Bengal Energy Ltd. · TSX:BNG
Bengal Energy — Investor Presentation (December 2015)
25 slides from Bengal Energy's investor presentation, December 2015
Slide 1: Corporate Presentation December 2015
CORPORATE PRESENTATION DECEMBER 2015 HIGH IMPACT INTERNATIONAL TSX: BNG EXPLORATION & PRODUCTION
Slide 2: Investment Highlights
INVESTMENT HIGHLIGHTS Delivering consistent top-tier reserves growth High-quality light oil & Production/reserves in a large 52° API ultralight oil pool gas assets in low-risk, stable countries: Material production and cash flow growth potential Australia & India through several years’ develop
Slide 3: Why Now?
WHY NOW ? Significant upside based on independently evaluated High margin, strong 2P NAV (March 31, 2015) cash generating Hedging in place to June 2017 operations ~ 269,000 barrels (floor price of US $80 per barrel) Rapidly growing oil Other near-term catalysts: in place & reserves Low-cos
Slide 4: Corporate Profile
CORPORATE PROFILE Financial Basic / FD Common Shares Outstanding (TSX:BNG) 68.2 MM / 73.8MM Insider Holdings 29% Total Debt $17MM Enterprise Value @ $0.16/share (Sept. 18, 2015) ~$27MM Q2 2016 Funds Flow from Operations (FFO) $1.3MM Total debt to 2015 FFO 3.4x Corporate Reserves Values PV10 (Mar. 31
Slide 5: Credit Facility
CREDIT FACILITY 2015 reserve additions support lending Drawn capacity (US$15MM) Attractive margins Current facility limit based on US Libor (US$25MM) Available capacity Hedging program with (US$40MM) floor of US$80/bbl through to June 2017 First calculation date December 31, 2015 to evaluate • Impac
Slide 6: Bengal Leadership Team
BENGAL LEADERSHIP TEAM Management Board of Directors Chayan Chakrabarty, PhD (Pet Eng), MBA - Ian Towers, P.Eng – Chairman Former President, CEO & Director Dolomite Energy President, CEO & Director Formerly Daylight Resources, Verenex, Ross Smith Energy Group Peter Gaffney, P.Eng, P.Geol Founding pa
Slide 7: Defined Business Strategy
DEFINED BUSINESS STRATEGY • Continue to high-grade and refine/focus portfolio with minimum capital EXPLORE exposure in current environment • Expand pool boundary and grow oil in place, convert resources to APPRAISE 3P/2P reserves with a high chance of production success • Grow 1P & 2P reserves and p
Slide 8: Asset Overview
ASSET OVERVIEW Assets in proven, producing basins Large and under-explored acreage offers significant 1.9MM gross acres total growth opportunity Assets in portfolio with development and exploration upsides with significant near-term catalysts onshore; High potential impact without typical Au
Slide 9: Cooper Basin – A Large Footprint for Future Growth
COOPER BASIN – A LARGE FOOTPRINT FOR FUTURE GROWTH Australia Program (2015-16) 5 producing wells to be frac’d for low cost production addition BARTA Operator preparing field BARROLKA development plan at Cuisinier At least 4- 5 appraisal / development wells in Cuisinier in the second half of 20
Slide 10: Barta Permit: Cuisinier (PL 303)
BARTA PERMIT: CUISINIER (PL 303) Barta Permit equals 344,218 acres CUISINIER FIELD 1.75 mmbbls production to date 23 wells drilled to date – 22 oil PL 303 15,815 acres 2014-15 drilling program expanded the pool, further increasing reserves and adding PL303 production Every incremental 100
Slide 11: Wompi Permit (ATP 752)
WOMPI PERMIT (ATP 752) Wompi offers Bengal moderate risk exploration in a well-established, oil- producing fairway with multi-zone potential Nubba 1,drilled by Santos on ATP 752 (Bengal 38.08%) tested several Jurassic oil plays that are producing in the Bowen field Five different Jurassic sand
Slide 12: Tookoonooka Permit (ATP 732P)
TOOKOONOOKA PERMIT (ATP 732P) Very large permit covering 654,000 acres yet TINTABURRA/ TOOBUNYAH KENMORE 13.6 MMSTB(1) sparsely drilled – only 10 wells drilled to date 3.2 MMSTB(1) Potential for a new oil fairway, located in an underexplored area between two prolific Cooper Basin oil fields Ca
Slide 13: Barrolka Permit (ATP 934)
BARROLKA PERMIT (ATP 934) Real Energy drilled two Permian gas discovery wells on ATP 927P (Queenscliff 1 and Tamarama 1) ATP 927P Real Energy Real has declared an independent Total Queenscliff-1 Tamarama-1 Mean Prospective (recoverable) Resource estimate of 5.4 TCF in ATP Whanto (2 wells drilled
Slide 14: India: CY-ONN-2005/1 Prospects
INDIA: CY-ONN-2005/1 PROSPECTS CAUVERY BASIN (1) 600 km2 of 3D shot & interpreted; 3 drill locations finalized (1) • Each location tests different play type in different part of permit (1) • All targets located in a Cretaceous syn- rift to post rift play fairway • Primary zones should be oil or oi
Slide 15: Corporate Reserves Growth: Independent Evaluation
CORPORATE RESERVES GROWTH: INDEPENDENT EVALUATION ANNUAL PROVED PLUS PROBABLE(1) NET PRESENT VALUE OF RESERVES @ 10% RESERVES (MBOE) DISCOUNT FACTOR(1) ($MM) AS AT YEAR END MARCH 31, AS AT YEAR END MARCH 31, 51% 17% growth year over year growth year over year 122% 150% growth year over year growth y
Slide 16: Value Creation for Shareholders
VALUE CREATION FOR SHAREHOLDERS PRODUCTION PER SHARE GROWTH (NET)(1) NET AVERAGE DAILY PRODUCTION VOLUMES(1) AS AT YEAR END MARCH 31 AS AT YEAR END MARCH 31 Average daily production per million Production growth directly linked to basic shares outstanding Cuisinier drilling 615 9.0 468 480 7.0 6.2 3
Slide 17: World Crude Oil Price Outlook
WORLD CRUDE OIL PRICE OUTLOOK World Crude Oil Production vs Brent Price World Liquid Fuels Production & Consumption Balance $135 84 World Crude Production Brent ($US) $125 82 $115 80 $105 $95 MMbbl/d MMbbl/d 78 $US $85 76 $75 74 $65 $55 72 $45 70 $35 Jan-11 Sep-11 Jun-12 Mar-13 Jan-14 Sep-14 Jun-15
Slide 18: Realized Crude Oil Price Scenarios
REALIZED CRUDE OIL PRICE SCENARIOS $160.00 • $80 floor price on 50% of production contracted through $140.00 to June 2017 $120.00 Brent = US$45 • Lower Canadian dollar BNG = C$92.07 increases the value of US $100.00 dollar based oil sales Brent = US$50 $80.00 BNG = C$98.84 • All major expenditures i
Slide 19: Why Bengal?
WHY BENGAL? History of reserves growth leads to vast development High margin, strong opportunity cash generating +120 high graded locations within pool identified by management operations Near term low cost, low risk production adds through frac stim program at Cuisinier Rapidly growing oil in
Slide 20: Thank You
THANK YOU
Slide 21: Endnotes
ENDNOTES Slide 2 Slide 15 (1) Corporate Operating Netback Q2 2015 of $36.97/bbl (1) Based on independent, qualified reserves evaluator GLJ Petroleum Consultants Ltd.’s report dated March 31, 2015 entitled Reserves Slide 4 Assessment and Evaluation of Canadian and Australian Oil and Gas (1) Based on
Slide 22: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain information regarding Bengal Energy Ltd (“Bengal” or the “Company”) set forth in this document contains forward-looking statements or financial outlooks (collectively, "forward-looking statements") under applicable securities law. The use of any of the words “plan”
Slide 23: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect Bengal’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may
Slide 24: Fundamental Resource Definitions
FUNDAMENTAL RESOURCE DEFINITIONS Total Petroleum Initially-In-Place (TPIIP) is that quantity of petroleum that is estimated to exist originally in naturally occurring accumulations. It includes that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations,
Slide 25: Cautionary Statements
CAUTIONARY STATEMENTS Analogous Information: Certain noted drilling, completion, production, reserve and resource data provided in this document may constitute “analogous information” under applicable securities legislation, such as reserve and resource estimates or the reserves and resources presen
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