Buru Energy Limited (ASX:BRU) will receive approximately $2.95 million from the latest lifting of 73,757 bbls of Ungani crude oil at Wyndham Port in northwest WA on November 1, 2019.
It was the second lifting by the new contractor Petro-Diamond Singapore Pte Ltd and was from CGL storage Tank 10 with the crude from the Ungani joint venture.
The price received FOB Wyndham is the realised Brent linked oil price less the buyer’s fixed marine transport discount.
Buru’s 50% revenue share from the lifting was provisionally invoiced at approximately $2.95 million subject to adjustment related to the average November price.
Flexible contract
Executive chairman Eric Streitberg said: “The latest oil lifting was the second with Petro Diamond and we are delighted with the relationship and the flexibility of the contract.
“The next lifting will include initial production from the current coil drilling program.”
Ungani horizontal drilling successful
The underbalanced coil drilling of the horizontal wells at Ungani 7 has progressed well with the first lateral section (U7H) having an intersection of some 290 metres of Ungani Dolomite on a flat trajectory and the second (U7H/ST1) has been completed for 145 metres of Ungani Dolomite from the kickoff point in U7H.
There were no significant drilling problems encountered in initiating the new lateral or in drilling progress.
The well has flowed oil a number of times during drilling operations and initial clean-up flows from the two well bores into the Ungani facility have given indicated rates of some 1,400 bopd.
These clean-up flow results are indicative only and do not reflect the rate of production under long-term stable flowing conditions and with a pump installed in the well.
“Exceeded expectations”
Streitberg said, “The operation of the underbalanced coil drilling system in the horizontal sections has exceeded our expectations, with excellent drilling times and concise directional control.
“The U7 well has performed in line with our predictions on clean-up flow from the two laterals and we look forward to getting the well on longer-term production.”
After U7H/ST2 is completed, the well will be put on clean-up flow and the coil tubing unit will be moved to Ungani 6H to begin the well clean-out and running of the expandable liner.
Coil drilling spread on Ungani 7H.
The Ungani 7H well is on Production Licence L20 and is 500 metres to the southwest of the Ungani 1ST1 and Ungani 2 wellheads and the Ungani Production Facility.
At Miani 1 the well has been logged with LWD on drill pipe.
Logs over the intervals where hydrocarbon shows were encountered during the drilling of the well have shown that the reservoirs associated with the shows are tight with no producible zones.
The required final cement plugs have been set in the well and the NGD 405 rig will be demobilised to Perth.
Results will be analysed to determine the significance of the hydrocarbon shows and formations encountered as well as the implications for further exploration in the area.
“We are of course disappointed that Miani 1 did not find the target formations we were hoping for,” Streitberg said, “but the strong hydrocarbon shows are a good pointer to the longer-term prospectivity of the area.
“We will be carefully analysing the data to make sure we fully understand the implications.”