Bengal Energy Ltd. · TSX:BNG
Bengal Energy — Shareholder Meeting (September 2016)
28 slides from Bengal Energy's shareholder meeting presentation, Sep 20, 2016
Slide 1: High Impact Exploration & Production
HIGH IMPACT EXPLORATION & PRODUCTION AGM Presentation TSX: BNG September 20, 2016
Slide 2: Corporate Profile
Financial Shares Outstanding (TSX:BNG) 68.2 MM Total Debt $16 MM Market Capitalization @ $0.20/share (Sept. 15, 2016) $13.6MM Funds Flow from Operations (FFO) (June 30, 2016) $1.3M Corporate Reserves Values PV10 (Mar. 31 2016) Proved + Probable (P+P)(1) $103.8MM Equivalent Value per Basic Share $1.5
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS High-quality light oil & gas • Delivering consistent top-tier reserves growth assets in low-risk, stable jurisdiction • Stable production/reserves base with a large 52° API ultralight oil pool • Material production and cash flow growth potential through several years’ Top-tier
Slide 4: History of Australian Growth
HISTORY OF AUSTRALIAN GROWTH RESERVES AND NET PRESENT VALUE ANNUAL PROVED PLUS NET PRESENT VALUE OF 2P RESERVES @ PROBABLE(1) RESERVES (MBOE) 10% DISCOUNT FACTOR(1) ($MM) As at year end March 31 AS AT YEAR END MARCH 31 6,204 118.5 5,702 103.9 100.8 3,624 40.3 1,530 16.4 10.8 350 450 3.0 52 100 1.7 2
Slide 5: Corporate Strategy
CORPORATE STRATEGY Explore and Exploit Natural Gas Opportunities Develop Cooper Basin Light Oil in Eastern Australia • Develop oil opportunities in extensive acreage portfolio • Target significant gas resources within an extensive • Low cost 52° API ultralight oil pool exploration portfolio • Large
Slide 6: Cooper Basin
COOPER BASIN A LARGE FOOTPRINT FOR FUTURE GROWTH Australia Program (2016-17) § Estimated cost to drill, case and complete ~ AUS $2.5 MM § 42% reduction from past wells § All 2016 wells successful. Anticipate completion and connection by Q1 2017 BARTA § Phase two frac campaign early Q1 2017 for low c
Slide 7: Light Oil Development
LIGHT OIL DEVELOPMENT 7
Slide 8: Barta Permit
BARTA PERMIT CUISINIER (PL 303) Limit of existing 3D SHEFU-1 § Barta Permit equals 344,218 acres DISCOVERY § 2.28 mmbbls production to date with 2P oil in place of 85 mmbbls(1) § 5 well drill campaign is complete § All 5 wells successful, including exploration discovery at Shefu. § 3 development, 1
Slide 9: Shefu-1 Exploration Discovery
SHEFU-1 EXPLORATION DISCOVERY Shefu-1 § Near field exploration well approx. 3.6 kms. west of Cuisinier-17 § Encountered 8.1m of gross sand with 7m of net pay and virgin pressure § Structurally lower than previous appraisal drilling at Cuisinier, establishing the Lowest Known Oil (“LKO”) for the area
Slide 10: Cuisinier Development
CUISINIER DEVELOPMENT 7,000 Cuisinier Reserves (mbbls) IMMEDIATE GROWTH POTENTIAL * 6,000 5,000 § Appraisal focused drilling continues to expand 4,000 Cuisinier pool size and 1P & 2P volumes 3,000 § Reduced drilling costs (~40% reduction) result in 2,000 attractive economics at US $40/bbl Brent crud
Slide 11: Cuisinier Expansion & Barta Exploration
CUISINIER EXPANSION & BARTA EXPLORATION § Shefu-1 Murta oil discovery further expands upon Cuisinier success further highlighting the prospective adjacent land position within the same permit § Shefu-1 encountered a well developed Murta MURTA DEPTH STRUCTURE MAP DC70 sand with 7m of net oil pay § St
Slide 12: Natural Gas Exploration
NATURAL GAS EXPLORATION 12
Slide 13: ATP 934 Barrolka Permit
ATP 934 BARROLKA PERMIT– TIGHTENING GAS MARKET DRIVING EASTERN AUSTRALIAN GAS PRICE INCREASES Whanto § Large, undrilled 1,462 km2 permit in gas jurisdiction § Active drilling north, west / east of permit with 16 gas wells drilled in the last 2 years § Last Whanto well declared a confirmation of “bas
Slide 14: Transformative Basin Centered Gas Play
TRANSFORMATIVE BASIN CENTERED GAS PLAY BARROLKA PERMIT (ATP 934) Basin Centered Gas Fairway § Basin Centered Gas accumulations, are often represented by thick, continuous gas saturated reservoirs. § The Permian reservoirs which extend across the Windorah Trough and WINDORAH into ATP 934 exhibit an a
Slide 15: Eastern Australia Gas Supply and Demand
Forecast gas supply and demand balance in the east coast market, EASTERN AUSTRALIA GAS excluding Arrow 2016 -25(2) SUPPLY AND DEMAND Forecast supply and Demand (PJ) Supply outlook for the eastern Australia creates opportunity for uncontracted producers Current pricing ~A$8.00/mcf forecasted to rise
Slide 16: Catalysts and Opportunities
CATALYSTS AND OPPORTUNITIES § 4 successful development / appraisal locations on stream in early 2017 CUSINIER 2016 DRILLING § Shefu-1 exploration success unlocks future low risk development PROGRAM § Multiple frac locations identified for low risk production expected early 2017 § 1,462 km2 permit in
Slide 17: Corporate Reserves Growth - Independent Evaluation
CORPORATE RESERVES GROWTH- INDEPENDENT EVALUATION ANNUAL PROVED PLUS NET PRESENT VALUE OF RESERVES PROBABLE(1) RESERVES (MBOE) @ 10% DISCOUNT FACTOR(1) ($MM) As at year end March 31 AS AT YEAR END MARCH 31 3 yr. CAGR 54% 3 yr. CAGR 36% 5,712 6,204 $118 $101 $104 3,778 $41 1,698 2013 2014 2015 2016 2
Slide 18: Value Creation for Shareholders
VALUE CREATION FOR SHAREHOLDERS PRODUCTION PER SHARE GROWTH (NET)(1) PER SHARE PROVED PLUS PROBABLE(1) RESERVES AS AT YEAR END MARCH 31 AS AT YEAR END MARCH 31 Average daily production per million basic shares outstanding Reserves growth (mboe / million basic shares outstanding) 7.4 90 7 83 6.2 73 3
Slide 19: Adding Value & Growth
ADDING VALUE & GROWTH Independent Evaluation Results CUISINIER MURTA DC70 POOL SIZE GROWTH (1) Gross Pool TPIIP Growth 134% Likely expansion based on 2016 exploration success 85.3 79.3 6 year CAGR (2010-16) 80 Gross Pool TPIIP 10% After Tax 2P NAV Per Share 60 $0.93 49 40 23.4 20 CAGR of 2P reserves
Slide 20: Realized Crude Oil Price Scenarios
REALIZED CRUDE OIL PRICE SCENARIOS • $80 floor price on 50% of production contracted through to June 2017(1) Brent = US$45 • Lower Canadian dollar increases the value BNG = CAD$92.07 of US dollar based oil sales Brent = US$50 BNG = CAD$98.84 • All major expenditures incurred in Australian dollar whi
Slide 21: Why Bengal
WHY BENGAL High margin, strong cash generating § History of reserves growth leads to vast development opportunity operations § Vey large oil in place pool with approx. 2.5% of 2P STOIP(1) recovered to date Rapidly growing oil in § Successful drilling results including Shefu-1 near field exploration
Slide 22: Appendix and Notes
APPENDIX AND NOTES 22
Slide 23: Bengal Leadership Team
BENGAL LEADERSHIP TEAM Management Board of Directors Chayan Chakrabarty, PhD (Pet Eng), MBA – Ian Towers, P.Eng – Chairman Former President, CEO & Director Dolomite Energy President, CEO & Director Formerly Daylight Resources, Verenex, Ross Smith Energy Group Peter Gaffney, P.Eng, P.Geol Jerrad Blan
Slide 24: Endnotes
ENDNOTES Slide 2 Slide 15 (1) Based on independent, qualified reserves evaluator GLJ Petroleum Consultants Ltd.’s report dated (1) Source: AEMO short term trading market September (2016). March 31, 2016 entitled Reserves Assessment and Evaluation of Canadian and Australian Oil and Gas (2) Source: AC
Slide 25: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain information regarding Bengal Energy Ltd (“Bengal” or the “Company”) set forth in this document contains forward-looking statements or financial outlooks (collectively, "forward-looking statements") under applicable securities law. The use of any of the words “plan”
Slide 26: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect Bengal’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may
Slide 27: Fundamental Resource Definitions and Cautionary Statements
FUNDAMENTAL RESOURCE DEFINITIONS AND CAUTIONARY STATEMENTS Total Petroleum Initially-In-Place (TPIIP) is that quantity of petroleum that is estimated to exist originally in naturally occurring accumulations. It includes that quantity of petroleum that is estimated, as of a given date, to be containe
Slide 28: Cautionary Statements
CAUTIONARY STATEMENTS Certain oil and gas metrics: Finding and development ("F&D") costs, reserves replacement and netbacks do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should no