Download - Taipan Resources
CORPORATE PRESENTATION Version 15.2
6th November 2013
World-Class Oil & Gas Assets
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¡ Kenya - world’s top onshore oil exploration area ¡ Estimated 22.7 billion barrels gross unrisked prospective resources in Tertiary/Cretaceous rifts following play
opening discoveries in 2012*
¡ Only 58 wells drilled in Kenya vs. 11 wells planned for next 12 months by Taipan, Tullow, Africa Oil, Afren and Vanoil ¡ Taipan is the fourth largest, gross acreage holder in Kenya with 27,712 km2 and net 328 MMBO prospective
resources ¡ Block 2B (45%) and Operator, Partners with Premier Oil plc, net 184 MMBO prospective resources ¡ Block 1 (20%) Operator Afren plc, net 144 MMBO prospective resources.
¡ Management of Taipan has discovered over 3.75 billion boe in similar early-stage basins with success rates from 50% to 80%
¡ Farm in Agreement signed with Premier Oil on the 3rd October 2013
¡ Premier earn 55% interest for a gross investment up to $30.5 mm ¡ Taipan fully funded through the drilling of first well on Block 2B.
¡ Near Term Drilling
¡ Africa Oil, Block 9: Bahasi-1 Drilling, 320 MMBO ¡ Africa Oil, Sala Prospect spud Q4 of 2013, 402 MMBO ¡ Afren Block -1 Khorof Prospect spud Q3 2014, 390 MMBO ¡ Taipan Block 2B Pearl Prospect spud Q3 2014, 200+ MMBO
¡ Taipan drilling plan in next 12 months exposed to gross 590 MMBO prospective resources, 166 net MMBO ~$1.245 billion unrisked NPV
* AOC 2013 Corporate Presentation
Block 1
Block 2B
12 month drilling plan exposes Taipan to $1.245 billion un-risked NPV
Taipan Key Management 3
Max Birley, CEO and Director • 34 years international exploration & production experience • Discovered over 2.0 BBOE in 8 fields across 3 continents, 50% Success rate for Exploration wells • Senior roles with Marathon, Premier, Oil Search, • Involved with producing projects totalling 500,000 boepd • In-country operating experience - Equatorial Guinea, India, Pakistan, Yemen, Kenya • Managed & developed multi-billion dollar African assets
Paul Logan, Exploration Manager • Over 35 years’ experience in international exploration • Have found 1.75 billion bbls oil equivalent , 80% success rate for exploration wells • Previously Chief Geologist at Heritage Oil responsible for Uganda • Worked with British Gas, Getty Oil, Texaco, Hamilton Oil, and BHP. • 20 years working in Africa, including Uganda and Tanzania
Joel Dumaresq, CFO and Director • +20 years experience in the financial sector • Former financial and investment banking roles with RBC Dominion Securities • 12 years Managing Director of Matrix Partners Inc. – Vancouver based private equity and merchant banking firm • Extensive M&A expertise
Charles Watson, N.E.D. • +30 years experience including Bechtel and Royal Dutch Shell, Former Chairman of Shell Russia and Sakhalin Energy • Former Executive Vice President Royal Dutch Shell Russia & CIS, Shell Energy Europe, Shell Gas and Power & Exp. &
Production for Africa & the Middle East
Recent Commercial Activity in Kenya Over $200 million farm-in activity in the last 12 months
4 **Source: Africa Oil Corp
Block 11B Bowleven
Block 9 (+12A) Marathon
Basemap modified from NOCK
Block 7/8 New Age
South Omo Marathon Oil discovery Oil seep
Block 2B Premier
Block 2A Ajax
Year Seller Buyer Blocks (% Interest) Gross Investment
$mm
2013 Taipan Premier 2B (55%) 30.5
2013 Simba Ajax 2A (66%) 36.5
2012 Africa Oil Marathon 9 (50%), 12A (15%) 78.5
2012 Agriterra Marathon South Omo (20%) 50
2012 Admantine Bowleven 11B (50%) 10
2012 Africa Oil New AGE Ethiopia 7/8 (25%) 1.5
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Source: NOCK
Limited offshore licensing only
Licensing Comparison 2000
“Surrounded By Success” Proven Plays & Discoveries
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Uganda
L8 / Mbawa Gas Disc. >50m
Cretaceous pay
Albert Basin >2.5 bn bbls oil in the Tertiary
Tarbaj Oil Seep Jurassic sands
Genale Jurassic Oil seep
Heglig+Unity Field 594 mmbbl of oil
Muglad & Melut Basins
6 bn bbls oil in Cretaceous plays
Anza Basin All 10 wells drilled in basin
have oil/gas shows
Ogaden Basin >4 TCF gas in Karoo & Jurassic
plays + El Kuran oil
El Kuran Oil Disc.
Lokichar Basin Ngamia, Twiga
, Ekales and Etuko Oil discoveries in Tertiary
sediments ++250 mmbbls
Paipai Oil shows in Cretaceous To be tested
Hilala and Calub Gas and oil fields
Kubwa well Oil shows
Turkana Basin Sabisa Oil
encountered in Tertiary sediments
Block 2B & Block 9 - Contiguous Exploration Trends & Significant Potential
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Pearl Prospect Xx km2 xx mmbbl
Anza Basin BLOCK 2B
BLOCK 9
50 0 kilometres
Bahasi-1 Prospect Drilling
60 km2 320 mmbbl
Sala-1 Prospect Spud Q4 2013
100 km2 402 mmbbl
Basement Area
Basement Area
ANZA-1
BOGAL-1
NDOVU-1
DUMA-1
KAISUT-1
HOTHORI-1
Pearl Prospect Spud Q3 2014
43 km2 200 mmbbl +
Comparison of Block 2B & Lokichar Basin
¡ Both basins contain analogous “string of pearls” and “tilted fault block” structural plays
¡ Average Prospect size in Lokichar is 200 MMBO ¡ Current Success rate 100%
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20 0
kilometres
2B Block Outline
HOTHORI-1
Block 2B: Anza Basin – Late Miocene Age Rift Lokichar - Late Miocene Age
“String Of Pearls” Play Ngamia , Twiga & Ekales
oil discoveries
“Tilted Fault Block” Play Etuku Discovery
Block 2B PSC and Work Program Summary
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Block 2B Commitment • 25 km2 3D for $7 mm • Drill Exploration well to 3000m $6.0 mm • Total $13 mm
Premier Farm-in Summary • Taipan retains Operatorship • $1.0 million Back Costs • Forward costs gross to $29.5 million
2013 2014 Q4 Q1 Q2 Q3 Q4 O N D J F M A M J J A S O N D Geological Studies Seismic Acquisi>on Drilling Planning Mobiliza>on/ Construc>on Drilling Explora>on Period First Addi>onal Explora>on Period
Block 2B Timeline
Initial Exploration Period & Extension Seismic Acquisition + FTG Survey
2008
PSC Signed 17-09-2008
2009 2010 2011 2012 2013 2014 2015 2016
End IEP Ext. 1-06-2013
End 1st Add. EP 1-06-2015
End 2nd Add. EP 1-06-2017
1st Additional Period 1 Well + 3D seismic
2nd Additional Period 2 Wells + 3D seismic
2017
Drilling Activity • Fully funded for First well • Well to spud Q3 2014 • Well $18 to $25mm
Comparison of Ngamia-1 and Pearl-1 Prospect
9 Source: Africa Oil Corp website / 2013-03-18_CP.pdf
Top Auwerer Oil Zones
Top Lokhone Shale
Top Lokhone Ss
P1 closing contour
2 km
P1 closing contour Pearl
Gross Oil Resources “ Ngamia & Pearl
Prospect 2C (MMBO)
BE MMBO GCOS
Ngamia 180 281 64%
Pearl 200 30%
Block 2B Pearl Prospect
Ngamia
Comparision of Etuko-1 and RFB -4 Prospect
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Source: Africa Oil Corp website / 2013-03-18_CP.pdf
P1 closing contour
RFB 4
Block 2B RFB-4 Prospect
Gross Oil Resources “ Etuko & RFB-4
Prospect 2C (MMBO)
BE MMBO GCOS
Etuko ? 100 34%
RFB-4 100 20%
Block 1 PSC and Work Program Summary
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• Currently in First Additional Exploration Period.
• Acquired 1,900 km of 2D seismic and Gravity/ Magnetics in Initial Exploration Period
• Seismic interpretation on-going
• Committed to a 3000m well for $6.0 million
• Committed to 25 km2 of 3D seismic
• Exploration well expected in mid-2014
Block 1 Timeline
Initial Exploration Period & Extension Seismic Acquisition + FTG Survey
2008
Commencement 8-10-2008
2009 2010 2011 2012 2013 2014 2015 2016
End IEP Ext. 8-10 -2012
End 1st Add. EP 8-10-2014
End 2nd Add. EP 8-10-2016
1st Additional Period 1 Well + 3D seismic
2nd Additional Period 1 Well + 3D seismic
2017
Block- 1 Summary & Prospects
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• 22,247 km2, 20% working interest, Afren 80%, Operator
• Gross unrisked prospective resources 715MMBO
• Net to Taipan = 143 MMBO • Khorof Prospect 380 MMBO gross
Drilling Activity in Kenya Two tested oil discoveries, 3 wells with oil shows that will flow on test, 6 wells to be drilled in next 12 months next to or near Taipan acreage
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El Kuran El Kuran-3
Drilling
Ngamia,Twiga Ekales and Etuko
Oil Discoveries 100% Success Rate
Sabisa-1 Oil Shows
Block 9 Sala Prospect
402 MMBO Spud Q4 2013
Block 3A Madogashe Prospect
Drilling
Block 1 Khorof Prospect
390 MMBO Spud 2014
Paipai-1 Light oil shows, 180ft
sand, 656ft Cretaceous source rock interval
Block 2B Pearl Prospect
200 MMBO Spud 2014
Kubwa well Oil shows
Tultule-1 Drilling
Block 9 Bahasi-1Prospect
320 MMBO Drilling
Oil discovery & shows or Drilling
Drilling or planned
Albert Basin 80% Success Rate
Summary and Next Steps ¡ Taipan Resources (Lion Petroleum Corp) signed Farm in Agreement with Premier Oil on the 3rd October 2013.
Premier will earn a 55% working interest for a gross investment of up to $30.5 million. FO expected to close year end.
¡ Premier Oil plc is a leading FTSE 250 independent exploration and production company with interests in the North Sea, South East Asia, the Middle East, Africa, Pakistan and the Falkland Islands with a current market capitalisation of circa $3.0 billion
¡ Taipan is fully funded through seismic and the drilling of the first well on Block 2B ¡ The certified resource estimate for 100% of Block 2B is currently 410 million barrels unrisked prospective resources.
A new CPR including the new seismic and FTG data will be published in December 2013
¡ Africa Oil, Block 9 has spudded the Bahasi well and will drill the Sala Prospect in Q4 2013.
¡ Vanoil Block 3A is preparing to drill the Madogashe Prospect
¡ Taipan Block 2B, plans to drill the Pearl Prospect in Q3 2014
¡ Afren, Block 1 plans to drill the Khorof Prospect in Q3 2014
¡ Taipan drilling plan in next 12 months exposed to gross 590 MMBO prospective resources, 166 net MMBO ~$1.245 billion unrisked NPV
¡ Taipan will identify additional Exploration Assets in Africa in order to expand its exposure to additional exploration drilling
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Share Structure
Share Structure Issued & Outstanding 85,299,363
Warrants 53,341,886
$0.12 per share until March 2015 $0.60 per share until July 2017 $0.50 per share until February 2018
19, 400,000 23,523,540 10,418,346
Options 8,100,000
Fully Diluted 146,741,249
15 As at 14th October 2013
Disclaimer
This presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities in Taipan Resources Inc., nor shall it or any part of it form the basis of or be relied on in connection with or act as any inducement to enter into any contract or commitment whatsoever. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this presentation or on any other document or oral statement or on the completeness accuracy or fairness of any such information and/or opinions. No undertaking, representation, warranty or other assurance express or implied is made or given by or on behalf of Taipan Resources Inc. or any of its directors, employees or advisors, as to the accuracy or completeness of the information or opinions contained in this presentation and, save in the case of fraud, no responsibility or liability is accepted by any of them for any such information or opinions or for any errors, omissions, misstatements, negligence or otherwise contained or
referred to in this presentation. This presentation includes "forward-looking statements" including forecasts, estimates, expectations and objectives relating to the Company’s exploration activities in Africa that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding future exploration activities, financings and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement except as required by applicable law.
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Contact Information Max Birley, CEO +254 70564 3745 (Kenya)
+1 830 998 2252 (USA)
Joel Dumaresq, CFO +(604) 306 4000 (Canada)
+(604) 336 3193 (Canada)
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