Corporate Presentation Neil Ritson Chairman 5 October 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
How we work and add value OIL & GAS INVESTMENTS Oil & Gas Investment Company focused on In oil & gas assets INVEST as a non operator 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 4
Where our assets are located Oil & Gas Investment Company specifically focused on acquiring and developing a diverse global non-operated portfolio of assets Canada: Enhanced Oil Recovery project in Auable Field. Ontario currently shut in due to operator issues Horse Hill 6.5% 28.6 % 30% Isle of Wight Ausable, Ontario UK: Interests in Weald Basin including Horse Hill and licence award on the Isle of Wight Burj Africa 7.175 Kiliwani North West Africa: Strategic investment in % Burj Africa with applications for field 20% development projects in Nigeria Tanzania: Major stake in the prolific Ruvuma Basin 25 % and producing Kiliwani North gas development on Songo Songo Island Ruvuma Basin PSA 5
Our Management 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 Resources Limited. 6
Tanzania KILIWANI NORTH & RUVUMA PSA 7
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, 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: 8
Tanzanian energy demand 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) Kiliwani North will only provide 14% of the Tanzania’s domestic natural gas demand in the near term. 9
Kiliwani North Gas Field First Gas 4 th April 2016 ü KN Development Licence Daily Production Rate up to 30 mmscfd in early July 2016 (~ 5,000 barrels of oil equivalent per day) Commissioning of the well, pipeline and associated gas processing plant concluded with optimisation of the production rate underway Gas produced flows through the 2 km 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$3.07 per mscf), pays in US$ with bank guarantees. First payments received August 2016 10
Ruvuma PSA Exploration History HISTORY • 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 and 430 km of 2D seismic onshore 2014 RUVUMA PSA • Drilling Likonde-1 commenced in 2010 • Likonde-1 (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 Solo-Aminex joint venture in the Ruvuma PSA is • Two appraisal wells are planned to follow up on the investing to increase known reserves at key locations success of Ntorya-1 across its 6,079-square km licence area 11
Successful discovery and test Confirmation that the Ntorya area is highly prospective for commercial 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. Only the 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 a 2 well appraisal well program is planned for 2016 Drilling: Expect to drill two appraisal wells on the Ntorya gas- condensate discovery in 2016 (Ntorya-2 & Ntorya-3). Civil works are well advanced at NT-2 and a rig contract signed 12
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