Transcript BKP-Presentation 17th May 2011

Investor Presentation 17th May 2011
Disclaimer

The information contained in this presentation or subsequently provided to the Recipient of this Presentation whether orally
or in writing by or on behalf of Baraka Energy & Resources Limited (BKP) or its respective affiliates, directors, employees,
agents or consultants (“information”) is provided to the recipients on the terms and conditions set out in this notice. The
purpose of this presentation is to provide Recipients with information relating to BKP, the Georgina Basin tenements EP127
and EP128 of which BKP has an interest in (“the Projects”). The presentation has been prepared by BKP and each Recipient
must make his/her own independent assessment and investigation of BKP and the projects and should not rely on any
statement or the adequacy and accuracy of any information.

This presentation has been prepared as a summary only and does not contain all information about BKP or the Projects. The
information in this presentation and made to you verbally is subject to updating, completion, revision, further verification and
amendment.

BKP makes no representation or warranty (express or implied) as to the accuracy, reliability or completeness of the
information. BKP and its respective affiliates, directors, employees, agents and consultants shall have no liability (including
liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or
matters (express or implied) arising out of, contained in or derived from, or for any omissions from the Presentation, except
liability under statute that cannot be excluded.

The Presentation contains reference to certain intentions, expectations and plans of BKP and the Projects. These intentions,
expectations and plans may or may not be achieved. They are based on certain assumptions which may not be met or on
which views may differ. The performance and operations of BKP and the Projects may be influenced by a number of factors,
many of which are outside the control of BKP and the Projects. No representation or warranty, express or implied, is made by
BKP or any of its respective affiliates, directors, officers, employees, agents and consultants that any intentions, expectations
or plans will be achieved either totally or partially or that any particular profitability or value will be achieved.
Investment Highlights
 Baraka signs farmout agreement on exploration permits EP127 and EP128
located in the prospective Southern Georgina Basin, Northern Territory,
retaining a 25% free carried undivided interest
 Amended Agreement signed with Baraka's Joint Venture partner, Petro
Frontier results in a substantial increase in Petro Frontier’s exploration
budget in the Joint Venture (near double previous commitment)
 Announcement of Potential Oil Resource Estimates released by independent
resource-evaluation firm, Ryder Scott
 Successful completion of capital raising via share purchase plan to raise
$3.15 Million
Corporate Snapshot
Shares on Issue
1,980,655,046
Share Price (16th May 2011)
$0.019
Unlisted Options
(Exp 30/06/2011 @ 0.3cents)
25,000,000
Unlisted Options
(Exp 30/06/2012 @ 2 cents)
22,000,000
Market Cap ($Million)
37.632
Cash Position
$5 Million
52 – week low
$0.003
52 –week high
$0.03
Board of Directors
Collin Vost
Managing Director
Barry J MacKinnon
Non- Executive
Chairman
Justin Vost
Non- Executive
Director
Southern Georgina Basin
Project Overview
 Baraka has a carried 25% undivided working interest up to completion of a
minimum 500 metres of horizontal drilling into the Basel Arthur Creek
Shale on either EP127 or EP128
 Baraka retains an undivided 75% working interest in approximately 75kms²
around the Elkedra–7 well on EP127, where previous drilling has indicated
oil shows
 The tenements covers an area 30,000kms² (7.4 million acres) in the south
central part of the Northern Territory, to the south-east of Tennant Creek
and the north-east of Alice Springs
Baraka’s Tenements
“The Georgina Basin of the NT represents one of the few remaining virtually unexplored, hydrocarbon
prospective, on shore sedimentary basins in the world. The fact that this basin is located in a country
with a stable political, legal and regulatory system makes this basin all the more significant. The
Southern Georgina Basin covers more than 100,000 square kilometres (24.7 million acres) in the NT
and the western part of Queensland. Baraka’s two exploration Permits are situated over what is
believed to be a prospective part of the basin". (Source: Ryder Scott, Independent Resource Evaluation Firm)
Historical Results
 Previous test wells drilled in the Georgina Basin have demonstrated oil shows and good
quality source rocks, seals and reservoirs with target horizons ranging from 300 metres to
1000 metres
 Historically, a total of twenty nine wells had been drilled, with the most recent eight wells
being drilled in 1991, all of which had oil shows but were abandoned. However, development
in drilling technologies, namely the use of Horizontal and Multi Stage Fraccing Technology,has
made basins such as South Georgina a valuable exploration prospect
b) Oil stain/solid bitumen in vuggy porosity
from Elkedra-2, 283.9m, Hagen Member
c)Weak oil stain from Elkedra-2, 353.5m,
Hagen Member
(Source: ISIS Petroleum Report 2009)
Planned Exploration Program
•
•
•
•
Anticipated drilling program will be operated by Baraka’s experienced Canadian Joint Venture
Partner, Petro Frontier (TSX listed, Market Cap of CAD$142.780 million*)
Drilling program will incorporate the latest Horizontal and Multi-Stage Fraccing Stimulation
Technology, enhancing the possibility of a discovery by opening up hundreds of metres of
potential pay zone
Baraka Board believes this is the first time such technology is being utilised on Oil Shale in
Australia
The development of Multi-Stage Fraccing Stimulation Technology continues and is responsible
for one of the largest oil discoveries in North America, the Bakken Formation which covers
parts of North Dakota, Montana and Saskatchewan
*as at 13/05/2011
Planned Capital Expenditure by Operator, Petro Frontier
 Petro Frontier’s Board of Directors has approved a 2011 capital expenditure budget of CAD$32
million net to Petro Frontier (CAD$32 million gross), consisting of drilling up to six exploratory
wells and the acquisition of up to approximately 1,000 km of additional 2D seismic. The six
planned exploratory wells consist of up to three unconventional horizontal wells and up to
three conventional vertical wells
 The second well expected to be drilled by PetroFrontier will be a horizontal well ("MacIntyre
2") in EP127, Northern Territory, Australia, where PetroFrontier holds a 75% working interest
and is also the operator. MacIntyre-2 is planned to be drilled in a similar manner to Baldwin-2
using the existing well as a guide for the new horizontal well. MacIntyre-2 also includes
conventional targets above the Basal Arthur Creek shale zone
Companies exploring large
basins in Australia
Location
Expected Expenditure
Baraka Petroleum/PFC
(25%/75% Joint Venture) PFC as Operator
Georgina Basin, Northern Territory
$32 Million on drilling and seismic
program
Hess Corporation/Falcon Oil and Gas
(65%/35% Joint Venture) Hess as Operator
Beetaloo Basin, Northern Territory
$40 Million on a seismic program
fully funded by Hess Corporation
Central Petroleum (EP132) – ASX Listed
Southern Georgina (EP132), and
Amadeus Basin, Northern Territory
Not Available
Armour Energy - To be listed on the ASX
McArthur, South Nicholson and
Georgina Basins, Northern
Territory
Proposed $50 Million IPO raising in
late 2011
TME Resources
Cooper-Eromanga Basin, South
Australia
Not Available
“There has been significant consolidation by Canadian companies with interests in the Southern
Georgina Basin as it is increasingly viewed there are strong technical similarities between the Lower
Arthur Creek and the prolific unconventional Bakken oil shale formation in the Williston Basin of Canada
and the US”. (Source: CTP Website)
Summary of Resources from the Lower Arthur Creek “Hot
Shale” on Baraka’s tenements according to Ryder Scott
Unrisked Estimates of Undiscovered OOIP and Prospective Recoverable Oil
Resources in the Lower Arthur Creek “Hot Shale” Southern Georgina –Northern Territory,
Australia
Exploration
Permit
Unrisked Undiscovered OOIP (Oil in Place)
(Billion of Barrels)
Unrisked Prospective
Recoverable Oil Resource
(Billion of Barrels)
Low
Best
High
Low
Best
High
EP127
19.789
27.715
37.190
1.753
2.723
4.009
EP128
34.969
48.934
65.718
3.097
4.812
7.084
Subtotal EP
127,128
54.758
76.649
102.908
4.850
7.535
11.093
Baraka’s interest in the above Prospect Lower Arthur Creek “Hot Shale” is 25%.
(Source :Ryder Scott Report)
Bakken Shale VS Arthur Creek Shale
Log Parameters
Bakken
Arthur Creek
Porosity (ave)
4%-8%
4%-13%
Permeability (ave)
0.5-2.0mD
1-100mD
Shale Thickness (ave)
26 metres
22 metres
Res. Thickness (ave)
4.5 metres
9.0 metres
Total Organic Carbon
8%
5%
Resistivity Peak
1,000 ohms
10,000 ohms
(Source: Petro Frontier 2011 January Corporate Presentation)
“The Permit area contains the Arthur Creek Shale which is geologically superior to the Bakken Shale. The
Williston Basin Bakken Shale play is now the largest oil play in the United States. Reserves have recently
been estimated as high as 24 Billion barrels of oil. A recent Petroleum Consultants Report for the Georgina
Basin Arthur Creek Shale indicates oil reserves substantially greater than the Bakken Shale in the Williston
Basin”. (Source: Allen White, president of International TME resources Inc)
Baraka’s Lands Superimposed On Bakken Shale
Conventional Oil VS Unconventional Oil
 Conventional Oil is extracted using traditional oil well methods. The
formations typically have separate source rocks, reservoir rocks and trap
rocks. The source rock contains the organic material which generates the
hydrocarbons, which then migrate out of the source rock into porous and
permeable reservoir rocks. The hydrocarbons are prevented from migrating
out of the reservoir rock (trapped) by a layer of overlying impermeable trap
rock.
Conventional Oil VS Unconventional Oil continued.........
 Unconventional Oil plays or Shale oil is extracted using unconventional methods
such as Horizontal and Multi-Stage Fraccing Stimulation Technology. The rock in this
type of unconventional accumulation is both source and reservoir. Like normal
source rocks they contain a high Total Organic Carbon content (TOC). During the
thermal generation of hydrocarbons from the organic matter within the shale, a
large amount of the generated hydrocarbons are expelled, migrating to a reservoir
or possibly escaping to the surface. However, in this type of unconventional
reservoir, a significant amount of the generated hydrocarbons remain trapped
within the low permeability shales and siltstones, hence the term oil shale.
Horizontal Drilling and Hydraulic
Fracturing
Just the beginning.....The Creation of a Energy
and Resources Company
 Name changed to Baraka Energy & Resources Limited to reflect a broader
focus on global investments into energy and resource projects
 Aim to diversify project risk
 Global demand for energy will not fade with a rapidly increasing &
diverse population, which is why energy projects will continue to be a
primary focus of Baraka
 The Board continues to seek and assess new projects, including coal
assets with early cash flow opportunities, to create shareholder value
Recent and Upcoming Activities
 A research report has now been released by Proactive Investors and
is available on the company’s website www.barakaenergy.com.au
 Quantum Partners LP, a fund managed by Soros Fund Management
and chaired by one of the world’s most successful speculators,
George Soros, has been identified as a large shareholder in Petro
Frontier. In the Boards view, this adds substantial credibility to the
area in which Baraka holds its 25% interest
 Drilling likely to commence within a short time frame
For Further Information
Collin Vost
Managing Director
Phone: 08 6436 2350
Fax: 08 9367 2450
Email: [email protected]
Postal Address:
P.O. Box 255
South Perth
WA 6951
Thank you - End of Presentation