Company
ASX:BRU
Buru Energy Ltd is an ASX listed diversified energy company focused on exploration and production of hydrocarbon and non-hydrocarbon energy resources in Australia. The company is headquartered in Perth, Western Australia with a regional operational office in Broome. It pursues the exploration, development and commercialisation of hydrocarbon resources in the onshore Canning Basin in north-western Australia.
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"This program represents a new beginning for exploration in the Canning Basin with the potential for discovery of nationally significant quantities of oil if the drilling program is successful in a strong oil price environment,” says chairm
The exploration program is targeting a total of 97 million barrels of conventional oil (mean prospective resources) from the company’s two exploration wells Currajong and Rafael.
Preparations for the spud of the Kurrajong 1 conventional oil exploration well are well advanced with the construction of the drilling pad nearing completion.
Two exploration wells are planned by Buru and partner Origin Energy targeting total mean prospective resources of 97 million barrels of conventional oil, with the first well, Kurrajong 1, expected to spud in mid-June.
Buru’s $15 million share placement attracted strong support from domestic and international investors, with bids significantly above the placement limit.
The lift in production is due to an increase in rate from the Ungani 5 well as well as the stabilisation of rates from Ungani 7.
The drilling rig for the three-well 2021 Canning Basin program has been confirmed as Ensign Rig 963, a sister rig to Ensign 970 that is operating at West Erregulla in the Perth Basin.
Under the marketing agreement with BP Singapore, the company’s 50% revenue share from the lifting is estimated at around A$2.5 million.
The company and joint venture partner Mineral Resources have been awarded block L20-1 which complements Buru’s existing assets and is strategically located close to existing gas and port infrastructure.
The exploration drilling campaign is targeting a total 97 million barrels of conventional oil and includes exploration wells at Kurrajong and Rafael prospects in addition to a development well on the Ungani Oilfield.
The three new directors bring very strong skill sets to the board, including high-level technical skills, as well as deep experience in finance, project development, renewable energy and the transition to an integrated energy future.
The transaction “affirms Buru’s view that the Canning Basin is underexplored and is an attractive area for new field exploration, building on Buru’s existing oil and gas discoveries,” says chairman.
The company’s 50% revenue share from the lifting is currently estimated at around A$1.8 million, with the price to be finalised at the end of December.
Production from the Ungani Oilfield in the September quarter totalled about 93,000 barrels (gross). Two liftings during the quarter totalled about 146,000 barrels (gross) with Buru’s 50% share of the sales proceeds estimated to be about A$3
Buru’s 50% revenue share from the lifting is estimated at between A$1.6 million and A$1.7 million, with the price to be finalised at the end of October.
The Ungani Joint Venture is undertaking technical and commercial analysis of the feasibility of further development well drilling on the Ungani Oilfield during the 2021 drilling season.
An agreement with Sipa Resources aims to use Buru’s petroleum industry technical capabilities and Sipa’s minerals exploration expertise to unlock value at the project on the Barbwire Terrace in the central Canning Basin.
Buru is receiving healthy returns on its sales of high-quality crude from the Ungani Oilfield Joint Venture onshore Western Australia.
An improving crude market has resulted in Buru’s payment share for the recent lifting increasing by approximately US$200,000.
Current field production by the joint venture at Ungani continues to be steady with all wells on production at around 1,500 barrels of oil a day.
