Buru Energy Ltd · ASX:BRU
Buru Energy — Investor Presentation (March 2017)
29 slides from Buru Energy's investor presentation, Mar 17, 2017
Slide 1: ASX Release: Buru Energy Corporate Presentation
ASX Release 17 March 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 Buru Energy Corporate Presentation Buru Energy Limited provides the attached updated Corporate Presentation. Visit w
Slide 2: Corporate Presentation
For personal use only Corporate Presentation 17 March 2017
Slide 3: 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 For personal use only ~33,200 sq kms / 8.2 million acres (4.1 million net acres) ▪ Oil – Ungani oilfield production restarting – Large prospect inventory on 3D s
Slide 4: Corporate snap shot
Corporate snap shot Capital Capital Structure Competitive Advantage For personal use only Structure Formed 2008 ▪ High equities of ~50% in all core permits Ticker ASX:BRU ▪ Minimal work commitments to hold acreage ▪ Major international partner – Mitsubishi Index S&P/ASX All Ords Corporation Shares o
Slide 5: Corporate History
Corporate History 2013-2017 2006-2010 2010-2013 For personal use only Oil Devmt, Building the Discovery and gas frac and Platform appraisal test ▪ Unique basin wide position ▪ Identified and quantified Laurel ▪ Ungani developed and brought established (one off opportunity) Formation potential world
Slide 6: Resource setting
Resource setting Unique whole of basin program ▪ Working in the basin since 2006 For personal use only ▪ Frontier area but now unravelling the geology ▪ Systematic step by step process Oil ▪ High quality conventional reservoirs ▪ Two petroleum systems ▪ Well defined prospects with systematic explora
Slide 7: Oil Business
For personal use only Oil Business 6
Slide 8: Ungani Oilfield – Game changer for the Canning Basin
Ungani Oilfield – Game changer for the Canning Basin Discovery – 2011, first new field discovery in the Canning for 30 years. Development process and timing influenced by precedent For personal use only setting agreements. Resource ▪ 4 way dip closed feature – 3D seismic defines the reservoir gross
Slide 9: Ungani Oilfield resource – ASX compliance statement
Ungani Oilfield resource – ASX compliance statement 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 Oilfield for For personal u
Slide 10: Ungani Oilfield – Restart plan - field
Ungani Oilfield – Restart plan - field Current Status For personal use only ▪ Excellent reservoir performance confirmed by recent production ▪ Production to date ~615,000 bbls gross ▪ Production Licence start date 16 July 2015 ▪ Production suspended 26 January 2016 due low oil price (~$30/bbl) ▪ Pro
Slide 11: Ungani Oilfield – Restart plan - Export
Ungani Oilfield – Restart plan - Export Process ▪ Review of all possible 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 tankage not curre
Slide 12: Forward oil exploration program
Forward oil exploration program Evaluation program ▪ Drilling has focused on gas until 2015 For personal use only program ▪ 2015 program drilling program - oil discovery at Ungani Far West and trend extenders at Praslin/Senagi ▪ Extensive 3D seismic surveys also acquired ▪ JV program has re-evaluate
Slide 13: Gas Resources
For personal use only Gas Resources 12
Slide 14: Laurel Formation Tight Wet Gas Continuous Resource
Laurel Formation Tight Wet Gas Continuous Resource ▪ The accumulation is a basin centred tight wet gas accumulation defined by numerous historic wells For personal use only and 8 wells drilled by Buru and the current JV ▪ The gas is hosted in a thick (+1500 metres) multi zone accumulation of tight s
Slide 15: Laurel Formation Tight Wet Gas - Project Phase
Laurel Formation Tight Wet Gas - Project Phase For personal use only Current Project Phase Phase 4 Development Phase 1 Phase 2/3 VALUE Appraisal Wells, seismic, 2013-2016 Commercialisation trial frac <2013 Seismic + Fracs PROJECT PHASE Prove flow to surface and Demonstrate Establish initial pad, Def
Slide 16: Laurel Formation Tight Wet Gas Accumulation
Laurel Formation Tight Wet Gas Accumulation ▪ Basin-wide tight wet gas continuous resource accumulation ▪ Occupies centre of Fitzroy Trough – main depocentre of Canning Fitzroy- For personal use only Basin Gregory Trough ▪ Continuous resource accumulation (Basin-Centered Gas) – low permeability – si
Slide 17: Laurel Formation – Valhalla and Asgard
Laurel Formation – Valhalla and Asgard Operational ▪ Accumulation on the northeastern side of the Basin For personal use only ▪ Accumulation defined by Buru wells and fracs ▪ Two vertical wells multi zone fracs in 2015, total 11 zones stimulated ▪ The fracs have demonstrated: – Large Stimulated Rock
Slide 18: Valhalla and Asgard Resources Independent D&M Review
Valhalla and Asgard Resources Independent D&M Review Contingent Resources Unrisked Gross Contingent Resources (Buru 50%) For personal use only 1C 2C 3C Product (MMbbl/BCF) (MMbbl/BCF) (MMbbl/BCF) Condensate 9 32 66 Natural Gas 455 1,533 2,981 Total BOE 85 288 563 Prospective Resources Unrisked Gross
Slide 19: Valhalla and Asgard – Native Title Agreements
Valhalla and Asgard – Native Title Agreements Key Native Title Agreements over core areas For personal use only ▪ Valhalla Asgard area on the eastern side of the basin on Yungngora and Warlangurru land ▪ Process of engagement with the communities over a long period builds trust and co-operation ▪ In
Slide 20: Laurel Formation Tight Gas – Yulleroo
Laurel Formation Tight Gas – Yulleroo Major gas and liquids accumulation on the western side of 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 on 3D seismic and Yulleroo 4 de
Slide 21: Gas Commercialisation Strategy Overview
Gas Commercialisation Strategy Overview Step by step commercialisation strategy with ultimate aim of delivering TCF’s into pipeline gas For personal use only and existing LNG projects ▪ Micro project (<1 mmcfd) – Gas supply from existing wells to local markets including indigenous community power an
Slide 22: Full Scale Development
Full Scale Development Export Route For personal use only ▪ Pipeline interconnect (Great Northern Pipeline) required to access NWS and SW markets ▪ Pipeline access requires 500PJ of reserves with initial rates of +70 TJ/day, well within current project resources Markets ▪ Potential markets are; – La
Slide 23: Corporate
For personal use only Corporate 22
Slide 24: Community engagement
Community engagement Philosophy and practice ▪ Education programs based on facts For personal use only ▪ Support of independent expert advice for communities ▪ Extensive baseline studies & mapping ▪ Continuous, comprehensive and transparent monitoring Independent Review process for fraccing – Wider
Slide 25: Resources summary
Resources summary Excellent mix of Contingent and For personal use only Prospective resources ▪ Oil: – Contingent resources at Ungani while field is shut in ▪ Gas and liquids: – Contingent resources at Yulleroo and Valhalla while markets are established. Sufficiently large volumes to underpin a majo
Slide 26: Funding and forward program
Funding and forward program Current Situation For personal use only ▪ Cash: End of Dec quarter ~A$21.1mm ▪ Debt: Unsecured Alcoa repayment of $12.5mm due 30 June 2018 ▪ Costs: Major cost reduction made in staffing and operations. G&A costs reduced by two thirds over 18 months ▪ Commitments: Renegoti
Slide 27: Buru Energy Value Drivers
Buru Energy Value Drivers Sole focus on the Canning Superbasin in Northwest For personal use only WA Secure strategic acreage position of gross ~33,200 sq kms / 8.2 million acres (4.1 million net acres) Balance sheet in good shape Production commencing at Ungani Large oil prospect inventory on 3D se
Slide 28: For personal use only
For personal use only
Slide 29: Disclaimer
Disclaimer This document has been prepared by Buru Energy Limited ABN 71 130 651 437 (“Buru Energy"). This presentation contains certain statements For personal use only which may constitute "forward-looking statements". It is believed that the expectations reflected in these statements are reasonab