Buru set to grab record oil revenues from Ungani wells in WA
Link copied to
Buru is on track for record revenue from the latest lifting of about 75,000 barrels of crude oil sourced from its Ungani oil field in WA’s onshore Canning Basin.
The company expects the sale to BP Singapore at FOB Wyndham Port to deliver revenue of about $5.5m to Buru – an increase of more than $1m from the previous largest lifting in February this year.
Buru Energy (ASX:BRU) can thank high oil prices – with the benchmark Brent used to determine the FOB price currently trading at about US$115 per barrel, well above the US$90+ range in February – for this windfall.
The revenue will be prorated into the 30 June 2022 half-year accounts with the remaining amount recorded in July.
Ungani is the company’s core producing asset with average daily output of around 550 barrels of oil per day though the joint venture is evaluating the potential to boost output to take advantage of high oil prices.
Buru and its partner Sipa Resources (ASX:SRI) are preparing to drill up to four 500m diamond holes at their Barbwire Terrace project to test for geophysical and structural targets prospective for lead-zinc mineralisation.
Access tracks and drill pads have been prepared with the support of cultural monitoring by local traditional owner groups while the drill rig is expected to mobilise on site during July.
Drilling of the four holes is expected to take about four weeks to complete.
Barbwire Terrace covers more than 2,500km2 of ground in the Fitzroy Trough where historical drilling has confirmed the potential for Mississippi Valley Type base-metal mineralisation, which is similar to known Lennard Shelf deposits located along the northeastern margin of the trough.
However, Buru’s plans to carry out a further flow test of its Rafael-1 gas-condensate discovery and to acquire 3D seismic over the broader structure has hit a snag.
While planning for both activities are well advanced, the company has been informed by its 50% JV partner Origin Energy that it would need additional time to consider the required internal approvals for these operations.
This delay has the potential to cause the seismic operations to be deferred to the first half of next year though discussions are continuing in regards to the proposed flow test to align the parties on technical matters.
Rafael-1 had flowed gas at an estimated rate of 7.6 million standard cubic feet (MMscf) of gas per day with about 40 barrels of condensate per MMscf from the uncased open hole lower part of the interpreted 165m gas column in the main Ungani Dolomite reservoir section.
It currently hosts a 3C Contingent Resource of about 1.02 trillion cubic feet of gas and 20.5MMbbl of condensate.
This article was developed in collaboration with Buru Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.