Buru Energy Ltd · ASX:BRU
Buru Energy — Investor Presentation (September 2014)
23 slides from Buru Energy's investor presentation, Sep 22, 2014
Slide 1: Delivering Western Australia's Energy Future
Corporate Update For personal use only Delivering Western Australia’s Energy Future 22 September 2014 www.buruenergy.com
Slide 2: Important Notice and Disclaimer
Important Notice and 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
Slide 3: Corporate and share price performance
Corporate and share price performance Corporate Overview For personal use only Formed 2008 Ticker ASX:BRU Index S&P/ASX300 Shares on issue 298 million (pre raising) Share price ~0.80 cps 6 month share price Market Cap ~$240 million (pre raising) Cash on hand $37.6 million (pre raising) ~53,188 sq km
Slide 4: Capital raising
Capital raising Summary • Cornerstone Investor Placement $20 million For personal use only • Eligible Shareholder Placement $8 million • Share Purchase Plan Capped at $12 million, not underwritten • Maximum Total Funds Raised $40 million • Fully funded 2014/2015 work programs • Cornerstone Investor
Slide 5: Buru investment drivers
Buru investment drivers Extensive basin wide acreage spread in the most underexplored onshore Australian basin For personal use only Significant oil and gas potential in conventional reservoirs with current oil production from Ungani field Multi TCF tight gas resource with high liquids content
Slide 6: Restructured board
Restructured board RESTRUCTURED BOARD TO REFLECT SIGNIFICANT Eric Streitberg For personal use only CHANGE IN COMPANY OPERATIONAL FOCUS Executive Chairman +40 years experience in petroleum geology, • Board now has three independent non-executives and geophysics and management of petroleum Executive C
Slide 7: Management team with capacity to deliver
Management team with capacity to deliver RESTRUCTURED MANAGEMENT TEAM WITH FOCUS ON DELIVERY For personal use only • Streamlined management structure to reduce duplication and number of consultants • Flattened management structure and increased accountability Oil • Staff had increased by +50%, curre
Slide 8: Business structure
Business structure CONVENTIONAL GAS AND OIL For personal use only • Ungani Oil Field play opening discovery • Regional follow-up potential • Low cost development with short term cash flow generation • Oil provides benefits to all stakeholders in short time frames • Good potential for conventional ga
Slide 9: Outstanding whole of basin acreage position
Outstanding whole of basin acreage position MAJOR LONG TERM POSITION WITH TENURE CERTAINTY For personal use only • Regional acreage position • Continuous basin wide coverage gross 93,007 sq kms (22.9 million acres) - 640km by 250km (~450 miles by ~150 miles) • Generally 50% equity and operatorship •
Slide 10: Buru controls the highest potential acreage
Buru controls the highest potential acreage THREE MAJOR PETROLEUM SYSTEMS For personal use only • Ungani oil trend • High quality conventional reservoirs • Prolific oil source rocks • Well defined prospects • Laurel Formation • Potential giant gas accumulation • Basin centred tight wet gas accumulat
Slide 11: Ungani field overview
Ungani field overview UNGANI DISCOVERY – A GAME CHANGER FOR THE For personal use only CANNING BASIN • Resource • Substantial oil column (+50m) in very high quality conventional dolomite reservoir confirmed by two wells. Third well has lower productivity and will be further tested • Light Sweet crude
Slide 12: Ungani EPT overview
Ungani EPT overview Transport to Storage & export Shipping to Ungani Field Wyndham Tank from Wyndham refinery Farm For personal use only EPT production Oil Trucking Port Facility Crude shipping U2 well producing very 900km to existing tank Wyndham Port using Wyndham to regional strongly with the rat
Slide 13: Ungani: Way forward
Ungani: Way forward POST EPT DEVELOPMENT For personal use only • Optimise shipping export route • Minimise wet weather downtime - field pipeline/road/loadout • Staged development process for optimal development • Additional wells required together with produced water handling system (longer term re-
Slide 14: Laurel Gas
Laurel Gas CONTROLLED BY BURU/MITSUBISHI JV For personal use only • Upside • Regional scale gas accumulation • Basic centred tight wet gas (BCGS) • High deliverability conventional reservoirs present • Resource • +100 TCF in the BCGS and +1Bn bbls oil (gross) - with 47 TCF gas net to Buru (independe
Slide 15: Trial reservoir stimulation proves tight gas potential
Trial reservoir stimulation proves tight gas potential THE YULLEROO 2 STIMULATION AND TEST VALIDATES THE TIGHT GAS POTENTIAL OF THE BASIN For personal use only • Yulleroo wells have defined a 700 to 800 meters tight gas column with thin conventional sandstone reservoirs over a large area • Sufficien
Slide 16: Laurel Formation tight gas pilot exploration program
Laurel Formation tight gas pilot exploration program • Program has undergone intense regulatory and community scrutiny For personal use only • Buru Energy is committed to transparency and disclosure • Adopted very open, proactive and factual approach • Regulatory approvals • WA Environment Minister
Slide 17: Laurel Formation tight gas pilot exploration program overview
Laurel Formation tight gas pilot exploration program overview PREPARATION FOR STIMULATION (FRACCING) ACTIVITY • Extensive baseline modelling For personal use only • Best practice reviews • Community Engagement • Stimulate up to four wells and flow back • Possible conventional reservoirs testing • Lo
Slide 18: Exploration and appraisal program
Exploration and appraisal program For personal use only APPRAISAL AND TEST EXPLORATION DRILLING SEISMIC ACQUISITION • Ungani 1 - workover • Commodore 1 • 2D surveys (988 kms) • Ungani North - test • Olympic 1 • 3D survey (240 sq kms) • Ungani 3 - workover and test • Lennard Shelf - 2 wells • Paradis
Slide 19: High value conventional oil exploration
High value conventional oil exploration For personal use only UNGANI OIL DISCOVERY IS A ‘PLAY OPENER’ OTHER CONVENTIONAL OIL PLAYS • Conventional vuggy dolomite reservoir • Paradise area - test of Paradise oil discovery planned, • Ungani Nth proved extensive petroleum system many additional prospect
Slide 20: Drilling program shift to more cost efficiency
Drilling program shift to more cost efficiency LOWER COST FIXED PRICE EXPLORATION DRILLING For personal use only • Need for step change recognised after review of previous 5 years of drilling • JV have agreed to contract DDH1 Rig #31, a UDR5000 highly mobile mineral rig which has been converted for
Slide 21: Funding secured for 2014/2015 planned programs
Funding secured for 2014/2015 planned programs CURRENT SITUATION • Ungani development For personal use only • Relatively low cost - main cost is wells • Export facility - off balance sheet funding • Strongly cash flow positive when in production rather than EPT mode • Mitsubishi Funding agreement re
Slide 22: Buru Energy's vision
Buru Energy’s vision PHASE 1: Oil Export: 2013-2025+ For personal use only Oil export facility, >1-2+mmbo/yr export Broome Wyndham Port Hedland PHASE 4: LNG sales 2020+ New or gas sales to existing LNG Dampier plants along NW Shelf PHASE 2: Powering the North & Midwest: •Target 30 – 200MW power •<30
Slide 23: Energising Western Australia
Energising Western Australia For personal use only 23