Buru Energy (ASX:BRU) has now completed the initial field testing and commissioning program as part of its restart of production from its 100% owned Ungani Oilfield in Western Australia.
The field is located in the Canning Basin and will produce at some 800 barrels of oil per day while the transport system is fully commissioned, with progressive steps up to the target production rate of 1,250 bopd.
Oil is currently being trucked from the Ungani Oilfield to the Wyndham Port with first oil now delivered using a new quad road tanker system.
Phase 2 now underway
Further development of the field is being undertaken in phases with the start-up of production being the completion of Phase 1.
Phase 2 will involve the installation of downhole pumps and their associated control and power systems in the Ungani 1 and 2 wells, and an upgrade to the fluid handling system, including additional tankage.
This phase is now underway with the long lead items for the artificial lift system being ordered.
These include the downhole pumps and ancillary well equipment.
Discussions with rig suppliers are also underway to ensure that a rig is available as required to install the pumps.
These discussions indicate that a cost effective solution will be available in the time frame required later this year.
Phase 3
Phase 3 is aimed at the incremental development of the field and will include additional drainage points to capture the identified resources.
The candidates being reviewed include the Ungani 3 eastern field area and a further development well, Ungani 4, to capture production from what is currently interpreted to be undrained areas of the field.
Success in Phase 3 has the potential to significantly increase proven Ungani oil reserves and provide a pathway to an export system through Broome.
Oil sales
Currently, the oil is being trucked to Wyndham Port, where it is stored in a successfully modified 80,000 barrel storage tank.
Negotiations with potential oil marketing parties are ongoing with strong interest shown for the high-quality Ungani crude, particularly for the larger parcels from the enhanced export system with the larger tank.
The first lifting is likely to be in September and marketing arrangements need to be in place to capture the most value from the sale process.