Search

Buru kicks off drilling of key Ungani oil production well

Buru Energy has spudded its highly anticipated Ungani-6 horizontal production well that is aimed at increasing the ASX-listed company’s oil production in the vastly underexplored Canning Basin in WA’s north.

The well is being drilled by the NGD 405 rig as a deviated well to a total depth of about 2340m to intersect the target Ungani Dolomite reservoir.

It will then be cased and suspended before the rig moves on to drill the nearby Ungani-7 horizontal production well, which has a similar configuration.

A coiled tubing unit will then be mobilised to drill the horizontal sections of both wells.

Ungani-6 is located about 160m north of the Ungani-1 and Ungani-2 wellheads and is adjacent to the Ungani production facility.

Whilst there is no way to predict how these production wells will perform, Buru previously noted that it is targeting longer-term production of 3000 barrels of oil per day, or “bpd”, from its Ungani field.

Executive Chairman Eric Streitberg said: “We are very pleased to be moving from the appraisal to the development phase of the Ungani Oilfield. The experience gained from the drilling and production of the existing vertical wells has allowed us to design the Ungani 6 and the following Ungani 7 well to maximise the production rate and oil recovery from the new wells.”

“Underbalanced horizontal drilling is routine practice in the development of similar fields and we are very pleased we have been able to source the equipment and expertise needed to undertake this operation.”

The Ungani field, which is held equally by Buru and Chinese firm Roc Oil, had 93,000 barrels of gross oil production in the March 2019 quarter from four production wells, whilst a fifth well recommenced production in mid-March following the installation of a beam pump.

Roc took up a 50% stake in the Ungani field in 2018 for a total cash payment of $64 million.

It also agreed to farm-in for a 50% interest in exploration permits EP 391, EP 428 and EP 436 by paying a further $20m of a $25m exploration program for up to four wells.

The first well of this exploration program is Yakka Munga 1, which targets the oil-bearing Reeves Formation sandstones.

Buru could see a significant boost to its oil production and revenues if the Ungani horizontal production wells are ultimately successful.

This would give the company a stronger base to drive further oil exploration in the Canning Basin.

Add your comment

Buru Energy (BRU)

Share Price

Closing price for the last 90 trading days
Source: Morningstar

BN30 Index

Index = 100 as of 4 Jan 2016
Source: Morningstar

Top 10 Shareholders

Substantial shareholders as published in the annual report.
Source: Morningstar

Total Shareholder Return as at 31/10/19

1 year TSR5 year TSR
159thTap Oil44%-24%
209thBCI Minerals30%-28%
486thBuru Energy-14%-20%
532ndPanoramic Resources-21%-10%
730 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
Source: Morningstar

Share Transactions

19/10/18
$2.1m Sold
11/09/17
$7k Issued
11/09/17
$3k Issued
Total value as at the date of the transaction
Source: Morningstar

Revenue

35th↑BCI Minerals$73.2m
36th-Tap Oil$70.4m
37th↑Buru Energy$56.2m
38th↑MZI Resources$54.2m
39th↑Panoramic Resources$51.9m
485 listed resources companies ranked by revenue.
Source: Morningstar

BNiQ Disclaimer