Buru Energy Ltd · ASX:BRU
Buru Energy — Investor Presentation (July 2017)
26 slides from Buru Energy's investor presentation, Jul 6, 2017
Slide 1: ASX Release: Corporate Presentation
ASX Release 6 July 2017 ABN 71 130 651 437 Level 2, 88 William Street For personal use only Perth, Western Australia 6000 Ph: +61 8 9215 1800 Fax: +61 8 9215 1899 www.buruenergy.com Corporate Presentation Buru Energy Limited provides the attached updated Corporate Presentation released on 6 July 201
Slide 2: Corporate Presentation 6 July 2017
For personal use only Corporate Presentation 6 July 2017
Slide 3: Overview of Buru Energy Assets
Overview of Buru Energy Assets ▪ Sole focus on the Canning Superbasin in NW Western Australia ▪ Secure strategic acreage position of gross ~22,100 sq kms / 5.4 million acres (4.6 For personal use only million net acres) ▪ Operator and 100% holder of core acreage ▪ Focus on Oil – Ungani oilfield prod
Slide 4: Corporate Snap Shot
Corporate Snap Shot Capital Structure Competitive Advantage For personal use only Formed 2008 ▪ High equities of ~100% in all core permits Ticker ASX:BRU ▪ Minimal work commitments to hold acreage Index S&P/ASX All Ords ▪ Operator of all core permits with ~30 staff in Perth/ Broome/ Kimberley Shares
Slide 5: Corporate History
Corporate History For personal use only 2017 onwards 2006-2010 2010-2017 Oil Production Building the Platform Discovery and appraisal Exp & Gas Appraisal ▪ Unique basin wide position established ▪ Identified and quantified Laurel Formation ▪ Ungani production (one off opportunity) potential world cl
Slide 6: Transformational Transaction with Mitsubishi
Transformational Transaction with Mitsubishi Transformational pivot to short term oil and medium term gas For personal use only ▪ Acreage swap with Mitsubishi ▪ Buru now has 100% of Ungani oil cash flows and MC has 100% of Valhalla/Asgard gas resources ▪ Buru retains the highly prospective Ungani oi
Slide 7: Oil Business: Oil resources
Oil Business Oil resources For personal use only ▪ Buru’s oil resource in Ungani: Buru Ungani 1C 2C 3C Contingent Resources 2.08 6.65 18.80 (mmbbls) Note – see ASX release of 16 May 2016 for compliance statement Note - these estimates also do not include Ungani Far West (Ungani Dolomite and Reeves o
Slide 8: Gas Business: Gas resources
Gas Business Gas resources For personal use only ▪ Buru has 100% of Laurel Formation prospective wet gas resources in Central, Northern and Western provinces ▪ Western Gas Province includes the Yulleroo Gasfield that has been partly appraised and resource numbers certified. ▪ Central Gas Province ha
Slide 9: Resource Setting
Resource Setting Oil For personal use only ▪ High quality conventional reservoirs ▪ Two principal petroleum systems ▪ Well defined prospects with systematic exploration program underway ▪ Prospects range from conventional sandstone reservoirs to large dolomite reservoir prospects Gas ▪ Basinwide tig
Slide 10: Oil Business
For personal use only Oil Business 9
Slide 11: Ungani Oilfield – Cornerstone Asset
Ungani Oilfield – Cornerstone Asset Discovery – 2011, first new field discovery in the Canning for 30 years. Development process and timing influenced by precedent setting agreements. For personal use only Resource ▪ 4 way dip closed feature – 3D seismic defines the reservoir gross rock volume ▪ Sub
Slide 12: Ungani Oilfield Production System
Ungani Oilfield Production System Current Status ▪ Production being ramped up to target 1,250 bopd For personal use only Field restart parameters ▪ Water recycle system with re-injection into UFW water zone ▪ Minimal field mods cost ~$1.5 mm – from Mitsubishi Ungani Development Funding ▪ Installed m
Slide 13: Ungani Oilfield – Export System
Ungani Oilfield – Export System Process and Tanks ▪ Review of all potential export solutions during 2016 For personal use only ▪ To be commercially effective requires large storage tanks at the export point ▪ No current spare large tank capacity in Broome ▪ Timing and cost of new build tankage not c
Slide 14: Ungani Value and Upside
Ungani Value and Upside Current commercial parameters For personal use only ▪ Target cash margin at US$50 oil price and 1,250 bopd production rate is A$25 to A$30/bbl ▪ The majority of the field costs are fixed so production rate increase (in line with good oilfield management practice) has the pote
Slide 15: Oil prospectivity – Immediate Ungani trend
Oil prospectivity – Immediate Ungani trend Evaluation program For personal use only ▪ Drilling has focused on gas until 2015 program ▪ 2015 drilling program - oil discovery at Ungani Far West and reservoir trend extenders at Praslin/Senagi ▪ Extensive 3D seismic surveys also acquired ▪ Program in 20
Slide 16: Oil Prospectivity – Broome Platform Goldwyer
Oil Prospectivity – Broome Platform Goldwyer Goldwyer prospectivity ▪ Broome Platform has extensive shale/reservoir pairs with excellent oil For personal use only source rocks ▪ Recent drilling by Finder Exploration at Theia 1 has defined a “sweet spot” in the Goldwyer Formation with many similariti
Slide 17: Gas
For personal use only Gas 16
Slide 18: Laurel Formation Tight Wet Gas Continuous Resource
Laurel Formation Tight Wet Gas Continuous Resource Overview ▪ Basin-wide tight wet gas continuous resource For personal use only accumulation ▪ Occupies centre of Fitzroy Trough – main depocentre of Canning Basin ▪ Continuous resource accumulation (Basin-Centered Gas) ▪ Mixed lithology – silts, shal
Slide 19: Laurel Formation Tight Gas - Yulleroo
Laurel Formation Tight Gas - Yulleroo Major gas and liquids accumulation on the western side of Yulleroo 2 clean-up flow 2010 basin close to Broome and customers For personal use only ▪ Four wells define the accumulation - all intersecting thick gas saturated sections with gas below closure mapped o
Slide 20: Laurel Formation Central and Northern provinces
Laurel Formation Central and Northern provinces Central Province ▪ Huge area with little appraisal work but extensive For personal use only prospective resources identified and requires further drilling and evaluation Northern Province ▪ Newly identified area with much better defined stratigraphy fr
Slide 21: Corporate
For personal use only Corporate 20
Slide 22: Community and Government Engagement
Community and Government Engagement Philosophy and practice for both conventional and unconventional activity For personal use only ▪ Education programs based on facts ▪ Support of independent expert advice for communities ▪ Extensive baseline studies & mapping ▪ Continuous, comprehensive and transp
Slide 23: Funding and Forward Program
Funding and Forward Program ▪ Cash: ~A$18.7mm as at 30 June 2017 For personal use only ▪ Debt: Restructuring of outstanding unsecured Alcoa debt of $12.5 mm frees up balance sheet and aligns repayments with expected cash flows (refer ASX release of 6 July 2017) ▪ Cash flow: Target of free cash flow
Slide 24: Buru Unleashed
Buru Unleashed ▪ Transformational transaction gives control of the Western For personal use only Canning Basin assets back to Buru ▪ Pivot to high value oil production and exploration with gas upside ▪ Focus on adding value to Ungani and growing the resource base ▪ Disciplined approach to spending m
Slide 25: 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
Slide 26: For personal use only
For personal use only 25