54th Oilbarrel Conference London September 2012
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Basic facts: Solo Oil plc London AiM Market Junior Oil and Gas Company (SOLO) Non-operated oil and gas asset portfolio Major stake in the prolific Ruvuma Basin in Tanzania Recent Ntorya-1 discovery flowed 20 mmscf/d More than 5 tcf of p prospective p resources identified Enhanced Oil Recovery project in Ontario, Canada
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Strategy and Business Approach Invest in oil and gas gas, but do not operate “on the ground” Select undervalued assets in a range of geographic locations Focus on unrealised exploration and exploitation potential Leverage the skills and knowledge of the current operator Use capital p to gain g access and crystallise y value Monitor closely, but do not duplicate the operators work
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Board of Directors Chairman
David Lenigas Holds a Bachelor of Applied Science in Mining Engineering and has 30 years of resources industryy experience. p Currentlyy he is the Executive Chairman of Lonrho p plc, Lonzim p plc, Lonrho Mining Ltd and Leni Gas and Oil plc. He is an Executive Director of Vatukoula Gold Mines plc and Rare Earth Minerals plc and maintains a wide range of resource industry contacts and activities.
Executive Director
Non-Executive Director
Neil Ritson Has a BSc in Geophysics. He has worked in the energy sector for 35 years, initially with BP plc for 23 years before managing the international operations of Burlington Resources Inc. More recently he was CEO at Regal Petroleum plc, before founding the Vanguard Energy Group where he was Chairman and CEO. CEO As Founder and Chairman of VE Resources Limited he oversaw the rapid growth of a company in the oil services sector. He is also the Chief Executive of Leni Gas and Oil plc and a Non-Executive Director at Enovation Resources Ltd.
Sandy Barblett Has a bachelor of business from Curtin University of Technology in Perth, Western Australia and a bachelor of laws from the University of Queensland; he previously worked for Minter Ellison as a solicitor. Mr Barblett has over 15 yyears senior management g experience p working g with private and publicly listed companies. He was a partner in Ironbridge Capital Partners based in London. Formerly he was with Pace plc the leading developer for the global pay TV industry. He has advised a number of companies on raising private equity and general fund raising, corporate strategy and mergers and acquisitions.
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Ruvuma PSA, Tanzania Interest: Operator: p Status:
25% Aminex ((Nduvo Resources)) Exploration and Appraisal
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Tanzania Background Original area of PSA 12,300 km2 , current area 6,079 km2 PSA in second exploration period Approx. 80% onshore Solo farm-in 2010 (Likonde-1) Increased participation from 12 5% to 18 12.5% 18.75% 75% and then to 25% Ntorya-1 gas discovery in 2012 5.75 5 75 tcf resources identified (ISIS) Mtwara Port just 25km from Ntorya-1 discovery Mtwara to Dar es Salaam gas pipeline construction expected to start in 2013
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Regional Resources Ruvuma (aka Rovuma) Basin covers onshore and offshore areas of both Mozambique and Tanzania Major gas discoveries have been made offshore by: • Anadarko/Cove • BG/Ophir • ENI • Statoil • etc A total resource in excess of 100 tcf has been discovered Ntorya-1 extends the proven fairway onshore Onshore offers cost and infrastructure advantages 7
Early Phase Exploration Hinge zone geology Multiple reservoirs and plays Limited 2D seismic Limited well control First well (Likonde) had excellent shows Second well (Ntorya) made a gas discovery Light oil/condensates are also present
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Stratigraphy
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Successful Flow Test Ntorya-1 found gross 25 metres mid-Cretaceous sandstones Total net sands 20 metres, clean with up to 20% porosity at 2,663 metres Uppermost 3.5 metres were tested at various rates Flowed 20.1 mmscf/d through a standard 1” choke Formation p pressure of 5,424 , psi p Produced 139 bopd of condensate at 20 mmscf/d Test analysis now complete and supports view that Ntorya is potentially economic
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Reserves/Resources ISIS Petroleum Consultants study identifies: •
Proven gas at Ntorya (178 bcf)
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Large unproven up-dip segment of Ntorya (990 bcf)
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Four large gas prospects ranging up to 2.6 2 6 tcff
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Four other prospects/leads so far identified
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Oil potential and deeper Karoo
A total mean resource estimate of 5 75 ttcff ((~1.5 5.75 1 5 ttcff nett tto S Solo) l ) Appraisal block applied for
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Planned Gas Infrastructure
Large unsatisfied domestic gas demand, estimated at over 500 mmscf/d, to which Ruvuma PSA has an early-mover and cost advantage 12
Next Steps Obtain an appraisal area at Ntorya (application made) Open a dataroom through a major M&A Advisor (jointly with Aminex) to seek a partner to participate in the second exploration period; bids due by end 2012 Shoot approx. 890 km of full-fold infill 2D seismic in late 2012 Drill at least two exploration wells, one in Lindi and one in Mtwara, during 2013 Drill an appraisal well at Ntorya y and commence both development planning and gas sales negotiation
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Ontario Reefs, Canada Interest: Operator: Status:
28.56% Reef Resources Development and Production
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Location Canada
Lake Huron
Lake Erie
USA
Guelph time structure
Reefal Carbonate Reservoir
Ordovician O d i i age Guelph G l h Fm F Shallow (< 650 metres) L Low porosity, it vuggy reefal f l carbonate Light oil and condensates, and d gas
C Core Ausable #5, April 2011 A bl #5 A il 2011 16
Gas Cycling EOR Project Moving from a low recovery oil production scheme to a gas cycling enhanced oil recovery project Converting wells from beam pumps to down-hole venturi pumps Optimising O surface f facilities f Injecting gas from local utility and nearby equity di discoveries i (Airport (Ai t North N th and Airport South) to boost pressure and strip reservoir liquids Ultimate oil recovery >80%
A bl #1 F b Ausable #1, February 2011 2011 17
Ausable Status
Ausable Field, October 2011
Ausable #5 well (2011) had over 70 metres of p proven oil pay p y
Venturi pumps, new filtration and heating skids potential 275 bopd p have been installed;; current p
Airport North (2012) and Airport South wells each have over 55 metres of gas pay, p y, tie-ins will be completed p in 2012
Refrigeration plant to be added in 2012 to strip additional condensate to maximise liquids recovery
Ausable reef has 8.9 mmbbls STOIIP
Anticipate ~500 bopd production by end 2012 and ~700 bopd in 2013
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Follow-on Potential 23,000 acre 3D survey y Ausable Reef
Numerous existing known Ordovician reefs Several undeveloped discoveries, some untested reefs Initial pilot development of an EOR scheme at Ausable Follow-up potential using the same optimised engineering solution Option to increase working interest to 38.1%
3D Seismic, Reef Resources Ltd
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Summary Successful exploration track record in Tanzania Probable commercial gas discovery at Ntorya-1 Significant upside in prospects; over 5 tcf potential New partner to be sought to accelerate exploration Ausable Field will be cash flow positive in 2013 with an expected average 500 bopd of production by early 2013 Repeat opportunities in other known Ordovician reefs Additional opportunities to be added to the portfolio over the course of time 20
Forward Looking Statements Certain statements in this presentation are “forward looking statements” which are not based on hi t i l facts historical f t but b t rather th on the th management’s t’ expectations t ti regarding di the th Company's C ' future f t growth. th These expectations include the results of operations, performance, future capital, other expenditures (amount, nature and sources of funding thereof), competitive advantages, planned exploration and development drilling activity including the results of such drilling activity, business prospects and opportunities. t iti S h statements Such t t t reflect fl t management's t' currentt beliefs b li f and d assumptions ti and d are based b d on information currently available. Forward looking statements involve significant known risks, unknown risks and uncertainties. A number of factors could cause the actual results to differ materially from the results denoted in these statements, including risks associated with vulnerability to general economic market and business conditions, competition, environmental and other regulatory changes, the results of exploration, development drilling and related activities, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although these statements are based upon what management believes to be reasonable assumptions, the Company cannot assure investors that the actual results will be consistent with g statements. these forward looking
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