17/07/2020 - 15:14

Buru looking to land $1.6m from latest Ungani oil sale

17/07/2020 - 15:14

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Buru Energy has continued to swell its coffers with the first crude oil sale of the financial year from its Ungani oil field in WA’s Canning Basin. The latest oil lifting of 74,819 barrels is expected to net Buru around $1.6m for its share of the sale by the Buru-Roc Oil joint venture sold on a spot price basis.

Buru Energy has continued to swell its coffers with the first crude oil sale of the financial year from its Ungani oil field in WA’s Canning Basin. The latest oil lifting of 74,819 barrels is expected to net Buru around $1.6m for its share of the sale by the Buru-Roc Oil joint venture sold on a spot price basis.

Consistent with sales under previous offtake agreements, the price received, free-on-board at Wyndham will be the realised average dated Brent oil price for July, less the buyer’s fixed marine transport discount.

With approximately $30m cash in the bank Buru executive chairman, Eric Streitberg said the company remains in a strong cash position and combined with its high-quality exploration portfolio, well-placed to weather the fiscal fog of the global COVID-19 pandemic.

Buru said it will continue to optimise production at its Ungani oil field with a workover underway to install an electric submersible pump on the Ungani-7 oil well.  The company said it already has submersible pumps installed in the Ungani-1, ST1 and Ungani-2 production wells where pumps have proven to be reliable and effective.  A recompletion is also planned for the Ungani Far West-1 oil well.

The last oil sale of over 74,000 barrels was just shy of the 76,817 barrels sold back in May, suggesting a relatively stable sales pipeline every two months or so, with management expecting the next sale of crude oil to occur in early October this year.

Elsewhere, Bennet Resources is submitting plans to the WA regulator for half a dozen wells on-trend with Buru’s Canning Basin ground and US independent oiler, Black Mountain’s chief operating officer, Ashley Zumwalt-Forbes, is touting the potential for unconventional gas resources in the Canning to energy shortages in eastern Australia.

Whilst Buru has tested its own ground around Ungani with substantial contingent gas and condensate resources booked just up the road at Yulleroo, this renewed interest in the Canning Basin should help Buru in its hawking efforts for a new partner to farm into its own oil and gas exploration portfolio.

 

Is your ASX listed company doing something interesting? Contact: matt.birney@businessnews.com.au

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