Buru Energy Ltd · ASX:BRU
Buru Energy — Investor Presentation (September 2017)
30 slides from Buru Energy's investor presentation, Sep 13, 2017
Slide 1: Corporate Presentation
Corporate Presentation For personal use only 13 September 2017
Slide 2: Corporate Snap Shot
Corporate Snap Shot For personal use only Capital Structure Share Register Formed 2008 Ticker ASX:BRU Index S&P/ASX All Ords Shares on Issue ~432 million Share Price ~$0.20 Market Cap ~$86 million Cash on Hand ~$27 million (post raising) Board and Management 12 Month Price History Eric Streitberg Ex
Slide 3: Buru unleashed – driving the development of the Canning Basin
Buru unleashed – driving the development of the Canning Basin 100% ownership of oil production and exploration permits provides For personal use only flexibility following acreage swap transaction with Mitsubishi Immediate low risk development program at Ungani Oilfield to significantly increase
Slide 4: Ungani Oilfield – Cornerstone Asset
Ungani Oilfield – Cornerstone Asset Ungani Oilfield in early stages of production with 2 producing wells on natural For personal use only flow with downhole pumps to be installed in October Pathway to 3,000 bopd target through current appraisal and development program Independent review by GCA
Slide 5: Ungani Oilfield – Export System and Sales
Ungani Oilfield – Export System and Sales Process and Tanks For personal use only Wyndham 80,000 bbl tank (Tank 10) modified for crude service (last export system used 30,000 bbl Tank 9) Larger tank gives much improved shipping economics and flexibility Trucking Contractor selection (Fuel Tran
Slide 6: Ungani Overall Development Program Phases
Ungani Overall Development Program Phases For personal use only Current Project Phase Phase 3 Phase 4 Hold production Production Rate Increase production to 3,000 bopd in first half plateau at 3,000 bopd Phase 2 2018 Production Increase production Target 1,250 bopd to 1,500 bopd PROJECT PHASE Drill
Slide 7: Exploration Prospect Portfolio
Exploration Prospect Portfolio Extensive high prospectivity portfolio For personal use only Proven oil play system over 150 kms in 100% acreage Range of prospect sizes up to world class potential Range of play types from proven Ungani Dolomite and Reeves discovery (UFW) to new high potential c
Slide 8: Gas and Unconventional Oil Resources
Gas and Unconventional Oil Resources Gas Resources (conventional and For personal use only unconventional) Buru has 100% of the Laurel Formation tight wet gas resources in Central, Northern and Western provinces Western Gas Province includes the Yulleroo Gasfield that has appraisal drilling, fra
Slide 9: Forward Strategy – Buru unleashed
Forward Strategy – Buru unleashed 2017/18 Ungani Accelerated Development Program with For personal use only potential to increase production to 3,000 bopd and provide 50% uplift in resource base Successful Ungani resource upgrade supports the future development of Broome export facilities to sig
Slide 10: The Details - Ungani Accelerated Development Program
The Details - Ungani Accelerated Development Program Objective: Increase oil production to 3,000 bopd and confirm volumes sufficient to commit to alternative export route For personal use only Activity Timing Expectation Install artificial lift system in existing October 2017 Maintain or increase ta
Slide 11: Ungani Accelerated Development Program – Phase details
Ungani Accelerated Development Program – Phase 2 details Production upgrade (Phase 2) For personal use only Install artificial lift system ‒ Standard oilfield practice as wells come off plateau production ‒ Two existing production wells (Ungani 1 and Ungani 2) have produced total of +650,000 bbls
Slide 12: Ungani Accelerated Development Program – Well locations
Ungani Accelerated Development Program – Well locations For personal use only 12
Slide 13: Ungani Accelerated Development Program – Ungani
Ungani Accelerated Development Program – Ungani 4 For personal use only Structurally updip (in time and depth) and 500m to the south of Ungani 1 Interpreted “attic” location will recover undrained oil as well as oil from main field closure 3D seismic mapping of field with depth conversion prov
Slide 14: Ungani Accelerated Development Program – Ungani
Ungani Accelerated Development Program – Ungani 5 Ungani 3 For personal use only Initial Ungani 3 results in 2014 very anomalous with thinner shale seal and apparent poor reservoir, but oil column similar to Ungani main field Well produces oil at low rates Detailed review of 3D seismic and wel
Slide 15: Drilling and Workover Program
Drilling and Workover Program Drilling Rig contracted For personal use only Extensive EOI process undertaken for rig for 2017 program with DDGT1 (Atlas 2) rig identified as preferred candidate Drilled previous wells for Buru/Mitsubishi JV and warm stacked in June after completion of program for
Slide 16: Exploration Portfolio
For personal use only Exploration Portfolio The following cautionary statement applies to all statements of prospective resources set out in this section and in the presentation generally. The referenced prospective resources are unrisked and calculated using probabilistic methods. Cautionary statem
Slide 17: 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 18: Prospect Summary – Rafael (EP428)
Prospect Summary – Rafael (EP428) Very large well defined Ungani Dolomite prospect Located 50km to the east of Ungani For personal use only Well defined by modern good quality 2D seismic data (1km grid) Many similarities to Ungani but much larger and deeper Laurel oil charge proven along the
Slide 19: Prospect Summary – Kilto (EP436)
Prospect Summary – Kilto (EP436) Well Defined Structural Ungani Dolomite prospect For personal use only Located 50km west of Ungani, and 50km from Broome Defined on Kurrajong 3D Seismic (also 2D seismic data) Close to oil source kitchen Large follow-up trend to the West Reservoir Along Trend
Slide 20: Prospect Summary – Yakka Munga (EP428)
Prospect Summary – Yakka Munga (EP428) Major regional structure 11km by 4km, up to 1000m of vertical relief For personal use only Top at 2300m (only 200m deeper than Ungani) Large ancillary closure (YM Crest) in overlying Reeves and Anderson section with similar potential Ungani Dolomite tar
Slide 21: Prospect Summary - Hotdog Prospect (L8)
Prospect Summary - Hotdog Prospect (L8) New play type in Basin - Hydrothermal Dolomite (HTD) Adjacent to Sundown, Boundary, and Lloyd oil fields For personal use only Well defined on Bunda 3D HTDs are associated with major hydrocarbon production in North America. Enhanced secondary porosity
Slide 22: Prospect Summary – Butler (EP129)
Prospect Summary – Butler (EP129) Laurel Conventional reservoir play Best seismic data quality on northern margin with distinct facies For personal use only interpretation and depositional limit of sand to northeast defined by shelf break Close to oil source kitchen (oil fields and shows in well
Slide 23: Oil Prospectivity – Broome Platform Goldwyer
Oil Prospectivity – Broome Platform Goldwyer Goldwyer prospectivity For personal use only 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 similariti
Slide 24: Laurel Formation Tight Gas - Yulleroo
Laurel Formation Tight Gas - Yulleroo Major gas and liquids accumulation on the western side of 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 on 3D Yulleroo 2 clean-up flow
Slide 25: Corporate
For personal use only Corporate
Slide 26: 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 27: Funding and Forward Program
Funding and Forward Program Cash: ~A$27 mm following rights issue and placement For personal use only proceeds of ~A$13.8mm. Ungani accelerated development program fully funded Debt: Remaining Alcoa debt of $7.5 mm with repayment profile aligned to forward oil production levels of up to three ye
Slide 28: Equity Raising Results
Equity Raising Results Recent 1 for 5 Rights Issue at 15 cents per share highly successful in terms of overall Buru shareholder For personal use only participation and high level of applications received, significantly exceeding the $10.2 mm rights issue target. High level of demand was accommod
Slide 29: Disclaimer
Disclaimer For personal use only 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 reasonab
Slide 30: For personal use only
For personal use only 30