Buru Energy Ltd (ASX:BRU, OTC:BRNGF) reveals that fast-tracked processing of the Rafael 3D seismic survey has delivered a significant data quality uplift from the vintage 2D seismic survey and reconfirmed the potential of the significant Rafael conventional gas and condensate resource.
The fast-track processing of the Rafael 3D seismic survey was undertaken by RealTime Seismic (RTS) in Australia and in France.
Early interpretation insights from the wider 3D data set outside the Rafael structure also showed encouraging prospectivity including areas that were not apparent on the vintage data. These areas include both potential for backfill opportunities for Rafael and new play types.
Buru says that the uplift in data quality seen on the fast-track processed volumes to date provides confidence that a more detailed stratigraphic interpretation of the Rafael reservoir will be possible. This will assist in appraisal well location planning and quantification of the reservoir geometry.
A second seismic processing contractor, Earth Signal Processing Ltd in Canada has been processing the Rafael 3D seismic data in parallel with the fast-tracked processing effort.
This processing is applying more detailed and sophisticated techniques, including Post Stack Depth Migration (PSDM) volume, that are more time and resource-intensive than the fast-track processing, providing more definitive depth modelling of the structural form of the Rafael accumulation.
Specialist carbonate reservoir analysts Cambridge Carbonates has been contracted to further assist Buru in this reservoir analysis, by reviewing the data and providing insights from experience with similar reservoirs.
Once the PSDM seismic volume has been received and any insights provided by Cambridge Carbonates have been incorporated, a full review of the potential resources of the Rafael accumulation will be completed.
Partner selection ongoing
The company also advises that the strategic partner selection process for the appraisal and development of its 100%-owned Rafael conventional gas and condensate resource is continuing, with ongoing technical and commercial due diligence being undertaken by Australian and International parties.
Buru says it has initial interest from parties seeking exposure to a standalone Rafael gas and condensate development, potential Canning Basin resource upside and the possibility of co-located Carbon Capture and Storage to enable greenfield development.
The due diligence process is expected to continue into next quarter as the final Rafael 3D seismic survey products and individual interpretation of results by the respective parties are also key inputs to this process.
Ungani asset
Buru has also received $3.4 million from Roc Oil Company (ROC) in consideration for releasing ROC from future potential decommissioning liabilities at Ungani Oilfield.
Buru assumed full ownership of the Ungani Oilfield last September, following an agreement for ROC to assign its 50% interests in the field to Buru. That followed the decision to suspend operations at the Ungani Oilfield in late August 2023 due to ongoing uncertainties related to the availability of the Fitzroy River crossing — a critical piece of infrastructure along the export route from the Ungani Production Facility to Wyndham.
A new permanent bridge across the Fitzroy River was opened six months ahead of schedule in December, creating an opportunity for Buru to explore various technical, logistical, and commercial options for the future of the Ungani Oilfield.
ROC had remained liable for its share of costs associated with the near-term staged suspension of operations, and future decommissioning costs wells.
Buru has now successfully negotiated with ROC to immediately monetise ROC’s share of liability for costs associated with future decommissioning activities with Buru receiving the $3.4 million from ROC, previously secured by a parent company guarantee, and releasing ROC from its future decommissioning activity obligations.
Withdrawal from exploration permit 458
Finally, Buru has withdrawn from the non-core, low prospectivity exploration permit EP 458 in the Canning Basin, in a remote area east of the main prospectivity trends. As a result of previous exploration activity in the area by Buru, this permit is considered to have low prospectivity with no drillable targets.
As operator, Buru has recommended that the EP 458 joint venture parties (Buru Fitzroy Pty Ltd 60%, Rey Resources 40%) not enter into the next permit year and to surrender the permit. Buru has assigned its 60% interest and operatorship of the permit to Rey.