Buru Energy Limited (ASX:BRU) (OTCMKTS:BRNGF) (FRA:BUD) has completed the latest lifting of Ungani crude oil from Wyndham Port today by the MT SCF Pechora for a total of 70,000 barrels (gross).
BP Singapore Pte Limited (BP) have purchased the crude FOB Wyndham (as per the marketing agreement) and will deliver the crude to a refinery in SE Asia.
Under the marketing contract, Buru’s 50% revenue share from the lifting is currently estimated at around A$2.5 million, with the price to be finalised at the end of April.
Ungani Oilfield production
Production from the Ungani Oilfield has continued to be impacted by wet weather with the access road being closed intermittently due to heavy rainfall.
Late wet season rains have also resulted in the periodic closure of the Great Northern Highway export route to all traffic.
This has resulted in a later than expected oil lifting, however the increase in the oil price from the previous liftings has been a compensating factor to the lower production volumes.
Production in line with field reservoir modelling
Production from the existing Ungani Oilfield wells is declining largely in line with field reservoir modelling, with continuous improvements being implemented to optimise field performance, including a recent upgrade of the produced water injection capacity.
The Ungani 7H well continues to produce below expectations with a recent workover to reconfigure the tubing in the well resulting in lower than expected improvements in oil rate.
Subsequently, a larger electric submersible pump (ESP) was installed in the well and the company anticipated this will improve the overall oil rate from the well.
An ESP is also planned to be installed in the Ungani 5 well on 12 April to increase the fluid production rate from the well.
Acquisition of a larger ESP for installation in the Ungani 1ST1 or Ungani 2 well is also underway.
Field production is currently in excess of 800 barrels of oil per day and this is expected to stabilise and improve when the upcoming ESP installations are completed.
Ungani 8 well drilling planned
In order to maximise future production and oil recovery from the field, the Ungani Joint Venture has agreed to drill a further well on the field (Ungani 8) utilising the rig being mobilised to drill the Kurrajong 1 and Rafael 1 exploration wells.
The Ungani 8 well is planned to be drilled as a horizontal well into the potentially undrained fault block originally targeted by the Ungani 6H well.