Buru Energy Ltd (ASX:BRU) has identified the Miani 1 well as an excellent exploration opportunity with the potential to confirm a new exploration play type with a portfolio of low-cost, high-value targets in Buru’s 100% held production and exploration acreage on the Lennard Shelf in WA.
Miani 1 is a relatively shallow (~2,400 metres) and low-cost prospect in a location with good infrastructure and a long history of oil exploration and production.
It is an attractive prospect for a number of reasons including significant potential prospective resources and confidence in delivering the well on time and budget given the drilling history and geological control from close offset wells.
Drilling this high impact exploration prospect on a 100% cost and equity basis therefore exposes Buru to a more appropriate level of commercial risk at this time as compared to the deeper and higher cost Rafael prospect.
2019 program: indicative timetable
Buru executive chairman Eric Streitberg said: “The company remains very committed to the testing of the Rafael prospect and will undertake the drilling as soon as practicable in the context of what is the best commercial outcome for the company and the best value proposition for shareholders.
“The deferment of the drilling of Rafael 1 until after the final costs of the Ungani production enhancement program are to hand, the anticipated increase in Ungani field performance and cash flow is confirmed, and the broader JV exploration structure is resolved, will allow the well to be drilled in a more commercially appropriate framework.
“The Miani 1 well is an excellent exploration opportunity which has the potential to confirm a whole new exploration portfolio of low-cost, high-value targets in Buru’s 100% held production licences and exploration permits on the Lennard Shelf.
“The Lennard Shelf acreage has good all-weather access and infrastructure, and a long and well supported history of oil production.
“Buru’s extensive range of other activities in 2019 are on track, including the potential for the renaissance of the Blina Field, the initial quantification of the flow potential of the gas resources of the Yulleroo Field and the testing of Ungani North.
“These activities have the potential to add considerable short to medium term value to the company.
“We look forward to delivering these projects.”