Buru Energy Ltd · ASX:BRU
Buru Energy — Investor Presentation (March 2013)
26 slides from Buru Energy's investor presentation, March 2013
Slide 1: Corporate Update March 2013
Corporate Update March 2013
Slide 2: Buru Energy – Overview
Buru Energy – Overview • Market capitalisation ~$600m • Sole focus on the Canning Superbasin in northwest Western Australia • Strategic acreage position of net ~69,000 square kms / 17 million acres • High equities of +50% in all core permits • Major international partner – Mitsubishi • Operator of a
Slide 3: Corporate Snapshot
Corporate Snapshot • Listed on Australian Securities Exchange (ticker Quick Facts BRU), included in S&P/ASX 200 Index Share price $2.45 • Tightly held shareholder register transitioning to Shares 273,912,685 greater representation by institutional investors Staff options (warrants) unlisted 2,942,80
Slide 4: Acreage Overview
Acreage Overview 4
Slide 5: Unique Basinwide Acreage Position Covering Multiple Plays
Unique Basinwide Acreage Position Covering Multiple Plays • Net ~17 million acres (~69,000 sq km) with high permit equities and operatorship • Continuous basin wide acreage holdings over an area of 640 km by 250 km (~450 miles by 150 miles) • Acreage position systematically built up over last four y
Slide 6: Buru’s Acreage in Perspective
Buru’s Acreage in Perspective • Acreage position is comparable to the onshore Gulf Coast in scale • Acreage position is comparable to the leased area of the Cooper-Eromanga Basin Buru acreage position vs WA and Texas Buru acreage position vs Cooper-Eromanga Basin permits 6
Slide 7: State Agreement Consolidates Acreage
State Agreement Consolidates Acreage • Unique agreement - 11 year extension to current permit terms over core permits • Work program offsetting across permits • State Government facilitation for development of major domestic gas project • Native Title, environmental, heritage, and safety requirement
Slide 8: Strategic Landholding Position
Strategic Landholding Position • No significant vacant acreage remaining in the Superbasin • Acquisition or farmin now the only entry points to core acreage • Buru has the only basinwide position providing exposure to all major plays • Buru will be central to any material participation by third part
Slide 9: Conventional Potential (oil focus)
Conventional Potential (oil focus) 9
Slide 10: Conventional Oil and Gas Potential
Conventional Oil and Gas Potential “Company Maker” oil discovery at Ungani • Ungani oil discovery in late 2011 opened a new play type with substantial regional potential • Ungani North well identified another new play concept with deep gas section • Huge “running room” for follow-ups with over 300 m
Slide 11: Ungani – Changes the Superbasin
Ungani – Changes the Superbasin Ungani oil discovery a “game changer” for the Superbasin • Substantial oil column (+50m) in very high quality conventional dolomite reservoir confirmed by two wells • Excellent quality 37o API high yield sweet crude oil. Equivalent to Malaysian Kikeh – up to $9 premiu
Slide 12: Ungani Oilfield Development
Ungani Oilfield Development • Buru is an experienced operator with existing production in the basin • Ungani Field is ideal for development in greenfields area • Very little gas, excellent reservoir and strong pressure support • Simple, low capital cost process with modular expansion capability • Pr
Slide 13: Conventional Oil and Gas Potential
Conventional Oil and Gas Potential Two major proven oil productive petroleum systems with additional system with high potential • Laurel petroleum system: − Ungani cluster with many prospects to followup − Existing fields on the Lennard Shelf with excellent additional prospects being defined − Parad
Slide 14: Unconventional Potential
Unconventional Potential 14
Slide 15: Canning Superbasin “Unconventional”: Regional and Tight Gas
Canning Superbasin “Unconventional”: Regional and Tight Gas The US Energy Information Agency (“EIA”) identifies the Canning Superbasin as having the largest “shale” or unconventional gas potential in Australia • Independent consultant NSAI reviewed the potential for Buru • Buru and NSAI combined est
Slide 16: Major Gas Resources – Laurel Formation Accumulation
Major Gas Resources – Laurel Formation Accumulation • Regional basin centered accumulation of wet gas • Enormous upside, potential world class resource • Independent resource estimates have gross resources of +100 TCF and +1Bn bbls oil with 47 TCF gas net to Buru Prospective Resources (net to Buru)
Slide 17: Valhalla Area BCGS
Valhalla Area BCGS • Evaluation has concentrated in two areas, Valhalla on the east side of the basin and Yulleroo closer to Broome • Independent assessment of the specific Valhalla area done by McDaniel & Associates • Risked resources of 3.9 TCF and 112 million barrels of oil net to Buru • Upside t
Slide 18: Yulleroo Field - Major Laurel Formation Gas Accumulation
Yulleroo Field - Major Laurel Formation Gas Accumulation • Major wet gas accumulation close to Broome and the Ungani oilfield • Four wells have defined a major gas accumulation over a large area • Recent drilling (Yulleroo 4) confirms gas well below mapped structural closure and field is most likely
Slide 19: Gas Commercialisation Structured Process
Gas Commercialisation Structured Process Structured process to move from Resources to Reserves into a Domgas project that is scaleable to LNG volumes • Stage 1: 2012/2013 Exploration Stage – Completion of quantification of 3C reserves. Trial stimulation program. • Stage 2: 2014 Pilot projects – Conc
Slide 20: Other Unconventional Systems
Other Unconventional Systems Goldwyer Shale • Major unconventional and conventional play with participation from three majors – ConocoPhillips, Hess and Petrochina • Classic shale play with thick, organic rich shales in the oil window grading to the wet gas window on Buru acreage • Buru estimates up
Slide 21: Social and Community
Social and Community 21
Slide 22: Our Licence to Operate
Our Licence to Operate Buru is committed to ensuring it does not breach its “social licence to operate” by ensuring: Exemplary environmental performance • Minimising its impact on the environment and on the communities in which it operates • A process of continuous improvement in the way it operates
Slide 23: The Challenges
The Challenges The Company is transitioning to a producer and developer with a deep exploration portfolio in a rapidly changing regulatory and social environment Engagement with traditional owners • Buru has a great deal of activity in the Canning Superbasin and generally good relations with traditi
Slide 24: The Opportunities
The Opportunities The Company is in a unique position to create value for all its stakeholders Controlling interest in a basin with huge potential • Unique situation probably worldwide of a “geologists dream” of being able to unlock the potential of a fascinating and high potential basin • Enormous
Slide 25: Disclaimer
Disclaimer Important notice 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 these statements are reasonable but they
Slide 26: Slide 26