Disclaimer
Important Notice
2
DISCLAIMER
The information contained in these slides has been prepared by Tower Resources plc (the “Company”). This Presentation is being made for information purposes only and does
not constitute an offer or invitation for the sale or purchase of securities or any of the assets described in it nor shall they nor any part of them form the basis of or be relied on in
connection with, or act as any inducement to enter into, any contract or commitment whatsoever or otherwise engage in any investment activity (including within the meaning
specified in section 21 of the Financial Services and Markets Act 2000).
The information in this Presentation does not purport to be comprehensive and has not been independently verified. While this information has been prepared in good faith, no
representation or warranty, express or implied, is or will be made and no responsibility or liability is or will be accepted by the Company or any of its officers, employees, agents or
advisers as to, or in relation to, the accuracy or completeness of this Presentation, and any such liability is expressly disclaimed. In particular, but without prejudice to the generality
of the foregoing, no representation or warranty is given as to the achievement or reasonableness of any future projections, management estimates or prospects contained in this
Presentation. Such forward-looking statements, estimates and forecasts reflect various assumptions made by the management of the Company and their current beliefs, which
may or may not prove to be correct. A number of factors could cause actual results to differ materially from the potential results discussed in such forward-looking statements,
estimates and forecasts including: changes in general economic and market conditions, changes in the regulatory environment, business and operational risks and other risk
factors. Past performance is not a guide to future performance.
The information in slides 3, 8, 9, 10 in relation to Namibia has been extracted from the 2011 Oilfield International Competent Person’s Report (the “CPR”) and/or the Oilfield
International CPR update in June 2013, or reflects the Company’s analysis only or opinion based on the contents of the CPR. The pictures on slides 1 and 17 of this Presentation
are illustrative only and not pictures of Company assets.
The Presentation is not a prospectus nor has it been approved by the London Stock Exchange plc or by any authority which could be a competent authority for the
purposes of the Prospectus Directive (Directive 2003/71/EC). This Presentation has not been approved by an authorised person for the purposes of section 21 of the
Financial Services and Markets Act 2000.
The information contained in this Presentation is subject to change, completion or amendment without notice. However, the Company gives no undertaking to provide the recipient
with access to any additional information, or to update this Presentation or any additional information, or to correct any inaccuracies in it or any omissions from it which may
become apparent.
Recipients of this document in jurisdictions outside the UK should inform themselves about and observe any applicable legal requirements. This document does not constitute an
offer to sell or an invitation to purchase securities in any jurisdiction.
Tower Resources
Overview of Tower Resources
3
Building a High Impact African Explorer
New management team experienced in building
successful E&P companies
New Outsourced Exploration department provides
critical band-width for growth
Raised US$20 million during H2 2013
High Impact well offshore Namibia
• 30% interest in super-giant structure
• Net risked prospective resources 496 mmboe
• Spud-date early April 2014
• Looking to sell 10% to fund diversification
Strategy to diversify & build exploration portfolio
The company is evaluating a number of new deals
including farm-ins, corporate M&A, licence rounds and
direct negotiation with Governments
Uganda Representative
office
East Africa
regional base
Namibia 30% of PEL010
3 Blocks offshore
Operator: Repsol
Drilling: Apr 2014
SADR 50% of 3 Blocks
1 Onshore
2 Offshore
72,698 km2
Operator: Wessex
Cameroon Negotiating PSC
terms for Dissoni
Block (offshore)
Madagascar Onshore
In negotiation
Tower Resources
Board & Management Team
4
PDF Limited
VP - Corporate Affairs
Jeremy Asher
Peter Taylor
Graeme Thomson
Peter Blakey
Philip Swatman
Nigel Quinton
Andrew Matharu
Non-Executive Director
PDF Limited
Rashid Mugabe
Chief Executive Officer Non-Executive Director Non-Executive Director Non-Executive Chairman
Head Of Exploration
Geoscience Group Regional Manager
Tower Resources
Capital Structure
5
Listing: AIM
Share price: 4.2p†
Market capitalisation: ~ US$184m
Issued share capital: 2,659m
Options & warrants: 107m (4.0%)
Balance sheet: ~US$18m cash
Directors holding: 19%
12 month high: 4.9p
12 month low: 1.1p
† At close on 23 Jan 2014
* Director
Shareholders
10.3%
10.0%
9.6%
4.0%
3.7%
61.6%
Mr Jeremy Asher*
Quantum PacificManagement Limited
Lansdowne Partners
Mr Peter Taylor*
Mr Peter Blakey*
Others
Tower Resources
Portfolio
6
Uganda Representative
office
East Africa
regional base
SADR 50% of 3 Blocks
1 Onshore
2 Offshore
72,698 km2
Operator: Wessex
Madagascar Block 2102
Onshore
In negotiation
Cameroon Negotiating PSC
terms for Dissoni
Block (offshore)
Namibia 30% of PEL010
3 Blocks offshore
Operator: Repsol
Drilling: Apr 2014
Cameroon Negotiating PSC
terms for Dissoni
Block (offshore)
100% Operator
Uganda Representative
office
East Africa
regional base
SADR 50% of 3 Blocks
1 Onshore
2 Offshore
72,698 km2
Operator: Wessex
Madagascar Onshore
In negotiation
= Shallow Miocene Prospect
= Oligo-Miocene Prospects
KEY
= Oil Fields
MAVANGUE LEAD
NJONJI LEAD
IDENAO LEAD
RUMPI OIL DISCOVERY Requires appraisal
NJONJI SHALLOW OIL DISCOVERY
Requires appraisal
NORTH DISSONI FIELD
25 MMbbl
Tower Resources
Cameroon, Dissoni
7
Rio del Rey Basin, Offshore Cameroon
Shallow water depths: < 50m
Two under-appraised shallow Miocene oil
discoveries on block
Upside potential in deeper toe-thrust plays
(analogous to adjacent Alba field &
Bowleven “Isongo” discoveries)
North Dissoni Field came online in 2013,
with production plateau of 14,000 bopd
expected in mid-2014 (operated by Perenco)
8
First exploration well Welwitschia #1 to spud mid-
April 2014 by Operator Repsol (44%)
Rowan Renaissance drillship contracted
Long lead items arriving in Namibia
Simple 4-way dip closure with multiple reservoir
sequences being intersected by Welwitschia #1
Very strong DHI in the Maastrichtian
Wingat #1 well recently confirmed presence of
source in Walvis Basin and recovered light oil to
surface
Estimated well costs US$80m to US$100m
Partners: Repsol (44%), Tower Resources (30%)
and Arcadia (26%)
Welwitschia #1 will meet all existing licence
commitments
Giant potential @ 15 cents per risked boe
Offshore Namibia
PEL0010 - Giant Dip-closed Prospects
Offshore Namibia
PEL0010 - Giant Dip-closed Prospects
9 * Aggregated case based on combined fluid probabilities of Volatile Oil, Gas Condensate and Dry Gas cases
Best Estimate of Resources* – June 2013 CPR update
Horizon Gross Unrisked Net Unrisked ECoS Net Risked
(mmboe) (mmboe) (mmboe)
Maastrichtian 2357 672 31.4% 211
Palaeocene 3564 1016 18.7% 190
Upper Campanian 463 132 8.7% 11
Campanian Wedge 1215 346 9.3% 32
Albian 2277 649 8.0% 52
Total Welwitschia 9875 2814 496
Gamma Palaeocene 2408 686 9.3% 64
Alpha Palaeocene 789 225 11.8% 27
TOTAL PEL0010 13073 3726 587
Welwitschia #1 to spud mid-April 2014
CPR gross prospective resources 9.9 Billion BOE
Multiple reservoirs, main targets:
• Maastrichtian-Palaeocene sands
• Albian carbonates
Maastrichtian GCOS of 23% without AVO & 39.5%
with AVO multiplier (CPR, 2011)
Significant follow-up potential exists in additional
leads, with total prospective resources in PEL0010
estimated at >13 Billion BOE
NAMIBE BASIN
ALPHA
GAMMA
25 km
NEAR BASE TERTIARY DEPTH STRUCTURE
Welwitchsia-1 (APR 2014)
Offshore Namibia, PEL0010
Walvis Basin - Underexplored
10
Source: The Millennium Atlas - Petroleum Geology of the Central northern North Sea (2003)
North Sea Fields & Basins
Walvis Basin Outline
PEL0010 (11,600km²)
Comparable in scale to a large part of the
Central Graben
Walvis Basin is bigger than the Central Graben
Only six wells drilled to date in c. 90,000 km²
Wingat #1 (2013 HRT) recovered 38o-42o API oil to
surface and confirmed the presence of at least two
mature oil source rocks
* All quoted volumes are best estimate unrisked gross
prospective resources
Kudu Gas Field
Kabeljou-1 Proved thick
regional source rock
Murombe #1 Proved mature Aptian
oil source rock
Wingat #1 38°-42° API oil
to surface
Kunene-1 Gas Discovery
Chariot/AziNam (PEL19)
1 well planned in 2014
Serica (PEL 47) 3D survey acquired & 1 well
provisionally planned in 2014/15
Maurel & Prom Increased interest in
PEL’s 44 & 45 (Aug 2013)
Westbridge Energy Awarded additional licences (June 2013)
Tullow Farmed-in to
PEL37 (Sept 2013)
Tower (PEL10) Welwitschia-1 to spud in
April 2014 targeting 9,875 mmbbl*
Moosehead #1 Proved well developed
Aptian source rock
Gazania Awarded new PA & commits to $40MM exploration prog.
(June 2013)
Offshore Namibia, PEL0010
Welwitschia Prospect Play Summary (Schematic Depth Section)
1.0
2.0
3.0
4.0
5.0
(km)
SYN-RIFT EARLY APTIAN-
BARREMIAN SOURCE INTERVALS
LATE ALBIAN
CENOMANIAN- SANTONIAN
MAASTRICHTIAN- CAMPANIAN
EO-OLIGOCENE
APTO- ALBIAN
NEOGENE
Early Cretaceous carbonates play
Welwitschia Prospect
Thick regional shales
Stacked Late Cretaceous - Early Tertiary basin floor
sands trapped in 4-way dip closures
SEA BED
25 km
Oil recovered from Albian carbonates
PALAEOCENE
1911/15-1 & 1911/10-1
SYN-RIFT (EARLY APTIAN-
BARREMIAN SOURCE INTERVALS)
Basin floor sands
Offshore Namibia, PEL0010
Reservoir Presence: Sands in Offset Wells
1.0
2.0
3.0
4.0
5.0
(km)
SYN-RIFT EARLY APTIAN-
BARREMIAN SOURCE INTERVALS
LATE ALBIAN
CENOMANIAN- SANTONIAN
MAASTRICHTIAN- CAMPANIAN
EO-OLIGOCENE
APTO- ALBIAN
NEOGENE
Welwitschia Prospect SEA BED
25 km
PALAEOCENE
1911/15-1 & 1911/10-1
SYN-RIFT (EARLY APTIAN-
BARREMIAN SOURCE INTERVALS)
1911/10-1
25%
CA
MP
AN
IAN
(m)
1911/15-1
>20%
MA
AST
RIC
HTI
AN
P
ALA
EOC
ENE
Early Cretaceous carbonates play
Stacked Late Cretaceous - Early Tertiary basin floor
sands trapped in 4-way dip closures
Schematic Depth Section
Offshore Namibia, PEL0010
Source Kitchens
1911/10-1
2012/13-1
WINGAT-1
MUROMBE-1
GAMMA
ALPHA
WALVIS BASIN
NEAR TOP ALBIAN COMPOSITE REGIONAL
DEPTH STRUCTURE
50 km
Thermogenic Gas Coring (NAMCOR)
= Thermogenic gas shows
= No thermogenic gas shows
PEL0010 sits on a regional high, that will be a
regional focus for migration and charge from a
large fetch area over the Walvis Basin, Dolphin
Graben & Namibe Basin
Recent drilling proved the presence of “at least
two mature oil-prone source rocks” in the
Walvis Basin (HRT)
Potential source kitchens also exist to the west
of the license
– DSDP wells prove the presence of world
class source rocks (up to 18% TOC) to the
west of the licence
Two mature marine sources encountered proven in HRT wells
Minimum Welwitschia
fetch area (c. 10,000 km²)
1911/15-1
WELWITSCHIA-1
Offshore Namibia, PEL0010
Methane Hydrates & Surface Seeps Over
Walvis Basin Source Kitchen
WALVIS BASIN SE NW
50 km
NEAR TOP ALBIAN
WELWITSCHIA GAMMA
ALPHA
2.0
3.0
4.0
5.0
6.0
TWT
METHANE HYDRATES & SURFACE SEEPS
Basin modelling indicates peak generation at 10Ma (Late Miocene - Recent), which post-
dates closure & seal formation in the Oligocene
Offshore Namibia, PEL0010
Welwitschia Prospect - Summary
Prospect Description:
4-way dip closure
Maximum closing area is circa 1,100 km2
Very strong amplitude anomaly at Maastrichtian target reservoir
5 reservoir targets (all proven in offset wells): – Primary: Maastrichtian & Palaeocene sands & Albian carbonates
– Secondary: Campanian sands; Aptian-Barremian sands
3 oil-prone source intervals: Cen-Turonian (marine); Apt-Albian (marine), Barremian syn-rift (lacustrine)
INLINE 1560 XLINE 3018
WELWITSCHIA-1 WELWITSCHIA-1 NW SE SW NE
10 km
P50 Closure 427 km²
Top Maastrichtian Far Stack (No AVOBK)
Extraction + Depth Contours
TOP ALBIAN
WELWITSCHIA-1
NE SW
AVO Gradient response (I x G Product)
PEL0010, Welwitschia Prospect
AVO Response - Maastrichtian Anomaly
16
AVO Gradient response (I x G Product)
Shallow gas Maastrichtian anomaly
Campanian
Ponded sands
Palaeocene
Cenomanian
Albian carbonates
Pre- Albian/Aptian & older