Bengal Energy Ltd. · TSX:BNG
Bengal Energy — Investor Presentation (June 2018)
22 slides from Bengal Energy's investor presentation, June 2018
Slide 1: Australia Focused Exploration & Production Company
AUSTRALIA FOCUSED EXPLORATION & PRODUCTION COMPANY June 2018 TSX: BNG 1
Slide 2: Corporate Profile
CORPORATE PROFILE Capitalization Shares Outstanding (MM) 102.3 30 day VWAP Share Price (TSX:BNG) @ Jun 15/18 $0.143 Market Capitalization ($MM) $14.6 Net Debt(1) as @ Mar 31, 2018 ($MM) $12.2 Enterprise Value ($MM)(2) $30.3 Reserves Value Corporate Reserves Value Atax PV10 (Mar.31/18)* Proved ($MM)
Slide 3: Reserves Summary
RESERVES SUMMARY (100% Oil, 52°API) IMMEDIATE GROWTH POTENTIAL CORPORATE RESERVES – GLJ EVALUATION AS AT YEAR END MARCH 31 PDP 2P Volumes: 36% CAGR 0.4 MMBOE (7% of total) Annual Proved Plus Probable Corporate Reserves 8,000 $160,000 Volume MBOE 7,000 $140,000 6,000 $120,000 Probable PDNP & PUD 5,00
Slide 4: Cooper Basin Australian Growth Platform
COOPER BASIN AUSTRALIAN GROWTH PLATFORM Fiscal stability, low government take and strong commodity pricing Production of ultralight oil with 2P OIIP over 100 million barrels More growth anticipated from further expansion of Cuisinier oil pool High impact gas exploration - Barrolka (ATP 934)
Slide 5: Light Oil Development
LIGHT OIL DEVELOPMENT 5
Slide 6: Barta Permit / Cuisinier Field
Cuisinier PL 303 BARTA PERMIT / CUISINIER FIELD (15,815 acres) (~154,000 GROSS ACRES) Limit of existing 3D Approx. 2.9 MMbbls production to date from SHEFU-1 DISCOVERY Cuisinier with 2P oil in place of 102.1 MMbbls and expected to increase substantially. 52 degree API oil with oil price at signi
Slide 7: Cuisinier Development
CUISINIER DEVELOPMENT IMMEDIATE ENGINEERING GROWTH POTENTIAL TYPE WELL CURVE – AVERAGE PRODUCING VERTICAL WELL (Note: with pressure maintenance) Field currently developed utilizing vertical wells. High netback(1) production with successful drilling to date. 28 wells drilled to date – 27 oil (a
Slide 8: Chookola Near Field Exploration – Expanding Proven Reserves Base
CHOOKOLA NEAR FIELD EXPLORATION – EXPANDING PROVEN RESERVES BASE Murta Depth Structure The Chookola structure identified Shefu-1 Oil Discovery on 3D, highlights a pronounced Cuisinier PL 303 feature with mapped four-way Lowest Known Oil structural closure occurring at three different target levels
Slide 9: Cuisinier Well Costs
CUISINIER WELL COSTS Continuing improvement in capital cost efficiency Following the Chookola well in 2018, development campaign of 9 to 10 wells in 2019/2020 9 IMPROVING CAPITAL COST EFFICIENCIES
Slide 10: Corporate Netbacks
CORPORATE NETBACKS Brent based pricing with sales CAD $/BOE revenue paid in USD. Total Revenue + Hedges = $85.79 Low stable royalty regime with Royalties realized take approximately 5%. Opex & Trans. Hedges All field costs paid in AUD. Current Production ~360 Bbls/d ∼ $60 (100% oil) for fisc
Slide 11: ATP 732 Tookoonooka, Puma Prospect
ATP 732 TOOKOONOOKA, PUMA PROSPECT The Puma prospect was identified on proprietary 2D seismic acquired by Bengal in 2012 in the southern part of the permit. This robust structure is evident on numerous lines, representing numerous potential targets along a potential oil migration pathway. Note,
Slide 12: Natural Gas Exploration
NATURAL GAS EXPLORATION 12
Slide 13: Eastern Australia Natural Gas Market
EASTERN AUSTRALIA NATURAL GAS MARKET Australia, East Coast Gas Flows Rapid price increase driven by the expansion of LNG Facilities Eastern Australia’s LNG capacity. Gladstone Queensland Curtis Eastern Australia disconnected from Northern Australia Pacific Territory and Western Australia markets.
Slide 14: Supply – Demand, East Australia
SUPPLY – DEMAND, EAST AUSTRALIA East Australia projected supply demand dynamics, 2017–2030, PJ Existing and planned capacity is insufficient to fill all export capacity AND to meet domestic demand. In the near-term, with current export capacities, supply and demand are broadly in balance. By 2
Slide 15: Spot Gas Pricing Sydney and Brisbane
15 $Au/GJ 0 2 4 6 8 10 12 14 4/01/17 4/07/17 4/13/17 4/19/17 4/25/17 5/01/17 5/07/17 5/13/17 5/19/17 5/25/17 5/31/17 6/06/17 6/12/17 Source: ACCC and AEMO data 6/18/17 (AEMO DATA 2017-2018) 6/24/17 6/30/17 7/06/17 7/12/17 7/18/17 7/24/17 7/30/17 8/05/17 8/11/17 8/17/17 8/23/17 8/29/17 9/04/17 9/10/1
Slide 16: Queensland – World Class Economics
QUEENSLAND – World Class Economics EXPECTED OIL EXPECTED NATURAL GAS ECONOMICS ECONOMICS SPOT PRICING: BRENT SPOT PRICING: AVERAGE 2017 SYDNEY US $60-70/Bbl $9.06/GJ WELLHEAD PRICING: WELLHEAD PRICING: AUS $82-96/Bbl (8% AUS $6.60-13.33/GJ Premium to Brent, FX $.79) FIELD NETBACK: NETBACK: ATP 934 s
Slide 17: Bengal's ATP 934 – Gas Permit
BENGAL’S ATP 934 – GAS PERMIT Whanto 3D images of SEEBASE™ (7 gas wells in last 2 years) Bengal’s high-graded eastern bench looking from the southwest. Windorah These images give a 3D Trough perspective of basement and structures underlying Bengal’s permits. Note position of Whanto development
Slide 18: ATP 934 Barrolka Permit (BNG 100% and Operator)
ATP 934 BARROLKA PERMIT (BNG 100% AND OPERATOR) PERMIT NEIGHBOURING PRODUCING GAS FIELDS & GAS PIPELINES FEEDING EASTERN AUSTRALIA Whanto Large, undrilled 1,462 km2 exploration permit in gas jurisdiction. Cum Prod Active drilling around permit with 20 gas wells drilled in the last 2 to June 2017
Slide 19: Bengal - Catalysts & Opportunities
BENGAL - CATALYSTS & OPPORTUNITIES New 3D seismic highlighting a western field extension. FIELD EXTENSION AT ATP 752 Chookola exploration well planned in August 2018 to test a material field expansion opportunity beyond Shefu. 1,462 km2 permit in gas rich jurisdiction. EXPLORATION AT ATP 934
Slide 20: Summary Comments
SUMMARY COMMENTS High margin, strong cash generating Robust Base: Large, stable, well established light oil reserves base operations with history of growth leading to vast development opportunity (only ~ 3% of 2P STOIP produced to date). Rapidly growing Growing Pool Size: Continuing pool size ex
Slide 21: Forward-Looking Statements, Cautionary Statements and Oil & Gas Advisories
FORWARD-LOOKING STATEMENTS, CAUTIONARY STATEMENTS AND OIL & GAS ADVISORIES • 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
Slide 22: Cautionary Statements and Oil & Gas Advisories (cont'd)
CAUTIONARY STATEMENTS AND OIL & GAS ADVISORIES (cont’d) • Type Curves: Certain type curves referred to in this presentation represent estimates of the production decline and ultimate volumes expected to be recovered from wells over the life of the well. The type curves disclosed herein are managemen