 28 July 2016
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. 2
Our strategy Identify and evaluate oil & gas opportunities Active non–operator: Build a portfolio of strategic investments to assets: spread risk and VALUE FOR assist projects that have leverage access to SHAREHOLDERS excellent potential more opportunities Re-invest value created from building assets back into portfolio 3
About us Oil & Gas Investment Company specifically focused on acquiring and developing a diverse global non-operated portfolio of assets Canada: Enhanced Oil Recovery project in Ontario currently shut in due to operator issues Horse hill 6.5% 28.6 % 30% Isle of Wight Ontario Reefs UK: Interests in Weald Basin including Horse Hill and licence award on the Isle of Wight 20% Burj Africa 7.175 Kiliwani North West Africa: Strategic investment in % Burj Africa with applications for field development projects in Nigeria Tanzania: Major stake in the prolific Ruvuma Basin Ruvuma Basin 25 % and producing Kiliwani North gas development on Songo PSC Songo Island 4
How we work and add value OIL & GAS INVESTMENTS Oil & Gas Investment Company focused on In oil & gas assets as a non operator INVEST Progress of projects acquiring and without duplicating the MONITOR developing a diverse operators’ work global Undervalued assets non-operated across a range of SELECT To gain access and geographic locations portfolio of add value across the CAPITAL project portfolio strategic assets to deliver value to our shareholders On unrealized exploitation and The skills and FOCUS LEVERAGE exploration potential knowledge of existing project operators 5
Our winning strategy PORTFOLIO MIX: Healthy balance of high upside exploration; low risk appraisal/ development assets & production NON OPERATOR EARLY STAGE EXPERIENCED NO NET Targeting low cost, Invest in early MANAGEMENT DEBT low risk, politically stage projects TEAM stable areas and with significant upside With expertise to get projects (primarily potential into a range of onshore) different assets from exploration to production PROVEN TRACK LEVERAGE HIGH SHARE GAS PRICES RECORD OPPORTUNITIES LIQUIDITY Developments give 5 out of 6 wells Take advantage some independence the Company of oil & gas from oil price has participated market conditions – volatility in have resulted leverage opportunities in commercial discoveries 6
Management NEIL RITSON FERGUS JENKINS DONSLD STRANG SANDY BARBLETT CHAIRMAN TECHNICAL DIRECTOR FINANCE DIRECTOR NON-EXECUTIVE DIRECTOR Has a BSc in Geophysics and has Is a Chartered Engineer with a A member of the Australian Has a bachelor of business from worked in the energy sector for 38 BEng (Hons) degree in Mining Institute of Chartered Curtin University of Technology years, initially with BP plc for 23 Engineering and a MEng in Accountants, holding senior (Perth) and a bachelor of laws from years, before managing the Petroleum Engineering. He has financial and management the University of Queensland. Over international operations of over 20 years of experience positions in both publicly listed 15 years’ senior management Burlington Resources Inc. More working in industry, initially in and private enterprises in experience working with private and recently, he was CEO at Regal mining before moving to Australia, Europe and Africa. publicly listed companies. Petroleum plc, before founding petroleum. Considerable corporate and Formerly a partner in Ironbridge Vanguard Energy Group, where he He has worked in a variety of international expertise in the oil Capital Partners, Mr. Barblett has was Chairman and CEO. As technical and increasingly senior and gas and natural resources also worked with Pace plc, the Founder and Chairman of VE managerial positions in mid-sized sectors. He is currently a leading developer for the global pay Resources Limited he oversaw the independent oil companies, Director of a number of AIM TV industry. Has advised a number rapid growth of a company in the including Enterprise Oil, LASMO, listed companies including Rare of companies on raising private oil services sector. Currently CEO OMV (UK) Ltd and Afren plc. Earth Minerals Plc, Doriemus equity and general fund raising, of LGO-Energy plc and Non- Currently COO of LGO-Energy Plc, and Polemos Plc. corporate strategy and M&A. Executive Director of Enovation plc. Resources Limited. 7
Tanzania KILIWANI NORTH & RUVUMA PSA 8
Tanzanian opportunity The projected potential annual natural gas demand for sub-Saharan Africa is 6.5 TCF in 2030, 11.4 TCF in 2040 and 19.2 TCF in 2050 Source: Sustainable Engineering Lab et al (2014) Tanzania boasts proven natural gas reserves of over 55 TCF which are the largest in East Africa after Mozambique Supportive and proactive new government with plans to accelerate development in the nation’s energy/gas industry Significant Investment in Infrastructures : • New gas pipeline was completed with capacity of over 800 mmscf per day • More plans to build additional pipeline network to export gas resources to East African states (Uganda, Kenya..) Tanzania looks towards becoming a significant LNG exporter by 2020 Major players are highly active in the offshore gas province: 9
Tanzania Domestic Electricity Demand Provides Certainty Over Gas Demand for the New Wave of Natural Gas Fired Power Stations Coming on Stream between 2018 and 2020 Tanzania Electricity Electricity Demand (GWh) Peak Demand & 60,000 8,000 Consumption Forecast, Coincidental Peak Demand (MW) MEM, Power System 7,000 50,000 Masterplan, 2012 6,000 Update, November 2012 40,000 (Tanzanian energy sector 5,000 under the universal 30,000 4,000 principles of the Energy Charter Report, 3,000 20,000 Brussels, July 2015) 2,000 10,000 1,000 2031 2032 2033 2034 2035 2021 2022 2024 2025 2026 2027 2028 2029 2030 2016 2017 2018 2019 2020 2023 Coincidental Peak Demand (MW) Electricity Demand (GWh) 10
Tanzania Domestic Electricity Demand Provides Certainty Over Gas Demand for the New Wave of Natural Gas Fired Power Stations Coming on Stream Between 2018 and 2020 2,516 MW of Added Capacity Tanzania Electricity by 2030 2,516 MW Peak Demand & Consumption Forecast, 700 608 MW of Added 978 MW of Capacity Megawatt (MW) MEM, Power System Capacity by 2017 Added Capacity in Masterplan, 2012 2018 2020 600 Update, November 2012 (Tanzanian energy sector 500 under the universal 2018 400 principles of the Energy Charter Report, 2030 Brussels, July 2015) 300 2018 2017 2017 2018 200 2015 2018 100 2018 2017 11
Kiliwani North Development Licence ü First Gas in April 2016 Daily Production Rate reached 30 mmscfd in early July 2016 (~ 5,000 barrels of oil equivalent per day) Commissioning of the well, pipeline and associated gas processing plant will be concluded soon with optimisation of production rate Gas produced flows through the 2 km long tie in pipeline from KN-1 to the new Songo Songo gas processing plant & via the newly constructed 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). First payments expected 3Q2016 12
Dar Es Salaam Natural gas demand Kiliwani North (KN-1) Production will only scratch the surface of local demand NOTE: Natural gas fired power stations are not 100,000 100% efficient Kiliwani North and can be a low will only provide 14% of the as 37% efficient 80,000 Tanzania’s domestic natural gas demand in the near term. 60,000 3,140 scf (3.14 mmscf pa mscf) of natural gas is required to We estimate 40,000 generate roughly current Tanzania 1 MW (1,000 natural gas kW) demand to be 20,000 13,000 mmscf pa Kiliwani North 7,120 7,120 mmscf pa (20 mmscfd) Dar, Low Growth Dar, 2% Growth Dar, 1% Growth (Constant from 2017) Tanzania seek to receive the supply from the Feasibility Study for a Natural Gas Pipeline Ruvuma onshore gas field to meet their domestic from Dar es Salaam to Tanga (Tanzania) and gas demand requirements. Mombasa (Kenya) April 2011 13
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