Buru Energy Ltd · ASX:BRU
Buru Energy — Investor Presentation (July 2011)
31 slides from Buru Energy's investor presentation, Jul 28, 2011
Slide 1: New Australian Frontiers Presentation (ASX announcement)
Buru Energy Limited ABN 71 130 651 437 Level 1, 418 Murray Street Perth, Western Australia 6000 PO Box 7794, Perth Cloisters Square WA 6850 Ph: 61-8 9215 1800 Fax: 61-8 9215 1899 www.buruenergy.com For personal use only ASX ANNOUNCEMENT (ASX: BRU) 28 July 2011 New Australian Frontiers Presentation B
Slide 2: New Australian Frontiers July 2011
For personal use only New Australian Frontiers July 2011
Slide 3: Summary
Summary • Junior ASX listed Australian oil and gas exploration company For personal use only • Focused on the underexplored Canning Superbasin in northwest Western Australia (“WA”) • WA is a major oil and gas resource centre with existing infrastructure and proximity to domestic and Asian markets •
Slide 4: Company Background
Company Background A junior ASX listed Australian oil and gas exploration company For personal use only Our name • Buru pronounced - Boo-Roo - means “a special place” in local Aboriginal dialect Focused explorer • A focused oil and gas explorer and producer operating solely in the Canning Superbasin
Slide 5: Corporate Snapshot
Corporate Snapshot Buru provides material leverage for investors Quick facts For personal use only Tightly held stock Share price: A$0.73 (as at 26 July 2011) • 53% held by top 20 shareholders Shares on issue: 182,780,549 • Three substantial shareholders (≥5% each) Options (warrants): 24,251,000 (un
Slide 6: Proven Management Team
Proven Management Team Buru’s Board has extensive oil and gas Eric Streitberg – Executive Director experience with a proven ability to develop oil • 38 years’ experience in petroleum geology and geophysics and management of and gas companies, delivering material upside For personal use only petroleu
Slide 7: Why the Canning Superbasin?
Why the Canning Superbasin? The Paleozoic aged geology of the Canning Paleozoic basins with giant reserves Superbasin is right for oil and gas and is underexplored For personal use only Overview • Paleozoic rocks hold about 27% of world oil reserves or 700 to 1,000 billion barrels • There are more t
Slide 8: Canning Superbasin Prospectivity
Canning Superbasin Prospectivity Enormous potential for conventional and unconventional oil and gas in the proven petroleum systems in the Superbasin (a For personal use only Superbasin is a composite basin made up of a number of smaller basins) The Canning Ordovician – Silurian: Thick, high quality
Slide 9: Canning Superbasin Exploration Environment
Canning Superbasin Exploration Environment Buru is an experienced operator and the largest The Canning Superbasin seismic and wells licence holder in the Canning Superbasin For personal use only Sporadic drilling history • Only some 170 wildcats have been drilled in an area nearly 3/4 the size of Te
Slide 10: Canning Superbasin Operations Background
Canning Superbasin Operations Background Buru’s permits are well positioned for exploration access and early production of discoveries Canning Superbasin infrastructure For personal use only Overview • Two regional centres (Broome and Derby) provide support infrastructure, airline access etc • The K
Slide 11: Canning Superbasin – Proven Reserves/Resources
Canning Superbasin – Proven Reserves/Resources Current production operation is small scale oil production For personal use only Oil production • Buru has established production operations with oil infrastructure, Blina oil production storage and supply yards and owns a workover/shallow drilling rig
Slide 12: Canning Superbasin – Contingent Resources
Canning Superbasin – Contingent Resources Yulleroo wet gas field has major resources and is on the pathway to development. Pictor Field appraisal is also planned for 2011 For personal use only Yulleroo Field • Conventional/tight gas resource – discovered in 1967, not appraised until 2008 when new te
Slide 13: Canning Superbasin – Unconventional Resources
Canning Superbasin – Unconventional Resources The EIA identifies the Canning Superbasin as having the largest shale gas potential in Australia For personal use only The Report • The US Energy Information Agency (“EIA”) undertook a major review of global unconventional resource potential, released in
Slide 14: Canning Superbasin – Unconventional Resources
Canning Superbasin – Unconventional Resources Buru and NSAI have reviewed the potential Unconventional resources in the Superbasin of the Superbasin and identified 4 primary unconventional plays – all liquids rich For personal use only Resources • Combined mid range unrisked gross in-place volumes a
Slide 15: The Unconventional Paradigm Shift
Potential - The Unconventional Paradigm Shift The Unconventional becomes the new Conventional For personal use only • CSG was a fringe play in Australia until Canadian and US groups arrived • Shale gas is in the same stage of development, no traction with Australian investors • Liquids from shale is
Slide 16: The Geology and Operational Parameters
Potential – The Geology and Operational Parameters CBM/CSG and Shale Gas are two different industries For personal use only 14
Slide 17: International Focus on Unconventional Plays
International Focus on Unconventional Plays ConocoPhillips to farm-in and jointly explore New Standard’s Goldwyer Project in the Canning Superbasin For personal use only New Standard Energy • ASX listed, headquartered in Perth • Focus on onshore exploration in the Canning Superbasin with working int
Slide 18: International Focus on Unconventional Plays
International Focus on Unconventional Plays Heritage Oil PLC has increased its stake in PetroFrontier to 10.39% For personal use only PetroFrontier • TSXV listed, headquartered in Calgary • Onshore exploration, acquisition and development of conventional and unconventional hydrocarbons in Australia’
Slide 19: Canning Superbasin – Conventional Resources
Canning Superbasin – Conventional Resources Canning Superbasin has extensive conventional potential in a large number of prospects For personal use only Conventional overview • Buru’s re-evaluation has broken the Canning Superbasin into a number of discrete sub-basins and hydrocarbon provinces each
Slide 20: Canning Superbasin 2011 Exploration Program
Canning Superbasin 2011 Exploration Program Aggressive 2011 program of up to 10 wells commenced in early June For personal use only Rigs and timing • Ensign Rig #32 under contract for up to 6 wells and Century Rig #7 under contract for up to 4 wells • Ensign Rig #32 spudded Valhalla-2 in first week
Slide 21: Canning Superbasin – 2011 Drilling Program
Canning Superbasin – 2011 Drilling Program Planned first four wells have high impact potential in proven play types For personal use only Valhalla-2 Ungani-1 Pictor East-1 Paradise-1 Drilling completed. Will test a large gas target Will evaluate the Nita Will test the Upper and Lower Intersected ove
Slide 22: Valhalla-2 Results
Valhalla-2 Results The Valhalla-2 well is a successful appraisal of a significant Valhalla-2 Location Map gas accumulation For personal use only Conventional and tight gas • The well has encountered a number of tight and potentially conventional gas reservoirs across a 1,300m section of gas charged
Slide 23: Valhalla-2 Results – Regional Implications
Valhalla-2 Results – Regional Implications Valhalla-2 results have significant positive implications Valhalla-2 regional setting for regional prospectivity For personal use only Valhalla accumulation • The Valhalla structure has a gas charged Laurel Formation section of in excess of 1,300 metres in
Slide 24: Pathways to Commercialisation – Gas and Oil
Pathways to Commercialisation – Gas and Oil The development of the identified contingent Pathway to commercialisation resources has two parallel workplans For personal use only Conventional gas • Prove up sufficient conventional gas reserves to support the construction of the Great Northern Pipeline
Slide 25: Pathways to Commercialisation – GNP commercial
Pathways to Commercialisation – GNP commercial The GNP commercial structure has three key components For personal use only 1. Sales Contract • The construction of the pipeline requires offtake contracts that: - have “no-risk” financial capacity to take the gas - take the gas quantities required to s
Slide 26: Pathways to Commercialisation – GNP Technical
Pathways to Commercialisation – GNP Technical The GNP development has 5 key steps Details and location of Buru’s proposed Great Northern Pipeline For personal use only 1. Pre-FEED – completed. Scoping design, construction and commercial studies (including independent costings). 2. Project Approvals
Slide 27: Pathways to Commercialisation – Alcoa gas sales contract
Pathways to Commercialisation – Alcoa gas sales contract Volumes and delivery obligations • The Canning Basin Gas sales Agreement (“Canning Basin GSA”) is between Alcoa and Buru for 400 PJ of sales gas over a 15 year term For personal use only • Alcoa has a right of first refusal over an additional
Slide 28: Resources and Operations Snapshot
Resources and Operations Snapshot Buru’s portfolio has a highly prospective mix of exploration, appraisal and pre-development prospects in both conventional and unconventional play types For personal use only Production Unconventional resources • Current oil production of ~75 bopd • Buru and NSAI ha
Slide 29: Significant Achievements + Platform for Further Growth
Significant Achievements + Platform for Further Growth Buru has achieved a number of significant milestones, 500 creating shareholder value with a platform for further 450 growth 400 For personal use only 350 300 Exploration program 250 200 • First well in 2011 – Valhalla-2 – has identified a very s
Slide 30: Disclaimer
Disclaimer Important notice 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 reflected in these statements ar
Slide 31: New Australian Frontiers July 2011
For personal use only New Australian Frontiers July 2011