September , 2008

Nairobi, Kenya

EAPIC Forum

Gas Utilization for Power Generation

(Mtwara Energy Project)

AGENDA

● Introduction: Artumas, Overview

● Mtwara Energy Project: Status and Overview

● Tanzania- Energy Sector

● East Africa Vision

● Regional Vision for system Integration

WHERE: Mtwara Concession, SE Tanzania

WHERE: Mtwara & Lindi Franchise Area - Playing FieldMNAZI BAY CONCESSIONS:A STRONG FOUNDATION FOR TOMORROW

� Experienced executive team with over 150 combined years in the energy industry

Canadian Leadership

A Commitment to Social and

Environmental Responsibility

� Comprehensive CSR program

� Development following the strictest environmental standards

� Creation of the Artumas Africa Foundation

Artumas Group Inc. (OSE:AGI)

� Underexplored hydrocarbon basin

� New Technologies – New Opportunities

� Once stranded, now unlocked

The Rovuma Delta Basin

Early Insight Creates

Exploration Opportunities

� Years in region, developing relationships� Signed PSA in 2004� Central position surrounded by Anadarko,

Shell, Petrobras, ENI and others.

Major Basins of the East African Coast

Artumas Pillars for Success

Artumas Corporate Strategy

Integrated East Africa Energy Company

Oil and Gas Exploration

and Development

Gas Production, Marketing, &

Delivery

Power Production, Marketing, &

Delivery

Founded in 2001, signed PSA 2004

, 20% stakeholder FMO,

Listed on the Norwegian Stock Exchange 2005

With Gas: Fast Track Development, Execution Excellence

October 26/06

January 12/07

Over Promise and Over Deliver:

Generation plant at Mtwara went from setting of foundations to first generation in under 3 months

Fully commissioned on March 3, 2007

CCGT PERFORMANCE SUMMARYCCGT PERFORMANCE SUMMARY

GAS PROVIDES HIGH GENERATION EFFECIANCYGAS PROVIDES HIGH GENERATION EFFECIANCYGAS PROVIDES HIGH GENERATION EFFECIANCYGAS PROVIDES HIGH GENERATION EFFECIANCYGAS PROVIDES HIGH GENERATION EFFECIANCYGAS PROVIDES HIGH GENERATION EFFECIANCYGAS PROVIDES HIGH GENERATION EFFECIANCYGAS PROVIDES HIGH GENERATION EFFECIANCY

0

50

100

150

200

250

300

350

400

450

500

8 x GE LM6000 6 x RR Trent 7 x SGT-800 8 x GE 6B

Net P

lant

Pow

er O

utpu

t (M

W)

0

5

10

15

20

25

30

35

40

45

50

Net P

lant

HH

V E

ffici

ency

(%)

.

Power Output Efficiency

A Shared Vision for Tanzania: Energy Hub for East Africa

�CNG and Potential LNG exports to displace diesel/HFO in power generation located away from the source

�High voltage interconnect from Mtwara to the Tanzania integrated grid

�Close interconnection Arusha-Nairobi

�Electricity exports into Uganda via interconnected grid

�Extend high voltage transmission grid into Zambia, south into Mozambique

�Gas provides least Cost (CAPEX & OPEX) for Generation fast

Tanzania Challenge GENERATION CAPACITY 2008-2012

PLANT FUEL CAPACITY-MW

Available Capacity-MW

YEAR

Existing Hydro 550 350 (average 5 yrs) 2007/8

SONGAS GAS 180 180 2001

IPTL* HFO 100 100 2006

Wartsilla Ubungo GAS 100 100 2007/2008

Wartsilla Tegeta GAS 45 45 2007/2008

Rental Ubungo-Aggreko GAS 40 40 2007-2009

Total 825

Developments

Kiwira* Coal 200 200 2009/10

Kinyerezi* GAS 200 200 2011/1

Rental out GAS -150 -150 2010

Increase in Hydro Hydro 100 100 2010

Total 1275

Notes of risk

* Up to 2010 no spinning reserves

* Songas gas availability

* Maintenance of Ubungo and Tegeta Plant

* IPTL Gas conversion will reduce available capacity

African power market 2002-2030A huge market for new power requiring significant investment

● New connections 500mn

● New generation 250GW

● Sector investment $560bn

to 2030�� 20022002--20102010 ~$4bn ~$4bn papa

�� 20102010--20202020 ~$5bn ~$5bn papa

�� 20202020--20302030 ~$8bn ~$8bn papa

in generation alone.

Data sources: WB, IEA, WTO, IMF, BP, UNCTAD, UNDP, EIA, AfDB

GAS UNLOCKING LATENT DEMAND: SUCCESS FACTORS

● Lack of reliable power was the primary barrier to i ndustrial investment in Tanzania

● Industrial load prevented feasible energy project i nvestment

● Fit-for-purpose energy solutions were needed to unl ock latent demand

● Procurement risk – Delays in supply etc

● Financing projects in East Africa.

● Political “Interference”.

● Regulatory Risk – Delays in licensing, Limited/Reduced Returns etc.

RISK OF MEETING PLANNED OBJECTIVES

CONCLUSION

NATURAL GAS: OPPORTUNITY FOR INDEPENDENTS

East Africa is a market especially suited to lean, agile developers with the ability to move quickly to execute simple PSA contracts and complex operational initiatives

Fit –for- purpose energy solutions and hydrocarbon d evelopment programs aimed at broad economic growth are are favoured ove r large signing bonus

3 Factors have contributed to the emergence of East Africa as the next hydrocarbon frontier:

� Newly integrated global gas markets

�Emerging local energy markets

�Progressive Regulatory environments

� energy markets

Common goals : Petroleum developers and East African governments

must work together to maximize the value of their h ydrocarbon resources

Asanteni Sana, Karibuni Mtwara na Lindi

Website www.artumas.com

ARTUMAS TV