Buru Energy Ltd (ASX:BRU) remains on-track for first oil lifting from Tank 10 in Wyndham of production from its wholly-owned Ungani Oilfield in Western Australia.
Buru has an FOB Wyndham oil sales agreement with Trafigura who have advised that the MT Marlin Ametrine will be arriving to collect the first cargo of crude in early September.
Drilling rig and services contracts
Buru remains busy onsite and has now completed services contracts for the drilling rig and crew for the planned workover and drilling program.
The contracted rig is the ex-Atlas rig that has worked for Buru previously.
The rig has recently completed a program for another operator and is currently “warm stacked” in the north-west of Western Australia which assists with reducing mobilisation costs.
The rig contract, including the camp, is on an innovative fixed price basis.
Halliburton will provide ancillary services including cementing, drilling fluids, mudlogging, and wireline logging under a contract that limits Buru’s cost exposure to the duration of the program.
The planned start date for the mobilisation of the rig to site is mid-September with operations commencing in late September/early October.
Entitlement issue roadshow
Buru said that it has been receiving positive responses from its rights issue roadshow with more than 30 meetings so far with investors and shareholders in Perth, the East Coast of Australia and Singapore.
There will be more meetings in Singapore and Hong Kong this week.
Funds are to be used to accelerate the development at Ungani, including the drilling of two oil wells in 2017 on the Ungani Oilfield, with the aim of increasing production capacity and recoverable oil resources.