1st May 2013
CORPORATE PRESENTATION Version 13.0 2
Block 1, 20%, 22,247 km2 Block 2B, 100%, 7,807 km2 7.43 million gross and 3.03 million net acres Net unrisked prospective resources 530 mmbbls Taipan Resources Inc 3 A World-Class Oil & Gas Team & Assets
Kenya is the top location for onshore oil exploration in the world, with Africa Oil Corporation estimating 23 billion barrels in Tertiary/Cretaceous rifts following play opening discoveries in 2012*
There have only been 42 wells drilled in Kenya vs. 17 wells plannedto be drilled in the next 18 months by Tullow Oil, Africa Oil Corporation, Marathon Oil and Afren. Taipan is planning to drill it’s first well in the first half of 2014
Taipan is the fourth largest, gross acreage holder in Kenya with 30,054 km2 Block 1 (20%) Block 2B (100%)
Management of Taipan has discovered over 2 billion barrels of oil equivalent in similar early-stage basins
The Anza Basin is one of the largest Tertiary-age rift-basins of the East African Rift system which contains multi-billion barrel oil discoveries
Taipan believes Block 2B is located in the "sweet spot" of the Anza Basin and plans to drill its first well in 2014 targeting the Tertiary
Taipan is currently farming down its 100% interest in Block 2B - Marathon Oil recently paid $57 mm for a 50% interest in Block 9 which is contiguous to Block 2B
Two analogue wells for Block 2B will be spudded by Africa Oil later this year on Block 9: Bahasi-1 (formerly Kinyonga) High Estimate 656 mmbbls Sala (formerly Pundamilia) High Estimate 952 mmbbls
* AOC 2013 Corporate Presentation Strong Board & Management Team 4
Max Birley, CEO and Director • +30 years international exploration & production experience • Senior roles with Marathon, Premier, Oil Search, • Discovered over 2.0 BBOE in 8 fields across 3 continents • 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
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 • Managed controlling interests in a range of private and public enterprises world-wide
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
Adam Zive, N.E.D. • Senior roles in Oil & Gas equity research with Credit Suisse, Renaissance Capital, and Desjardins Securities • Former head of Oil & Gas Research, Africa at Renaissance Capital • Ranked Superleague analyst by Brendan Woods 4th Largest Acreage Holder in Kenya 5 After Tullow, Africa Oil, & Afren
South Omo Marathon 2 2 $50M Taipan current holdings: 22,247 km + 7,807 km = Oil Disc. Taipan Resources 30,054 km2 Blocks 1 & 2B Paipai Block 1 & 2B include multiple exploration plays in Suspended Twiga oil Oil shows different basins disc. Only 42 wells drilled onshore Kenya to date Vastly under-explored + 20 year hiatus in drilling Ngamia All new wells drilled so far - all discoveries or oil discdisc.. have hydrocarbon shows Significant new oil discoveries in onshore Kenya in 2 Block 9 Marathon farm-in $57M Bogal-1 gas separate basins (Ngamia & Twiga Lokichar, Sabisa disc. Turkana Basins) All acreage tightly held. New blocks will have +$20 million commitments according to the MOE. Mbawa gas Recent corporate activity in the Tertiary disc. play amounts to ~ $117 million The Block 2B farm-out campaign is well advanced & is generating substantial Source: NOCK industry interest Limited offshore licensing only
Licensing 20002000 Comparison 20122012 Recent Commercial Activity in Kenya 6
Approximately $117 in million farm-in activity in last few months South Omo Marathon buy 20% $40+$10 million Block 7/8 New 2012, Block 9 (50%) & 12A (15%) - Marathon farm-in (to Age farm-in AOC) for $57 million**
2012, South Omo - Marathon Oil acquiresAgriterra’s 20% Block 11B Bowleven interest for $40+$10 million farm-in $10 million 2012, Block 11B - Bowleven farm-in (to Adamantine) $10 Block 1 Afren million for 50% interest farm-in $12 2011, Block 10BB - Tullow farm-in (to AOC) and drill million Ngamia & Twiga Tertiary oil discoveries 2009, Block 1 - Afren farm-in (to Lion Petroleum) for $12 million Block 7/8 El Kuran oil discovery - New age farm-in (to AOC) increases interests to 40%
Taipan currently farming-out 50% interest of Block 2B and expects to announce a definitive agreement Tullow farm-inin Block 9 (+12A) to AOC Marathon farm-inin $57M
Oil seep Oil discovery Basemap modified from NOCK
**Source: Africa Oil Corp Proven Plays & Discoveries: 7 “Surrounded By Success”
Muglad & Melut Ogaden Basin Basins Heglig+Unity Field >4 TCF gas in Karoo& 594 mmbbl of oil 6 bn bblsoil in Jurassic plays + El Kuran oil Cretaceous plays Genale Jurassic Paipai Oil seep Hilala and Calub Turkana Basin Oil shows in Gas and oil fields Sabisa Oil Cretaceous encountered in To be tested El Kuran Tertiary sediments Oil Disc. Albertine Basin Bogal 1, 1-4 Tcf >2.5 bn bbls oil Cretaceous in the Tertiary
Tarbaj Oil Seep. Jurassic sands
Uganda
Lokichar Basin Anza Basin Ngamia & Twiga Kubwa well All 10 wells drilled in basin- Oil shows Oil discoveries in proper have oil/gas shows Tertiary sediments +200 mmbbls
L8 / Mbawa Gas Disc. 170ft Lamu/Offshore Basins Cretaceous pay Potential for Billions bbls oil+gas in the Cretaceous & Tertiary Drilling Activity in Kenya 2 proven oil discoveries, 2 wells with oil shows, 5 wells to be drilled in 8 next 6 months next to or near our acreage
El Kuran 1.3 BBO El Kuran-3 spud Sabisa-1 Drilling June 2013 (Spud 15th January 2013) Oil Shows Paipai-1 Light oil shows, 180ft sand, 656ft Cretaceous Block 1 Twiga South-1 Oil Discovery source rock interval Commitment 98 ft. net pay, 2,812 bopd Spud 2014 Potential 5000 bopd Ngamia-1A Oil Discovery >328 ft. net pay FARO 281 bopd further tests Block 2B Spud 2014 Etuko 1 to Spud Spud within 3 months Block 3A+B (formerly Kamba) 2 well commitments Spud 2Q-3Q/2013 Bahasi-1 Prospect* spud 2H/13 – 320 mmbbls Block L4/L13 Sala prospect** Spud 2013 15 Historic Drilling **402 mmbls Bogal-1 Gas 10 Cretaceous 1-4Tcf s l l e Kubwa well W 5 Oil shows Oil discoveries & Mbawa Gas Discovery shows 0 Drilling imminent 180 ft. pay (within next 9 months) 50's 60's 70's 80's *formerly Kinyonga Prospect Drilling planned Decade 90's 00's 10's **formerly Pundamilia Prospect (9 – 18 months) The Normal & Transform Branches of the 9 East African Rift System
Late Tertiary (Oligo-Miocene) Basins of the East African Rift System shown The normal opening braches of the rift system are readily recognised (East + Normal Branches of West Complexes & Ethiopia branch) East African Rift System
Transform Branch of East African Rift System
The transform branch of the Late Tertiary rift system (Anza Basin) has been overlooked The Anza Basin is one of the largest basins of the East African Rift System Seismic Phase moving10 Into the drilling phase
Block 2B Taipan 100% Operator Area 7,807 km2 Initial Exploration Period Elected to enter First Additional Exploration Period Block 2B -Anza Basin – 11 Comparison of Scale to the North Sea & Texas T h e
M i l l e n n i u m
A t l a s :
P e t r o l e u m
Block 2B G e o l o g y
o f
t h e
km 5000 c e n t r a l
a
Block 2B equivalent to 43 North Sea Blocks n d
n o r t h
Anza Basin is comparable in size to the Central Moray Firth Basin e r n
Graben of the North Sea N o r t h
S
Anza Basin ~ 10 wells drilled in basin e Block 2B a . North Sea ~2408 wells drilled in basin and found multi-billion barrels of oil Anza Basin – for size comparison Central Remains very early stage with world-wide Graben potential km 2000
North Sea oil, gas and condensate fields. 12 Anza Basin Compared to Texas
Texas 700,000 km2 vs. Kenya 570,000 km2 Since 1960 approx. 500,000 wells drilled in Texas. Probably 1,000,000 since first oil Less than 50 wells drilled to date in Kenya East African Basin Scale Comparison 13
Albertine & Lokichar Basins are each ~6,000 km2 All diagrams = same scale Anza Basin ~78,000 km2 N
>2.5 Billions bbls >200? mmbbls m k
0 3 1 ~ Sweet-Spot of the Tertiary-age Anza 14 Basin is in Bock 2B
Paipai Prospect Cretaceous part of the Anza Basin Light oil shows, 180 ft. Is indicated by the green color sand, 656 ft. Cretaceous source rock interval
Tertiary part of the Anza Basin is indicated by the blue color
Block 9 Sala Prospect 402 mmbbls
Thickest Tertiary section or best part of the basin indicated by purple
Bahasi Prospect Oil discoveries & spud 2H/2013 Block 2B shows 320 mmbbl Drilling imminent (within next 9 months) Drilling planned (9 – 18 months) Hot-thinned 0 kilometres 200 Residual Gravity continental crust (200km High-pass filter) Anza Basin: 15 Regional Stratigraphy & Plays Anza & Lokichar Source Rock Study 16
Sirius-1 (Cretaceous Source)
Twiga South-1 Oil Discovery
Pseudo-well 1 Loperot-1 (Modelled pseudo Well) (Source rocks) Lokichar Basin Hothori-1 (Modelled Well)
Ngamia-1A Oil Discovery >328 ft. net pay Bahati-1 (Oligo-Miocene Source)
Potential sources and oil shows from the Anza & Lokichar basins have been reviewed Both basins have a similar Tertiary history – moreover, there appears to be compatible coeval source horizons in both basins Important “analysed” wells are shown Source rock study indicates the Block 2B area of the Anza Basin is oil prone Block 2B – Summary 17 100% working interest, 7,807 km2 in Anza basin
Newly identified under-explored Tertiary-age rift- Wells & Seismic on Bouguer Gravity basin play in the Anza Basin: Analogous to Ngamia-1A & Twiga South-1 oil discoveries (Tullow / Africa-Oil) Lokichar Basin and Sabisa in the Turkana Basin Tertiary basin trend extends into Block 9 and Block 2B Hothori-1 = 9500ft of Tertiary & oil/gas shows, 12 to 15,000 down dip against bounding fault Block 2B2BBlock Additional Potential from the extension of the oil- producing Cretaceous Melut - Muglad basins trend on to Block 2B 387 mmbbls mean unrisked prospective resources (NI 51-101 report, Sproule) Lead Summary 17 prospective leads so far Largest lead 128 mmbbl unrisked Management estimates significantly higher 439 km 2D seismic program completed March 13 Block 2B2BBlock FTG survey completed April 13 Drilling anticipated mid 2014 End of Initial Exploration Period 1st June 2013 Two further extensions of 2 years each Exploration Timeline Development Licence for 25 years Block 2B –Timeline Exploration Work Program 18 Completed “3 years work in 8 months”
439 km of 560 fold 2D seismic data acquisition & processing completed in March 2013
12,173 km “Block-wide” Full-Tensor Gravity gradiometry survey (FTG) finished April 2013
500 km of additional 2D seismic acquisition being planned for 2H 2013
Drilling anticipated mid 2014
Forward Plan: Time-line 2013 New 2D Seismic Acquisition Results 19 Comparative Data-quality in Block 2B & Blocks 13T (Twiga discovery)
Block 2B (advanced 560-fold 2D seismic ) Block 13T/10BB (60-120 fold ‘traditional’ seismic)
439 km of new 2D seismic, ‘high-fold’ (560-fold), acquired January-March 2013 The New Block 2B seismic data is obviously clearer and easier to interpret Full pre-stack time migration processing completed only 2 weeks after acquisition Block 2B 20 Block-wide FTG Gravity Survey - Completed
Bouguer gravity over Lagh-Bogal fault 12,173 km “block-wide” FTG gravity survey completed April 2013 Line spacing : 500m x 2000m to 2000m x 6000m Survey results already revealing additional information of the detailed structure of Block 2B; E.g. the previously unrecognised rugosity of the basin bounding Lagh-Bogal fault, which helps to create the roll-over structures in the “string of pearls” along the basin margin Block 2B & Block 9 - Contiguous Exploration 21 Trends & Significant Potential Scale & Prospectivity Comparison of Block 2B & 22 Blocks 10BB/13T (Twiga / Ngamia Discoveries) Comparison of “String of Pearls” Plays 23 in Block 2B & Block 13T (Twiga discovery)
Block 2B Anza Basin Miocene Basin Stratigraphy Block 13T Lokichar Basin Miocene Stratigraphy
Comparable scale examples of the Twiga discovery structure and similar structures in Block 2B Both blocks contain “string of pearls” plays in Miocene age basins Comparison of “String of Pearls” Plays 24 in Block 2B & Block 10BB (Ngamia discovery)
Block 2B Anza Basin Miocene Basin Stratigraphy Block 10BB Lokichar Basin Miocene Stratigraphy
Comparable scale examples of the Ngamia discovery structure and similar structures in Block 2B Both blocks contain “string of pearls” plays in Miocene age basins Comparison of “String of Pearls” Plays 25 in Block 2B & South Omo Block (Sabisa discovery)
Block 2B Anza Basin Miocene Basin Stratigraphy South Omo Block Turkana Basin Miocene Stratigraphy
Comparable scale examples of the Sabisa discovery structure and similar structures in Block 2B Both blocks contain “string of pearls” plays in Miocene age basins Comparison of “Tilted Fault-Block” Plays 26 in Block 2B & Block 10BB (Etuko Prospect)
Block 2B Anza Basin Miocene Basin Stratigraphy Block 10BB Lokichar Basin Miocene Stratigraphy
Comparable scale examples of the Etuko prospect and similar structures in Block 2B Both blocks contain “Tilted Fault Block” plays in Miocene age basins Older Exploration wells did not test 27 the plays. Deviated drilling is required
20 15 10 5 0
Block 1 Taipan 20% Area 22,247 km2 First Additional Exploration Period Block 1 – Summary 28 20% working interest, 22,247 km2 Acreage
2 . Block 1, 22,247 km , 20% working interest, Afren 80%, Wells & Seismic Map operator. El Kuran Oil Discovery (1972) . Afren carried Taipan through $12 million of a 1,900 km Genale Oil Well to be spudded June 2013 seismic program Seep . Basin is the southward extension of the hydrocarbon-proven Ogaden Basin. Karoo, Jurassic & Cretaceous plays . Surrounded by oil seeps/discoveries Genale oil seep, El Ramu Kuran oil discovery (‘72); Tarbaj oil seep . Afren has reported gross unrisked prospective resources 715 mmbbl (Net to Taipan = 143 mmbbl) . Gravity and magnetic data acquired . 1,900 km 2D seismic acquisition program complete . Seismic interpretation on-going . New Age to drill El Kuran-3 in 2013 estimated 45 days prospect P50 1.3 BBO Tarbaj Oil Seep . Drilling anticipated 2014
Seismic Base-campSeismicBase-camp Tarbaj-2
2012 Seismic Acquisition km0 100 Vintage Seismic Mandera-Lugh Basin & Block 1 Exploration Plays 29
Simple traps imaged in Karoo Rift system
New Seismic Source: 2012 Afren (brute stack) Exploration Plays Block 1 – Current & Planned Activities 30
Acquired 1,900 km of 2D seismic and Gravity/ Magnetics in Initial Exploration Period Seismic processing and interpretation on- going in 2013 Currently in First Additional Exploration Period. Committed to a 3000m well and 25 km2 of 3D seismic Exploration well expected in Early 2014 31 Conclusions
Taipan Resources Inc. through its 100% subsidiary, Lion Petroleum Corp has completed the three year exploration work program on Block 2B in 8 months without incident and within budget
The Sabisa well proves up that three Tertiary basins in the region can produce oil. We believe that the Anza Tertiary Basin will be the next
The certified resource estimate on Block 2B is 387 million barrels unrisked prospective resources. Management estimate post new seismic and FTG is likely to be significantly higher
Regarding the farm-out, although this has taken longer we are receiving significant interest in the block. Management believes that an agreement will be concluded shortly
Africa Oil plans to drill 1 well on block 9 which is contiguous to block 2B in 2013. Three other commitment wells expected to be drilled in 2013/14
Company is set to enter the First Additional Exploration Period (2 years) and plans to drill an exploration well on Block 2B in mid 2014 Share Structure 32
As at 28th April 2013
Issued & Outstanding 84,699,363
Warrants 53,953,886
20,000,000 exercisable at $0.12 per share until March 2015 23,833,540 exercisable at $0.60 per share until July 2017 10,418,346 exercisable at $0.50 per share until February 2018 Options 6,300,000
Fully Diluted 144,953,249 33 Disclaimer
This presentation does not constitute or form part of any This presentation includes "forward-looking statements" offer for sale or solicitation of any offer to buy or including forecasts, estimates, expectations and subscribe for any securities in Taipan Resources Inc., objectives relating to the Company’s exploration activities nor shall it or any part of it form the basis of or be relied in Africa that are subject to a number of assumptions, on in connection with or act as any inducement to enter risks and uncertainties, many of which are beyond the into any contract or commitment whatsoever. No control of the Company. Statements regarding future reliance may be placed for any purpose whatsoever on exploration activities, financings and capital expenditures the information or opinions contained in this presentation are subject to all of the risks and uncertainties normally or on any other document or oral statement or on the incident to the exploration for and development and completeness accuracy or fairness of any such production of oil and gas. Investors are cautioned that information and/or opinions. No undertaking, any such statements are not guarantees of future representation, warranty or other assurance express or performance and that actual results or developments implied is made or given by or on behalf of Taipan may differ materially from those projected in the forward- Resources Inc. or any of its directors, employees or looking statements. Such forward-looking information advisors, as to the accuracy or completeness of the represents management's best judgment based on information or opinions contained in this presentation information currently available. No forward-looking and, save in the case of fraud, no responsibility or liability statement can be guaranteed and actual future results is accepted by any of them for any such information or may vary materially. The Company does not assume the opinions or for any errors, omissions, misstatements, obligation to update any forward-looking statement negligence or otherwise contained or referred to in this except as required by applicable law. presentation. Contact Information
Max Birley, CEO Joel Dumaresq, CFO Edward Blunt +254 70564 3745 (Kenya) +(604) 306 4000 (Canada) +44 (0)1491 835 550 (UK) +1 830 998 2252 (USA) +(604) 336 3193 (Canada) +44 (0)772 070 7591 (UK) [email protected] [email protected] [email protected]
34 2013-04-25_TPN_CorpPres_V13.0 Potential Oil Export Routes 35
Tullow needs to build a pipeline through Kenya to export their 2.5 bn bbls of oil from Uganda
If the Sudanese build a southern pipeline, it would transit through Kenya Uganda The route would be similar to the Lapsset Route for rail and road links to central and west Africa
Block 2B is 175 km from both of these projects Kenya: Security Incidents in 2012 36
Block 2B is located in an area with a very low population
Most active areas are along roads and in areas of major population
Security breaches do occur, however they are relatively low in frequency
Security uncertainties are mitigated by armed Administration Police and Community relations work
Location of Block 2B 37 Kenyan Fiscal Regime Comparison
Daily Governm Contractor Production ent Share Share % bopd % 0- 20,000 55 45
20,001- 60 40 30,000 30,001- 63 37 50,000 50,001- 68 32 100,000 100,001 + 78 22 Anza Basin: 38 Hydrocarbon Maturity Windows Anza Basin: 39 Play Concepts