Buru Energy Ltd · ASX:BRU
Buru Energy — Investor Presentation (May 2017)
28 slides from Buru Energy's investor presentation, May 31, 2017
Slide 1: ASX Release: Corporate Presentation
ASX Release 31 May 2017 ABN 71 130 651 437 Level 2, 88 William Street For personal use only Perth, Western Australia 6000 Ph: +61 8 9215 1800 Fax: +61 8 9215 1899 www.buruenergy.com Corporate Presentation Buru Energy Limited provides the attached updated Corporate Presentation. This full presentatio
Slide 2: Corporate Presentation 31 May 2017
For personal use only Corporate Presentation 31 May 2017
Slide 3: Buru Unleashed
Buru Unleashed ▪ Transformational transaction gives control of the western Canning For personal use only Basin assets back to Buru ▪ Pivot to high value oil production and exploration with gas upside ▪ Ungani Oilfield restart in late-June generates good cash flow at the current oil price ▪ Focus on
Slide 4: Overview of Buru Energy Assets
Overview of Buru Energy Assets ▪ Sole focus on the Canning Superbasin in NW Western Australia ▪ Secure strategic acreage position of gross ~22,100 sq kms / 5.4 million acres (4.6 For personal use only million net acres) ▪ Operator and 100% holder of core acreage ▪ Focus on Oil – Ungani oilfield prod
Slide 5: Corporate Snap Shot
Corporate Snap Shot Capital Structure Competitive Advantage For personal use only Formed 2008 ▪ High equities of ~100% in all core permits Ticker ASX:BRU ▪ Minimal work commitments to hold acreage Index S&P/ASX All Ords ▪ Operator of all core permits with ~30 staff in Perth/ Broome/ Kimberley Shares
Slide 6: Corporate History
Corporate History For personal use only 2017 onwards 2006-2010 2010-2017 Oil Production Building the Platform Discovery and appraisal Exp & Gas Appraisal ▪ Unique basin wide position established ▪ Identified and quantified Laurel Formation ▪ Ungani production (one off opportunity) potential world cl
Slide 7: Transformational Transaction
Transformational Transaction Transformational pivot to short term oil and medium term gas For personal use only ▪ Acreage swap with Mitsubishi ▪ Buru now has 100% of Ungani oil cash flows and MC has 100% of Valhalla/Asgard gas resources ▪ Buru retains the highly prospective Ungani oil trend ▪ Buru r
Slide 8: Buru 2.0 - Oil
Buru 2.0 - Oil Oil resources For personal use only ▪ Buru’s share of oil resource in Ungani doubles to: Buru Ungani 1C 2C 3C Contingent Resources 2.08 6.65 18.80 (mmbbls) Note – see slide 12 for full resource statement Note - these estimates also do not include Ungani Far West (Ungani Dolomite and R
Slide 9: Buru 2.0 - Gas
Buru 2.0 - Gas Gas resources For personal use only ▪ Buru has 100% of Laurel Formation prospective wet gas resources in Central, Northern and Western provinces ▪ Western Gas Province includes the Yulleroo Gasfield that has been partly appraised and resource numbers certified. ▪ Central Gas Province
Slide 10: Resource Setting
Resource Setting Oil For personal use only ▪ High quality conventional reservoirs ▪ Two principal petroleum systems ▪ Well defined prospects with systematic exploration program underway ▪ Prospects range from conventional sandstone reservoirs to world scale dolomite reservoir prospects Gas ▪ Basinwi
Slide 11: Oil Business
For personal use only Oil Business 10
Slide 12: Ungani Oilfield – Cornerstone Asset
Ungani Oilfield – Cornerstone Asset Discovery – 2011, first new field discovery in the Canning for 30 years. Development process and timing influenced by precedent setting agreements. For personal use only Resource ▪ 4 way dip closed feature – 3D seismic defines the reservoir gross rock volume ▪ Sub
Slide 13: Ungani Oilfield Resource – ASX Compliance Statement
Ungani Oilfield Resource – ASX Compliance Statement For personal use only Further to the Company’s internal resource estimates as set out in the ASX release of 28 April 2015, the Company commissioned Gaffney Cline and Associates (“GCA”) to undertake an assessment of the resources of the Ungani Oilfi
Slide 14: Ungani Oilfield Restart - Field
Ungani Oilfield Restart - Field Current Status ▪ Restart on track for late June 2017 For personal use only Initial field restart ▪ Install water recycle system with re-injection into UFW water zone ▪ Minimal field mods ▪ Target production rate 1,250 bopd ▪ Cost ~$1.5 mm – from Mitsubishi Ungani Deve
Slide 15: Ungani Oilfield Restart – Export System
Ungani Oilfield Restart – Export System Process and Tanks ▪ Review of all potential export solutions during 2016 For personal use only ▪ To be commercially effective requires large storage tanks at the export point ▪ No current spare large tank capacity in Broome ▪ Timing and cost of new build tanka
Slide 16: Ungani Value and Upside
Ungani Value and Upside Current configuration For personal use only ▪ Target cash margin at US$50 oil price and 1,250 bopd production rate is A$25 to A$30/bbl ▪ The majority of the field costs are fixed so production rate increase (in line with good oilfield management practice) has the potential to
Slide 17: Oil prospectivity – Immediate Ungani trend
Oil prospectivity – Immediate Ungani trend Evaluation program For personal use only ▪ Drilling has focused on gas until 2015 program ▪ 2015 drilling program - oil discovery at Ungani Far West and reservoir trend extenders at Praslin/Senagi ▪ Extensive 3D seismic surveys also acquired ▪ Program in 20
Slide 18: Oil Prospectivity – Broome Platform Goldwyer
Oil Prospectivity – Broome Platform Goldwyer Goldwyer prospectivity ▪ Broome Platform has extensive shale/reservoir pairs with excellent oil For personal use only source rocks ▪ Recent drilling by Finder Exploration at Theia 1 has defined a “sweet spot” in the Goldwyer Formation with many similariti
Slide 19: Gas
For personal use only Gas 18
Slide 20: Laurel Formation Tight Wet Gas Continuous Resource
Laurel Formation Tight Wet Gas Continuous Resource Overview ▪ Basin-wide tight wet gas continuous resource For personal use only accumulation ▪ Occupies centre of Fitzroy Trough – main depocentre of Canning Basin ▪ Continuous resource accumulation (Basin-Centered Gas) ▪ Mixed lithology – silts, shal
Slide 21: Laurel Formation Tight Gas - Yulleroo
Laurel Formation Tight Gas - Yulleroo Major gas and liquids accumulation on the western side of Yulleroo 2 clean-up flow 2010 basin close to Broome and customers For personal use only ▪ Four wells define the accumulation - all intersecting thick gas saturated sections with gas below closure mapped o
Slide 22: Laurel Formation Central and Northern provinces
Laurel Formation Central and Northern provinces Central Province ▪ Huge area with little appraisal work but extensive For personal use only prospective resources identified and requires further drilling and evaluation Northern Province ▪ Newly identified area with much better defined stratigraphy fr
Slide 23: Corporate
For personal use only Corporate 22
Slide 24: Community and Government Engagement
Community and Government Engagement Philosophy and practice for both conventional and unconventional activity For personal use only ▪ Education programs based on facts ▪ Support of independent expert advice for communities ▪ Extensive baseline studies & mapping ▪ Continuous, comprehensive and transp
Slide 25: Funding and Forward Program
Funding and Forward Program ▪ Cash: End of March quarter ~A$19.8mm For personal use only ▪ Debt: Unsecured Alcoa repayment of $12.5mm due 30 June 2018 currently under discussion ▪ Cash flow: Target of free cash flow from operations of A$25 to A$30 per barrel from Ungani ▪ Overheads: “lean and mean”
Slide 26: Buru Unleashed
Buru Unleashed ▪ Transformational transaction gives control of the Western For personal use only Canning Basin assets back to Buru ▪ Pivot to high value oil production and exploration with gas upside ▪ Focus on adding value to Ungani and growing the resource base ▪ Disciplined approach to spending m
Slide 27: Disclaimer
Disclaimer 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 in these statements are reasonable but they may be aff
Slide 28: For personal use only
For personal use only 27