Buru Energy Ltd (ASX:BRU) is set to boost its finances by approximately A$3.7 million on receiving payment from the latest lifting of Ungani crude oil from Wyndham Port.
The lifting was completed on Tuesday evening by the MT SCF Pechora for a total of approximately 74,000 barrels gross with Buru Energy’s share being 50%.
In line with a marketing agreement with BP Singapore Pte Limited covering production from the Ungani Oilfield joint venture, BP has purchased the crude FOB Wyndham and will deliver it to a refinery in Southeast Asia.
Strong Brent price
The price received by the JV partners from BP is a fixed differential to average dated Brent oil price for the month of October.
Based on the current strong Brent price, Buru’s 50% revenue share from the lifting is estimated at approximately A$3.7 million.
The timing of the lifting coincides with strong oil market fundamentals as evidenced by the Brent crude price rose that this week has increased by US$1.35 to US$83.74 a barrel, representing a three-year high.
Stable production rate
It also comes as Ungani Oilfield, which is onshore in the Canning Basin of northwest Western Australia, continues to produce at a stable rate of around 800 barrels of oil per day.
Buru Energy is aiming to increase field production through an aggressive exploration drilling campaign.
The Ungani 8 well is planned to be drilled at the conclusion of the Rafael 1 exploration well.
Ungani 8 is designed as a horizontal well to be drilled into the potentially undrained fault block originally targeted by the Ungani 6H well.