Buru Energy Ltd · ASX:BRU
Buru Energy — Shareholder Meeting (November 2012)
20 slides from Buru Energy's shareholder meeting presentation, November 2012
Slide 1: 2012 AGM Corporate Update
2012 AGM Corporate Update
Slide 2: Buru's goal and vision
Buru’s goal is: to deliver material benefits to: • its shareholders, • the State of Western Australia, • the Kimberley community, and • the Traditional Owners of the areas in which it operates. It will do this by: successfully exploring for and developing the petroleum resources of the Canning Super
Slide 3: Canning Superbasin – Underexplored and Highly Prospective
Canning Superbasin – Underexplored and Highly Prospective Huge underexplored Palaeozoic aged Wide variety of play types: Three main plays Superbasin being focused on are: (a Superbasin is a composite basin made up of a number of smaller basins) • Ungani conventional oil trend • Laurel BCGA, conventi
Slide 4: Canning Superbasin – Underexplored and Highly Prospective
Canning Superbasin – Underexplored and Highly Prospective Buru area of interest 4
Slide 5: Acreage – Long Term Systematic Management
Acreage – Long Term Systematic Management Long term acreage acquisition and rationalisation process to ensure full coverage over the Basin • Series of targeted acquisitions, bid blocks, farmins • Oct 2011 offered the two southern blocks in the Fitzroy trough • In February 2012 offered the additional
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 permitted area of the Cooper-Eromanga Basin Buru acreage position vs WA and Texas Buru acreage position vs Cooper-Eromanga Basin permits 6
Slide 7: Exploration – Long Term and Systematic
Exploration – Long Term and Systematic Acreage position allows a systematic, regional, long term and flexible exploration program • Buru has undertaken a detailed review of the geology of the Superbasin to focus its exploration efforts • Exploration driven by province evaluation and general prospect
Slide 8: Funding and Corporate
Funding and Corporate Funding for activity has been kept tight as possible in Quick Facts capital hungry business • Recent capital raisings of $50mm at $3.00 for working capital, Share price (29 November 2012) $2.88 and $40mm at $2.75 for asset purchase both oversubscribed Shares 266,312,599 • Fundi
Slide 9: People
People Buru’s Board and management has extensive oil and gas experience with a proven ability to develop oil and gas companies, delivering material upside to shareholders • Board: • Original small Board of two Non-executive Directors and one Executive Director, bolstered by appointment of additional
Slide 10: Commercialisation Activity On Track
Commercialisation Activity On Track Buru’s focused and well developed business plan is being successfully executed by bringing resources into production Oil • Ungani field “Location” declared by the DMP – the first step in obtaining a Production Licence • Production Licence application now submitted
Slide 11: The Results This Year
The Results This Year Very successful year in the two major business streams Conventional • Ungani discovery in October 2011 • First production in May 2012 • Follow-up Ungani North still drilling • Pictor East confirmed gas in conventional reservoir with a potential oil leg and also cored the Goldwy
Slide 12: 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 13: Ungani Trend
Ungani Trend Major upside in follow-up potential • Ungani North has confirmed the petroleum system elements including a thicker shale and much thicker Dolomite unit • Immediate area of prospectivity on current data covers 120 kms by 40 kms (+1 million acres) • Over 20 prospects with multi million ba
Slide 14: Major Gas Resource – Laurel Formation Accumulation
Major Gas Resource – Laurel Formation Accumulation Major tight gas accumulation with regional basin centred extent • Laurel Formation is a thick, regionally extensive package of sands, shales and limestones with in excess of 1,300 meters of gas saturations in recent wells • Mud gas shows over up to
Slide 15: Major Oil and Gas Potential – Goldwyer Shale
Major Oil and Gas Potential – Goldwyer Shale Goldwyer Shale Formation - thick, regionally extensive organic rich shale, “Bakken” analogue • Proven potential in Buru's acreage from well intersections, and Buru analysis work • Thick, organic rich shales in the oil window grading in to the wet gas wind
Slide 16: Strategic Position
Strategic Position Value proposition being recognised • Intense interest in the Superbasin with majors taking positions • No significant vacant acreage remaining • Corporate/farmin deals now the only entry points • Mitsubishi (“MC”) farmin to Buru a first mover advantage for MC • ConocoPhillips farm
Slide 17: 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 18: 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 19: 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 20: 2012 AGM Corporate Update - Questions?
2012 AGM Corporate Update - QUESTIONS?