solo oil presentation october final

Investor Presentation

October 2009

AiM: SOLO www.solooil.co.uk


October 2012


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, 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.


Who we are

INTRODUCING SOLO OIL

OBJECTIVES

PORTFOLIO

Note: All figures in this presentation quoted as gross

Junior petroleum resources and exploration company Listed on the London AiM Market (SOLO) To acquire and develop a diverse portfolio of oil & gas assets in the Americas, Europe and Africa Non-operated oil & gas assets:

Major stake in the prolific Ruvuma Basin, Tanzania

Enhanced Oil Recovery project in Ontario, Canada More than 5 trillion cubic feet (tcf) of prospective resources identified in Tanzania Recent Ntorya-1 (Tanzania) discovery flowed 20 million standard cubic feet per day (mmscf/d)

Drilling in progress at the Likonde-1 well


How we work

INVEST in oil & gas, but do not operate on the ground

undervalued assets across a range of geographic locations

SELECT on unrealised exploration and exploitation potential

FOCUS

LEVERAGE the skills and knowledge of existing project operators

USE CAPITAL to gain access and add value across the project portfolio

MONITOR the progress of projects and production without duplicating the operators’ work

Acquiring production, near production and high impact exploration projects to add value


Management

David Lenigas CHAIRMAN

Neil Ritson EXECUTIVE DIRECTOR

Sandy Barblett NON-EXECUTIVE DIRECTOR

Holds a Bachelor of Applied Science in Mining Engineering and has 30 years of resources industry experience. Currently also Executive Chairman of Leni Gas and Oil plc, Stellar Resources plc and Non-Executive Director Rare Earth Minerals plc. Mr. Lenigas maintains a wide range of resource industry contacts and activities. Formerly Executive Chairman of Lonrho plc and Lonrho Mining Ltd.

Has a BSc in Geophysics and has worked in the energy sector for over 35 years, initially with BP plc for 23 years, before managing the international operations of Burlington Resources Inc. More recently, he was CEO at Regal Petroleum plc, before founding Vanguard Energy Group, where he was Chairman and CEO. As Founder and Chairman of VE Resources Limited he oversaw the rapid growth of a company in the oil services sector. CEO of Leni Gas and Oil plc and Non-Executive Director of Enovation Resources Limited.

Has a bachelor of business from Curtin University of Technology (Perth) and a bachelor of laws from the University of Queensland. Over 15 years’ senior management experience working with private and publicly listed companies. Formerly a partner in Ironbridge Capital Partners, based in London, Mr. Barblett has also worked with Pace plc, the leading developer for the global pay TV industry. Has advised a number of companies on raising private equity and general fund raising, corporate strategy and mergers and acquisitions.

An experienced team with a strong track record of delivery


RUVUMA PSA, TANZANIA

Successful flow test at Ntorya-1


Ruvuma Basin PSA

Encouraging results from licences strategically located in a proven gas region Solo Oil interest: 25% Operator: Aminex plc (Nduvo Resources) Status: Exploration & Appraisal

Operated by:

LOCATION: 6,079-square km (Lindi and Mtwara licences) in southeast Tanzania, 80% onshore, 20% offshore RESOURCE POTENTIAL: 5.75 tcf natural gas (ISIS Petroleum Consultants). Ntorya-1 discovered in 2012 EXPLORATION POTENTIAL: The existence of identified discoveries, leads and prospects with mean potential of 5.75 tcf and a further significant potential for oil underlines the enormous potential of the Ruvuma PSA (RNS: 2/7/12) INCREASED PARTICIPATION: Solo has increased its interest from 12.5% to 18.75% and then 25% INFRASTRUCTURE: Mtwara Port located 25 km from Ntorya-1 discovery. Construction of Mtwara to Dar es Salaam gas pipeline expect to commence in 2013


Regional Context

The Ruvuma Basin covers onshore and offshore areas of Mozambique and Tanzania International oil & gas companies that have made gas discoveries at Ruvuma include BG Group/Ophir Energy, Cove Energy, Eni, Petrobas, RAK Gas, Statoil, Maurel et Prom and Petrodel Resources Ltd A total resource in excess of 100 tcf has been discovered Ntorya-1 extends the proven fairway onshore

Ruvuma Basin PSA puts Solo Oil at the forefront of East Africa’s frontier energy district

In good company…


Exploration

Ruvuma PSA is investing to increase known reserves at key locations across its 6,079-square km license area

HISTORIC 1153 km of 2D seismic conducted, 1981-2002 No wells drilled in the PSA, but wells drilled to the north (Texaco, 1992) and southeast (Agip, 1982)

RUVUMA PSA Aminex/Ndovu Resources acquired 370 km of offshore seismic (Lindi Block) and 430 km of 2D seismic onshore (Lindi and Mtwara blocks) Drilling commenced in 2010 (Likonde-1 well) First well (3,647 metres) had excellent shows of residual oil and live gas at TD Second well, Ntorya-1, made a gas discovery of potential commercial interest. Light oil and condensates are also present Additional exploration wells planned to follow up on the success of Likonde-1 and Ntorya-1


Successful flow test

Demonstration that the Ntorya Discovery is highly prospective for commercial oil & gas operation

Ntorya-1 found gross 25 metres Mid-Cretaceous sandstones Total net sands ~20 metres, clean with up to 20% porosity at 2,663 metres. Uppermost 3.5 metres were tested at various rates to a maximum of a 1” choke GAS FLOW: 20.1 mmscf/d through a standard 1-inch choke; formation pressure of 5,424 psi LIQUIDS PRODUCTION: 140 bopd of 48 API condensate at 20.1 mmscf/d Test analysis is now complete and supports the view that Ntorya-1 is potentially economic (RNS: 28/6/2012)


Reserves and resources

A recent resource report from ISIS estimates a total resource of 5.75 tcf gas-in-place at the Ruvuma PSA and 1.17 tcf at Ntorya

RESOURCE REPORT (ISIS Petroleum Consultants) ISIS attributes 5.75 tcf of potential gas-in-place on the Ruvuma PSA licences (~1.5 tcf net to Solo) Ntorya is estimated to hold mean 1.17 tcf of unrisked gas-in-place, of which 178 bcf is proven Excellent potential for further discoveries:

Large, unproven up-dip segment of Ntorya (990 bcf) Four large gas prospects, ranging up to 2.6 tcf Four other prospects/leads identified Oil potential

Appraisal block (application sent)


Access to markets

Ntorya and the wider Ruvuma PSA will benefit from excellent access to the market when the Mnazi Bay to Dar es Salaam Gas Pipeline Project is constructed

The pipeline will enable efficient transport of natural gas to Dar es Salaam

Large, unsatisfied domestic demand for natural gas is estimated at over 500 mmscf/d. Ruvuma PSA has early-mover and cost advantages

MNAZI BAY-DAR ES SALAAM GAS PIPELINE 530 km pipeline linking Mnazi Bay gas field production to Dar es Salaam, Tanzania’s largest city Project initiated in July 2012. Construction will shortly be underway and is expected to take 12-24 months to complete Natural gas will be transported to large-scale electricity producers, other industrial users and major population centres in Tanzania Pipeline will allow production from existing and future wells to be commercialised


Next Steps

Solo Oil is working to optimise the value of its interest in the Ruvuma PSA. This will be achieved by maintaining a strong operational and strategic focus

OPERATIONAL Monitor Aminex’s development path, which aims to: Obtain an appraisal area classification at Ntorya. Applications have already been made Add to our geological knowledge through increased exploration – ~850 km of infill 2D seismic is scheduled for late 2012 Drill at least two exploration wells, one in Lindi and one in Mtwara, during 2013 Drill an appraisal well at Ntorya and commence both development planning and gas sales negotiations

Add value to the Solo Oil investment through key corporate actions: Open a data room through a major M&A advisor in partnership with Aminex to seek a partner to participate in the scheduled second phase of exploration Look to develop the nature and size of Solo Oil’s interests in the Ruvuma PSA with a view to achieve value increase on behalf of shareholders

STRATEGIC


ONTARIO REEFS, CANADA

Ausable Field well #5


Ontario Reefs Operated by:

Moving from small-scale production to enhanced oil recovery Solo Oil interest: 28.56% Operator: Reef Resources Status: Development

OVERVIEW: Increasing production of light oil and liquids rich natural gas assets ASSETS: The Ausable Reef, with operating capacity of over 500 boe/d. Airport North and South Reefs, with natural gas feedstock for a gas cycling enhanced oil recovery (EOR) program. Plus 3-4 additional reefs in the Ordovician reef complex STRATEGY: Moving from low recovery oil production scheme to a gas cycling EOR program, converting wells and optimising surface facilities PROGRESS: Full-scale production has now commenced at the Ausable Field. Two of the four wells have been put on line – a total liquids potential of 275 boe/d has been computed Oil recoveries are expected to exceed 80%

Gas will be injected from local utility and nearby equity discoveries to boost pressure and strip reservoir liquids


Ausable status

Ausable #5 well (2011) was logged with over 70 metres of oil pay Airport North (2012) and Airport South wells each have over 55 metres of gas pay, tie-in of AS#1 completed, AN#1 completed but not yet tied-in to plant Ausable reef has between 7.8 and 9 million stock-tank barrels oil initially in place (STOIIP)

Venturi pumps, new filtration, gas separation and heater skids have been installed – giving current production potential of 275 bopd Refrigeration plant to be added to strip additional condensate to maximise liquids recovery Anticipate ~500 bopd production in 2013 (RNS: 28/8/12 and 24/10/12)


Follow-on potential

Ausable Reef EXPLORATION POTENTIAL: proprietary 23,000-acre 3D survey has delineated further Ordovician reefs Several discoveries remain undeveloped and some reefs have not yet been tested for hydrocarbon potential EOR: Following the commencement of EOR at the Ausable Reef, there is potential to roll out the same optimised solution at other prospective target locations SOLO OIL OPTION: The company has the option to increase its working interest to 38.1%

Opportunities to grow the EOR operation across the existing license footprint


SUMMARY


Fast-tracking progress

Building on its experience and a highly prospective multi-jurisdiction asset base, Solo is actively working to build value across its portfolio

TANZANIA Successful exploration track record Likely commercial gas discovery at Ntorya-1 Significant upside – over 5 tcf potential New partner to be sought to accelerate exploration and development

CANADA Ausable Field should be cash flow productive in 2013, with an expected 500 bopd of production in 2013 Repeat opportunities for advanced EOR roll-out in other known Ordovician hydrocarbon-bearing reefs

ADDITIONAL OPPORTUNITIES Solo Oil will make further strategic investments in time


Latest developments

OCTOBER 2012 Solo entered into a Vendor Collaboration Agreement with Aminex, which has engaged FirstEnergy Capital LLP to manage the farm-out of up to 50% of the two companies' respective working interests in the Ruvuma PSA in Tanzania FirstEnergy is a leading international energy-focused investment bank, providing full-service energy expertise including a dedicated technical advisory group to oil & gas property acquisitions

OCTOBER 2012 Solo and Dutchess Opportunity Cayman Fund Ltd mutually agree to terminate the three-year £10 million Equity Line Facility, as the Company now believes that this type of facility no longer fits with the Company's forward funding plans Solo no longer believes that the Equity Line Facility is necessary going forward and terminated the facility at no cost to either party

Industry partner sought in Tanzania

Equity Line Facility terminated


Contact us

Solo Oil plc Suite 3B Princes House 38 Jermyn Street London SW1Y 6DN T: +44 (0) 20 7440 0642 F: +44 (0) 20 7440 0641 E: [email protected]

solo oil presentation october final

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