Corporate Presentation May2 13

7/28/2019 Corporate Presentation May2 13

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CORPORATE PRESENTATION Version 13.0

1st May 2013


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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

2


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Taipan Resources IncA World-Class Oil & Gas Team & Assets

3

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 planned to be drilled in the next 18 months by Tullow Oil,Africa Oil Corporation, Marathon Oil and Afren. Taipan is planning to drill its 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-billionbarrel oil discoveries

Taipan believes Block 2B is located in the "sweet spot" of the AnzaBasin 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 9which is contiguous to Block 2B

Two analogue wells for Block 2B will be spudded by Africa Oil laterthis year on Block 9:

Bahasi-1 (formerly Kinyonga) High Estimate 656 mmbbls Sala (formerly Pundamilia) High Estimate 952 mmbbls

* AOC 2013 Corporate Presentation


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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 Africanassets

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


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Mbawa gasdisc.

Ngamiaoil disc.

Block 9 Marathon

Block 9 Marathonfarm-in $57M

Twiga oil

Twiga oildisc.

Taipan ResourcesBlocks 1 & 2B

PaipaiSuspendedOil shows

4th Largest Acreage Holder in KenyaAfter Tullow, Africa Oil, & Afren

Taipan current holdings: 22,247 km2 + 7,807 km2 =30,054 km2

Block 1 & 2B include multiple exploration plays indifferent 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, SabisaTurkana Basins)

All acreage tightly held. New blocks will have +$20million commitments according to the MOE.

5

Recent corporate activity in the Tertiaryplay amounts to ~ $117 million

The Block 2B farm-out campaign is welladvanced & is generating substantialindustry interest

Source: NOCK

Limited offshorelicensing only

20122012LicensingComparisonLicensingComparison20002000

South Omo Marathon$50M

Oil Disc.

gas

Bogal-1 gasdisc.


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Recent Commercial Activity in KenyaApproximately $117 in million farm-in activity in last fewmonths

2012, Block 9 (50%) & 12A (15%) - Marathon farm-in (toAOC) for $57 million**

2012, South Omo - Marathon Oil acquires Agriterras 20%interest for $40+$10 million

2012, Block 11B - Bowleven farm-in (to Adamantine) $10million for 50% interest

2011, Block 10BB - Tullow farm-in (to AOC) and drillNgamia & Twiga Tertiary oil discoveries

2009, Block 1 - Afren farm-in (to Lion Petroleum) for $12million

Block 7/8 El Kuran oil discovery - New age farm-in (toAOC) increases interests to 40%

Taipan currently farming-out 50% interest of Block 2Band expects to announce a definitive agreement

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**Source: Africa Oil Corp

Block 11B Bowlevenfarm-in $10 million

in $57M

Block 9 (+12A)Marathon farm-in $57M

Basemapmodifiedfrom NOCK

Block 1 Afrenfarm-in $12

million

in

Tullow farm-into AOC

Block 7/8 New

Block 7/8 NewAge farm-in

South Omo Marathon buy

20% $40+$10 million

Oil discovery

Oil seep


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Proven Plays & Discoveries:

Surrounded By Success7

Uganda

L8 / Mbawa Gas

Cretaceous pay

L8 / Mbawa GasDisc. 170ft

Cretaceous pay

Albertine Basin

>2.5 bn bbls oilin the Tertiary

Tarbaj Oil Seep.Tarbaj Oil Seep.Jurassic sands

JurassicGenale JurassicOil seep

Heglig+Unity FieldHeglig+Unity Field

594 mmbbl of oil

Muglad & MelutBasins

6 bn bbls oil inCretaceous plays

Lamu/Offshore BasinsPotential for Billions bbls oil+gasin the Cretaceous & Tertiary

Anza BasinAll 10 wells drilled in basin-

proper have oil/gas shows

oil

Ogaden Basin>4 TCF gas in Karoo &

Jurassic plays + El Kuran oil

Bogal 1, 1-4 TcfCretaceous

El KuranOil Disc.

Lokichar BasinNgamia & TwigaOil discoveries in

Tertiary sediments+200 mmbbls

To be tested

PaipaiOil shows inCretaceous

To be tested

Hilala and CalubGas and oil fields

Kubwa wellOil shows

Tertiary sediments

Turkana BasinSabisa Oil

encountered inTertiary sediments


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Drilling Activity in Kenya2 proven oil discoveries, 2 wells with oil shows, 5 wells to be drilled in

next 6 months next to or near our acreage

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0

5

10

15

50's 60's 70's 80's 90's 00's 10's

Historic Drilling

Wells

Decade*formerly Kinyonga Prospect

**formerly Pundamilia Prospect

*formerly Kinyonga Prospect

**formerly Pundamilia Prospect

El Kuran 1.3 BBOEl Kuran 1.3 BBOEl Kuran-3 spud

June 2013

Ngamia-1A Oil Discovery>328 ft. net pay

FARO 281 bopd further tests

Twiga South-1 Oil Discovery98 ft. net pay, 2,812 bopd

Potential 5000 bopd

Sabisa-1 Drilling(Spud 15th January 2013)

Oil Shows

Bahasi-1 Prospect*spud 2H/13 320 mmbbls

Sala prospect****402 mmbls

Block 3A+B2 well commitmentsSpud 2Q-3Q/2013

Block 1Commitment

Spud 2014

Paipai-1Light oil shows, 180ft

sand, 656ft Cretaceoussource rock interval

Block 2BSpud 2014

Block L4/L13Spud 2013

Mbawa Gas DiscoveryMbawa Gas Discovery180 ft. pay

Bogal-1 GasCretaceous 1-4Tcf

Etuko 1 to SpudSpud within 3 months

(formerly Kamba)

Kubwa wellOil shows

Oil discoveries &shows

Drilling imminent(within next 9 months)

Drilling planned(9 18 months)


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The Normal & Transform Branches of the

East African Rift System9

Transform Branch ofEast 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 +

West Complexes & Ethiopia branch)

The transform branch of the Late Tertiary rift

system (Anza Basin) has been overlooked

The Anza Basin is one of the largest basinsof the East African Rift System

Normal Branches ofEast African Rift System


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10Seismic Phase movingInto the drilling phase

Block 2BTaipan 100% Operator

Area 7,807 km2

Initial Exploration Period

Elected to enter First Additional

Exploration Period


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Block 2B - Anza Basin Comparison of Scale to the North Sea & Texas

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Block 2B equivalent to 43 North Sea Blocks

Anza Basin is comparable in size to the CentralGraben of the North Sea

Anza Basin ~ 10 wells drilled in basin

North Sea ~2408 wells drilled in basin and foundmulti-billion barrels of oil

Remains very early stage with world-widepotential 2000 km

Block 2B

The

Millennium

Atlas:Petroleum

Geo

logyofthecentralandnorthern

NorthSea.

Anza Basin forsize comparison

Moray Firth Basin

Central

Graben

North Sea oil, gas and condensate fields.

5000 km

Block 2B


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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

12Anza Basin Compared to Texas


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East African Basin Scale Comparison Albertine & Lokichar Basins are each ~6,000 km2

Anza Basin ~78,000 km2

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>2.5 Billions bbls>200? mmbbls

~130km

N

All diagrams = same scale


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Sweet-Spot of the Tertiary-age Anza

Basin is in Bock 2B14

Hot-thinned

continental crust2000 kilometres

Block 2B

Residual Gravity(200km High-pass filter)

Paipai ProspectLight oil shows, 180 ft.

sand, 656 ft. Cretaceoussource rock interval

Bahasi ProspectBahasi Prospectspud 2H/2013

320 mmbbl

Tertiary part of the Anza Basinis indicated by the blue color

Sala Prospect402 mmbbls

Thickest Tertiary section orbest part of the basin

indicated by purple

Oil discoveries &shows

Drilling imminent(within next 9 months)

Drilling planned(9 18 months)

Cretaceous part of the Anza BasinIs indicated by the green color

Block 9


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Anza Basin:

Regional Stratigraphy & Plays15


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Anza & Lokichar Source Rock Study 16

Ngamia-1A Oil Discovery>328 ft. net pay

Twiga South-1Oil Discovery

Loperot-1(Source rocks)

Potential sources and oil shows from the Anza & Lokicharbasins 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

LokicharBasin Hothori-1

(Modelled Well)

Bahati-1

(Oligo-MioceneSource)

Pseudo-well 1(Modelled pseudo Well)

Sirius-1(Cretaceous Source)


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Block 2B Summary

100% working interest, 7,807 km2 in Anza basin

Newly identified under-explored Tertiary-age rift-

basin play in the Anza Basin: Analogous to Ngamia-1A & Twiga South-1 oil

discoveries (Tullow / Africa-Oil) Lokichar Basin andSabisa in the Turkana Basin

Tertiary basin trend extends into Block 9 and Block 2B

Hothori-1 = 9500ft of Tertiary & oil/gas shows, 12to 15,000 down dip against bounding fault

Additional Potential from the extension of the oil-

producing Cretaceous Melut - Muglad basinstrend on to Block 2B

387 mmbbls mean unrisked prospective resources(NI 51-101 report, Sproule)

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 for25 years

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Lead SummaryLead Summary

Block 2BBlock 2B

Block 2BBlock 2B

Wells & Seismic on Bouguer GravityWells & Seismic on Bouguer Gravity

Exploration TimelineExploration Timeline


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439 km of 560 fold 2D seismic data acquisition& processing completed in March 2013

12,173 km Block-wide Full-Tensor Gravitygradiometry survey (FTG) finished April 2013

500 km of additional 2D seismic acquisition

being planned for 2H 2013

Drilling anticipated mid 2014

Forward Plan: Time-lineForward Plan: Time-line

Block 2B Timeline Exploration Work Program

Completed 3 years work in 8 months


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2013 New 2D Seismic Acquisition ResultsComparative Data-quality in Block 2B & Blocks 13T (Twiga discovery)

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Block 2B (advanced 560-fold 2D seismic )Block 2B (advanced 560-fold 2D seismic ) Block 13T/10BB (60-120 fold traditional 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


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Block 2B

Block-wide FTG Gravity Survey - Completed

12,173 km block-wide FTG gravity survey completedApril 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 theroll-over structures in the string of pearls along the

basin margin

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Bouguer gravity over Lagh-Bogal faultBouguer gravity over Lagh-Bogal fault


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Block 2B & Block 9 - Contiguous Exploration

Trends & Significant Potential

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Scale & Prospectivity Comparison of Block 2B &

Blocks 10BB/13T (Twiga / Ngamia Discoveries)22


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Comparison of String of Pearls Plays

in Block 2B & Block 13T (Twiga discovery)

Comparable scale examples of the Twiga discovery structure and similarstructures in Block 2B

Both blocks contain string of pearls plays in Miocene age basins

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Block 2B Anza Basin Miocene Basin StratigraphyBlock 2B Anza Basin Miocene Basin Stratigraphy Block 13T Lokichar Basin Miocene StratigraphyBlock 13T Lokichar Basin Miocene Stratigraphy


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in Block 2B & Block 10BB (Ngamia discovery)

Comparable scale examples of the Ngamia discovery structure andsimilar structures in Block 2B


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Block 2B Anza Basin Miocene Basin StratigraphyBlock 2B Anza Basin Miocene Basin Stratigraphy Block 10BB Lokichar Basin Miocene StratigraphyBlock 10BB Lokichar Basin Miocene Stratigraphy


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in Block 2B & South Omo Block (Sabisa discovery)25

Block 2B Anza Basin Miocene Basin StratigraphyBlock 2B Anza Basin Miocene Basin Stratigraphy South Omo Block Turkana Basin Miocene StratigraphySouth Omo Block Turkana Basin Miocene Stratigraphy

Comparable scale examples of the Sabisa discovery structure and similarstructures in Block 2B



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Comparison of Tilted Fault-Block Plays

in Block 2B & Block 10BB (Etuko Prospect)

Comparable scale examples of the Etuko prospect and similar structuresin Block 2B

Both blocks contain Tilted Fault Block plays in Miocene age basins

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Block 2B Anza Basin Miocene Basin StratigraphyBlock 2B Anza Basin Miocene Basin Stratigraphy Block 10BB Lokichar Basin Miocene StratigraphyBlock 10BB Lokichar Basin Miocene Stratigraphy


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Older Exploration wells did not test

the plays. Deviated drilling is

required

0

5

10

15

20

Block 1Taipan 20%

Area 22,247 km2

First Additional Exploration Period

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Block 1 Summary20% 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-provenOgaden Basin. Karoo, Jurassic & Cretaceous plays

Surrounded by oil seeps/discoveries Genale oil seep, ElKuran oil discovery (72); Tarbaj oil seep

Afren has reported gross unrisked prospective resources715 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 daysprospect P50 1.3 BBO

Drilling anticipated 2014

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Seismic Base-campSeismic Base-camp

Ramu

Genale OilSeep

El Kuran Oil Discovery (1972)Well to be spudded June 2013

Tarbaj Oil

Seep

Tarbaj-2

km0 100

Wells & Seismic MapWells & Seismic Map

2012 Seismic AcquisitionVintage Seismic


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Mandera-Lugh Basin & Block 1 Exploration Plays

Exploration PlaysNew Seismic(brute stack)

Simple trapsimaged in Karoo

Rift system

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Source: 2012 Afren


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Block 1 Current & Planned Activities

Acquired 1,900 km of 2D seismic andGravity/ Magnetics in Initial ExplorationPeriod

Seismic processing and interpretation on-going in 2013

Currently in First Additional ExplorationPeriod. Committed to a 3000m well and 25

km2

of 3D seismic Exploration well expected in Early 2014

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Conclusions

Taipan Resources Inc. through its 100% subsidiary, Lion Petroleum Corp has completed the threeyear 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 thatthe 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 theblock. Management believes that an agreement will be concluded shortly

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Africa Oil plans to drill 1 well on block 9 which iscontiguous to block 2B in 2013. Three other commitmentwells expected to be drilled in 2013/14

Company is set to enter the First Additional ExplorationPeriod (2 years) and plans to drill an exploration well onBlock 2B in mid 2014


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Share Structure

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

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As at 28thApril 2013


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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 thecompleteness accuracy or fairness of any such

information and/or opinions. No undertaking,

representation, warranty or other assurance e xpress 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 Companys 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 andproduction 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 statementexcept as required by applicable law.

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Contact InformationMax Birley, CEO

+254 70564 3745 (Kenya)

+1 830 998 2252 (USA)

[email protected]

Joel Dumaresq, CFO

+(604) 306 4000 (Canada)

+(604) 336 3193 (Canada)

[email protected]

Edward Blunt

+44 (0)1491 835 550 (UK)

+44 (0)772 070 7591 (UK)

[email protected]

342013-04-25_TPN_CorpPres_V13.0
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Potential Oil Export Routes

Tullow needs to build apipeline through Kenya toexport their 2.5 bn bbls ofoil from Uganda

If the Sudanese build asouthern pipeline, it would

transit through Kenya

The route would be similarto the Lapsset Route for railand road links to centraland west Africa

Block 2B is 175 km fromboth of these projects

35

Uganda


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Kenya: Security Incidents in 2012

Block 2B is located in anarea with a very lowpopulation

Most active areas arealong roads and in areas

of major population

Security breaches dooccur, however they arerelatively low in frequency

Security uncertainties are

mitigated by armedAdministration Police andCommunity relations work

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Location of Block 2B


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Kenyan Fiscal Regime Comparison37

DailyProduction

bopd

Government Share

%

ContractorShare %

0- 20,000 55 45

20,001-30,000

60 40

30,001-50,000

63 37

50,001-100,000

68 32

100,001 + 78 22

Anza Basin:


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Anza Basin:

Hydrocarbon Maturity Windows38

Anza Basin:


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Anza Basin:

Play Concepts39

Corporate Presentation May2 13

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