Buru Energy Ltd · ASX:BRU
Buru Energy — Investor Presentation (September 2013)
26 slides from Buru Energy's investor presentation, Sep 2, 2013
Slide 1: Corporate Presentation ASX Announcement
Buru Energy Limited ABN 71 130 651 437 Level 2, 88 William Street Perth, Western Australia 6000 Ph: 61-8 9215 1800 ASX Announcement Fax: 61-8 9215 1899 www.buruenergy.com ASX: BRU For personal use only 2 September 2013 Corporate Presentation Please find attached Buru Energy Limited’s (“Buru”) latest
Slide 2: Powering the Kimberley
For personal use only Powering the Kimberley www.buruenergy.com 2 September 2013
Slide 3: Buru Energy - Unique Investment Proposition
Buru Energy - Unique Investment Proposition Dominant and strategic land position For personal use only • Very large contiguous acreage (~64,000 sq km) • Huge onshore Superbasin • Buru operates all key acreage Highly prospective acreage with material value, near term cash flow & significant upsid
Slide 4: Company Overview
Company Overview For personal use only Shareholder spread Corporate details Index S&P/ASX 200 ASX Code BRU Shares on issue ~295M Current share price ~A$1.73 Market capitalisation ~A$512M Cash on hand ~A$70M (no debt) • Share Register – Tightly held, recent placement has assisted greater representati
Slide 5: Experienced Board and Proven Management Team
Experienced Board and Proven Management Team Graham Riley • Previously founding Non-Executive Director of ARC Energy Limited and Adelphi Energy Limited • Former Chairman of Giralia Resources NL, and responsible for the spin-off of five independently listed commodity- For personal use only Independen
Slide 6: Acreage Overview
Acreage Overview A major long term position with tenure certainty For personal use only • Continuous basin wide coverage of Regional 640km by 250km (~450 miles by ~150 miles) Acreage • Net 64,000 sq kms • Generally 50% equity and operatorship • Acreage as large as core Cooper Basin Unique areas • Pr
Slide 7: Balanced Portfolio with Major Growth
Balanced Portfolio with Major Growth High Value Near Term Oil Cash Flow + Major Gas Appraisal & Exploration For personal use only Oil Gas Exploration • Ungani - Significant new field oil discovery • Laurel Fm - Regional basin centered • Regional Prospectivity - Wide range of • 2012 long term test co
Slide 8: Geology - Highly Prospective & Underexplored
Geology - Highly Prospective & Underexplored Three major petroleum systems For personal use only • High quality conventional reservoirs Ungani Oil • Prolific oil source rocks Trend • Well defined prospects • Basin-wide tight gas accumulation Laurel • Continuity defined by current wells Formation • I
Slide 9: Ungani Oilfield - Development and Funding
Ungani Oilfield - Development and Funding – Phase 1 Background For personal use only • Discovered in late 2011 and successfully appraised Buru (operator) 50% / Mitsubishi 50% • Substantial oil column (+50m) Very high quality conventional dolomite reservoir • High quality oil 37 deg API, sweet,
Slide 10: Ungani Oilfield - Development and Funding Phase 2
Ungani Oilfield - Development and Funding – Phase 2 Development process Phase 2 (post-FID) – Planned production increase: For personal use only • Facilities expanded and optimised Dedicated water recycle well drilled Establishment of permanent high volume export route All weather operation wit
Slide 11: Ungani Oil Trend and Regional Exploration
Ungani Oil Trend and Regional Exploration Ungani Oil Trend Background For personal use only • Ungani conventional oil discovery is a “play opener” in a very underexplored part of the basin Conventional oil discovery in a vugular dolomite reservoir Petroleum system is prolific and structures are
Slide 12: Oil - Clear Value Realisation & Growth Path
Oil - Clear Value Realisation & Growth Path Phase 3 For personal use only 2015+ 15,000 bbl/day Ungani Cluster development (Ungani plus new field discoveries) Ungani Phase 2 2014 5,000 bbl/day Full Field Development Ungani North Prodn Ungani Phase 1 2013/14 1,000 to 2,000 bbl/day Current wells 10
Slide 13: Independently Verified Potential
Independently Verified Potential Massive tight gas and unconventional oil potential The US Energy Information Agency (“EIA”) identifies the Canning Superbasin as the largest “shale” or For personal use only unconventional gas potential in Australia • Recent EAI update confirms Canning as having high
Slide 14: Laurel Basin Centred Wet Gas System
Laurel Basin Centred Wet Gas System • Potential +47 TCF gas net to Buru (independent Background - estimates of prospective resources) For personal use only • Defined by Buru/MC JV drilling of six wells Potential World • Extensive overpressure at drillable depths Class • Sweet gas with low CO2, no H2
Slide 15: Delivering Full Value of the Laurel BCGS
Delivering Full Value of the Laurel BCGS Systematic derisking of the project through a series of inter-related For personal use only processes • Gas price • Gas liquids content Commerciality • Completed well cost Drivers • Gas deliverability • Initial flow rates • Recovery per well (EUR) • Scalabili
Slide 16: Laurel Gas - Clear Value Realisation Path
Laurel Gas - Clear Value Realisation Path use only Current Project Phase For personalVALUE Phase 4 Development 2016 Phase 2/3 Phase 1 PRE-FEED/ FEED Exp and Feasibility 2014-2015 Appraisal 2013-2014 <2013 PROJECT PHASE JV Internal Farm-out/sell Farm-out/sell Mitsubishi resources down interest down i
Slide 17: Major Oil and Gas Potential - Goldwyer Shale
Major Oil and Gas Potential – Goldwyer Shale Buru/Mitsubishi JV prime acreage For personal use only • Another accumulation of world class scale Upside • Buru acreage on flank of Kidson basin • Geological setting doesn’t overlap Laurel • +7 TCF and +4 Bn bbls oil net to Buru with Resource (independen
Slide 18: New Drilling Rig Contracted - Huisman LOC
New Drilling Rig Contracted - Huisman LOC 400 • Huisman LOC 400 rig is a step change in drilling technology for Buru and Western Australia For personal use only • Careful and deliberate decision by Buru through extensive tendering and evaluation process • The rig is capable of drilling both deep ver
Slide 19: Buru's License to Operate
Buru’s License to Operate Committed to taking a leading position with Traditional Owners Listening to residents near our operations helps us to form strong relationships For personal use only and find ways to address local concerns. • Respect for cultural and traditional values Buru engages with • C
Slide 20: Committed to License to Operate Excellence
Committed to License to Operate Excellence Community and Environment • Industry regulations being appropriately For personal use only strengthened • Buru has moved quickly to build capability to Context ensure highest performance • Social/Community focus on the industry is intense • Requires deep an
Slide 21: 2013 Program and Milestones
2013 Program and Milestones Getting ready • Intensive two year drilling program recently For personal use only 2 year drilling completed program • Buru and Mitsubishi strongly aligned on next two year program • Contract executed for drilling rig for two year Fit for purpose program drilling rig • Fi
Slide 22: Fully Funded Forward Program
Fully Funded Forward Program Total +$100 million new funding For personal use only Project Funding: • Up to $27.5 million non-dilutive funding from Mitsubishi Corporation for Ungani Oilfield development • $20 million from Alcoa through the release of funds on escrow for Laurel Capital Funding Wet Ga
Slide 23: Funding Sources and Uses (August 2013 - December 2014)
Funding Sources and Uses (August 2013 – December 2014) For personal use only Comments • The following tables represent current estimates of programs and budgeted expenditures net to Buru for the period from August 2013 to December 2014 and should be read in conjunction with the statement set out bel
Slide 24: Buru Energy: A Material & Sustainable Growth Story
Buru Energy : A Material & Sustainable Growth Story 2013 2014 2015 For personal use only MATERIAL CASH FLOW TARGETED OIL EXPANSION, BUILDING THE PLATFORM FOR FULL MAJOR DERISKING OF GAS & CONFIRMING GAS VIABILITY, VALUE DELIVERY & LONG TERM CONTINUOUS HIGH VALUE MULTI-RIG APPRAISAL & GROWTH EXPLORAT
Slide 25: Important Notice and Disclaimer
Important Notice and Disclaimer Disclaimer 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 thes
Slide 26: Powering the Kimberley
Powering the Kimberley For personal use only Buru is the Future of Onshore Oil and Gas Production in Western Australia