Buru Energy Ltd · ASX:BRU
Buru Energy — Investor Presentation (February 2009)
23 slides from Buru Energy's investor presentation, February 2009
Slide 1: Corporate Update February 2009
O eians Energy Corporate Update February 2009
Slide 2: Agenda
¾ Who is Buru? ¾ Corporate philosophy ¾ Operations O update ¾ Forward plan 2 2
Slide 3: A unique oil and gas exploration and production company
A unique q oil and gas g exploration p and production p company with very high leverage to success: ; Outstanding exploration portfolio ; Well funded for exploration and investment ; Strong management ; Appropriate and targeted exploration program ; Highly leveraged to exploration success 3 3
Slide 4: Buru Energy – who are we?
Buru Energy – who are we? ► Buru is an Australian company with a high potential exploration portfolio in the Canning Basin in Western Australia's Australia s Kimberley region ► Currently reviewing the existing portfolio to high grade exploration areas ► Reviewing other investment opportunities that
Slide 5: Buru Energy – Corporate structure
Buru Energy – Corporate structure ► Shares on issue 162,119,728 , , ► Options - 94 cent 2 year options Listed options 55,176,975 Unlisted options 28,300,000 ► Current share price $0 185 $0.185 Financial Position ► Cash at Bank $80 million • Alcoa escrow amount $20 million • Free cash $60 million ($0
Slide 6: Canning Basin – What is it?
Canning Basin – What is it? The Canning Basin is one of A t li ’ L Australia’s Lastt Oil and dGGas onshore Frontiers ►Vast under-explored series of onshore Basins ►Analogous basins worldwide have major reserves ►Previous exploration has been piecemeal and uncoordinated ►Buru’s Canning portfolio is u
Slide 7: Why is now the time?
Canning Basin – Why is now the time? The Basin has effectively been “embargoed” for 20 years ► Exploration in the Basin picked up in the early 80’s 80 s with the increase in the oil price and initial oil discoveries at Blina and associated fields ► Oil price came off in the mid-80’s followed by the
Slide 8: Canning Basin Exploration – Commercial setting
Canning Basin Exploration – Commercial setting Gas – now a high value product ► Buru has sales contract with Alcoa for up to 500 PJ of gas from the Canning 1998 2008 Basin ► Buru is also a key member of the consortium ti proposing i tto b build ild an onshore gas transport line from the A fair and s
Slide 9: Canning Basin – What will it take?
Canning Basin – What will it take? Acreage g and Money y Buru has: ► Basin-wide acreage g position with ability to high grade for sweet spots ► Total current acreage position iti iis some 135,000 sq kms (+33 million acres) ► Operatorship across the portfolio to allow rational exploration ► Digital d
Slide 10: Canning Basin – Exploration transformation
Canning Basin – Exploration transformation ► Data Exploration in the Basin missed the digital revolution in the industry – Buru now has, for the first time, a full basin-wide digital data set. Buru has the internal skill sets required ► Political transformation 2007 – Buru and the Noonkanbah communi
Slide 11: Canning Basin – What are we doing?
Canning Basin – What are we doing? Looking at the Basin with fresh eyes The Canning Super-Basin has three major Basins contained in itit, each with its own geology and prospectivity. In a strict geological sense there is overlap between the basins but in a commercial and Broome exploration sense eac
Slide 12: Canning Basin – regional prospectivity
Canning Basin – regional prospectivity Structural Elements Topography, Seismic Coverage & Fields Approximate pp Line of Section West Kora Oil Field Sundown, Lloyd, Boundary & West Terrace Oil Fields Blina Oil Field West Kora-1, Sundown-1, Great Sandy-1 Lloyd-1,Boundary-1 Cudalgarra-1 Hedonia-1 Yulle
Slide 13: Canning Basin – prospectivity: finding the sweet spot
Canning Basin – prospectivity Finding g the sweet spot p ►The Canning Basin contains several petroleum t l systems t which cover very large areas. ►The “sweet spots” that contain the majority of reserves in other Basins Comparative occupy a small area size of Perth Basin sweet compared to the size s
Slide 14: Canning Basin – prospectivity
Canning Basin – prospectivity ►Buru is currently reviewing the Basin and its acreage position Lennard North to identify the Sundown-Blina Sundown Blina most Yulleroo Shear Zone technically and Offshore Thangoo Margin Lennard South commercially Canning Thangoo High prospective trends. Pictor ►This is
Slide 15: Canning Basin – Exploration progress
Canning Basin – Exploration progress 2008: Lanagan 1 ► Lanagan a aga - Buruu u 35% - Dry y hole oe ► Lawford - Buru 35% - Suspended w rig problems Lawford 1 Pijalinga ► Stokes Bay test - Buru 39% - Inconclusive Paradise 1 seismic ► Paradise - Buru 100% - Postponed due wet ► Pictor East - Buru 10% -
Slide 16: Canning Basin – What are we doing?
Canning Basin – What are we doing? Ensuring g we are making g money y Current production : • Blina Field workovers increased production from 30 bopd to +200 bopd • Reviewing field production and costs in light of the current oil price • Will no now manage the fields in a way a that reduces red ces p
Slide 17: Canning Basin – Oil value realisation
Canning Basin – Oil value realisation Current production • From Blina and associated oilfields: ► Ultimate recoverable 2P reserves of all fields ~3 mmbbls ► Discovered 1981 - first production in 1983 at ~1,000 bopd ► Production of 30 bopd when Buru acquired the fields Blina oil production facility ►
Slide 18: Canning Basin – Gas value realisation
Canning Basin – Gas value realisation Contingent gas resources Western Australia’s ► Until U til now there th has h been b no market k t ffor gas and d iin Gas Infrastructure any case the price made gas uneconomic ► However, numerous gas discoveries have been made in the Basin ► Some were not even t
Slide 19: Buru Energy – Value leverage
Buru Energy – Value leverage The discovery of commercial hydrocarbons in the Canning Basin will add very substantial value to Buru. 9 Netbacks in onshore in Australia are very favourable 9 Australia has low development costs costs, favourable tax regime regime, no PSC burdens, stable environment Gas
Slide 20: Buru – Forward Strategy
Buru – Forward Strategy Buru is responsible and careful Our shareholders have entrusted us with $80 million Alcoa has entrusted us with $40 million The Traditional Owners have entrusted us with access to their lands Buru is proactive: On 12 January, Buru’s Managing Director, Adrian Cook, said that:
Slide 21: Buru Energy – Forward Strategy
Buru Energy – Forward Strategy Buru s Forward Buru’s Strategy has Three Develop new growth Horizons for growth businesses Develop convergent new b siness business Extend and enhance core business Time 21 21
Slide 22: Buru Energy – Portfolio Balance
Buru Energy – Portfolio Balance Aiming for the Efficient Frontier – with a wide spread of projects to get there: Illustrative Canning Basin projects alue Va Well optimisation Canning Basin areas Risk 22 22
Slide 23: A unique oil and gas exploration and production company
A unique q oil and gas g exploration p and production p company with very high leverage to success: ; Outstanding exploration portfolio ; Well funded for exploration and investment ; Strong management ; Appropriate and targeted exploration program ; Highly leveraged to exploration success 23 23