Corporate presentation 28 July 2016 Disclaimer This presentation - - PowerPoint PPT Presentation

28 July 2016

Corporate presentation

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

3

Active non–operator: strategic investments to assist projects that have excellent potential Re-invest value created from building assets back into portfolio Build a portfolio of assets: spread risk and leverage access to more opportunities Identify and evaluate

• il & gas
• pportunities

VALUE FOR SHAREHOLDERS

About us

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Oil & Gas Investment Company specifically focused on acquiring and developing a diverse global non-operated portfolio of assets

Tanzania: Major stake in the prolific Ruvuma Basin

and producing Kiliwani North gas development on Songo Songo Island

West Africa: Strategic investment in

Burj Africa with applications for field development projects in Nigeria

Canada: Enhanced Oil Recovery project in

Ontario currently shut in due to operator issues

UK: Interests in Weald Basin including Horse Hill

and licence award on the Isle of Wight

Isle of Wight Horse hill Ruvuma Basin PSC Kiliwani North Burj Africa Ontario Reefs

28.6 % 6.5% 30% 25% 7.175 % 20%

How we work and add value

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OIL & GAS INVESTMENTS

Oil & Gas Investment Company focused on acquiring and developing a diverse global non-operated portfolio of strategic assets to deliver value to

• ur shareholders

INVEST SELECT MONITOR CAPITAL LEVERAGE FOCUS

In oil & gas assets as a non operator Undervalued assets across a range of geographic locations On unrealized exploitation and exploration potential The skills and knowledge of existing project operators To gain access and add value across the project portfolio Progress of projects without duplicating the

• perators’ work

Our winning strategy

6 LEVERAGE OPPORTUNITIES Take advantage

• f oil & gas

market conditions – leverage opportunities PROVEN TRACK RECORD 5 out of 6 wells the Company has participated in have resulted in commercial discoveries NON OPERATOR Targeting low cost, low risk, politically stable areas and projects (primarily

• nshore)

EXPERIENCED MANAGEMENT TEAM With expertise to get into a range of different assets from exploration to production GAS PRICES Developments give some independence from oil price volatility EARLY STAGE Invest in early stage projects with significant upside potential NO NET DEBT HIGH SHARE LIQUIDITY

PORTFOLIO MIX:

Healthy balance of high upside exploration; low risk appraisal/ development assets & production

Management

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Has a BSc in Geophysics and has worked in the energy sector for 38 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 Vanguard Energy Group, where he was Chairman and CEO. As Founder and Chairman of VE Resources Limited he oversaw the rapid growth of a company in the

• il services sector. Currently CEO
• f LGO-Energy plc and Non-

Executive Director of Enovation Resources Limited. Is a Chartered Engineer with a BEng (Hons) degree in Mining Engineering and a MEng in Petroleum Engineering. He has

• ver 20 years of experience

working in industry, initially in mining before moving to petroleum. He has worked in a variety of technical and increasingly senior managerial positions in mid-sized independent oil companies, including Enterprise Oil, LASMO, OMV (UK) Ltd and Afren plc. Currently COO of LGO-Energy plc. A member of the Australian Institute of Chartered Accountants, holding senior financial and management positions in both publicly listed and private enterprises in Australia, Europe and Africa. Considerable corporate and international expertise in the oil and gas and natural resources

• sectors. He is currently a

Director of a number of AIM listed companies including Rare Earth Minerals Plc, Doriemus Plc, and Polemos Plc. Has a bachelor of business from Curtin University of Technology (Perth) and a bachelor of laws from the University of Queensland. Over 15 years’ senior management experience working with private and publicly listed companies. Formerly a partner in Ironbridge Capital Partners, Mr. Barblett has also worked with Pace plc, the leading developer for the global pay TV industry. Has advised a number

• f companies on raising private

equity and general fund raising, corporate strategy and M&A.

NEIL RITSON

CHAIRMAN TECHNICAL DIRECTOR FINANCE DIRECTOR NON-EXECUTIVE DIRECTOR

FERGUS JENKINS DONSLD STRANG SANDY BARBLETT

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Tanzania

KILIWANI NORTH & RUVUMA PSA

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) 9

Tanzania boasts proven natural gas reserves

• f 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:

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

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8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000

60,000 50,000 40,000 30,000 20,000 10,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Coincidental Peak Demand (MW) Electricity Demand (GWh) Coincidental Peak Demand (MW)

Electricity Demand (GWh)

Tanzania Electricity Peak Demand & Consumption Forecast, MEM, Power System Masterplan, 2012 Update, November 2012 (Tanzanian energy sector under the universal principles of the Energy Charter Report, Brussels, July 2015)

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

11

Tanzania Electricity Peak Demand & Consumption Forecast, MEM, Power System Masterplan, 2012 Update, November 2012 (Tanzanian energy sector under the universal principles of the Energy Charter Report, Brussels, July 2015)

700 600 500 400 300 200 100 Capacity Megawatt (MW)

608 MW of Added Capacity by 2017 2015

2017

2017 2017 2018 2018 2018 2018 2018 2020 2030 978 MW of Added Capacity in 2018 2,516 MW of Added Capacity by 2030

2,516 MW

Kiliwani North

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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

• ptimisation 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

Development Licence

ü

Dar Es Salaam Natural gas demand

Kiliwani North (KN-1) Production will only scratch the surface of local demand

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20,000 40,000 60,000 80,000 100,000

Dar, Low Growth (Constant from 2017) Dar, 2% Growth Dar, 1% Growth

mmscf pa

7,120

We estimate current Tanzania natural gas demand to be 13,000 mmscf pa Kiliwani North 7,120 mmscf pa (20 mmscfd) Kiliwani North will only provide 14% of the Tanzania’s domestic natural gas demand in the near term.

NOTE: Natural gas fired power stations are not 100% efficient and can be a low as 37% efficient 3,140 scf (3.14 mscf) of natural gas is required to generate roughly 1 MW (1,000 kW)

Feasibility Study for a Natural Gas Pipeline from Dar es Salaam to Tanga (Tanzania) and Mombasa (Kenya) April 2011 Tanzania seek to receive the supply from the Ruvuma onshore gas field to meet their domestic gas demand requirements.

Ruvuma Basin PSA

Encouraging results from licenses strategically located in a proven gas basin

14 Location

6,079-square km (Lindi and Mtwara licences) in southeast Tanzania, 80% onshore, 20% offshore

Resource Potential

Estimated 4.17 tcf of gas in place; Ntorya-1 discovery 153 BCF (CPR by Senergy Limited, 2015)

Infrastructure

Mtwara Port located 25 km from Ntorya-1 discovery. Chinese funded gas processing plants & new 36” gas pipeline running from Mtwara to Dar es Salaam.

Farm-out opportunity

Solo has the option of farming down from current equity position to achieve carry of drilling and appraisal costs.

Additional Exploration Potential

4 large-scale gas prospects, 4 additional leads, plus offshore prospects with multi-tcf resource potential. Condensate (light oil) discovery suggests potential for future oil discovery

+ Solo Oil interest: 25% + Operator: Aminex plc (Nduvo Resources) 75% + Status: Exploration & Appraisal

• Drilling commenced in 2010 (Likonde-1 well)
• First well (3,647 metres) had excellent shows for residual oil

and gas

• Second well, Ntorya-1, made a gas discovery of potential

commercial interest. Light oil and condensates are also

• present. Further 2D seismic completed in 2014
• Two additional wells are planned to follow up on the success
• f Likonde-1 and Ntorya-1
• The joint venture has until late 2016 to drill two further wells

in the Lindi and Mtwara licence areas

• 1153 km of 2D seismic conducted, 1981-2002
• Wells drilled to the north (Texaco, 1992) and southeast (Agip,

1982)

• Aminex/Ndovu Resources acquired 370 km of offshore

seismic (Lindi Block) and 430 km of 2D seismic onshore (Lindi and Mtwara blocks), 2014

Exploration History

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HISTORY RUVUMA PSA

Solo-Aminex joint venture in the Ruvuma PSA is investing to increase known reserves at key locations across its 6,079-square km licence area

Successful flow test

Confirmation that the Ntorya area is highly prospective for commercial oil & gas production

Discovery 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

Gas Flow 20.1 mmscfd through a 1-inch choke; formation pressure of 5,424 psi Liquids Production 139 bopd of condensate at a gas rate of 20 mmscfd Test analysis supports the view that Ntorya-1 is commercial Further seismic was shot in 2014 and an appraisal well program is planned for 2016 Drilling: Expect to drill two appraisal wells on the Ntorya gas-condensate discovery in 2016 (Ntorya-1 & Ntorya-2)

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Access to markets

Ntorya-1 and the wider Ruvuma PSA benefit from excellent access to the market through the regional gas pipeline connecting Dar es Salaam to Mnazi Bay

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532-km pipeline linking Mnazi Bay gas field production in southern Tanzania to the capital Dar es Salaam in the north has now completed and

• perational

36” gas pipeline & gas processing plants are part of a plan to increase Tanzania's generating capacity to 10,000 MW by 2025 Natural gas will be transported to large-scale electricity producers, other industrial users and major population centres The pipeline will allow production from existing fields to be ramped up and future fields to be commercially developed Large, unsatisfied domestic demand for natural gas is estimated at

• ver 500 mmscfd

$1.33 billion project: largely financed by Chinese loans

Next steps in Tanzania

Solo Oil is working to optimise the value of its interest in the Ruvuma PSA. Maintaining a strong operational and strategic focus

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Oversee Aminex’s development path, which aims to:

Move Ntorya discovery through appraisal to commercial development Add to our geological knowledge through increased exploration – 190 km of infill 2D seismic was acquired in 2014 and has been integrated into our models Drill two appraisal wells at Ntorya and commence development planning Consider an early development scheme to accelerate revenue

Operational Strategic

Add value to the Solo investment through key corporate actions:

Look to develop the nature and size of Solo’s interests in Tanzania with a view to achieving value increase for our shareholders Add value by participating in the drilling of further exploration wells in Ruvuma PSA Farm down interest to allow a financially stronger partner to come into the development so Solo can re-deploy capital in other areas

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United Kingdom

HORSE HILL & ISLE OF WIGHT

Horse Hill

Solo acquired a 10% interest in Horse Hill Development Limited (HHDL) which is equivalent to a 6.5% interest in the Horse Hill prospect in PEDL137 and 246 The Horse Hill discovery lies about 3 kilometres north of Gatwick Airport and the Portland sandstone structure covers an area of up to 16 square kilometres The HH-1 well reached a total depth at 8,770 feet measured depth in rocks of pre-Triassic Palaeozoic age The well was logged and a Vertical Seismic Profile (“VSP”) was acquired to correlate the well to existing 2D seismic data. 20

Solo Oil holdings 6.5%

Upper Portland Sandstone reservoir in the HH-1 and Collendean Farm-1 structure

• Xodus’ study of the Upper Portland discover

estimates a P50 OIIP of 21.0 mmbbls ~ 8-24% recoverable (2015)

• Total Oil In Place OIP upgraded by 200% to 22.9

mmbbls per sq/mile (NuTech 2016)

Conventional Oil: Strategic Horse Hill

Horse Hill-1, drilled end of 2014. Located in onshore licences PEDL137-246 (55 square miles)

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Conceptual Low-Impact Oil Development Plan for Jurassic Limestones within the Weald Basin by Xodus and Barton Willmore using multi-well pads. Anticipated to deliver an estimated 2,500 barrels of oil per day at peak production per pad Kimmeridge, Oxford and Lias sections approx 700ft Gross of Oil pay identified:

• NuTech 158 mmbbls for sq/mile
• Schlumberger 271 mmbbls for sq/mile
• NuTech 9.2 billion barrels for 55 sq/mile
• Kimmeridge limestones 1 billion barrels
• Kimmeridge shales 4.3 billion barrels
• Oxford and Lias shales 3.9 billion barrels

Tight Oil:

Successful flow test in February - March 2016

ü

Horse Hill Multi-zone flow test

Conducted in February/March 2016 to test the three separate zones at HH-1

Record-breaking results shows stable dry oil flow from all zones at higher rates than expected. Aggregate flow rate of 1,688 bopd

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Kimmeridge limestones contain moveable light oil that can be flowed to surface at commercial rates. Flow rates from both Upper and Lower Kimmeridge exceed previous UK onshore records Produced the highest aggregate stable dry oil flow from any onshore UK exploration well equivalent to 8.5% of total UK onshore daily oil production Produced the highest ever stable dry oil flow rate from a Portland well High quality light, sweet oil was produced and delivered to the Esso Fawley refinery North Sea-like oil rates from an onshore vertical well. Further significant flow rate improvements may be achieved using horizontal well

Horse Hill-1 oil

Isle of Wight – Licence award

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(UK ONSHORE 14TH ROUND)

Arreton Discovery

Xodus Group Independent evaluation of OIIP and recoverable resources: aggregate gross P50 OIIP of 219 mmbbls, within Purbeck, Portland and Inferior Oolite limestone reservoirs. Arreton Main contains net P50 contingent resources

• f 10.2 mmbbls - Net P50 prospective resources of

6.8 mmbbls calculated for the Arreton Prospects (Portland reservoir unit) The Arreton-2 well was drilled in 1974 by British Gas (strong

• il shows in the Upper Jurassic Portland reservoir

section). Nutech analysis has calculated a total oil pay of 78 feet within the Portland & 127 feet of total oil pay in limestones The first exploration period of the Licence for 5 years.

The Licence contains: + Onshore Arreton undeveloped oil discovery (Arreton Main) + Adjacent low-risk Arreton North and South Prospects + Offshore M Prospect (Drilling planned from an onshore location) located primarily in the contiguous offshore licence P1916 operated by UKOG + Solo (30% interest) and its partners, UKOG (65% interest) and Angus Energy (5% interest) + Licence offered by the Oil and Gas Authority (“OGA”) the UK onshore 14th Round for 200 km2 of adjacent onshore Isle

• f Wight acreage.

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Nigeria

Burj Africa

Burj Africa

Burj Africa is a private UK registered company created with the purpose of participating in the current marginal field licensing round in Nigeria Solo exchanged its shareholding in Pan Minerals for a direct holding of 15% in Burj Africa Solo entered into an agreement to increase its investment in Burj Africa. Solo has acquired an additional 5% for a total interest of 20% Joint Venture with: Global Oil and Gas (founded by Phil Mulacek) and indigenous company Truvent Consulting Application for two marginal fields - 10 wells, drilled by an international Major and believed to contain proven and possible recoverable oil reserves of 59.3 mmbbls (13.5 mmbbls net to Burj Africa after royalty) Solo has the right to convert the equity position in Burj Africa for a participating interest directly in the JV with Global in Nigeria 25

Solo Oil holdings 20%

26

Canada

ONTARIO REEF & AUSABLE REEF WELL

Ontario Reefs

27 Overview: Participation in a proven play incuding existing discoveries and additional untested potential in look-a-like structures Assets: The Ausable Reef offering oil production potential, the Airport Reef which offers a natural gas feedstock for the cyclic gas enhanced oil recovery (EOR) program. Plus 3-4 additional reefs in the Silurian reef complex Strategy: Move from a low recovery oil production scheme to a gas cycling EOR program, converting wells and optimising surface facilities Progress: Production commenced at the Ausable Field. Two of the four wells were put on line, proving the development

• concept. Project currently on hold owing to Operator’s financial

standing

+ Solo Oil interest: 28.6% + Operator: Reef Resources + Status: Dormant Development + Moving from small-scale production to enhanced oil recovery

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Summary

Building Shareholder value

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TANZANIA

• Successful exploration track record
• Commercial gas discovery at Ntorya-1
• Appraisal through two additional wells
• Significant upside – over 4 tcf potential
• Gas Production & coming revenues from KNDL

UNITED KINGDOM NIGERIA

ADDITIONAL OPPORTUNITIES

• Successful exploration track record
• Oil discovery in Weald Basin
• Successful flow test results at HH-1, Weald Basin (highest UK onshore flow rates)
• Further exploration potential in PEDL137 and PEDL 246
• Join license award14th Onshore Round Isle of Wight
• Application for two marginal field licences
• Competent Operator & Local Partner
• 2P recoverable oil reserves of gross 59.3 mmbbls
• Further investments with suitable strategic partners
• Actively evaluating multiple opportunities to expand the portfolio

Our website: www.solooil.co.uk

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CONTACT US

Suite 4B Princes House, 38 Jermyn Street, London SW1Y 6DN T: +44 (0) 20 7440 0642 F: +44 (0) 20 7440 0641 E: info@solooil.co.uk https://www.linkedin.com/company/solo-oil Follow us @ solooilgas