Buru ships more oil as testing crew quarantines

Oil and gas producer Buru Energy is one step closer to another commercial gas field at its Rafael-1 discovery in the Canning Basin after the testing crew crossed WA’s borders in advance of kicking off the highly anticipated well test. 

The test crew started 14 days quarantine in Perth on Saturday before heading to site for the 10-day testing program.

Buru took advantage of the brief lull to ship another cargo of crude oil from the Ungani field out of its Wyndham Port storage facilities.  The company said 70,000 barrels, or “bbls” had been loaded onto the Hafnia Karava tanker on Sunday morning destined for BP Singapore.

Based on the current very strong Brent oil price of US$93.08 per barrell, Buru’s said its 50 per cent revenue share from the lifting is estimated at approximately $4.1 million.

The Rafael test program will include a series of flow periods and shut-ins, critical steps in determining the reservoir’s deliverability, gas composition,  fluids, pressures and potential boundaries.

The specialist testing crew for the campaign has finally been mobilised from Queensland and South Australia after being locked out of WA for months due to Covid-driven border restrictions.  The testing equipment has been idle on site for months.

When drilled in 2021, the Rafael 1 well encountered an interpreted series of significant gas columns and was suspended pending a flow test of the Ungani Dolomite equivalent reservoir section.

Buru says analysis of petrophysical and wireline data from Rafael’s net reservoir section suggests the zone is similar to the dolomite reservoir at the nearby producing Ungani oilfield.

Elsewhere, drilling operations are continuing on the Ungani 8 horizontal well under the stewardship of partner ROC Oil after Buru elected not to participate further after early difficulties were encountered and a sidetrack was required that exceeded the initial drilling budget. 

If the well is successful, Buru can regain its equity position after paying clawback penalties.

Buru is generating very handy cash flow from the Ungani field in this strong oil price environment.  If the Rafael discovery gets the nod, it will add significantly more barrels per day to its cash flow forecasts and generate many more development opportunities.

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