Buru Energy Ltd · ASX:BRU
Buru Energy — Investor Presentation (June 2015)
20 slides from Buru Energy's investor presentation, Jun 2, 2015
Slide 1: Delivering Western Australia's Energy Future
Delivering Western Australia’s Energy Future Corporate Update 2 June 2015 www.buruenergy.com
Slide 2: Important Notice and Disclaimer
Important Notice and 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 ar
Slide 3: Our Vision
Our Vision Buru’s vision is to be a major participant in the Western Australian energy market, by producing oil and gas that delivers material benefits to: its shareholders, the State of Western Australia, the Kimberley community, and the Traditional Owners of the areas in which it operates.
Slide 4: Corporate Overview
Corporate Overview 12 month share price Company Formed 2008 Ticker ASX:BRU Index S&P/ASX300 Shares on issue 340 million Share price ~$0.53 Market Cap ~$180 million Cash on hand ~$43 million (at 31 Mar) 45,620 sq km Net Acreage 11.2 million acres Key Partners Mitsubishi, Apache Board Eric Streitberg
Slide 5: Our Business
Our Business Overview Unique whole of basin position (~45,000 sq kms net) Highly prospective and underexplored basin Generally 50% equity and operatorship Major partners in Mitsubishi and Apache Multiple play types with high potential Extensive portfolio of opportunities 2015 value drive
Slide 6: 2015 Focus
2015 Focus Core areas Focus on areas that have the highest prospectivity and lowest risk Value delivery Current climate ideal for realigning the business back to basics Step by step approach through concluding agreements and renegotiations Value and costs focused management team Costs reduct
Slide 7: Drilling Program
Drilling Program Two rig program to achieve objectives DDH1: drilled Commodore 1 and Sunbeam 1, proved concept and cost reduction Atlas Rig 2: Purpose built rig from Cooper Basin and CSG work in Qld Both rigs on fixed price mobilisation, drilling and moving contracts DDH1 Rig 31 Drilled Comm
Slide 8: Ungani Oilfield: Under Development
Ungani Oilfield: Under Development Extended production testing completed Excellent reservoir performance confirmed by EPT Production during EPT ~470,000 bbls (gross – Buru 50%) Current development status Traditional owner agreements: signed for Production Licence PL Applications to Government: c
Slide 9: Ungani: Way Forward
Ungani: Way Forward Production Optimisation Current upgrades increase efficiency and reduce operating costs Minimise wet weather downtime - field pipeline/road/loadout Optimise shipping export route Continued staged development process Ungani North, Ungani 3 and Ungani FW to provide additi
Slide 10: Oil: Conventional Prospects
Oil: Conventional Prospects Ungani Trend Background Conventional vuggy dolomite reservoir discovered in 2011 Ungani North proved extensive petroleum system Structures are readily imaged by geophysics Trend covers over 120 kms by 40 kms (+1 million acres) No exploration drilling has been ca
Slide 11: Ungani Trend Program
Ungani Trend Program Firm and JV Committed Wells Ungani FW 1 (TD 2,500m) (Buru 50% equity) (Atlas Rig 2) Currently planned as subsidiary Ungani closure Short tie in if successful Dual purpose well - will test the continuity of reservoir, water disposal point if no oil Paid for by MC as part
Slide 12: Olympic 1 well currently drilling
Olympic 1 well currently drilling Olympic 1 (TD 1,450m) (Buru 25% - fully carried) (DDH Rig 31) Coastal Block well Funded 100% by Apache Large structure with good seismic control Good Goldwyer source rocks in the oil window and proven reservoir Higher risk but major play opener if successf
Slide 13: Contingent Conventional Oil Wells
Contingent Conventional Oil Wells Ungani trend Wright 1 (TD 1,800m) (Buru 37.5%) (Atlas Rig 2) Ungani trend well in EP 457 Large structure with high upside but could benefit from more seismic Additional prospects along trend Paradise Oil trend – new play type Ophir 1 (TD 1,000m) ( subject to J
Slide 14: Conventional Gas (2016 program)
Conventional Gas (2016 program) New Geological Concepts Enhance Prospectivity Work over the last two years has defined much higher conventional gas potential than previously recognised Ungani style prospects in the gas window particularly attractive Possible oil as well as gas given the high o
Slide 15: Laurel Gas
Laurel Gas Resource +100 TCF in the BCGS and +1Bn bbls oil (gross) - with 47 TCF gas net to Buru (**independent estimates of prospective resources) Tight Gas Pilot Exploration (Frac) Program Regulatory Approvals WA Environment Minister upheld EPA decision that: Buru’s “small scale, limited durat
Slide 16: Geophysics
Geophysics Targeted Programs for 2016 Exploration Seismic acquisition Using technologically advanced “nodal” systems with lower environmental footprint and better data. Costs have also come down significantly due to industry downturn. 3D Systematic exploration with 3D on Ungani Trend Yakka Munga 3D
Slide 17: 2015 Program – Indicative Timeline
2015 Program – Indicative Timeline Q2/2015 Q3/2015 Q4/2015 4Q2012 UNGANI Facilities upgrade and Approvals Production (subject to oil price) UN test Atlas Ungani Ungani Ungani DRILLING Rig 2 Wright Emanuel Trend1 Trend2 Trend3 DDH1 Rig 31 Olympic Senagi Ophir Geophysics SEISMIC HT RAPHAEL YM 3D AIR
Slide 18: Environment and Community
Environment and Community Committed to ensuring: Exemplary environmental performance Minimising impact on the environment and communities Continuous improvement processes Environmental performance exceeding regulatory requirements Transparency Proactive actions: extensive ground water mo
Slide 19: Funding
Funding Current Situation Cash end of March 2015 quarter ~$43M, budgeting for ~$28M at year end Ungani development Relatively low cost - main cost is wells Broome Export facility - off balance sheet funding Cash flow positive at current oil prices Mitsubishi Funding agreement reset ($27.5M)
Slide 20: Buru Energy value drivers
Buru Energy value drivers Pivotal moment for the Buru Energy oil business Funding in place Traditional Owner agreements secured Ungani being prepared for commercial production Costs driven down 5 to 7 well oil exploration program commenced May 2015 Significantly increased conventional gas potential