28/09/2020 - 18:11

Buru set to beat $1.6m from latest Ungani oil sale

28/09/2020 - 18:11

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Buru Energy will swell its coffers for a second time this financial year with the latest crude oil sale from its Ungani oil field in WA’s Canning Basin. The current oil lifting of 71,038 barrels is expected to net the company between $1.6m and $1.7m for its share of the sale by the Buru-Roc Oil joint venture to BP Singapore Pte Ltd.

Its déjà vu for the Perth-based oiler as Buru Energy swells its coffers for a second time this financial year with the latest crude oil sale from its Ungani oil field in WA’s Canning Basin.  The current oil lifting of 71,038 barrels is expected to net the company between $1.6m and $1.7m for its share of the sale by the Buru-Roc Oil joint venture to BP Singapore Pte Ltd, or “BP”.

Whilst a few thousand barrels shy of its July lifting, Buru Energy looks set to pocket a similar amount of cash from its first lifting under the new marketing arrangement with BP.  Buru said BP has purchased the crude oil ‘free-on-board’ at Wyndham for delivery to a refinery located in SE Asia.

Under the marketing contract with BP, the price received by the Buru-Roc JV will be the actual price BP sells the crude to the refinery.  According to Buru, the price realised will be a fixed differential to the average dated Brent price for the month of October, less shipping and associated costs, with the price finalised at the end of October.

Buru said the Ungani oil field continues to tick over at a production rate of around 12,00 barrels of crude oil per day with the next lifting due in late November this year.

Elsewhere in its portfolio, Buru said operations are underway at its Ungani Far West-1 well where oil was discovered in the Ungani Dolomite reservoir below 2,400m and 85,000 barrels of oil was produced.

The company now has its eyes fixed on a 5m net reservoir zone at around 1,500m in the top of the Reeves Formation where oil was recovered from the original discovery well. 

Buru said it is preparing the well to test the new, shallower oil zone in the next week or so once personnel are released from other work in the Dongara area of Western Australia.

Any success would no doubt be a shot in the arm for the Eric Streitberg-led oiler as it looks to maintain its overall oil production rate and court a new exploration drilling partner.

 

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

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