Buru Energy Ltd · ASX:BRU
Buru Energy — Investor Presentation (September 2013)
27 slides from Buru Energy's investor presentation, Oct 1, 2013
Slide 1: Corporate Presentation ASX Announcement
Buru Energy Limited ABN 71 130 651 437 Level 2, 88 William Street Perth, Western Australia 6000 Ph: 61-8 9215 1800 ASX Announcement Fax: 61-8 9215 1899 www.buruenergy.com ASX: BRU For personal use only 1 October 2013 Corporate Presentation Please find attached Buru Energy Limited’s (“Buru”) latest c
Slide 2: Focusing on West Australia's Energy Future
For personal use only Focusing on West Australia’s Energy Future www.buruenergy.com 27 September 2013
Slide 3: 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 4: Contents
For personal use only Contents Positioning for Growth Corporate Summary Ungani Development Laurel Wet Gas Exploration Program and Funding Key Messages 2
Slide 5: Buru – Sustainable Growth Pathway
Buru –Sustainable Growth Pathway • For personal use only High Value and Balanced Work Program Focus on Ungani development and cash flow Evaluating gas potential and pathway to commercialisation Focus on Ungani trend exploration and derisking /ranking other areas ahead of longer term campaign s
Slide 6: Company Overview
Company Overview For personal use only Shareholder spread Corporate details Index S&P/ASX 200 ASX Code BRU Management 11% Shares on issue ~298M Rest Top 20 Private 52% 48% Funds 20% Investors Current share price ~A$1.70 17% Market capitalisation ~A$505M Cash on hand ~A$70M (no debt) • Share Register
Slide 7: Highly Experienced & Balanced Board
Highly Experienced & Balanced Board Strong Mix Of Technical, Commercial, Legal & Corporate History Graham Riley • Previously founding Non-Executive Director of ARC Energy Limited and Adelphi Energy Limited • Former Chairman of Giralia Resources NL, and responsible for the spin-off of five independen
Slide 8: Outstanding Acreage Position
Outstanding Acreage Position Balance of oil, potentially world class tight wet gas & exploration A major long term position with tenure certainty For personal use only Regional • Continuous basin wide coverage 64,000sqkms Acreage • Generally 50% equity and operatorship • Oil development, gas apprais
Slide 9: Buru Controls the Highest Potential Acreage
Buru Controls the Highest Potential Acreage Highly Prospective & Underexplored Three major petroleum systems For personal use only • High quality conventional reservoirs Ungani Oil • Prolific oil source rocks Trend • Well defined prospects Laurel • Basin-wide tight wet gas accumulation Formation • C
Slide 10: Balanced Portfolio & Sustainable Growth
Balanced Portfolio & Sustainable Growth High Value Oil, Major Gas Appraisal & Quality Exploration • Ungani - Significant new oil • Laurel Fm - Regional basin discovery For personal use only centered continuous accumulation 10 mmbls gross potential of wet gas resources, upside of 20 mmbls • 2013-20
Slide 11: Ungani Field Background
Ungani Field Background A Significant New Oil Field with Significant Upside & Follow-up For personal use only • Discovered in late 2011 and successfully appraised • Substantial oil column (+50m) • Buru (operator) 50% /Mitsubishi 50% • 2 wells in field and Ungani North confirm geographic extent • Ver
Slide 12: Ungani Phase Development
Ungani Phase 1 Development A phased development linked to an active funded program Ungani Site For personal use only • Planned EPT production to restart in 4Q/2013 • 3D seismic being acquired over Ungani and Ungani North • Workover of the Ungani 1 and 2 wells - Oct • Ungani North 1 test planned • Ex
Slide 13: Ungani Phase 2: Full Field Development
Ungani Phase 2: Full Field Development Major production increase and export from local port Post FID (after U3 vertical) Facility Upgrade For personal use only • Dedicated water recycle well drilled • Establishment of permanent high volume export route • All weather operation - pipeline to highway a
Slide 14: Ungani Oil Development
Ungani Oil Development Clear Value Realisation & Growth Path Phase 3 For personal use only 2015+ 15,000 bbl/day Ungani Cluster development (Ungani plus new field discoveries) Ungani Phase 2 2014 5,000 bbl/day Full Field Development Ungani Phase 1 2013/14 1,000 to 2,000 bbl/day Current wells 12 12
Slide 15: Potential World Scale Tight Wet Gas & Shale Oil
Potential World Scale Tight Wet Gas & Shale Oil Massive tight gas and unconventional oil potential The US Energy Information Agency (“EIA”) identifies the Canning Superbasin as the largest “shale” or For personal use only unconventional gas potential in Australia • Recent EAI update confirms Canning
Slide 16: World Class Basin Centred Gas Potential
World Class Basin Centred Gas Potential Systematic evaluation of Laurel tight wet gas Point Torment 1 (1992) For personal use only 180m Laurel gas Canning Basin Fitzroy Trough DST ~60 MCFD Digital Elevation Model 50 km Yulleroo 4 (2013) TD 3846m Valhalla North 1 (2012) 1363m Laurel Gas Derby
Slide 17: Laurel Gas - A Potential Strategic Resource
Laurel Gas - A Potential Strategic Resource Independent analysis suggests potential >40+Tcf net Buru Background - • Defined by Buru/MC JV drilling of six wells For personal use only Potential World • Extensive overpressure at drillable depths Class • Sweet gas , low CO2, no H2S, high liquids Accumul
Slide 18: Rapid Laurel Gas Value Growth
Rapid Laurel Gas Value Growth Systematically derisking 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 Farm-out/
Slide 19: Buru - High Value Exploration Campaigns
Buru - High Value Exploration Campaigns Systematic derisking & localised drilling to maximise efficiencies 3. LENNARD SHELF For personal use only 1. UNGANI TREND • 2013 Farmout • 2013 seismic • 2014 Drilling • 2014 3-4 wells • Rapid tie-back to Ungani 2. FITZROY TROUGH LAUREL • 2013 aerogravity • 20
Slide 20: 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 Nth proved extensive petroleum system • Structures are readily imaged by geophysics Ungani NthYakka
Slide 21: Targeting Major Drilling Improvements
Targeting Major Drilling Improvements A focus on safety, environment, well cost & efficiency For personal use only • Rigorous process to ensure right rig and the right commercial structure • Huisman LOC 400 - a step change in drilling technology for Canning exploration Background • Deep vertical wel
Slide 22: Buru's License to Operate
Buru’s License to Operate Committed to taking a leading position with Traditional Owners Listening to residents near our operations helps us to form strong relationships For personal use only and find solutions for local concerns. • Respect for cultural and traditional values Buru engages with • Cre
Slide 23: A Fully Funded Program
A Fully Funded Program Minimal dilution, activity based and supports quality program use only • Ungani Oilfield - A$92M gross, $46M net, for full field development at up to 2013 – 2014 FORECAST PROGRAM 7,500 bopd (SUBJECT TO APPROVALS) Funded Forward Program* • Laurel Wet Gas - $54M 2013 2014 gross,
Slide 24: Buru Energy: A Material & Sustainable Growth Story
Buru Energy: A Material & Sustainable Growth Story 2014 2015 For personal use only 2013 MATERIAL CASH FLOW TARGETED OIL EXPANSION, BUILDING THE PLATFORM FOR MAJOR DERISKING OF GAS & CONFIRMING GAS VIABILITY, LONG TERM GROWTH CONTINUOUS HIGH VALUE MULTI-RIG APPRAISAL & EXPLORATION DRILLING EXPLORATIO
Slide 25: Key Messages
Key Messages Buru - Set for sustainable and material growth For personal use only • Fully funded 2013 – 2014 program and dedicated rig • Oil Development, Major Gas appraisal and Material Exploration program • Significant cash flow forecast for 2014 • Target 1,000 bopd end 13’, 3,000 bopd early 14’ a
Slide 26: Buru's Vision
Buru’s Vision The Energy Company for all West Australians PHASE 1 Oil Export: 4Q 2013-2025+ For personal use only Oil export facility, >1-2+mmbo/yr export Broome Port Hedland PHASE 4 : LNG sales 2020+ New or gas sales to existing LNG plants along Dampier NW Shelf PHASE 2 Powering the North & Midwest
Slide 27: For personal use only
For personal use only www.buruenergy.com