Buru Energy Ltd · ASX:BRU
Buru Energy — Shareholder Meeting (April 2015)
27 slides from Buru Energy's shareholder meeting presentation, Apr 28, 2015
Slide 1: Buru Energy kicks off major exploration program in the Canning Basin
ASX Release 28 April 2015 28 April 2014 ABN 71 130 651 437 For personal use only Level 2, 88 William Street Perth, Western Australia 6000 Buru Energy kicks off major exploration program in the Ph: +61 8 9215 1800 Fax: +61 8 9215 1899 Canning Basin www.buruenergy.com Highlights Continuous drilling
Slide 2: Executive Chairman comment and Operations Update
ASX Release “The potential of the program is very high, the targets are highly prospective, and the continuous nature of the drilling program means we will be generating drilling news flow for many months. At the same time we are planning to be generating positive cash flow from the start of commerc
Slide 3: 2015 Exploration Program
ASX Release Buru Energy Operations Update 2015 Exploration Program For personal use only During the last twelve months, the Company has been preparing for a major 2015 dry season drilling program which has included the acquisition of 3D and 2D seismic data, extensive prospect mapping and geological
Slide 4: 2015 Drilling Rigs
ASX Release 2015 Drilling Rigs The Company has made a step change in drilling processes with the contracting for the 2015 drilling program of two specialised drilling rigs, DDH1 Rig 31 and Atlas Rig 2. For personal use only These rigs are specifically designed to have a low environmental and operati
Slide 5: Ungani Oilfield production and resources
ASX Release Production will initially restart at some 1,250 bopd with continued export through Wyndham. The target production rate is some 3,000 bopd and this will require further investment in separators, pumps and potentially in wells, depending on the success of Ungani FW. The potential for expor
Slide 6: Corporate
ASX Release Corporate General Much of the work undertaken during the last year was to prepare the Company for this year’s program and to ensure a For personal use only solid foundation had been laid for the future. This has included major staff and management changes and an intense focus on cost con
Slide 7: Competent Persons Statements
ASX Release For personal use only Competent Persons Statements Information in this release related to petroleum resources of the Ungani Oilfield is based on information compiled by Dr Stuart Weston who is a consultant to Buru Energy Limited. Dr Weston has over 19 years experience in petroleum explor
Slide 8: Delivering Western Australia's Energy Future
For personal use only Delivering Western Australia’s Energy Future Corporate Update 28 April 2015 www.buruenergy.com
Slide 9: Important Notice and Disclaimer
Important Notice and Disclaimer Disclaimer For personal use only 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
Slide 10: Our Vision
Our Vision Buru’s vision is to be a major participant in the Western Australian energy market, by producing oil and gas that delivers material benefits to: For personal use only • its shareholders, • the State of Western Australia, • the Kimberley community, and • the Traditional Owners of the areas
Slide 11: Corporate Overview
Corporate Overview 12 month share price Company Formed 2008 For personal use only Ticker ASX:BRU Index S&P/ASX300 Shares on issue 340 million Share price ~$0.55 Market Cap ~$187 million Cash on hand ~$43 million (at 31 Mar) 45,620 sq km Net Acreage 11.2 million acres Key Partners Mitsubishi, Apache
Slide 12: Our Business
Our Business Overview Unique whole of basin position (~45,000 sq kms net) Highly prospective and underexplored basin For personal use only Generally 50% equity and operatorship Major partners in Mitsubishi and Apache Multiple play types with high potential Extensive portfolio of opportun
Slide 13: 2015 Focus
2015 Focus Core areas Focus on areas that have the highest prospectivity and lowest risk For personal use only Value delivery Current climate ideal for realigning the business back to basics Step by step approach through concluding agreements and renegotiations Value and costs focused manage
Slide 14: Drilling Program
Drilling Program Two rig program to achieve objectives DDH1: drilled Commodore 1 and Sunbeam 1, proved concept and cost For personal use only reduction Atlas Rig 2: Purpose built rig from Cooper Basin and CSG work in Qld Both rigs on fixed price mobilisation, drilling and moving contracts DDH1
Slide 15: Ungani Oilfield: Under Development
Ungani Oilfield: Under Development Extended production testing completed Excellent reservoir performance confirmed by EPT For personal use only Production during EPT ~470,000 bbls (gross – Buru 50%) Current development status Traditional owner agreements: signed for Production Licence PL Applica
Slide 16: Ungani Oilfield: Resources Statement
Ungani Oilfield: Resources Statement Overview of resource estimation process The resource estimation for the field is still subject to some uncertainty due to the dual porosity nature of the reservoir, however, final production and pressure build up data since the conclusion of the EPT is now giving
Slide 17: Ungani: Way Forward
Ungani: Way Forward Production Optimisation Current upgrades increase efficiency and reduce operating costs For personal use only Minimise wet weather downtime - field pipeline/road/loadout Optimise shipping export route Continued staged development process Ungani North, Ungani 3 and Ungan
Slide 18: Oil: Conventional Prospects
Oil: Conventional Prospects Ungani Trend Background For personal use only Conventional vuggy dolomite reservoir discovered in 2011 Ungani North proved extensive petroleum system Structures are readily imaged by geophysics Trend covers over 120 kms by 40 kms (+1 million acres) No exploratio
Slide 19: Ungani Trend Program
Ungani Trend Program Firm and JV Committed Wells Ungani FW 1 (TD 2,500m) (Buru 50% equity) (Atlas Rig 2) For personal use only Currently planned as subsidiary Ungani closure Short tie in if successful Dual purpose well - will test the continuity of reservoir, water disposal point if no oil P
Slide 20: Other Conventional Oil Wells
Other Conventional Oil Wells Firm Wells Olympic 1 (TD 1,350m) (Buru 25% - fully carried) (DDH Rig 31) For personal use only Coastal Block well Funded 100% by Apache Large structure with good seismic control Good Goldwyer source rocks in the oil window and proven reservoir Higher risk but m
Slide 21: Conventional Gas (2016 program)
Conventional Gas (2016 program) New Geological Concepts Enhance Prospectivity Work over the last two years has defined much higher conventional gas potential than previously recognised For personal use only Ungani style prospects in the gas window particularly attractive Possible oil as well a
Slide 22: Laurel Gas
Laurel Gas Resource +100 TCF in the BCGS and +1Bn bbls oil (gross) - with 47 TCF gas net to Buru (**independent estimates of prospective resources) For personal use only Tight Gas Pilot Exploration (Frac) Program Regulatory Approvals WA Environment Minister upheld EPA decision that: Buru’s “smal
Slide 23: Geophysics: Targeted Programs for 2016 Exploration
Geophysics Targeted Programs for 2016 Exploration Seismic acquisition For personal use only Using technologically advanced “nodal” systems with lower environmental footprint and better data. Costs have also come down significantly due to industry downturn. 3D Systematic exploration with 3D on Ungani
Slide 24: 2015 Program – Indicative Timeline
2015 Program – Indicative Timeline For personal use only Q2/2015 Q3/2015 Q4/2015 4Q2012 UNGANI Facilities upgrade and Approvals Production (subject to oil price) UN test Atlas Ungani Ungani Ungani DRILLING Rig 2 Wright Emanuel Trend1 Trend2 Trend3 DDH1 Rig 31 Olympic Senagi Ophir Geophysics SEISMIC
Slide 25: Environment and Community
Environment and Community Committed to ensuring: Exemplary environmental performance Minimising impact on the environment and communities For personal use only Continuous improvement processes Environmental performance exceeding regulatory requirements Transparency Proactive actions: • ext
Slide 26: Funding
Funding Current Situation Cash end of March 2015 quarter ~$43M, budgeting for +$28M at year end Ungani development For personal use only Relatively low cost - main cost is wells Broome Export facility - off balance sheet funding Cash flow positive at current oil prices Mitsubishi Funding agr
Slide 27: Buru Energy value drivers
Buru Energy value drivers Pivotal moment for the Buru Energy oil business For personal use only Funding in place Traditional Owner agreements secured Ungani being prepared for commercial production Costs driven down 5 to 7 well oil exploration program starting mid May Significantly increased convent