Buru Energy Ltd · ASX:BRU
Buru Energy — Investor Presentation (July 2017)
25 slides from Buru Energy's investor presentation, Jul 6, 2017
Slide 1: Corporate Presentation
Corporate Presentation 6 July 2017
Slide 2: 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 million net acres) ▪ Operator and 100% holder of core acreage ▪ Focus on Oil – Ungani oilfield production ramping up – Fo
Slide 3: Corporate Snap Shot
Corporate Snap Shot Capital Structure Competitive Advantage 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 on Issue ~340 million
Slide 4: Corporate History
Corporate History 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 class tight gas opportun
Slide 5: Transformational Transaction with Mitsubishi
Transformational Transaction with Mitsubishi Transformational pivot to short term oil and medium term gas ▪ 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 oil trend ▪ Buru retains
Slide 6: Oil Business
Oil Business Oil resources ▪ 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 oil pools) or Ungani No
Slide 7: Gas Business
Gas Business Gas resources ▪ 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 has large prospective re
Slide 8: Resource Setting
Resource Setting Oil ▪ 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 tight wet gas continuous
Slide 9: Oil Business
PO eurutneray ( oii Business )
Slide 10: 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. Resource ▪ 4 way dip closed feature – 3D seismic defines the reservoir gross rock volume ▪ Substantial oil column (+
Slide 11: Ungani Oilfield Production System
Ungani Oilfield Production System Current Status ▪ Production being ramped up to target 1,250 bopd 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 mixer system and modifi
Slide 12: Ungani Oilfield – Export System
Ungani Oilfield – Export System Process and Tanks ▪ Review of all potential export solutions during 2016 ▪ 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 currently commercially
Slide 13: Ungani Value and Upside
Ungani Value and Upside Current commercial parameters ▪ 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 potential to add significa
Slide 14: Oil prospectivity – Immediate Ungani trend
Oil prospectivity – Immediate Ungani trend Evaluation program ▪ 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 2016 has re-evaluated al
Slide 15: Oil Prospectivity – Broome Platform Goldwyer
Oil Prospectivity – Broome Platform Goldwyer Goldwyer prospectivity ▪ Broome Platform has extensive shale/reservoir pairs with excellent oil source rocks ▪ Recent drilling by Finder Exploration at Theia 1 has defined a “sweet spot” in the Goldwyer Formation with many similarities to the Bakken ▪ The
Slide 16: Gas
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Slide 17: Laurel Formation Tight Wet Gas Continuous Resource
Laurel Formation Tight Wet Gas Continuous Resource Overview ▪ Basin-wide tight wet gas continuous resource accumulation ▪ Occupies centre of Fitzroy Trough – main depocentre of Canning Basin ▪ Continuous resource accumulation (Basin-Centered Gas) ▪ Mixed lithology – silts, shales, sands, limestones
Slide 18: 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 ▪ Four wells define the accumulation - all intersecting thick gas saturated sections with gas below closure mapped on 3D seismic and Yulle
Slide 19: Laurel Formation Central and Northern provinces
Laurel Formation Central and Northern provinces Central Province ▪ Huge area with little appraisal work but extensive prospective resources identified and requires further drilling and evaluation Northern Province ▪ Newly identified area with much better defined stratigraphy from good quality seismi
Slide 20: Corporate
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Slide 21: Community and Government Engagement
Community and Government Engagement Philosophy and practice for both conventional and unconventional activity ▪ Education programs based on facts ▪ Support of independent expert advice for communities ▪ Extensive baseline studies & mapping ▪ Continuous, comprehensive and transparent monitoring ▪ Dee
Slide 22: Funding and Forward Program
Funding and Forward Program ▪ Cash: ~A$18.7mm as at 30 June 2017 ▪ 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 from operations of A$2
Slide 23: Focus, discipline and perseverance
Buru Unleashed ▪ Transformational transaction gives control of the Western 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 money and growing the b
Slide 24: 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
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