Buru Energy Ltd · ASX:BRU
Buru Energy — Macquarie Australia Conference 2014
24 slides from Buru Energy's conference presentation, May 9, 2014
Slide 1: Macquarie Australia Conference
For personal use only Macquarie Australia Conference 8th May 2014
Slide 2: 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"). This presentation contains certain statements which may constitute "forward-looking statements". It is believed that the expectations reflected in thes
Slide 3: Overview
Overview Highlights and Challenges For personal use only Corporate Summary Ungani Development Laurel Tight Gas Exploration Update Program and Funding Summary 2
Slide 4: Highlights/Advances
Highlights/Advances 1. Ungani Central Field EPT producing strongly For personal use only • EPT produced ~100,000 bbls to end April • ~1,200 bopd (Ungani 2) No water, negligible pressure decline 2. Crude Export System working well • 2 shipments (71,270 bbls) exported to Thailand ex Wyndham • 3rd ship
Slide 5: Challenges/Opportunities
Challenges/Opportunities 1. Ungani 3 result – highlights importance of quality seismic For personal use only • Oil saturated Ungani Dolomite section encountered, but generally tight • Thickest oil saturated section penetrated to date • Currently swabbing well - recovering oil and drilling fluid • Re
Slide 6: Buru at a glance
Buru at a glance Corporate Overview Shareholder Structure (based on top 100 & unallocated) For personal use only Formed 2008 Ticker ASX:BRU Shares on issue 298 million, ~8,700 shareholders Market Cap ~A$345M A$2.03 - A$1.13 12 month price range A$1.57 (average over 12 mths) ~58,000 sq km (net) Acrea
Slide 7: Highly experienced & balanced Board
Highly experienced & balanced Board Strong mix of technical, commercial, legal & corporate history For personal use only Graham Riley • Previously founding Non-Executive Director of ARC Energy Limited and Adelphi Energy Limited Independent • Former Chairman of Giralia Resources NL, and responsible f
Slide 8: Outstanding acreage position
Outstanding acreage position Focus on highest value areas whilst progressing remainder Long term position with tenure certainty For personal use only • ~58,000 sq km (net), ~100,000 sq km (gross) continuous basin wide coverage • Oil – near term cash flow with follow-up • Gas – potential world scale
Slide 9: Corporate priorities
Corporate priorities 1. Sustainability & material returns to shareholders For personal use only • Optimize Ungani to maximise cashflow • In co-operation with Mitsubishi, introduce quality company to deliver major regional programs (exploration, development and gas commercialisation) • Undertake majo
Slide 10: 2014 – Proving material value and derisking long term programs
2014 – Proving material value and derisking long term programs Ungani development Ungani 2 producing 1,200 bopd For personal use only Ungani 1 requires additional remediation Production ramp up to 1,500+ bopd Export commenced to Asian refineries Drilling Ungani 3 appraisal reservoir lower
Slide 11: Ungani oilfield export plan
Ungani oilfield export plan For personal use only Phase 1 • Early production from existing Phase 2 facilities up to • Targeting 2015+ 2,000bopd 3,000-5,000+bopd • Low CAPEX upgrade • Broome preferred to load-out facility export route • Smaller parcels ship • Existing port (38,000 bbl) facilities but
Slide 12: Ungani Laurel dolomite depth map
Ungani Laurel dolomite depth map For personal use only Ungani-5 Ungani-4 Ungani-3 Ungani-2 Ungani-1 planned planned Depths ~ 2100m below sea level 11
Slide 13: Ungani 3D data and mapping
Ungani 3D data and mapping DUG Final Volume Geokenetics Final Volume Ungani-3 VSP Tie For personal use only Inline 1488 over Ungani-3 • Current final volume from Geokenetics received end April 2014 • Phase matched and Excellent tie to VSP and (pseudo)-synthetic • Requires re-interpretation and remap
Slide 14: High value Ungani exploration trend
High value Ungani exploration trend Potential for rapid cluster style development growth Ungani oil discovery is a “play opener” For personal use only • Conventional Vuggy dolomite reservoir • Ungani North extended play • Ungani Oil Trend covers over 120 kms by 40 kms (+1 million acres) Ungani NthYa
Slide 15: Ungani trend oil portfolio
Ungani trend oil portfolio High potential for near term Ungani look-a-likes personal use only Ungani Flanks Increasing Geological Confidence (GPOS) Praslin Ungani Greater 2014 3D seismic (Jackaroo) Ungani 3D seismic Jackaroo Appraisal and develop drilling North DST Bickley 3D seismic L Eda Kurajong
Slide 16: Rafael prospect – EP428
Rafael prospect – EP428 For personal use only Preliminary volumetrics 50mmbo or 0.5TCF prospective resources (unrisked). Rafael prospect location map 15
Slide 17: Laurel Gas - A potential strategic resource
Laurel Gas - A potential strategic resource Background - • Defined by Buru/MC JV drilling of six wells For personal use only Potential World • Extensive overpressure at drillable depths Class Accumulation • Sweet gas , low CO2, no H2S, high liquids • Conventional reservoirs also encountered • Extens
Slide 18: Rapid Laurel Gas value growth
Rapid Laurel Gas value growth Systematically derisking potential leading to major value creation For personal use only Current Project Phase Phase 4 Development 2016 VALUE Phase 2/3 Phase 1 PRE-FEED/ FEED Exp and Feasibility 2014-2015 Appraisal 2013-2014 <2013 PROJECT PHASE JV Internal Farm-out/sell
Slide 19: Canning's geology has all the right ingredients
Canning’s geology has all the right ingredients The sheer scale of the basin may have hidden its potential For personal use only Valhalla NorthCanning 1 (2012) Fitzroy Trough Drilled in syncline Basin Yulleroo 4 (2013) 1170m Laurel 50Gas km Digital TD 3846m Derby Pressure 0.55Elevation psi/f
Slide 20: TGS – Planned programme
TGS 14 – Planned programme Valhalla Area 1900 Valhalla North 1 (7 fracs) Valhalla 2 (6 agreed zones) Asgard 1 (11 fracs) Valhalla North 1 For personal use only 2000 • 7 Hydraulic Fractures OH DST#1 2002- AS1-6 2100 Depth range 2200 2355m- Zone V2-6 3305mMD Transition 2200 Class Transition 2300 V0 TG
Slide 21: Laurel Gas: Pathway to full potential
Laurel Gas: Pathway to full potential Systematic , focused, aligning stakeholders & transparent For personal use only 2013 2014 2015 2016+ Feasibility Pre FEED FEED Development Capability Build • Gas Deliverability • Commercial Viability • FID Deliverability • Liquids confirmation • Pilot Projec
Slide 22: Buru Energy: Creating a material & sustainable growth story
Buru Energy: Creating a material & sustainable growth story 2013 2014 2015 For personal use only THE PLATFORM FOR LONG MAJOR DERISKING OF GAS, OIL EXPANSION, TERM GROWTH MAJOR DERISKING OIL TREND CONFIRMING GAS VIABILITY, & TARGETED DRILLING MULTI-RIG APPRAISAL & EXPLORATION GROWTH Safety & Risk m
Slide 23: Sustainable growth pathway
Sustainable growth pathway High Value and Balanced Work Program For personal use only • Ungani Central performing better than modelled. Require further testing and mapping to confirm final development Facilities will support rapid commercialisation of on trend discoveries • Advancing towards major
Slide 24: For personal use only
Focused on developing the petroleum resources of the For personal use only Canning Super Basin