Buru Energy Ltd’s (ASX:BRU) exploratory drilling campaign is progressing efficiently and on schedule at the Currajong 1 exploration well within Western Australia’s Canning Basin.
The oil and gas explorer and producer recently set the first casing on the well — the first in Buru’s broader Canning Basin exploration campaign — after it spudded on July 1.
While work progresses over the Currajong 1 well, Buru has also today completed the crude oil lifting and sale process at its nearby producing Ungani oilfield.
The MT SCF Pechora vessel executed the lifting, netting around 74,000 barrels of gross crude oil, of which 50% is Buru’s share.
According to the ASX lister’s marketing agreement with BP Singapore Pte Ltd, Buru’s revenue share from the lifting is estimated to be around $3.2 million, with that figure to be finalised by month’s end.
Rig operating “efficiently and on schedule”
Buru executive chairman Eric Streitberg said: “The first part of the Currajong program has gone according to plan with the rig operating efficiently and the operation on schedule.
“We have an exciting few weeks coming up and are very much looking forward to what Currajong and then Rafael has in store for us.
“The oil lifting and sale will also provide a welcome boost to our finances in a climate of strengthening oil prices with strong global demand.”
Drilling program
After the Currajong 1 well was spudded earlier this month, Buru drilled a 445-millimetre (17½ inch) hole to the intermediate casing depth of 715.5 metres measured depth.
Since then, the 340-millimetre (13⅜ inch) casing has been run to 713 metres and cemented in place, meaning the current operation is preparing to run back in the hole to drill ahead.
The well will be drilled ahead in 311-millimetre (12¼ inch) hole to the prognosed total depth of 2,300 metres. This is expected to take approximately two weeks.
Ungani oil lifting
Buru is also primed to receive a multi-million cash injection thanks to estimated revenue from today’s Ungani oil lifting.
As part of the agreement with BP Singapore, BP has purchased the crude FOB Wyndham and will deliver the crude to a refinery in South-East Asia.
In terms of revenue, the price received will equate to the actual price BP has sold the crude to the refinery at — being a fixed differential to the average dated Brent price for July — minus shipping and associated costs.
Buru will receive 50% of this revenue, currently calculated at around $3.2 million, with the price to be finalised at the end of July.
Seismic surveys upcoming
The petroleum resource explorer has also engaged Terrex Pty Ltd to conduct a suite of seismic surveys as part of the 2021 exploration campaign.
However, due to a request from another Perth Basin operator to hold on to the surveying crew until the end of July, Buru has re-ordered some of its planned exploration work and is now poised to commence its surveying program later this month.