Buru Energy (ASX:BRU) remains on track for a mid-year restart of its 50% owned and operated onshore Ungani Oilfield project located 150 kilometres east of Broome, Western Australia.
The program to restart production is progressing well with the modifications to the field facilities, access to Wyndham Port, and finalisation of the trucking contract all on track.
Production from the field will be trucked to the port at Wyndham and stored in an 80,000 barrel tank before being exported via ship southeast Asian or local markets.
The principal work at the field for the startup is the installation of the produced water injection system at the Ungani Far West 1 well.
Other work on the field prior to startup includes some general operational streamlining and the installation of a new load out system.
Port and trucking contract updates
The contract documentation for the use of Wyndham Port has been agreed including the crude oil storage agreement and the contractual terms with the engineering group that will undertake the upgrades at the port.
The work will include the installation of a mixer system which is commonly used for oil storage tanks with long crude residence times.
Trucking bids have also been received from several contractors.
Discussions with short listed tenderers are progressing well with contract award to be made as soon as practicable.
Background
Buru is a Western Australian oil and gas exploration and production company with petroleum assets and tenements located onshore in the Canning Basin in the southwest Kimberley region of Western Australia.
Its flagship high quality conventional Ungani Oilfield project is owned in 50/50 joint venture with Diamond Resources (Fitzroy) Pty Ltd (Mitsubishi).
As well as Ungani, the company’s portfolio includes world class tight gas resources in the Laurel Formation, with extensive 2C gas resources identified at Yulleroo and in EP 371 in the Asgard and Valhalla North wells.
Buru’s competitive advantage
Buru has been laying the foundations for long-term success in the current stabilising oil price environment.
The company has a high equity interest of ~50% in all of its core permits, with a major international partner and minimal work commitments required to maintain its land holding.
It is the operator of all of its core permits and a restart at Ungani will provide Buru with cash flow that will support unlocking further value through restarting its exploration program.
Buru has also been making progress unlocking value within its Canning Basin tight wet gas assets by successfully progressing native title agreements.