Buru Energy Limited (ASX:BRU) (OTCMKTS:BRNGF) (FRA:BUD) is advancing preparations for its Currajong 1 exploration well, the first well in its 2021 drilling campaign in the Canning Basin, with the Ensign 963 rig mobilised to site.
Some necessary specialised equipment being sourced from overseas by Ensign has been delayed, and before the joint venture is able to accept the rig this equipment needs to be installed and tested – meaning the well is unlikely to spud before the 24th of June.
The Currajong 1 structure is expected to be at a similar depth to the Ungani Oilfield at some 2,400 metres and to have similar seismic characteristics at the reservoir level.
The oil quality is also expected to be similar to Ungani at some 37 deg API and generally sold at a premium to Brent.
“Fully funded for 2021”
The company recently completed a $1 million SPP - adding to the funds raised from a successful $15 million share placement to institutional, professional and sophisticated investors.
Buru Executive Chairman Eric Streitberg said: “We are very pleased to have recently finished our successful capital raising and are now fully funded for the 2021 program and future activity.
“The rig up of the Ensign 963 drilling rig is going very well and the Ensign crew are very professional and experienced.
“Although commencement of the drilling program has been slightly delayed, we are being very diligent about making sure that the rig is fully fit for purpose and thoroughly inspected before we accept it and commence drilling.”
Exploration activities
On the completion of the Currajong 1 well, the rig will move to the Rafael 1 location – where the well site pad is currently being completed.
The company is also planning extensive seismic surveys (around 1,100 kilometres) as part of its 2021 exploration program, with Terrex Pty Ltd expected to be mobilised to the Canning Basin in late June or early July.
Program location map
Ungani oil lifting
The company has scheduled the next Ungani oil lifting from the Wyndham tank for early July.
Ungani production is consistently between 900 and 950 barrels per day and a series of routine production enhancements operations to ensure continuing stable production are currently being carried out.
Streitberg said “We are very much looking forward to getting to work on the wells and are very pleased with the current oil price trajectory in regard to our upcoming oil lifting and sale.”