Buru Energy Ltd · ASX:BRU
Buru Energy — Investor Presentation (September 2012)
37 slides from Buru Energy's investor presentation, Sep 11, 2012
Slide 1: ASX Announcement: Corporate Presentation
Buru Energy Limited ABN 71 130 651 437 Level 2, 97 William Street Perth WA 6000 PO Box 7794, Perth Cloisters Square WA 6850 Ph: 61-8 9215 1800 Fax: 61-8 9215 1899 www.buruenergy.com For personal use only ASX ANNOUNCEMENT (ASX: BRU) 11 September 2012 Corporate Presentation Buru Energy Limited (“Buru”
Slide 2: Corporate Update September 2012
For personal use only Corporate Update September 2012
Slide 3: Buru Energy – Investment Proposition
Buru Energy – Investment Proposition Enormous Buru acreage spread in the most exciting onshore Australian basin For personal use only “Company Maker” Ungani frontier oil discovery has transformed the conventional exploration potential of the basin Multi TCF tight gas resources defined with hig
Slide 4: Regional Setting
For personal use only Regional Setting 3
Slide 5: Australia in Context
Australia in Context Australia has a major conventional gas industry with major CSG to LNG industry and rapidly developing shale and tight gas For personal use only industry Substantial gas reserves • Total 2P conventional gas reserves of around 170 TCF as at January 2010 • Major CSM to LNG industry
Slide 6: Western Australia in Context
Western Australia in Context Western Australia is a major energy hub with a well developed export market For personal use only WA statistics • ~64% of Australia’s natural gas reserves are in WA • In 2010 WA produced ~1.3 TCF of gas (including 16.57 MMT LNG for export), 46.3 million barrels of conden
Slide 7: Canning Superbasin – Infrastructure
Canning Superbasin – Infrastructure Overview For personal use only • Two regional centres (Broome and Derby) provide support infrastructure, airline access etc. • The Kimberley is the size of Texas or France with a population of 41,000 people. Half the population are of Aboriginal or Torres Strait d
Slide 8: Native Title and Heritage
Native Title and Heritage • Covered by 10 major native title groups For personal use only • Heritage Protection Agreements are required prior to grant of Titles • Heritage clearances required before ground disturbing works • Production agreements required prior to issue of production licences • Over
Slide 9: Corporate Background
For personal use only Corporate Background 8
Slide 10: Corporate Snapshot
Corporate Snapshot Activity provides continuing re-rating potential Quick Facts • Listed on Australian Securities Exchange (ticker BRU), For personal use only included in S&P/ASX 200 Index Share price (7 September 2012) $2.65 • Tightly held shareholder register transitioning to greater Shares 251,03
Slide 11: Proven Management Team and Capability for Growth
Proven Management Team and Capability for Growth Buru’s Board and management has extensive oil and gas experience with a proven ability to develop oil and For personal use only gas companies, delivering material upside to shareholders • Board: ‒ Currently appropriately small board of two Non- execut
Slide 12: Unmatched Acreage Position
Unmatched Acreage Position Largest acreage holder in Canning Superbasin covering all major conventional and unconventional plays For personal use only • Net ~14 million acres (~57,000 sq km) with high permit equities and operatorship. Portfolio optimisation ongoing • Acreage position allows a system
Slide 13: Regional Geological Background and Conventional Potential
For personal use only Regional Geological Background and Conventional Potential 12
Slide 14: Canning Superbasin – Underexplored and Highly Prospective
Canning Superbasin – Underexplored and Highly Prospective Huge underexplored Palaeozoic aged Superbasin with three major petroleum systems For personal use only (a Superbasin is a composite basin made up of a number of smaller basins) Ordovician – Silurian: Thick, high quality source rocks and regio
Slide 15: Superbasin Exploration History
Superbasin Exploration History For personal use only Canning Superbasin drilling history • ~250 wells drilled and 78,000 kms of seismic acquired • Well density per 10,000 sq km (2.5 million acres) - Canning 4 wells Canning Superbasin seismic and well density - US Palaeozoic basins 500 wells • Cannin
Slide 16: Operational Exploration and Development Process
Operational Exploration and Development Process Buru has undertaken a detailed review of the geology of the Superbasin to For personal use only focus its exploration efforts • Exploration driven by province evaluation and general prospectivity • Deep and high quality portfolio means prioritisation a
Slide 17: Conventional Oil and Gas Potential
Conventional Oil and Gas Potential “Company Maker” oil discovery at Ungani • Ungani oil discovery in late 2011 opened a new play For personal use only type with substantial regional potential • Conventional good quality reservoir • Appraisal drilling program planned following 3D seismic acquisition
Slide 18: Ungani Trend: Huge Follow-Up Potential
Ungani Trend: Huge Follow-Up Potential Ungani oil discovery a “game changer” for the Superbasin For personal use only • Substantial oil column (+50m) in very high quality conventional dolomite reservoir confirmed by two wells • Excellent quality 37o API high yield sweet crude oil – benchmarked to Br
Slide 19: Ungani Oilfield Development
Ungani Oilfield Development • The Ungani Oilfield was discovered in October 2011 and commenced test production in June 2012 • The facility is operated 24 hours per day by operators working 12 hour day shifts • The system provides three phase oil/gas/water separation (there is currently no gas or sig
Slide 20: Ungani North-1: Large Conventional Ungani Trend Structure
Ungani North-1: Large Conventional Ungani Trend Structure Large conventional oil prospect - Next well to be completed with Ensign Rig#32 For personal use only • Located ~6 km north of the Ungani Field within the Ungani “Declaration of Location” graticular blocks • Ungani North structure has the pote
Slide 21: Unconventional Potential
For personal use only Unconventional Potential 20
Slide 22: Canning Superbasin Unconventional: Regional and Tight Gas
Canning Superbasin “Unconventional” : Regional and Tight Gas The US Energy Information Agency (“EIA”) identifies the Canning Superbasin as having For personal use only the largest “shale” or unconventional gas potential in Australia • Independent consultant NSAI reviewed the potential for Buru • Bur
Slide 23: Canning Superbasin – Unconventional Potential
Canning Superbasin – Unconventional Potential Five major unconventional plays in the Superbasin – Buru is currently concentrating on two: For personal use only • Laurel Formation – very widespread, thick and gas mature with significant liquids content. New and existing wells confirm a Basin Centred
Slide 24: Major Gas Resources – Laurel Formation Accumulations
Major Gas Resources – Laurel Formation Accumulations Major tight gas accumulation with regional basin centred extent For personal use only • Laurel Formation is a thick, regionally extensive package of sands, shales and limestones with in excess of 1,300 meters of gas saturations in recent wells • M
Slide 25: Major Gas Resources – Laurel BCGA
Major Gas Resources – Laurel BCGA Valhalla - major tight gas accumulation confirmed by independent review For personal use only • McDaniel & Associates a specialist North American tight gas and unconventional resource assessment consulting group, have completed an independent assessment of the prosp
Slide 26: Yulleroo-3: Major Laurel Formation Gas Accumulation
Yulleroo-3: Major Laurel Formation Gas Accumulation Yulleroo wet gas field has major resources and is on the pathway to development For personal use only • Current resource estimate of Yulleroo field – independent review by RISC confirms gross mean recoverable resources of: ‒ 352 PJ (332 BCF) recove
Slide 27: Asgard-1 well summary
Asgard-1 well summary Strategic test of the southern extension of the Valhalla BCGA For personal use only • Located ~35 km southeast of the Valhalla-2 well • Deliberately sited off structure (although seismic data in the area is sparse) • Currently drilling vertical well with a prognosed total depth
Slide 28: Major Oil and Gas Potential – Goldwyer Shale
Major Oil and Gas Potential – Goldwyer Shale Goldwyer Shale Formation - thick, regionally extensive organic rich shale, “Bakken” For personal use only analogue • Proven potential in Buru's acreage from well intersections, and Buru analysis work • Thick, organic rich shales in the oil window grading
Slide 29: Forward Program
For personal use only Forward Program 28
Slide 30: Extensive Continuous Appraisal and Exploration Program
Extensive Continuous Appraisal and Exploration Program 2012/13 program a complementary mix of exploration and appraisal For personal use only • Long term rig contract with Ensign Drilling, other rigs contracted as needed • Focussed program on highly prospective areas Ungani • 3D seismic • Appraisal/
Slide 31: Major company participation increasing
Major company participation increasing Value proposition being recognised • Intense interest in the Superbasin with majors For personal use only taking positions • No significant vacant acreage remaining • Corporate/farmin deals now the only entry points • Mitsubishi farmin to Buru a first mover adv
Slide 32: Commercialisation Activity On Track
Commercialisation Activity On Track Buru’s focused and well developed business plan is being successfully executed by bringing resources into For personal use only production Oil • Ungani field “Location” declared by the DMP – the first step in obtaining a Production Licence • Production Licence app
Slide 33: Staged Gas Commercialisation
Staged Gas Commercialisation The overall commercialisation project has For personal use only the following key steps: • Stage 1: 2012/2013 Exploration Stage – Completion of quantification of 3C reserves by current drilling program. Stimulate and test up to 7 wells • Stage 2: 2014 Pilot projects - Pa
Slide 34: Corporate Summary
For personal use only Corporate Summary 33
Slide 35: Committed to Social and Environmental Responsibility
Committed to Social and Environmental Responsibility Buru is committed to ensuring it does not breach its “social licence to operate” by ensuring: For personal use only Exemplary environmental performance • Minimising its impact on the environment and on the communities in which it operates • A proc
Slide 36: Disclaimer
Disclaimer Important notice For personal use only This document has been prepared by Buru Energy Limited ABN 71 130 651 437 (“Buru"). This presentation contains certain statements which may constitute "forward-looking statements". It is believed that the expectations reflected in these statements ar
Slide 37: For personal use only
For personal use only Corporate Update September 2012