1 st May CORPORATE PRESENTATION Version 13.0

Transcription

1 1 st May 2013 CORPORATE PRESENTATION Version 13.0

2 Block 1, 20%, 22,247 km 2 Block 2B, 100%, 7,807 km million gross and 3.03 million net acres Net unrisked prospective resources 530 mmbbls 2

3 Taipan Resources Inc 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* 3 There have only been 42 wells drilled in Kenya vs. 17 wells planned to 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 km 2 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

4 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

5 4 th Largest Acreage Holder in Kenya After Tullow, Africa Oil, & Afren Taipan current holdings: 22,247 km 2 + 7,807 km 2 = 30,054 km 2 Block 1 & 2B include multiple exploration plays in different basins Only 42 wells drilled onshore Kenya to date Vastly under-explored + 20 year hiatus in drilling All new wells drilled so far - all discoveries or have hydrocarbon shows Significant new oil discoveries in onshore Kenya in 2 separate basins (Ngamia & Twiga Lokichar, Sabisa Turkana Basins) All acreage tightly held. New blocks will have +$20 million commitments according to the MOE. Recent corporate activity in the Tertiary play amounts to ~ $117 million The Block 2B farm-out campaign is well advanced & is generating substantial industry interest Twiga oil disc. Ngamia oil disc. Block 9 Marathon farm-in $57M South Omo Marathon $50M Oil Disc. gas Bogal-1 gas disc. Paipai Suspended Oil shows Source: NOCK Mbawa gas disc. Limited offshore licensing only Taipan Resources Blocks 1 & 2B Licensing Comparison

6 Recent Commercial Activity in Kenya 6 Approximately $117 in million farm-in activity in last few months 2012, Block 9 (50%) & 12A (15%) - Marathon farm-in (to AOC) for $57 million** 2012, South Omo - Marathon Oil acquires Agriterra s 20% interest for $40+$10 million 2012, Block 11B - Bowleven farm-in (to Adamantine) $10 million for 50% interest 2011, Block 10BB - Tullow farm-in (to AOC) and drill 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% South Omo Marathon buy 20% $40+$10 million Block 11B Bowleven farm-in $10 million Block 7/8 New Age farm-in Block 1 Afren farm-in $12 million Taipan currently farming-out 50% interest of Block 2B and expects to announce a definitive agreement Tullow farm-in to AOC Block 9 (+12A) Marathon farm-in $57M Oil seep Oil discovery Basemap modified from NOCK **Source: Africa Oil Corp

7 Proven Plays & Discoveries: 7 Surrounded By Success Ogaden Basin Muglad & Melut Basins 6 bn bbls oil in Cretaceous plays Albertine Basin >2.5 bn bbls oil in the Tertiary Heglig+Unity Field 594 mmbbl of oil Turkana Basin Sabisa Oil encountered in Tertiary sediments >4 TCF gas in Karoo & Jurassic plays + El Kuran oil Paipai Oil shows in Cretaceous To be tested Genale Jurassic Oil seep Hilala and Calub Gas and oil fields El Kuran Oil Disc. Bogal 1, 1-4 Tcf Cretaceous Tarbaj Oil Seep. Jurassic sands Uganda Lokichar Basin Ngamia & Twiga Oil discoveries in Tertiary sediments +200 mmbbls Anza Basin All 10 wells drilled in basinproper have oil/gas shows Lamu/Offshore Basins Potential for Billions bbls oil+gas in the Cretaceous & Tertiary Kubwa well Oil shows L8 / Mbawa Gas Disc. 170ft Cretaceous pay

8 Drilling Activity in Kenya 8 2 proven oil discoveries, 2 wells with oil shows, 5 wells to be drilled in next 6 months next to or near our acreage Sabisa-1 Drilling El Kuran 1.3 BBO El Kuran-3 spud June 2013 (Spud 15th January 2013) Oil Shows Paipai-1 Light oil shows, 180ft sand, 656ft Cretaceous source rock interval Twiga South-1 Oil Discovery 98 ft. net pay, 2,812 bopd Potential 5000 bopd Block 1 Commitment Spud 2014 Ngamia-1A Oil Discovery >328 ft. net pay FARO 281 bopd further tests Block 2B Spud 2014 Etuko 1 to Spud Block 3A+B 2 well commitments Spud 2Q-3Q/2013 Spud within 3 months (formerly Kamba) Bahasi-1 Prospect* spud 2H/ mmbbls Sala prospect** 15 Historic Drilling **402 mmbls Bogal-1 Gas 10 Wells Block L4/L13 Spud 2013 Cretaceous 1-4Tcf Kubwa well 5 Oil shows Mbawa Gas Discovery 0 50's 60's 70's 80's 90's Decade 180 ft. pay 00's 10's *formerly Kinyonga Prospect **formerly Pundamilia Prospect Oil discoveries & shows Drilling imminent (within next 9 months) Drilling planned (9 18 months)

9 The Normal & Transform Branches of the East African Rift System 9 Late Tertiary (Oligo-Miocene) Basins of the East African Rift System shown Normal Branches of East African Rift System The normal opening braches of the rift system are readily recognised (East + West Complexes & Ethiopia branch) 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

10 Seismic Phase moving 10 Into the drilling phase Block 2B Taipan 100% Operator Area 7,807 km2 Initial Exploration Period Elected to enter First Additional Exploration Period

11 Block 2B - Anza Basin 11 Comparison of Scale to the North Sea & Texas 0 km 500 Block 2B equivalent to 43 North Sea Blocks Anza Basin is comparable in size to the Central Graben of the North Sea Moray Firth Basin Anza Basin ~ 10 wells drilled in basin Block 2B North Sea ~2408 wells drilled in basin and found multi-billion barrels of oil Remains very early stage with world-wide potential Anza Basin for size comparison 0 km 200 North Sea oil, gas and condensate fields. Central Graben The Millennium Atlas: Petroleum Geology of the central and northern North Sea. Block 2B

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 12

13 13 East African Basin Scale Comparison Albertine & Lokichar Basins are each ~6,000 km2 Anza Basin ~78,000 km2 N All diagrams = same scale ~130 km >2.5 Billions bbls >200? mmbbls

14 Sweet-Spot of the Tertiary-age Anza Basin is in Bock 2B 14 Cretaceous part of the Anza Basin Is indicated by the green color Paipai Prospect Light oil shows, 180 ft. 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 Block 2B Bahasi Prospect Oil discoveries & shows Drilling imminent spud 2H/ mmbbl (within next 9 months) Drilling planned (9 18 months) Residual Gravity (200km High-pass filter) Hot-thinned continental crust 0 kilometres 200

15 Anza Basin: Regional Stratigraphy & Plays 15

16 Anza & Lokichar Source Rock Study 16 Sirius-1 (Cretaceous Source) Twiga South-1 Oil Discovery Pseudo-well 1 (Modelled pseudo Well) Loperot-1 (Source rocks) Lokichar Basin Ngamia-1A Oil Discovery >328 ft. net pay Hothori-1 (Modelled Well) 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

17 Block 2B Summary 100% working interest, 7,807 km2 in Anza basin Newly identified under-explored Tertiary-age riftbasin play in the Anza Basin: 17 Wells & Seismic on Bouguer Gravity 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 Additional Potential from the extension of the oilproducing Cretaceous Melut - Muglad basins trend on to Block 2B 387 mmbbls mean unrisked prospective resources (NI report, Sproule) Block 2B Lead Summary 17 prospective leads so far Largest lead 128 mmbbl unrisked Management estimates significantly higher 439 km 2D seismic program completed March 13 FTG survey completed April 13 Drilling anticipated mid 2014 End of Initial Exploration Period 1st June 2013 Two further extensions of 2 years each Development Licence for 25 years Block 2B Exploration Timeline

18 Block 2B Timeline Exploration Work Program Completed 3 years work in 8 months 439 km of 560 fold 2D seismic data acquisition & processing completed in March ,173 km Block-wide Full-Tensor Gravity gradiometry survey (FTG) finished April km of additional 2D seismic acquisition being planned for 2H 2013 Drilling anticipated mid 2014 Forward Plan: Time-line 18

19 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 ( 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

20 Block 2B Block-wide FTG Gravity Survey - Completed Bouguer gravity over Lagh-Bogal fault 20 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

21 Block 2B & Block 9 - Contiguous Exploration Trends & Significant Potential 21

22 Scale & Prospectivity Comparison of Block 2B & Blocks 10BB/13T (Twiga / Ngamia Discoveries) 22

23 Comparison of String of Pearls Plays in Block 2B & Block 13T (Twiga discovery) Block 2B Anza Basin Miocene Basin Stratigraphy 23 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

24 Comparison of String of Pearls Plays in Block 2B & Block 10BB (Ngamia discovery) Block 2B Anza Basin Miocene Basin Stratigraphy 24 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

25 Comparison of String of Pearls Plays in Block 2B & South Omo Block (Sabisa discovery) Block 2B Anza Basin Miocene Basin Stratigraphy 25 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

26 Comparison of Tilted Fault-Block Plays in Block 2B & Block 10BB (Etuko Prospect) Block 2B Anza Basin Miocene Basin Stratigraphy 26 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

27 Older Exploration wells did not test the plays. Deviated drilling is required Block 1 Taipan 20% Area 22,247 km2 First Additional Exploration Period 27

28 Block 1 Summary 28 20% working interest, 22,247 km2 Acreage Block 1, 22,247 km2, 20% working interest, Afren 80%, operator. Afren carried Taipan through $12 million of a 1,900 km seismic program Basin is the southward extension of the hydrocarbon-proven Ogaden Basin. Karoo, Jurassic & Cretaceous plays Surrounded by oil seeps/discoveries Genale oil seep, El 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 P BBO Drilling anticipated 2014 Wells & Seismic Map Genale Oil Seep El Kuran Oil Discovery (1972) Well to be spudded June 2013 Ramu Tarbaj Oil Seep Seismic Base-camp Tarbaj-2 0 km Seismic Acquisition Vintage Seismic

29 Mandera-Lugh Basin & Block 1 Exploration Plays 29 Simple traps imaged in Karoo Rift system Source: 2012 Afren New Seismic (brute stack) Exploration Plays

30 Block 1 Current & Planned Activities Acquired 1,900 km of 2D seismic and Gravity/ Magnetics in Initial Exploration Period Seismic processing and interpretation ongoing in 2013 Currently in First Additional Exploration Period. Committed to a 3000m well and 25 km2 of 3D seismic Exploration well expected in Early

31 Conclusions 31 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 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

32 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 ,833,540 exercisable at $0.60 per share until July ,418,346 exercisable at $0.50 per share until February 2018 Options Fully Diluted 6,300, ,953,249

33 33 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 forwardlooking 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.

34 Contact Information Max Birley, CEO Joel Dumaresq, CFO Edward Blunt (Kenya) +(604) (Canada) +44 (0) (UK) (USA) +(604) (Canada) +44 (0) (UK) _TPN_CorpPres_V13.0

35 Potential Oil Export Routes 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 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 Uganda 35

36 Kenya: Security Incidents in 2012 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 36

37 Kenyan Fiscal Regime Comparison Daily Production bopd Governm ent Share % Contractor Share % 0-20, ,00130, ,00150, ,001100, ,

38 Anza Basin: Hydrocarbon Maturity Windows 38

39 Anza Basin: Play Concepts 39