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Buru Energy restarts production from Ungani Oilfield

Buru’s immediate focus is maximising cash flow from oil production.
Buru Energy restarts production from Ungani Oilfield
Ungani storage tanks

Buru Energy (ASX:BRU) has re-commenced oil production from its Ungani Oilfield located in the Canning Basin in northwest Western Australia.

The field restart program was completed on time and under budget with no incidents.

During the next week, a series of reservoir performance tests will be carried out to gather reservoir information from the field.

Oil will be produced into the onsite storage tanks during this phase with the first truck loading for transport to Wyndham Port expected to be late this week.

A further update will be provided once the test program is completed and routine production operations are underway.

Eric Streitberg, executive chairman, commented: “We are delighted to be able to report that we are back in production.

“The small and dedicated Buru team have done a great job to deliver the restart on time and on budget.

“The restart comes soon after our recent transaction with Mitsubishi which saw us acquire the 50% of the field we didn’t already own, and gives us access to 100% of the cash flow from the field.”


Recent deal with Mitsubishi

Buru recently entered into a transformational transaction with its joint venture partner on its exploration and production assets in the Canning Basin.

The deal is an asset swap to allow each company to achieve their corporate objectives by focusing on the areas where they have the most appropriate technical and commercial capability.

Buru gains access to 100% of the cash flow from the producing Ungani Oilfield , together with 100% of the highly prospective exploration permits covering the Ungani oil trend, and continued exposure to the Laurel Tight Gas accumulation.

In return, it gives joint venture partners, Mitsubishi full access to the EP 371 (Valhalla) gas resources with the ability to progress the appraisal of the resource in a timeframe and commercial structure most suitable for them.


Analysis

Buru is one of the few companies of its size that has a substantial early life conventional oil production asset and a diverse conventional oil exploration portfolio.

After the reservoir data acquisition program is completed Buru will be looking to increase production to a steady 1,250 barrels a day while it works on the next phase of development of the field.

Buru’s immediate focus is maximising cash flow from the oil production from the Ungani field and it is working on a program to enhance and increase oil production through the rest of 2017.

Focus, discipline and perseverance are beginning to transpire into results for a reborn Buru.



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