Buru Energy Ltd · ASX:BRU
Buru Energy — Investor Presentation (September 2016)
27 slides from Buru Energy's investor presentation, Sep 14, 2016
Slide 1: Corporate Presentation
Corporate Presentation 14 September 2016
Slide 2: It's been a tough year!
It’s been a tough year! ↓ Oil price collapsed ↓ Markets were dire ↓ Budgets slashed ↓ Exploration collapsed ↓ Contractors went under But we survived and came out fighting Successful frac program Another landmark Native Title Agreement Made an oil discovery Replenished the prospect portfolio Fixed th
Slide 3: Overview of Buru Energy's unique position
Overview of Buru Energy’s unique position Sole Focus on the Canning Superbasin in Northwest Western Australia Secure strategic acreage position of gross ~33,200 sq kms / 8.2 million acres (4.1 million net acres) Oil – Well defined petroleum system – New field discovery on production – Large pr
Slide 4: Company Information
Company Information Capital Structure Key asset value drivers Formed 2008 High equities of ~50% in all core permits Minimal work commitments to hold acreage Ticker ASX:BRU Major international partner – Mitsubishi Index S&P/ASX All Ords Corporation Operator of all core permits with ~30 staff
Slide 5: Corporate History
Corporate History 2007-2010 2010-2013 2013-2016 Building the Discovery and Oil Devmt Platform appraisal and gas frac Unique basin wide position Identified and quantified Laurel Ungani developed and brought established (one off opportunity) Formation potential world class into commercial produc
Slide 6: Resource setting
Resource setting Unique whole of basin program Working in the basin since 2006 Frontier area but now unravelling the geology Systematic step by step process Oil High quality conventional reservoirs Two petroleum systems Well defined prospects with systematic exploration program Gas Bas
Slide 7: Oil Business
Oil Business 7
Slide 8: Ungani Oilfield – Game changer for the Canning Basin
Ungani Oilfield – Game changer for the Canning Basin Discovery – 2011, first new field discovery in the Canning for 30 years. Development process influenced by precedent setting agreements. Resource 4 way dip closed feature – 3D seismic defines the reservoir gross rock volume Substantial oil col
Slide 9: Ungani Oilfield resource – ASX compliance statement
Ungani Oilfield resource – ASX compliance statement Further to the Company’s internal resource estimates as set out in the ASX release of 28 April 2015, the Company has commissioned Gaffney Cline and Associates (“GCA”) to undertake an assessment of the resources of the Ungani Oilfield for Buru’s cor
Slide 10: Ungani Oilfield – Current Status
Ungani Oilfield – Current Status Current Status Excellent reservoir performance confirmed by recent production Production to date ~600,000 bbls gross Production Licence start date 16 July 2015 Production suspended 26 January 2016 Suspension cost minimal – positioned for an easy restart Res
Slide 11: Forward oil exploration program
Forward oil exploration program Evaluation program Drilling has focused on gas until 2015 program 2015 program drilling program - oil discovery at Ungani Far West and trend extenders at Praslin/Senagi Extensive 3D seismic surveys also acquired JV program re-evaluating all data to define best
Slide 12: Gas Resources
Gas Resources 12
Slide 13: Laurel Formation Tight Wet Gas Continuous Resource
Laurel Formation Tight Wet Gas Continuous Resource The accumulation is a basin centred tight gas accumulation defined by numerous historic wells and 8 wells drilled by Buru and the current JV The gas is hosted in a thick (+1500 metres) multi zone accumulation of tight sands, silts, shales and li
Slide 14: Laurel Formation Tight Wet Gas - Project Phase
Laurel Formation Tight Wet Gas - Project Phase Current Project Phase Phase 4 Development Phase 1 Phase 2/3 VALUE Appraisal Wells, seismic, 2013-2015 Commercialisation trial frac <2013 Seismic + Fracs PROJECT PHASE Prove flow to surface and Demonstrate Establish initial pad, Define and quantify fracc
Slide 15: Laurel Formation Tight Wet Gas Accumulation
Laurel Formation Tight Wet Gas Accumulation Basin-wide tight gas continuous resource accumulation Fitzroy- Occupies centre of Fitzroy Trough – main depocentre of Canning Gregory Basin Trough Established as continuous resource accumulation (Basin-Centered Gas) – low permeability – significant o
Slide 16: Laurel Formation – Valhalla and Asgard
Laurel Formation – Valhalla and Asgard Operational Accumulation on the northeastern side of the Basin Accumulation defined by Buru wells and fracs Two vertical wells multi zone fracs in 2015, total 11 zones stimulated The fracs have demonstrated: – Large SRV per zone – Excellent gas quality
Slide 17: Valhalla and Asgard Resources Independent D&M Review
Valhalla and Asgard Resources Independent D&M Review Contingent Resources Unrisked Gross Contingent Resources (Buru 50%) 1C 2C 3C Product (MMbbl/BCF) (MMbbl/BCF) (MMbbl/BCF) Condensate 9 32 66 Natural Gas 455 1,533 2,981 Total BOE 85 288 563 Prospective Resources Unrisked Gross Prospective Resources
Slide 18: Laurel Formation Tight Gas – Yulleroo
Laurel Formation Tight Gas – Yulleroo Major gas and liquids accumulation on the western side of basin close to Broome and customers Four wells define the accumulation - all intersecting thick gas saturated sections with gas below closure mapped on 3D seismic and Yulleroo 4 deliberately drilled out
Slide 19: Gas Commercialisation Strategy Overview
Gas Commercialisation Strategy Overview Step by step commercialisation strategy with ultimate aim of delivering TCF’s into pipeline gas and existing LNG projects Micro project (<1 mmcfd) – Gas supply from existing wells to local markets including indigenous community power and agricultural project
Slide 20: Full Scale Development
Full Scale Development Export Route Pipeline interconnect (Great Northern Pipeline) required to access NWS and SW markets Pipeline access requires 500PJ of reserves with initial rates of +70 TJ/day, well within current project resources Markets Potential markets are; – Large scale local GTL –
Slide 21: Corporate
Corporate 21
Slide 22: Community engagement
Community engagement Philosophy and practice Education programs based on facts Support of independent expert advice for communities Extensive baseline studies & mapping Continuous, comprehensive and transparent monitoring Independent Review process for fraccing – Wider Program Government r
Slide 23: Resources summary
Resources summary Excellent mix of Contingent and Prospective resources Oil: – Contingent resources at Ungani while field is shut in Gas and liquids: – Contingent resources at Yulleroo and Valhalla while markets are established. Sufficiently large volumes to underpin a major development with cle
Slide 24: Funding and forward program
Funding and forward program Current Situation Cash: End of June quarter ~A$38M Debt: Unsecured Alcoa repayments $12.5mm this year and June 2018 Costs: Major cost reduction made in staffing and operations. G&A costs reduced by two thirds over 18 months Commitments: Low level and able to be me
Slide 25: Buru Energy Value Drivers
Buru Energy Value Drivers Sole focus on the Canning Superbasin in the Northwest WA Secure strategic acreage position of gross ~33,200 sq kms / 8.2 million acres (4.1 million net acres) Balance sheet in good shape New trend oil discovery ready for production Large oil prospect inventory on 3D seismic
Slide 26: Slide 26
Slide 27: Disclaimer
Disclaimer This document has been prepared by Buru Energy Limited ABN 71 130 651 437 (“Buru Energy"). This presentation contains certain statements which may constitute "forward-looking statements". It is believed that the expectations reflected in these statements are reasonable but they may be aff