ASX-listed Buru Energy has increased oil production by 20 per cent at its Ungani oil field in the Canning Basin east of Broome in Western Australia after successfully installing an electric submersible pump in the Ungani-5 oil production well. Average oil production rates were previously around 800 barrels per day but have now stabilised at above 1,000 barrels of oil per day.
Buru said the pump replaced an old bean pump, or ‘nodding donkey’ as they are sometimes referred to in order to increase fluid production from the well and deliver a 200 barrel per day increase in the overall field production rate.
The company also says a stabilisation of the production rate from the nearby Ungani-7 oil production well supported the overall increase in oil production rates from the field.
Buru recently completed its first oil lifting for the calendar year with 70,000 barrels of crude oil from Ungani leaving the port of Wyndham that netted the company approximately A$2.5m. Using those numbers and the prevailing oil price at time of sale, the recent 200 barrel per day uplift in production from the field could net Buru around $7,000 per day in extra revenue.
Buru’s engineers upgraded the Ungani field’s water handling system and increased handling capacity to capture and process the extra volumes of water that flow up and out of the reservoir with the oil.
The company expects the refreshed water handling capacity to cover the expected oil production from the Ungani-8 development well which is slated to be completed in this year’s dry-season drilling campaign.
The Ungani-8 oil production well will be drilled horizontally through the Ungani Dolomite oil reservoir formation and will target a potentially un-drained fault compartment of the oil field. According to Buru, Ungani-8 is re-testing the target originally attempted by the Ungani-6 horizontal drill hole.
Origin Energy is set to fund the cost of drilling two high-impact world-class oil prospects, Rafael and Kurrajong, during the current dry season. The deal with Origin gives Buru and its Ungani production partner Roc Oil some additional leverage too, with the availability of the drilling rig the key to adding another potential money-maker to the oil production well inventory at the joint ventured Ungani field.
After inking a letter of intent for an Ensign drill rig No 963, Buru is set to commence drilling operations on its ground as early as late May or June this year.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
