Download - Kisaran Development
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OIL AND GAS
opportunities Indonesia
GROWING a in
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FORWARD LOOKING STATEMENT
This presentation has been prepared for informational purposes only. This presentation is not, and under no circumstances is to be construed as, a public offering of securities or an offering of securities (or a solicitation of an offer) in any jurisdiction in which such offering would be unlawful, including to U.S. persons in the United States. No securities commission or similar regulatory authority in Canada has in any way passed on the merits of the securities of the company or has reviewed this presentation, nor have the securities referred to in this presentation been registered under the U.S. Securities Act of 1933, as amended, or been approved or disapproved by the U.S. Securities and Exchange Commission, any state securities commission or any other securities regulatory authority in the United States. Any representation to the contrary is an offence. No person is authorized to give any information or make any representation not contained in this presentation in connection with an offering of securities of the company and, if given or made, any such information or representation may not be relied upon. The information in this presentation is confidential and is intended for use only by the recipient. It should not be reproduced or disclosed to any other person without the consent of the company. This presentation remains the property of the company and must be returned on request and any copies you have made must be destroyed.
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BUKIT ENERGY INC.
Private Company founded in 2010 Calgary Corporate office Jakarta Operations office 34.5 million outstanding shares $9 million in cash
Bukit is recognized as the leading company in the emerging unconventional business
First unconventional PSC award expected May-14
5 Joint Studies complete giving Bukit a right of first refusal on additional PSCs
Four production sharing contracts in Indonesia
Kisaran PSC (22.5%): Appraised oil field progressing for 2015 first oil
Mahato PSC (37.5%): Drilling of oil field extensions planned for end 2014
Bohorok PSC (45%): Seismic acquisition ongoing to support 2015 drilling
Palmerah Baru PSC (54%): new award Q1/14
INDONESIA
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SUMATRA
500 km 0
SUMATRA A WORLD-CLASS HYDROCARBON PROVINCE
Globally competitive fiscal terms Increasing gas shortfall, expansion of
domestic LNG import yields high domestic gas prices
Extensive gas infrastructure connecting major SEA population centers 100+ million people
Major O&G companies operating in area: Chevron, ExxonMobil, CNOOC, Conoco-Phillips, Talisman, PetroChina
Technology under-applied on existing fields
25 BBOE discovered to-date 18 BBOE Produced Producing > 1 million BOEPD Unconventional Potential
Oil: 8 Billion bbl risked UR (EIA 2013) Gas: 51 Tcf risked UR (CERA 2012)
Kuala Lumpur Medan
Singapore
Jakarta
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Grow production & cash flow by applying proven technologies to under-exploited assets in a world-class hydrocarbon province asset acquisition and organic growth
Position Bukit for significant value multiples by being the leading holder of acreage with unconventional potential
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BUILDING VALUE BY APPLYING PROVEN TECHNOLOGY IN A WORLD CLASS HYDROCARBON PROVINCE
Establish production to generate cash flows
+ +
Material position in emerging
unconventional business
Near-term production increases via field
optimization, new field developments and
step-out exploration
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EXECUTIVE MANAGEMENT
Dr. Sean Guest CEO* CEO of Pexco Private O&G (>$1/2 Billion EV) operating in Indonesia, Malaysia & Australia Previous Experience in Shell and Woodside - SEA, Australia, and North Africa Successful track record in developing production & building value in Sumatra
Jerry Sykora President* 30+ years E&P experience in Canada, Indonesia, and Yemen Specialized in commercializing new ventures in SE Asia & Indonesia
Gordon Begg COO & Managing Director - Indonesia 25 years E&P experience (17 yrs. Talisman) in Canada, Indonesia, UK , Norway Operations experience in both conventional and unconventional assets 8 years Indonesian experience managing production optimization 100+ frac operations
Dean Callaway CFO 25 years of International E&P, utility and investment banking experience Former CFO of TSXV and private E&P companies with Asian operations
Dr. Tim England EVP Exploration & Production* 30+ years E&P experience based in Canada, USA, UK, Norway Former Talisman VP Exploration, international new ventures including SE Asia Extensive experience in conventional and unconventional exploration
Eamon Hurley EVP and General Counsel* Founder, Director and officer Black Gold Energy Former officer of Unocal Indonesia
BOARD OF DIRECTORS
Donald Hansen Chairman Founder and Director of Black Gold Energy Founder and Managing Director of SW Energy Capital fund Former President and CEO of Northrock Resources Ltd. Former VP International Energy Operations Unocal
responsible for new venture initiatives
Paul Gilleran Director Founder and business developer of Black Gold Energy 30+ years experience in onshore and offshore geophysical
industries, 20 years in SEA region
Black Gold Energy $6 million in 2006 seed capital sold in 2009 for US$ 300 million
* Also on Board of Directors
MANAGEMENT TEAM SUCCESSFUL TRACK RECORD IN INDONESIA & SEA
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Successful 2 well appraisal of the Parit-Minyak Oil Field in Kisaran PSC Development Plan progressing for 2015 first oil
Successful flow of wet-gas from the tight unconventional formations below the PM Oil Field Appraisal planned in 2015
Award of Palmerah Baru PSC within Talisman/ConocoPhilips production area First Unconventional Contract Terms released by government best contractor
terms ever offered in Indonesia First Unconventional Bid Round in January 2014 Bukit expects award of PSC at
Indonesian Petroleum Association Convention in May Strengthened Bukit Executive team new CEO in February 2014 Private financing raised $13.2 million @ $1.25/share in Q3 2013
BUKIT ENERGY PAST 12 MONTHS
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STRONG SUMATRA ACREAGE POSITION
500 km 0
COMPANY NET ACRES
Pertamina (NOC) 6.40 MM Energi MP 2.07 MM Chevron 1.59 MM Medco 1.48 MM BUKIT 1.26 MM Talisman 1.08 MM PetroChina 0.59 MM ConocoPhillips 0.50 MM CNOOC 0.47 MM
Expect to add four additional PSCs in 2014 - 800,000 net acres (at cost of $8/acre)
+ Kuala Lumpur
Medan
Jakarta
Palmerah Baru
Mahato
Kisaran
Bohorok
Singapore
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Parit-Minyak Field ready for development 2 successful appraisal wells in 2013
- tested up to 400 bopd, no water Recoverable Oil estimated 22 MMbbl (gross) Peak production up to 5000 BOPD (gross) First Oil in 2015 Single well-based returns >60%
Follow up exploration with 87MMboe (Net) unrisked potential
Synergies between conventional and unconventional development Planned wet-gas appraisal in 2015
WI
22.5% NET ACRES
48,425 Non-operated
KISARAN PSC
20 km 0
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KISARAN PM-2 OIL DISCOVERY
Discovery Well PM-1 2006
Appraisal Well PM-2 2013
Oil Shows
Mid
dle
to L
ower
Pem
atan
g Fo
rmat
ion
Seq
uenc
e A
Seq
uenc
e C
80 to 265 bpd 37o API oil; 0% water
17 to 40 bpd oil; 0% water
Seq
uenc
e B
Seq
uenc
e B
S
eque
nce
C
Seq
uenc
e D
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40 km 0
MAHATO PSC
WI
37.5% NET ACRES
522,282 Non-operated
On trend to Chevron oil fields: 10+ billion bbl
North Petapahan Area 600+ mmbbl produced from adjacent fields
Near-term activity 1 appraisal/development well 2 step-out exploration wells
Southwest Balam Area 470+ mmbbl produced from adjacent fields Field extensions with 50+ mmboe gross potential
Near-term activity 2D seismic to confirm drill candidates
Southwest Balam
North Petaptahan
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Petapahan Field extends into Mahato Chevron development started 5 years ago 2013 development well ~100m from border Mahato PSC allows for immediate
production P1 well planned in Q1 2015
Saketuk Prospect (P2) Low-risk near-field stepout well Well TD of 5,600 ft (USD $3.5 mil Gross)
PETAPAHAN FIELD
B
A B P1 P2
MAHATO Petapahan field extension and step-out
Mahato PSC Petapahan Field
A P2
P1 PETAPAHAN FIELD P1 P2
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Next to producing oil and gas fields > 125 mmboe
Existing infrastructure to Medan gas prices $10+/mscf Benggala gas/condensate field producing 1 year
after discovery
Pertamina (NOC) investing significant funds after recent discoveries $70 million on 3D seismic Field extension drilling on Benggala Near-term activity 2014 2D seismic 2015 1-2 exploration wells
BOHOROK PSC
40 km 0 WI
45% NET ACRES
588,391 Operated
Medan
Wampu Benggala
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On-trend exploration: Large under-drilled area (1,300 km2 ) Low to medium risk step out exploration 12 leads and prospects with > 75 mmboe
resource potential
B
B A
A
20 km 0
BOHOROK Step-out Drilling
Prospect D
Diski
Wampu
Benggala Batmundi
PPT
Basilam
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Offsets producing Jambi Merang and Corridor PSCs
(Talisman and ConocoPhillips) 1,500 MMBOE discovered Currently producing 200,000 BOEPD
Located in Bukit focus Area Bukit has right of first refusal for 2 unconventional
blocks in this area
PALMERAH BARU PSC
20 km 0 WI
54% NET ACRES
131,966 Operated
BUDI Oil Field 2013 Development
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Developed in 2013 12 months from approval to first oil Phased development to increase sub-surface
understanding created capital efficiencies
Phase 1 Low cost development- US$15 mil capex 5 development wells Fraccing used to increase production Production 1,300 bbl/d: 60% above plan Current P+P reserves: 10MMbbl
Phase 2 (2014) 6 well infill program (US$14) Planned production of 2,500+ bbl/d
BUDI OIL FIELD (AREA CASE STUDY)
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500 km 0
Unconventional Oil 8 Bbbl risked rec. (EIA 2013)
Unconventional Gas 50 TCF risked rec. (Cambridge Energy Research 2012)
Unconventional PSC terms released in 2013 best fiscal terms ever in Indonesia
First unconventional bid round occurred Q1-2014 Bukit expects award in Q2-2014
Large PSCs with low-cost holding for 10 year exploration period
Bukit internal technical work mapped potential sweet-spots to focus acreage acquisitions
Bukit flow tested tight wet gas in 2013 appraisal planned for 2015
VALUE UPSIDE FROM EMERGING UNCONVENTIONAL IN SUMATRA
Kuala Lumpur Medan
Singapore
Jakarta
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UNTAPPED POTENTIAL IN SUMATRA
Mature 661,185 Km2 $142 / Acre capture cost (2012) 90,000 boe/km2
conventional resource density Highly fragmented land position >50% of wells drilled in 2012
were Horizontal
ALBERTA Under-exploited 473,481 Km2
$8 / Acre capture cost (Bukit) 360,000 boe/km2
conventional resource density
Large contiguous blocks
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KISARAN PSC CONVENTIONAL & UNCONVENTIONAL DEVELOPMENT SYNERGIES
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Kuala Lumpur Medan
Jakarta
Palmerah Baru
Mahato
Kisaran
Bohorok
500 km 0
PRODUCTION 2014 - Acquire producing asset with upside potential 2014/15 - Drilling activities to increase production
DEVELOPMENT 2014 - Develop PM Oil Field in Kisaran for 2015
production follow on from successful appraisal drilling in 2013
APPRAISAL 2014/15 - Appraise producing oil field extensions in
Mahato - planning for late 2015 production 2015 - Appraise the PM Deep gas-condensate
Discovery (2013) positive evidence for unconventional potential of the block
EXPLORATION 2015 Drill 1-2 near-field prospects in Mahato 2015 Drill 1-2 wells in Bohorok
NEAR-TERM ACTIVITIES ADD PRODUCTION AND RESERVES
Singapore
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Production Asset
Kisaran
Mahato
Bohorok
Palmerah Baru
Barumun
Palmerah Deep
Sakakemang Deep
2014 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Con
vent
iona
l U
ncon
vent
iona
l
DEV. DRILLING DEV. DRILLING
Develop PM Oil Field FIRST OIL
Development FIRST OIL
1 2 Expl. Wells
Seismic
App. Well
Expl. Wells
Block Award
Block Award
Block Award
Seismic
Seismic
ACTIVITIES YIELD NEAR-TERM PRODUCTION
Acquire Asset
FIRST OIL
2 - 3 App./Expl. Wells