Buru Energy Ltd · ASX:BRU
Buru Energy — Oil Capital Conference 2015
20 slides from Buru Energy's conference presentation, Sep 8, 2015
Slide 1: Corporate Update - Oil Capital Conference
Corporate Update For personal use only Oil Capital Conference 8 September 2015 Eric Streitberg, Executive Chairman www.buruenergy.com
Slide 2: Summary
For personal use only Summary Who are we What do we do 2015 Program Value Drivers 2
Slide 3: Buru Energy at a glance
Buru Energy at a glance ASX listed - S&P/ASX All Ords Market capitalisation ~A$115M For personal use only Strong balance sheet +A$40M cash Experienced management and Board with “skin in the game” and supportive cornerstone shareholders Sole focus on the Canning Superbasin in northwest West
Slide 4: Corporate Overview
Corporate Overview 6 month share price Company Formed 2008 For personal use only Ticker ASX:BRU Index S&P/ASX All Ords Shares on issue ~340 million Share price ~$0.34 Market Cap ~$115 million Cash on hand ~$41.9 million (at 30 June) 45,620 sq km Net Acreage 11.2 million acres Key Partners Mitsubishi
Slide 5: 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) Petroleum Systems Ordovician - Silurian: Thick, high quality so
Slide 6: Canning Superbasin Exploration History
Canning 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 Superbasin seismic and well density Canning 4 wells US Palaeozoic basins 500 wells Bu
Slide 7: Corporate History
Corporate History 2007 - Unique basin wide position established (one off opportunity) 2010 - Farmed out to Mitsubishi (~$150mm deal) For personal use only 2010-2013 - Identified and quantified potential world class tight gas opportunity 2011/2012 - Discovered , appraised and started production from
Slide 8: 2015 Focus
2015 Focus Unique window of opportunity for Buru Energy Focus on core areas that have the highest prospectivity and lowest risk For personal use only Well funded, unique low cost operating window Extensive prospect portfolio built up over the last two years Value delivery Current climate ide
Slide 9: Ungani Oilfield
Ungani Oilfield Commercial production commenced – cash flow being generated Excellent reservoir performance - confirmed by Extended Production Test and For personal use only current initial flows Production during EPT ~470,000 bbls gross (Buru 50%) Commercial startup process completed Traditional
Slide 10: Oil: Conventional Prospects
Oil: Conventional Prospects Extensive high prospectivity portfolio Ungani Trend For personal use only Conventional vuggy dolomite reservoir discovered in 2011 Structures are readily imaged by geophysics Trend covers over +120 kms by 40 kms (+1 million acres) First exploration drilling underw
Slide 11: Oil Exploration: Praslin results
Oil Exploration: Praslin 1 results Praslin 1 Conventional vuggy dolomite reservoir intersected For personal use only Interpreted 23 meter hydrocarbon column at top of the section Well plugged back from TD of 2,512 to interpreted base of hydrocarbons in the well Requires testing to quantify r
Slide 12: Laurel Tight Gas regional resource
Laurel Tight Gas regional resource Resource +100 TCF in the BCGS and +1Bn bbls oil (gross) - with 47 TCF gas net to Buru (**independent estimates of prospective resources) For personal use only Tight Gas Pilot Exploration (Fracc) Program Regulatory Approvals WA Environment Minister upheld EPA de
Slide 13: Exploration Program - Geophysical
Exploration Program - Geophysical Targeted Programs for 2016 Exploration Seismic acquisition For personal use only Using technologically advanced “nodal” systems with lower environmental footprint and better data. Costs have come down significantly due to industry downturn. 3D seismic Systematic exp
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 For personal use only conventional gas potential than previously recognised Ungani style prospects in the gas window particularly attractive Possible oil as well a
Slide 15: Gas Market Dynamics
Gas Market Dynamics Local markets Excellent potential for initial gas sales into the Kimberley For personal use only Market includes power generation (15-20TJ/day), mineral processing (15-20TJ/day), small scale gas to liquids (10TJ/day) and domestic and transport (5-10 TJ/day) Local potential
Slide 16: 2015 Program – Indicative Timeline
2015 Program – Indicative Timeline Q2/2015 Q3/2015 Q4/2015 For personal use only 4Q2012 UNGANI + Test Facilities upgrade and Approvals Production Praslin UN test U3 test test Atlas DRILLING Rig 2 Praslin 1 Victory 1 Ungani FW DDH1 Senagi 1 Ophir Rig 31 Olympic Geophysics SEISMIC YM 3D RAPHAEL
Slide 17: Funding
Funding Current Situation Cash end of June quarter ~A$41.9M, budgeting for ~A$26M at year end Ungani development For personal use only Relatively low cost - main cost is wells Broome Export facility - off balance sheet funding Cash flow positive at current oil prices Mitsubishi Funding agree
Slide 18: Buru Energy value drivers
Buru Energy value drivers Pivotal moment for the Buru Energy oil business For personal use only Funding in place Traditional Owner agreements secured Ungani commenced commercial production Costs driven down 5 to 7 well oil exploration program commenced May 2015 Significantly increased conventional g
Slide 19: The sun rises on the Canning Basin
For personal use only The sun rises on the Canning Basin 19
Slide 20: 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 For personal use only "forward-looking statements". It is believed that the expectations reflected