Bengal Energy Ltd. · TSX:BNG
Bengal Energy — Investor Presentation (February 2017)
28 slides from Bengal Energy's investor presentation, February 2017
Slide 1: High Impact Exploration & Production
HIGH IMPACT EXPLORATION & PRODUCTION CORPORATE PRESENTATION TSX: BNG February 2017
Slide 2: Corporate Profile
CORPORATE PROFILE Financial Shares Outstanding (TSX:BNG) 102.3 MM Total Debt USD $12.5 MM Market Capitalization @ $0.17/share (Feb.7, 2017) $17.4MM Funds Flow from Operations (FFO) (Q2 2017) $1.4M Corporate Reserves Values PV10 (Mar. 31 2016) Proved + Probable (P+P)(1) $103.8MM Equivalent Value per
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS High-quality light oil & gas Delivering consistent top-tier reserves growth on a large assets in low-risk, stable jurisdiction 52° API ultralight oil pool Near term production additions commencing in Q1 2017 Top-tier operating netbacks: Shefu-1 discovery confirms western
Slide 4: History of Australian Growth: Reserves and Net Present Value
HISTORY OF AUSTRALIAN GROWTH RESERVES AND NET PRESENT VALUE ANNUAL PROVED PLUS NET PRESENT VALUE OF 2P RESERVES @ PROBABLE(1) RESERVES (MBOE) 10% DISCOUNT FACTOR(1) ($MM) As at year end March 31 AS AT YEAR END MARCH 31 6,204 118.5 5,702 103.9 100.8 3,624 40.3 1,530 16.4 10.8 350 450 100 1.7 3.0 52 2
Slide 5: Corporate Strategy
CORPORATE STRATEGY Develop Cooper Basin Light Oil Develop low cost 52° API ultralight oil pool Large oil in place of 85 million bbls (2P)(1)with approx. 2.5 % recovered to date Pool now mapped over 21,000 acres Material upside potential Exploit Natural Gas Opportunities - E. Australia Targ
Slide 6: Cooper Basin
COOPER BASIN Australia Program (2016-17) Cost to drill, case and complete ~ AUS $2.5 MM 42% reduction from past wells All 2016 wells successful. Anticipate completion and connection in first half of 2017 BARTA Phase two frac campaign early 2017 for low cost BARROLKA production addition CUISI
Slide 7: Light Oil Development
LIGHT OIL DEVELOPMENT 7
Slide 8: Barta Permit
Cuisinier PL 303 BARTA PERMIT (15,815 acres) Limit of existing 3D (~154,000 ACRES) SHEFU-1 Barta Permit approx. 2.28 MMbbls DISCOVERY production to date with 2P oil in place of 85 MMbbls(1) 5 well drill campaign - 100% successful Shefu-1 exploration success has de-risked an area for near term
Slide 9: Shefu-1 Exploration Discovery
SHEFU-1 EXPLORATION DISCOVERY Near field exploration well approx. C17 Shefu-1 3.6 kms west of Cuisinier-17 Encountered 8.1m of gross sand with up to 7m of net pay Result has establish a new Lowest Known Oil (“LKO”) for the area Shefu Murta reservoir thicker than expected and situated well ou
Slide 10: 2015 Frac Campaign: An Example Cuisinier Well
2015 FRAC CAMPAIGN AN EXAMPLE: CUISINIER WELL Pre-Frac, this Cuisinier well was producing on average 40-45 Bopd and expected to produce 130 160 Forecast Mbbl Post-Frac, production increased initially to 125 Bopd Calendar Day Oil Rate Bbls/day 120 and has settled out around 100 Bopd and is now ex
Slide 11: Cuisinier Development Type Well Curve and Economics
CUISINIER DEVELOPMENT TYPE WELL CURVE – IMMEDIATE GROWTH POTENTIAL AVERAGE PRODUCING VERTICAL WELL 240 (w/o pressure maintenance) Calendar Day Oil Rate Bbls/day Success of 2016 campaign expected to expand 180 Cuisinier pool size and 1P & 2P volumes and lays 120 the groundwork for lower risk apprai
Slide 12: Cuisinier - Western Expansion
CUISINIER - WESTERN EXPANSION Shefu-1 Murta oil discovery further expands Shefu-1 Murta Barta-1 well Oil Discovery upon Cuisinier success further highlighting Good oil show the prospective adjacent land position within the same permit Structures mapped on permit including LKO- Cuisinier based Mu
Slide 13: Natural Gas Exploration
; <i Z oa . NATURAL GAS So ) EXPLORATION
Slide 14: Why Gas? Why Now?
WHY GAS? WHY NOW? SUPPLY AND DEMAND 2016 YTD Spot Natural Gas Market(1) $35.00 Sydney $30.00 Adelaide $25.00 Brisbane $20.00 Forecast supply and Demand (PJ) $15.00 $10.00 $5.00 $- Price shown above is AUS$/GJ In 5 years, the total annual gas consumption in Australia has risen rapidly as Queensland
Slide 15: Eastern Australia Market
EASTERN AUSTRALIA MARKET Australia, East Coast Gas Flows Future growth in gas production will be driven by the LNG Facilities expansion of Australia’s LNG capacity Gladstone Queensland Curtis Australia Pacific Main gas markets: Eastern Australia Western Australia The Northern Territory Exp
Slide 16: ATP 934 Barrolka Permit
ATP 934 BARROLKA PERMIT (BNG 71% AND OPERATOR)(3) TIGHTENING GAS MARKET DRIVING EASTERN AUSTRALIAN GAS PRICE INCREASES Large, undrilled 1,462 km2 permit in gas jurisdiction Whanto Active drilling around permit with 16 gas wells drilled in the last 2 years Producing gas fields offsetting with n
Slide 17: Transformative Basin Centered Gas Play
TRANSFORMATIVE BASIN CENTERED GAS PLAY BARROLKA PERMIT (ATP 934) Basin Centered Gas Fairway • The last Whanto well was declared part of a “basin centered gas” play(2) Basin Centered Gas accumulations, are typically thick, continuous gas saturated reservoirs. • The Permian reservoirs which extend acr
Slide 18: Bengal - Catalysts & Opportunities
BENGAL - CATALYSTS & OPPORTUNITIES 4 successful development / appraisal wells on stream in H1 2017 CUSINIER 1H 2017 PRODUCTION Shefu-1 exploration success unlocks future low risk development ADDITIONS Multiple additional frac locations identified for low risk production, mid- 2017 1,462 km2
Slide 19: Adding Value & Growth
ADDING VALUE & GROWTH Independent Evaluation Results CUISINIER MURTA DC70 POOL SIZE GROWTH(1) Gross Pool TPIIP Growth 134% Likely expansion based on 2016 exploration success 85.3 Gross Pool TPIIP(2) 79.3 6 year CAGR (2010-16) 80 10% After Tax 2P NAV Per Share 60 49 40 $0.93 23.4 20 CAGR of 2P reserv
Slide 20: Value Creation for Shareholders
VALUE CREATION FOR SHAREHOLDERS PRODUCTION PER SHARE GROWTH (NET)(1) PER SHARE PROVED PLUS PROBABLE(1) RESERVES AS AT YEAR END MARCH 31 AS AT YEAR END MARCH 31 Average daily production per million basic shares outstanding Reserves growth (mboe / million basic shares outstanding) 7.4 90 7 83 6.2 73 3
Slide 21: Why Bengal
WHY BENGAL High margin, strong cash generating History of reserves growth leads to vast development opportunity operations Very large oil in place pool with only approx. 3% of 2P STOIP(1) recovered to date Successful drilling results including Shefu-1 discovery, expanding the Rapidly growing o
Slide 22: Thank You
THANK YOU WWW.BENGALENERGY.CA/ 22
Slide 23: Endnotes
ENDNOTES Slide 2 Slide 20 (1) Based on independent, qualified reserves evaluator GLJ Petroleum Consultants Ltd.’s report dated (1) Based on independent, qualified reserves evaluator GLJ Petroleum Consultants Ltd.’s report dated March 31, 2016 entitled Reserves Assessment and Evaluation of Canadian a
Slide 24: 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 “pl
Slide 25: Forward-Looking Statements cont'd
FORWARD-LOOKING STATEMENTS cont’d 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
Slide 26: Fundamental Resource Definitions and Cautionary Statements
FUNDAMENTAL RESOURCE DEFINITIONS AND CAUTIONARY STATEMENTS 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 containe
Slide 27: Cautionary Statements and Oil & Gas Advisories
CAUTIONARY STATEMENTS AND OIL & GAS ADVISORIES • Certain oil and gas metrics: Finding and development costs, reserves replacement and netbacks do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other comp
Slide 28: Cautionary Statements and Oil & Gas Advisories cont'd
CAUTIONARY STATEMENTS AND OIL & GAS ADVISORIES cont’d • IRR: Rate of return. IRR is the discount rate required to arrive at a NPV equal to zero. Rates of return set forth in this document are for illustrative purposes. There is no guarantee that such rates of return will be achieved in the future. •
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