Buru Energy Ltd · ASX:BRU
Buru Energy — Investor Presentation (November 2012)
36 slides from Buru Energy's investor presentation, Nov 19, 2012
Slide 1: Corporate Update November 2012
For personal use only Corporate Update November 2012
Slide 2: Buru Energy – Investment Proposition
Buru Energy – Investment Proposition Enormous Buru acreage spread in the most exciting onshore Australian basin For personal use only State Agreement provides long term tenure over core acreage Ungani frontier oil discovery confirms conventional exploration potential of the basin with strong e
Slide 3: Regional Setting
For personal use only Regional Setting 3
Slide 4: Western Australia in Context
Western Australia in Context Western Australia is a major energy hub with a well developed infrastructure For personal use only WA statistics • ~64% of Australia’s natural gas reserves are in WA • In 2010 WA produced ~1.3 TCF of gas (including 16.57 MMT LNG for export), 46.3 million barrels of conde
Slide 5: Canning Superbasin – Infrastructure
Canning Superbasin – Infrastructure Overview • Two regional centres (Broome and Derby) For personal use only provide support infrastructure, airline access etc • The Kimberley is the size of Texas or France with a population of 41,000 people. Half the population are of Aboriginal or Torres Strait de
Slide 6: Corporate Background
For personal use only Corporate Background 6
Slide 7: Corporate Snapshot
Corporate Snapshot Activity provides continuing re-rating potential Quick Facts • Listed on Australian Securities Exchange (ticker BRU), For personal use only included in S&P/ASX 200 Index Share price (16 November 2012) $2.94 • Tightly held shareholder register transitioning to greater Shares 266,29
Slide 8: Unmatched Acreage Position
Unmatched Acreage Position Largest acreage holder in Canning Superbasin covering all major conventional and unconventional plays For personal use only • Net ~17 million acres (~69,000 sq km) with high permit equities and operatorship. Long term portfolio optimisation process substantially completed
Slide 9: Long term systematic acreage management
Long term systematic acreage management Long term acreage acquisition and rationalisation process to ensure full coverage over the Basin For personal use only • Process commenced in late 2006 with first acreage purchases and farmins • Series of targeted acquisitions, bid blocks, farmins has continue
Slide 10: Regional Geological Background and Conventional Potential
For personal use only Regional Geological Background and Conventional Potential 10
Slide 11: Canning Superbasin – Underexplored and Highly Prospective
Canning Superbasin – Underexplored and Highly Prospective Huge underexplored Palaeozoic aged Superbasin with three major petroleum systems For personal use only (a Superbasin is a composite basin made up of a number of smaller basins) Ordovician – Silurian: Thick, high quality source rocks and regio
Slide 12: Superbasin Exploration History
Superbasin Exploration History For personal use only Canning Superbasin drilling history • ~250 wells drilled and 78,000 kms of seismic acquired • Well density per 10,000 sq km (2.5 million acres) - Canning 4 wells Canning Superbasin seismic and well density - US Palaeozoic basins 500 wells • Cannin
Slide 13: Operational Exploration and Development Process
Operational Exploration and Development Process Buru has undertaken a detailed review of the geology of the Superbasin to For personal use only focus its exploration efforts • Exploration driven by province evaluation and general prospectivity • Deep and high quality portfolio means prioritisation a
Slide 14: Conventional Oil and Gas Potential
Conventional Oil and Gas Potential “Company Maker” oil discovery at Ungani • Ungani oil discovery in late 2011 opened a new play For personal use only type with substantial regional potential • Conventional good quality reservoir • Appraisal drilling program planned following 3D seismic acquisition
Slide 15: Ungani Field – Changes the Superbasin
Ungani Field – Changes the Superbasin Ungani oil discovery a “game changer” for the Superbasin For personal use only • Substantial oil column (+50m) in very high quality conventional dolomite reservoir confirmed by two wells • Excellent quality 37o API high yield sweet crude oil – benchmarked to Bre
Slide 16: Ungani Oilfield Development
Ungani Oilfield Development • The Ungani Oilfield was discovered in October 2011 and commenced test production in June 2012 • The facility is operated 24 hours per day by operators working 12 hour day shifts • The system provides three phase oil/gas/water separation (there is currently no gas or sig
Slide 17: Ungani North - Large Conventional Ungani Trend Structure
Ungani North 1 - Large Conventional Ungani Trend Structure Large conventional oil prospect currently being drilled by Ensign Rig#32 For personal use only • Located ~6 km north of the Ungani Field within the Ungani “Declaration of Location” graticular blocks • Currently drilling through the Ungani Do
Slide 18: Unconventional Potential
For personal use only Unconventional Potential 18
Slide 19: Canning Superbasin Unconventional: Regional and Tight Gas
Canning Superbasin “Unconventional” : Regional and Tight Gas The US Energy Information Agency (“EIA”) identifies the Canning Superbasin as having For personal use only the largest “shale” or unconventional gas potential in Australia • Independent consultant NSAI reviewed the potential for Buru • Bur
Slide 20: Canning Superbasin - Unconventional Geology
Canning Superbasin - Unconventional Geology Five major unconventional plays in the Superbasin – Buru is currently concentrating on two: For personal use only • Laurel Formation – very widespread, thick and gas mature with significant liquids content. New and existing wells confirm a Basin Centred ti
Slide 21: Major Gas Resources – Laurel Formation Accumulations
Major Gas Resources – Laurel Formation Accumulations Major tight gas accumulation with regional basin centred extent For personal use only • Laurel Formation is a thick, regionally extensive package of sands, shales and limestones with in excess of 1,300 meters of gas saturations in recent wells • M
Slide 22: Major Gas Resources – Laurel BCGA
Major Gas Resources – Laurel BCGA Valhalla - major tight gas accumulation confirmed by independent review For personal use only • McDaniel & Associates a specialist North American tight gas and unconventional resource assessment consulting group, have completed an independent assessment of the prosp
Slide 23: Asgard - Well summary
Asgard 1 - Well summary Successful test of the southern extension of the Valhalla BCGA For personal use only • Located ~35 km southeast of the Valhalla 2 well • Deliberately sited off structure (although seismic data in the area is sparse) • Suspended ready for proof of concept reservoir stimulation
Slide 24: Yulleroo - Major Laurel Formation Gas Accumulation
Yulleroo 3 - Major Laurel Formation Gas Accumulation Yulleroo wet gas field has major resources and is on the pathway to development For personal use only • Previous resource estimate of Yulleroo field – independent review by RISC confirms gross mean recoverable resources of: ‒ 352 PJ (332 BCF) reco
Slide 25: Major Oil and Gas Potential – Goldwyer Shale
Major Oil and Gas Potential – Goldwyer Shale Goldwyer Shale Formation - thick, regionally extensive organic rich shale, “Bakken” For personal use only analogue • Proven potential in Buru's acreage from well intersections, and Buru analysis work • Thick, organic rich shales in the oil window grading
Slide 26: Acquisitions Acreage Prospectivity
Acquisitions Acreage Prospectivity Fitzroy Permits - EP457 and EP458 • Cover both the Laurel and Ungani trends with For personal use only significant Goldwyer Shale prospectivity • Relatively early stage of exploration but well defined trends and well developed structural features • Laurel wet gas r
Slide 27: Acquisitions Acreage Prospectivity: Fitzroy Permits
Acquisitions Acreage Prospectivity: Fitzroy Permits For personal use only Illustrative Seismic Line 27
Slide 28: Forward Program
For personal use only Forward Program 28
Slide 29: Extensive Continuous Appraisal and Exploration Program
Extensive Continuous Appraisal and Exploration Program 2012/13 program a complementary mix of exploration and appraisal For personal use only • Long term rig contract with Ensign Drilling, other rigs contracted as needed • Focussed program on highly prospective areas Ungani • 3D seismic deferred • A
Slide 30: Major Company Participation Increasing
Major Company Participation Increasing Value proposition being recognised • Intense interest in the Superbasin with majors For personal use only taking positions • No significant vacant acreage remaining • Corporate/farmin deals now the only entry points • Mitsubishi (“MC”) farmin to Buru a first mo
Slide 31: Commercialisation Activity On Track
Commercialisation Activity On Track Buru’s focused and well developed business plan is being successfully executed by bringing resources into For personal use only production Oil • Ungani field “Location” declared by the DMP – the first step in obtaining a Production Licence • Production Licence app
Slide 32: Staged Gas Commercialisation
Staged Gas Commercialisation The overall commercialisation project has For personal use only the following key steps: • Stage 1: 2012/2013 Exploration Stage – Completion of quantification of 3C reserves by current drilling program. Stimulate and test up to 5 wells • Stage 2: 2014 Pilot projects - Pa
Slide 33: Corporate Summary
For personal use only Corporate Summary 33
Slide 34: Committed to Social and Environmental Responsibility
Committed to Social and Environmental Responsibility Buru is committed to ensuring it does not breach its “social licence to operate” by ensuring: For personal use only Exemplary environmental performance • Minimising its impact on the environment and on the communities in which it operates • A proc
Slide 35: Disclaimer
Disclaimer Important notice For personal use only This document has been prepared by Buru Energy Limited ABN 71 130 651 437 (“Buru"). This presentation contains certain statements which may constitute "forward-looking statements". It is believed that the expectations reflected in these statements ar
Slide 36: For personal use only
For personal use only Corporate Update November 2012