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Buru Energy Ltd

Buru Energy ships 70,000 barrels of oil in March lifting as production remains steady at Ungani

Three firm and up to 6 wells total under technical and corporate review and finalisation by the company.

existing cleared area
The Ungani 6 well will be drilled from an existing cleared area

Buru Energy Ltd (ASX:BRU) has completed a further oil shipment from its Ungani operations onshore Western Australia, with a lifting of 70,278 barrels by Trafigura from the storage tanks in Wyndham Port on March 12, 2019.

Wyndham ship loading

The interim receipt to Buru (net of shipping cost allowance) was about $3 million. The previous lifting was completed on January 1, 2019 for 69,686 barrels (gross).

Ungani production operations

The northern wet season has seen lower than average rainfall in contrast to last year’s flooding events.

There have been some short periods of precautionary closures of the Ungani access road but these have not affected production.

The Ungani 4 ST1 well is now back on production with a beam pump and is delivering some 200 barrels of oil per day during a test phase.

It is intended to reconfigure the downhole completion when the wireline unit to be used for the drilling program becomes available and this is expected to increase the oil rate.

Overall field production is averaging some 1,200 barrels of oil per day.

2019 drilling program

Ungani Development wells

Following a detailed technical review of the drilling operation and logistics the Buru/Roc Joint Venture has now agreed to drill two horizontal development wells on the Ungani Oilfield.

These wells will be drilled back to back to maximise operational efficiency.

The Ungani 6 well will be drilled from an existing cleared area adjacent to the Ungani Production Facility.

The well pad is currently under construction and will be completed in time for the arrival of the first of the rig components in April with a planned early May well spud.

Exploration wells

The third well in the joint venture drilling program will be Yakka Munga 1 which is a wildcat exploration well on the regionally significant Yakka Munga structure.

Yakka Munga 1 will be drilled to a maximum total depth of some 2,400 metres with its principal objectives being the Reeves Formation sandstones which are oil bearing in the Ungani Far West 1 well.

Detailed technical work is ongoing on the Rafael prospect as the potential fourth well in the program following Yakka Munga 1, during the third quarter this year.

This technical work includes reprocessing of the seismic data over this large structure and further quantification of the source, seal and reservoir parameters for the prospect.

Similar due diligence work is underway on the Hotdog prospect, the Emanuel prospect, and the production testing of potential bypassed oil zones in the Yellowdrum Formation at the Blina Field, all of which lie in the 100% Buru owned Lennard Shelf areas.

Quick facts: Buru Energy Ltd

Price: $0.29

Market: ASX
Market Cap: $123.14 m
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Buru Energy (ASX:BRU) is an Australian listed oil and gas exploration and production company. They’re focused primarily on the petroleum resources of the Canning Superbasin – in  Western Australia.

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