Buru Energy Ltd · ASX:BRU
Buru Energy — Investor Presentation (April 2013)
24 slides from Buru Energy's investor presentation, May 1, 2013
Slide 1: ASX Announcement: Corporate Presentation
Buru Energy Limited ABN 71 130 651 437 Level 2, 88 William Street Perth, Western Australia 6000 PO Box 7794, Perth Cloisters Square WA 6850 Ph: 61-8 9215 1800 Fax: 61-8 9215 1899 For personal use only www.buruenergy.com ASX ANNOUNCEMENT (ASX: BRU) 1 MAY 2013 CORPORATE PRESENTATION Buru Energy Limite
Slide 2: Buru: The Future of Western Australia's Onshore Oil & Gas Production
For personal use only Buru : The Future of Western Australia’s Onshore Oil & Gas Production 30 April 2013 www.buruenergy.com
Slide 3: Disclaimer and Competent Persons Statement
Disclaimer and Competent Persons Statement 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 reflec
Slide 4: Presentation Structure
Presentation Structure For personal use only Company Overview Our assets and program Milestones The Future 2
Slide 5: Buru Overview
Buru Overview Listing Listing ASX (ASX:BRU), S&P/ASX200 For personal use only Market Cap Market Cap ~A$550 Million Assets Assets Onshore Canning Basin NW Western Australia Acreage Position Acreage Position Strategic basin wide: net ~64,000sqkm (16M acres) Core Permits Core Permits ~50% equities and
Slide 6: Acreage Overview: A major long term position with certainty
Acreage Overview: A major long term position with certainty Buru controls the most prospective areas of the Canning For personal use only •Continuous basin wide coverage of 640km Regional Acreage by 250km (~450 miles by ~150 miles) • Acreage as large as core Cooper Basin areas Unique portfolio • Pro
Slide 7: Buru's Portfolio: Highly Prospective & Underexplored
Buru’s Portfolio: 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 • Basin-wide tight gas accumulation Laurel • Continuity defined by current wells Forma
Slide 8: Balanced Portfolio with Major Growth
Balanced Portfolio with Major Growth Near Term Oil Cash Flow, Major Gas Appraisal & Exploration • Ungani - Significant New Field Oil Discovery For personal use only • 2012 long term test confirms >10mmbo rec P50 • Ungani only production - ~5,000 bopd 1H 2014 Oil • Upside Follow-up • Seismic along tr
Slide 9: Oil Resources under Development
Oil Resources under Development Ungani discovery (2011) - a “game changer” For personal use only • Substantial oil column (+50m) in very high quality conventional dolomite reservoir confirmed by two wells Resource • Sweet crude – 37 deg API, high yield, sells at premium to Brent • 10-20 mmbbls gross
Slide 10: Buru's Oil Resources: Proven field with potential for material cluster
Buru’s Oil Resources: Proven field with potential for material cluster For personal use only • Trend proven - first follow-up well 6km from Ungani successful in proving the geological concept • Contingent resources – possible Ungani North 40m oil column with ~6 Mmbbls contingent resources • Testing
Slide 11: Independently Identified Potential
Independently Identified Potential Massive tight gas and unconventional oil potential The US Energy Information Agency (“EIA”) For personal use only identifies the Canning Superbasin as the largest “shale” or unconventional gas potential in Australia • Basin potential independently reviewed by NSAI
Slide 12: Laurel Basin Centre Gas System
Laurel Basin Centre Gas System Potentially the largest onshore Gas resource in Australia Controlled by Buru/Mitsubishi JV For personal use only • An asset of potentially world class Upside scale •+100 TCF gross in the BCGS and +1Bn bbls oil with 47 TCF gas net to Resource Buru (independent estimates
Slide 13: Delivering Full Value of the Laurel BCGS
Delivering Full Value of the Laurel BCGS Focus on key value drivers (deliverability/costs/market) Systematic derisking of project driven For personal use only through series of inter-related factors • Gas price • Completed well cost • Gas liquids content Commerciality • Gas deliverability drivers •
Slide 14: Laurel Gas: Pathway to Full Potential
Laurel Gas: Pathway to Full Potential Systematic , focused, transparent, aligning stakeholders For personal use only 2013 2014 2015 2016+ Feasibility Pre FEED FEED Development Capability Build • EUR confirmation • Commercial Viability • FID Deliverability • Liquids confirmation • Pilot Project P
Slide 15: Conventional Oil and Gas Potential
Conventional Oil and Gas Potential: Focusing on high value rapid commercialisation Primary focus on Ungani Oil trend For personal use only • Large number of prospects Prospectivity • Potential world class oil fairway defined • Cluster development provides cheap and quick development • Drilling plann
Slide 16: Buru's License to Operate
Buru’s License to Operate Committed to taking a leading position with Traditional Owners For personal use only • Respect for cultural and traditional values Buru engages • Meaningful employment opportunities with the • An appropriate sharing of the social Traditional benefits that arise from success
Slide 17: Committed to License to Operate Excellence
Committed to License to Operate Excellence Community and Environment • Regulations being appropriately strengthened For personal use only • Buru has moved quickly to build capability to ensure highest performance • Social/Community focus on the industry is Context intense • Requires deep and full en
Slide 18: Corporate Snapshot
Corporate Snapshot Index ASX/S&P 200 Shareholder spread For personal use only Share Price $1.90 Shares on Issue ~274M Average daily ~1.04M shares traded volume (3 month) Staff Options ~2.7M (warrants) unlisted Market Cap ~$550M Available Cash ~$41.6M Tightly held, transitioning to Share Register gre
Slide 19: Clear Value Realisation & Growth Path - Oil
Clear Value Realisation & Growth Path - Oil 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 North Prodn Ungani Phase 1 2013 1,000 bbl/day Current wells 17
Slide 20: Clear Value Realisation & Growth Path - Gas
Clear Value Realisation & Growth Path - Gas For personal use only VALUE (project net to Buru) Phase 4 Development 2016 Phase 2/3 Phase 1 PRE-FEED/ Feasibility FEED Exp and 2014-2015 Appraisal 2013-2014 <2013 PROJECT PHASE JV Internal Farm-out/sell Farm-out/sell Mitsubishi resources down interest dow
Slide 21: 2013 Program and Milestones
2013 Program and Milestones Getting Ready For personal use only 2 year drilling •2 year drilling program recently completed program • Buru and Mitsubishi strongly aligned supported on next 2 year program • Tendering for rig for two year program Fit for purpose • Fit for purpose rig - drive well cost
Slide 22: Funding planning
Funding planning Short term value adding For personal use only • Relatively low cost - workovers plus two wells may be sufficient to achieve targets • Export facility – targeting existing facility, or off Ungani balance sheet funding Development • Strongly cash flow positive when in production (~$60
Slide 23: Buru Energy: A Material & Sustainable Growth Story
Buru Energy : A Material & Sustainable Growth Story 2013 2014 2015 For personal use only MATERIAL CASH FLOW TARGETED OIL EXPANSION, BUILDING THE PLATFORM MAJOR DERISKING OF GAS & CONFIRMING GAS VIABILITY, FOR FULL VALUE DELIVERY & CONTINUOUS HIGH VALUE MULTI-RIG APPRAISAL & LONG TERM GROWTH EXPLORAT
Slide 24: The Dawning of the Canning
The Dawning of the Canning For personal use only Buru is the Future of Onshore Oil and Gas Production in Western Australia 22