Buru Energy Ltd · ASX:BRU
Buru Energy — Investor Presentation (March 2014)
30 slides from Buru Energy's investor presentation, Mar 20, 2014
Slide 1: Corporate Update
Corporate Update 20 March 2014
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer Disclaimer 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 these statements are reaso
Slide 3: Overview
Overview Highlights and Challenges Corporate Summary Ungani Development & Potential Laurel Wet Gas & Potential Program and Funding Outlook 2
Slide 4: Highlights & Challenges
Highlights & Challenges 2013 – consolidation & capability build 2014 - on the pathway to delivery Putting in place key success factors Ungani EPT commenced • Stakeholder alignment • Ungani 2 producing strongly • Funding • Ungani 1 dual completion clean-up under way • Equipment • 1st load out of 30,0
Slide 5: Company Overview
Company Overview Shareholder spread Corporate details Index S&P/ASX 200 ASX Code BRU Shares on issue ~298M Current share price ~A$1.30 (19 Mar 14) Market capitalisation ~A$387M Cash on hand (at 31 Dec 2013) ~A$60M (no debt) 12 month share price • Average Daily Volume - ~1M shares traded (3 month) •
Slide 6: Highly Experienced & Balanced Board
Highly Experienced & Balanced Board Strong mix of technical, commercial, legal & corporate history Graham Riley • Previously founding Non-Executive Director of ARC Energy Limited and Adelphi Energy Limited Independent • Former Chairman of Giralia Resources NL, and responsible for the spin-off of fiv
Slide 7: Balanced Portfolio & Sustainable Growth
Balanced Portfolio & Sustainable Growth High Value Oil, Major Gas Appraisal & Quality Exploration • Ungani Oil Field • Laurel Formation - Regional Currently producing at its initial accumulation of wet gas target of 1,000 bopd • 2013-2015 systematic appraisal Ungani 3 disappointing result – vugu
Slide 8: 2014 – Getting it done
2014 – Getting it done Ungani development Ungani 1 cleanup, well underway Ungani 2 producing 1,000 bopd Production ramp up to 1,500 bopd Loading of first 30,000 barrels of oil from the Wyndham export facility Drilling Ungani 3 tested a separate structural feature on trend to Ungani central
Slide 9: Outstanding acreage position
Outstanding acreage position Focus on highest value areas whilst progressing remainder Long term position with tenure certainty • 72,400 sq kms continuous basin wide coverage • Oil – near term cash flow with follow-up • Gas – potential world scale resource of strategic importance • Exploration – hig
Slide 10: Ungani Phase 1: EPT Project Overview
Ungani Phase 1: EPT Project Overview Transport to Storage & export Shipping to Ungani Field Wyndham Tank Farm from Wyndham refinery Discovered 2011 Trucking of crude Crude oil storage Crude shipping 50m+ oil column, 900km to existing tank Wyndham in Cambridge Gulf Wyndham to regional refineries. 100
Slide 11: Ungani Laurel dolomite depth map
Ungani Laurel dolomite depth map Ungani-1 and Ungani-3 location Ungani-2 wells Depths ~ 2100m below sea level Viewed from the North 10
Slide 12: Ungani 3D Seismic over the field
Ungani 3D Seismic over the field - Examples from different data processing SW U-1 U-3 NE SW U-1 U-3 NE Seismic Reprocessing Original Seismic Processing • Both data sets have similar processing sequences and are preliminary products at a similar stage of completion • Ungani-1 and Ungani-3 wells are b
Slide 13: Ungani Phase 2: Full field development
Ungani Phase 2: Full field development Major production increase and export from local port Post FID Facility Upgrade • Permanent high volume export route • All weather operation – pipeline/road/loadout • Staged FID process for optimal development Development Funding • Initial pre-FID expenditure (~
Slide 14: Ungani oilfield progression export
Ungani oilfield progression export Phase 2 Phase 1 • Targeting 2015+ • Early production • Requires access to from existing storage or new build facilities facility • Low CAPEX upgrade • Existing load-out to load-out facility facilities exist but • Smaller parcels ship require upgrade size (30,000 bb
Slide 15: Ungani Oilfield Update
Ungani Oilfield Update Current Status • Ungani Field extended tests continue to perform well • Production at 1,000 bopd with no significant water • Ungani 3 interpreted to have penetrated tight Ungani Dolomite that will result in a near term focus on the central field area 2014 Program (Funded Augus
Slide 16: High value Ungani exploration trend
High value Ungani exploration trend Potential for rapid cluster style development growth Ungani oil discovery is a “play opener” • Conventional Vuggy dolomite reservoir • Ungani North extended play • Ungani Oil Trend covers over 120 kms by 40 kms (+1 million acres) Ungani NthYakka Munga • Buru contr
Slide 17: Rafael prospect – EP428
Rafael prospect – EP428 Preliminary volumetrics • 50mmbo or 0.5Tcf+ potential resource Rafael prospect location map 16
Slide 18: Ungani trend oil portfolio
Ungani trend oil portfolio High potential for near term Ungani look-a-likes Ungani Flanks Increasing Geological Confidence (GPOS) Praslin Ungani Greater 2014 3D seismic (Jackaroo) Ungani 3D seismic Jackaroo Appraisal and develop drilling North DST Bickley 3D seismic L Eda Kurajong Yakka Fregate W Mu
Slide 19: Australian unconventional gas acreage and precedent transactions
Australian unconventional gas acreage and precedent transactions Unconventional basin and company acreage locations Buru Energy / Gujarat NRE Mineral Resources EP 457, EP 458 Hess / Falcon Oil & Gas A$15.0 / acre Beetaloo Basin project A$12.2 / acre Buyer/Seller Apache / Buru Energy Mitsubishi / Bur
Slide 20: Laurel Gas - A potential strategic resource
Laurel Gas - A potential strategic resource Independent analysis estimates P50 Prospective Resource >47 Tcf net to Buru Potential world class accumulation • Extensive overpressure at drillable depths • Sweet gas , low CO2, no H2S, high liquids Preparation for appraisal process • Committed to Excelle
Slide 21: World Class Basin Centred Gas Potential
World Class Basin Centred Gas Potential Systematic evaluation of Laurel tight wet gas Point Torment 1 (1992) 180m Laurel gas Canning Basin Fitzroy Trough DST ~60 MCFD Digital Elevation Model 50 km Yulleroo 4 (2013) TD 3846m Valhalla North 1 (2012) 1363m Laurel Gas Derby Drilled in syncline
Slide 22: TGS14 – Planned Programme Steps and Approximate Timing
TGS14 – Planned Programme Steps and Approximate Timing TGS14 Planned Schedule May 2014 • Re-enter, clean out and confirm casing integrity of 4 of the 5 wells previously cased and suspended by Buru Energy • Yulleroo 3 • Yulleroo 4 • Asgard 1 Valhalla North 1 (Valhalla 2 not included) June to July 201
Slide 23: TGS14 Planned Programme – Yulleroo Area
TGS14 – Planned Programme Yulleroo Area 2250 Yulleroo 4 (13 fracs) Yulleroo 3 (5 fracs) Yulleroo 1 Yulleroo 2 Zone TGS14 2 Fracs Class Yulleroo 4 (DST 1967) (3 stage frac 2010) • 2435-2485mMD (Y4-6/2) 2515-2565mMD (Y4-6/1) Y0 13 Hydraulic Fractures Y4-6/2 2450 • Depth range 2435m- Y4-6/1 3810mMD 265
Slide 24: TGS Planned Programme – Valhalla Area
TGS 14 – Planned Programme Valhalla Area 1900 Valhalla North 1 (7 fracs) Valhalla 2 (6 agreed zones) Asgard 1 (11 fracs) Valhalla North 1 2000 • 7 Hydraulic Fractures OH DST#1 2002- AS1-6 2100 Depth range 2200 2355m- Zone V2-6 3305mMD Transition 2200 Class Transition 2300 V0 TGS14 V2-5 Transition 3
Slide 25: The way forward
The way forward Unlocking value is achieved by aligning key stakeholders Strong and enduring Traditional Owner relationships • Proactive Community engagement and transparent activities • Skills development, job creation and contracting • Sustainable business creation • Equitable value sharing that d
Slide 26: Fully Funded Forward Program
Well balanced capital management program Minimal dilution, activity based & supports quality program • Ungani Oilfield - A$92M gross, $46M net, for full field development at up to Fully Funded Forward Program* 7,500 bopd • Laurel Wet Gas - $54M gross, $27M net for stimulation and flow testing of up
Slide 27: Creating a material & sustainable growth story
Buru Energy: Creating a material & sustainable growth story 2013 2014 2015 THE PLATFORM FOR LONG MAJOR DERISKING OF GAS & TARGETED OIL EXPANSION, TERM GROWTH CONTINUOUS HIGH VALUE CONFIRMING GAS VIABILITY, EXPLORATION DRILLING MULTI-RIG APPRAISAL & EXPLORATION GROWTH Safety & Risk management • HSE
Slide 28: Sustainable growth pathway
Sustainable growth pathway High Value and Balanced Work Program • Focus on Ungani development and cash flow • Definitive gas program and pathway to commercialisation • Focus on Ungani trend exploration and • Derisking other areas ahead of longer term campaign style programs Major Capability Build •
Slide 29: Buru's vision
Buru’s vision WA’s own powerhouse PHASE 1 Oil Export: 4Q 2013-2025+ Oil export facility, >1-2+mmbo/yr export Broome Wyndham Port Hedland PHASE 4 : LNG sales 2020+ New or gas sales to existing LNG plants along Dampier NW Shelf PHASE 2 Powering the North & Midwest: •Target 30 – 200MW power •<300BCF sa
Slide 30: Focused on developing the petroleum resources of the Canning Super Basin
Focused on developing the petroleum resources of the Canning Super Basin 20 March 2014