Bengal Energy Ltd. · TSX:BNG
Bengal Energy — Investor Presentation (January 2014)
31 slides from Bengal Energy's investor presentation, January 2014
Slide 1: High Impact International Exploration & Production
HIGH IMPACT INTERNATIONAL EXPLORATION & PRODUCTION JANUARY 2014
Slide 2: Investment Highlights
INVESTMENT HIGHLIGHTS Material production and cash flow growth potential High-quality light oil through near-term development / appraisal & gas assets in low- risk, stable countries: Large acreage positions; inventory of Australia & India underdeveloped pools & significant resource play potentia
Slide 3: Corporate Profile
CORPORATE PROFILE Financial TSX Ticker TSX: BNG Common Shares Outstanding – Basic 64.3MM Q2 Fiscal 2014 Production up -Fully Diluted (FD) 69.8MM Insider Holdings (FD) 24.5% Net Debt Market Cap (@ $0.50 / share) ~$8MM $32MM 46% Australia only P+P Reserve Value PV10(1) $40.6MM @ 30.357% interest $48.7
Slide 4: Bengal Leadership Team
BENGAL LEADERSHIP TEAM Management Board of Directors Chayan Chakrabarty, PhD (Pet Eng), MBA - Ian Towers, P.Eng – Chairman President, CEO & Director Dolomite Energy; Former President & CEO, Rio Alto President, CEO & Director International Formerly Daylight Resources, Verenex, Ross Smith Energy Group
Slide 5: Defined Business Strategy
DEFINED BUSINESS STRATEGY Capture near term value through low risk inventory of development DEVELOP drilling in proven petroleum systems Leverage experience and core competencies to further de-risk at the APPRAISE prospect level Enhance value through proven expertise, technology utilization and cost
Slide 6: Recent Highlights
RECENT HIGHLIGHTS Successful Cuisinier drilling program of 6 wells Transitioned from yielded 100% success rate pure exploration to production plus exploration Advanced commissioning of Cuisinier to Cook Pipeline, (finalized June 2013) Secured Beach Energy farm out, valued up to Secured farm-ou
Slide 7: Asset Overview
ASSET OVERVIEW Assets in proven, producing basins Large and under-explored acreage offers significant growth opportunity 2.2 MM acres total High potential impact without typical international risk Cooper Basin; Well-established regulatory framework with British Australia resource play common
Slide 8: Cooper Basin Highlights
COOPER BASIN HIGHLIGHTS Cooper Most prolific onshore basin in Australia Basin Under explored & under exploited: creates opportunity Transfer knowledge and technology from mature basins to enhance recovery & success factors Resource play potential Pipeline and transportation infrastructure
Slide 9: Assets Situated in Oil Prone Flanks
QUEENSLAND ASSETS SITUATED IN OIL PRONE FLANKS SOUTH NEW AUSTRALIA SOUTH WEST FLANK IS PROVEN WALES EXPLORATION AREA Partner, Beach Energy targeting CUISINIER ~10,000 boe/d of net production in CARACAL West Flank* WEST FLANK Four onshore permits span entire GAS FAIRWAY exploration to production
Slide 10: Bengal's Cooper Basin Operations
QUEENSLAND BENGAL’S COOPER BASIN OPERATIONS SOUTH NEW BARTA BLOCK (ATP 752) : AUSTRALIA SOUTH WALES 360,000 acres Cuisinier (PL303): Light oil (52° API) production BARTA BARROLKA Cuisinier North / Barta West: Prospective CUISINIER TOOKOONOOKA WOMPI BLOCK (ATP 752) : CARACAL-1 & 216,000 acres ASP
Slide 11: Barta Permit: Cuisinier (PL 303)
BARTA PERMIT: CUISINIER (PL 303) Current assumed 2013 PROGRAM SET THE STAGE limit of oil pool FOR MORE AGGRESSIVE DEVELOPMENT PROGRAM IN 2014 Partnered with experienced area operator 14 wells drilled to date; 100% success CUISINIER FIELD Attractive cash flow potential with strong operating net
Slide 12: Cuisinier Play Fairway
CUISINIER PLAY FAIRWAY CALENDAR 2014 PRELIMINARY APPRAISAL PLAN Murta Depth Structure Preliminary capex budget for fiscal 2014 in Cuisinier - AUD$11.3 MM to drill an anticipated 9 wells Eight development & appraisal wells planned One exploration well Drilling over 2 drill phases in 2014 Si
Slide 13: Tookoonooka Permit (ATP 732P)
KENMORE TOOKOONOOKA PERMIT (ATP 732P) 13.6MMBbls(1) CARACAL DISCOVERY SUPPORTS IPUNDU 4.3MMBbls(2) ONGOING EXPLORATION Amidst some of onshore Australia’s largest producing fields First well, Caracal 1, cased as future light oil producer (52° API) Caracal-1 Discovery BEACH ENERGY FARM-IN SECURED
Slide 14: Tookoonooka: Tangalooma-1 First Well Drilled
TOOKOONOOKA (ATP 732) BEACH JV: TANGALOOMA-1 - FIRST WELL DRILLED Risk Mitigation Steps Primary target for Tangalooma-1 was a Hutton Migration - Establish oil structure crest; Wyandra was a secondary migration into the block target from source – Wyandra at Caracal-1 Well tested a valid structu
Slide 15: Tookoonooka (ATP 732): Go Forward Plans
TOOKOONOOKA (ATP 732): GO FORWARD PLANS Northern Part of Tookoonooka Joint Venture with Beach Energy allows Bengal to preserve capital during farm- Tintaburra/Toobunyah 3074 MSTB (1) in phase Drilling locations to be confirmed upon Ipundu/Tarbat completion of new 300 km2 of 3D 4371 MSTB (1) seis
Slide 16: India Overview & Cauvery Basin
INDIA OVERVIEW & CAUVERY BASIN BENGAL’S ONSHORE BLOCK ~946 km 2 INDIA 30% working interest Light oil prone (35 - 52˚ API) 600 km2 3D completed Bengal’s Near term, high impact drilling – 1st of 3 wells Onshore Block planned in 1H calendar ‘14 for US$4.1MM CY-ONN-2005/1 (funded) Bengal’s Partn
Slide 17: Cauvery Onshore: Prospects
CAUVERY ONSHORE: PROSPECTS 3D Seismic showing potential pool area 600 Km2 of 3D shot & interpreted; (1) 3 drill locations finalized Each tests different play type in different (1) part of permit All targets located in a Cretaceous syn- rift to post rift play fairway Primary zones should be o
Slide 18: Cauvery Onshore – Cochise Prospect
3D Seismic showing potential pool area CAUVERY ONSHORE – COCHISE PROSPECT Primary target is Lower Cretaceous Andimadam Formation, secondary is Bhuvanagiri Formation Productive immediately north of permit Cochise Prospect is analogous to North Andimadam Time Structure (Bengal) Kovilakalapal Fie
Slide 19: Building the Value Chain
BUILDING THE VALUE CHAIN EXPLORE Cuisinier – Current cash flow, near and longer term drilling – proven oil potential across a broad area, represents resource play potential Tookoonooka – Prospective with substantial partner, exploration / APPRAISE discovery / appraisal mode. Future exploration upsid
Slide 20: Upcoming Operational Catalysts
UPCOMING OPERATIONAL CATALYSTS(1) 2013 2014 2015 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 CUISINIER 2014 / 15 Campaign - Drill 8 wells (6 development / 2 appraisal) Drill 1 exploration well TOOKOONOOKA (BEACH FARM-IN) Shoot 3D seismic – process / interpretation Select location for 2nd well under Beach Farm-In Drill
Slide 21: Reserves Growth
RESERVES GROWTH ANNUAL PROVED PLUS PROBABLE RESERVES (MBOE) BENGAL NET RESERVES(1) AS AT YEAR END MARCH 31 194% growth year over year(1) 1,698 mboe 1,698 9% 7,465 growth year over year mboe 585 637 2011 2012 2013 Proved + Probable Possible (1) Based on independent, qualified reserves evaluator GLJ P
Slide 22: Bengal Production Growth
BENGAL PRODUCTION GROWTH NET AVERAGE DAILY PRODUCTION VOLUMES – QUARTERLY ACTUALS (BOE/D) Natural Gas (boe/d) Production growth directly linked to Cuisinier drilling 518 Crude Oil & Liquids (boe/d) 33 356 325 40 38 203 18 485 316 287 65 185 27 38 30-Sep-12 31-Dec-12 31-Mar-13 Jun-30-13 30-Sep-13 22
Slide 23: Value Creation for Shareholders
VALUE CREATION FOR SHAREHOLDERS PRODUCTION PER SHARE GROWTH (NET) Average daily production (boe/d) per million basic shares outstanding 8.1 (not debt adjusted) 6.2 5.8 3.9 1.2 30-Sep-12 31-Dec-12 31-Mar-13 30-Jun-13 30-Sep-13 23
Slide 24: Bengal Cash Flow Growth
BENGAL CASH FLOW GROWTH BENGAL FUNDS FLOW FROM (USED IN) OPERATIONS(1) $2,063 Funds from (used in) operations $1,732 Per Share (basic) $1,151 $0.03 $0.03 $481 $0.02 $0.01 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 ($62) ($471) ($0.00) ($0.01) Quarter Ending (1) Funds flow from operations is a non-IFRS meas
Slide 25: Bengal Offers Lower Risk with Higher Reward
BENGAL OFFERS LOWER RISK WITH HIGHER REWARD COUNTRY RISK RATING SCALE(1): HIGHER RATING = LOWER RISK Lower risk, Lower risk, higher netbacks 90 Lower netbacks (Most desirable) 80 TAO NZ 70 BNG AEN Higher Rating = Lower Risk 60 Country Risk Rating: 50 CNE SRN PTA VLE 40 MMT SKO BNK CYG 30 KUB SDX 20
Slide 26: Strong Cash Flow Drivers
STRONG CASH FLOW DRIVERS OPERATING NETBACKS FOR TSX/TSXV LISTED INTERNATIONAL PRODUCERS (C$/BOE) $90 $77.87 Cuisinier operating netback as $80.67 reported in Q2 fiscal 2014 $80 $77.23 $73.30 $72.51 $70 $63.09 $59.58 $58.90 $60 $57.88 $51.01 $49.85 $50 $47.91 $45.08 $40.90 $40 $30.34 $30 $20 $10 $- P
Slide 27: Why Bengal?
WHY BENGAL ? Material production, cash flow & reserves CASH FLOW growth potential GROWTH Large acreage positions; sizeable inventory of low risk drilling underpins organic growth EXPANDING Very strong cash flow drivers: high netbacks + PRODUCTION & production growth RESERVES Significant near
Slide 28: 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 29: 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 30: 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 31: 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