Investor Presentation Investor Presentation October 2009 21 March 2013 AiM: SOLO www.solooil.co.uk
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, 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. Investor Presentation
Who we are INTRODUCING SOLO OIL Junior oil and gas company Listed on the London AiM Market (SOLO) To acquire and develop a diverse portfolio OBJECTIVES of oil & gas assets in the Americas, Europe and Africa Non-operated oil & gas assets: PORTFOLIO Major stake in the prolific Ruvuma Basin, Tanzania More than 5 tcf of prospective resources identified in Tanzania Ntorya-1 (Tanzania) discovery flowed 20 mmscfd and 139 bopd Enhanced Oil Recovery project in Note: All figures in this Ontario, Canada presentation quoted as gross Likonde-1 well unless otherwise stated Investor Presentation
How we work Acquiring production, near production and high impact exploration projects to add value INVEST SELECT FOCUS in oil & gas, but do undervalued assets on unrealised not operate on the across a range of exploration and ground geographic locations exploitation potential LEVERAGE USE CAPITAL MONITOR the skills and to gain access and the progress without knowledge of existing add value across the duplicating the project operators project portfolio operators’ work Investor Presentation
Management An experienced entrepreneurial team with a track record of delivery Neil Ritson David Lenigas Sandy Barblett EXECUTIVE DIRECTOR CHAIRMAN NON-EXECUTIVE DIRECTOR Holds a Bachelor of Applied Science Has a BSc in Geophysics and has Has a bachelor of business from in Mining Engineering and has 30 worked in the energy sector for Curtin University of Technology years of resources industry over 35 years, initially with BP plc (Perth) and a bachelor of laws from experience. for 23 years, before managing the the University of Queensland. international operations of Currently also Executive Chairman Burlington Resources Inc. Over 15 years’ senior management of Leni Gas and Oil plc, Stellar experience working with private Resources plc and Non-Executive More recently, he was CEO at Regal and publicly listed companies. Director Rare Earth Minerals plc. Petroleum plc, before founding Vanguard Energy Group, where he Formerly a partner in Ironbridge Mr. Lenigas maintains a wide range was Chairman and CEO. As Capital Partners, based in London, of resource industry contacts and Founder and Chairman of VE Mr. Barblett has also worked with activities. Resources Limited he oversaw the Pace plc, the leading developer for rapid growth of a company in the the global pay TV industry. Formerly Executive Chairman of oil services sector. Lonrho plc and Lonrho Mining Ltd. Has advised a number of CEO of Leni Gas and Oil plc and companies on raising private equity Non-Executive Director of and general fund raising, corporate Enovation Resources Limited. strategy and mergers and acquisitions. Investor Presentation
ONTARIO REEFS, CANADA Ausable Field well #5 Investor Presentation
Ontario Reefs Operated by: Moving from small-scale production to enhanced oil recovery Solo Oil interest: 28.56% Operator: Reef Resources Status: Development OVERVIEW: Increasing production of light oil and liquids rich natural gas assets ASSETS: The Ausable Reef; with operating capacity of over 500 boepd. Airport North and South Reefs; with natural gas feedstock for a gas cycling enhanced oil recovery (EOR) program. Plus 3-4 additional reefs in the Ordovician reef complex STRATEGY: Moving from low recovery oil production scheme to a gas cycling EOR program, converting wells and optimising surface facilities PROGRESS: Production has commenced at the Gas will be injected from local Ausable Field. Optimum injection and recovery utility and nearby equity has not been achieved to date. Technical studies discoveries to boost pressure and strip reservoir liquids are ongoing. Investor Presentation
Follow-on potential Opportunities to grow the EOR operation across the existing license footprint EXPLORATION POTENTIAL: proprietary 23,000-acre 3D survey has Ausable Reef delineated further Ordovician reefs Several discoveries remain undeveloped and some reefs have not yet been tested for hydrocarbon potential EOR: Following the commencement of EOR at the Ausable Reef, there is potential to roll out the same optimised solution at other prospective target locations OPTION: The company has discussed increasing its working interest and technical participation in the project, but no agreement has been reached Investor Presentation
RUVUMA PSA, TANZANIA Successful flow test at Ntorya-1 Investor Presentation
Ruvuma Basin PSA Operated by: Encouraging results from licences strategically located in a proven gas region Solo Oil interest: 25% Operator: Aminex plc (Nduvo Resources) Status: Exploration & Appraisal LOCATION: 6,079 km 2 (Lindi and Mtwara licences) in southeast Tanzania, 90% onshore, 10% offshore RESOURCE POTENTIAL: 5.75 tcf natural gas (ISIS Petroleum Consultants). Ntorya-1 discovery in 2012 EXPLORATION POTENTIAL: The existence of identified discoveries, leads and prospects with mean potential of 5.75 tcf and a further significant potential for oil underlines the enormous potential of the Ruvuma PSA INCREASED PARTICIPATION: Solo has increased its interest from 12.5% to 18.75% and now 25% INFRASTRUCTURE: Mtwara Port located 25 km from Ntorya-1 discovery. Construction of Mtwara to Dar es Salaam gas pipeline commenced Investor Presentation
Regional Context Ruvuma PSA puts Solo Oil at the forefront of East Africa’s frontier energy district The Ruvuma Basin covers onshore and offshore areas of Mozambique and Tanzania International oil & gas companies that have made gas discoveries at Ruvuma include BG Group/Ophir Energy, Cove Energy, Eni, Petrobas, RAK Gas, Statoil, Maurel et Prom and Petrodel Resources Ltd A total resource in excess of 100 tcf has been discovered Ntorya-1 extends the proven fairway onshore In good company… Investor Presentation
Exploration HISTORIC Ruvuma PSA 1153 km of 2D seismic conducted, 1981-2002 No wells drilled in the PSA, but wells drilled to the north (Texaco, 1992) and southeast (Agip, 1982) RUVUMA PSA Aminex/Ndovu Resources acquired 370 km of offshore seismic (Lindi Block) and 430 km of 2D seismic onshore (Lindi and Mtwara Blocks) Drilling commenced in 2010 with Likonde-1 well Likonde-1 had excellent shows of residual oil and live gas at TD (3,647 m) Second well, Ntorya-1, made a gas discovery of potential commercial interest. Condensate was also recovered on test Additional exploration wells are now planned Investor Presentation
Successful flow test Demonstration that the Ntorya Discovery is highly prospective for gas and condensate RESERVOIR: Ntorya-1 found gross 25 metre thick mid-Cretaceous sandstone Total net sands ~20 metres, clean with up to 20% porosity at 2,663 metres. Uppermost 3.5 metres were tested at various rates to a maximum of a 1” choke GAS FLOW : 20.1 mmscf/d through a standard 1” choke; formation pressure of 5,424 psi LIQUIDS PRODUCTION : 139 bopd of 48 API condensate RESULTS: Test analysis is now complete and supports the view that Ntorya-1 is potentially economic Investor Presentation
Reserves and resources A recent report from ISIS estimates a total resource of 5.75 tcf gas-in-place at the Ruvuma PSA, and 1.17 tcf at Ntorya RESOURCE REPORT (ISIS Petroleum Consultants) ISIS attributes 5.75 tcf of potential gas-in-place on the Ruvuma PSA licences (~1.4 tcf net Solo) Ntorya is estimated to hold mean 1.17 tcf of unrisked gas-in-place, of which 178 bcf is proven Excellent potential for further discoveries: Unproven up-dip 1 tcf segment of Ntorya Four large gas prospects, ranging up to 2.6 tcf Four other prospects/leads identified Oil potential in deeper formations Appraisal block (application) Investor Presentation
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