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Buru Energy to ramp up oil production from Ungani oilfield

The oil price has more than doubled since early 2016 to over US$70 per barrel.
concept of rising oil price
Shares in the company last traded at 38.2 cents

Buru Energy Ltd (ASX:BRU) is producing from the Ungani 1 and Ungani 2 wells at a combined rate of up to 1,700 barrels of oil per day (bopd) on low pump rate settings as expected.

Both Ungani 4 and Ungani 5 are now connected to the production facility and will move into production shortly.

The combined wells will be produced over the next few weeks at target production rates up to 2,500 bopd.

READ: Buru Energy has oil flowing again at Ungani project in Western Australia

Oil is trucked from the Ungani oilfield to the storage tank at the Port of Wyndham for eventual shipping.

22,500 barrels of oil is in the storage tanker at Wyndham, which is expected to be lifted for shipping in the first week of June.

Benefitting from an oil price of around A$100 per barrel

The next shipment of oil will be the first cash flow for Buru since operations at Ungani were suspended due to weather.

A strengthening oil and price, combined with a weakening Australian dollar means the oil price has traded around A$100 per barrel recently.

High-value assets in Canning Basin

Buru’s petroleum assets and tenements are onshore in the Canning Basin in the southwest Kimberley region.

While the flagship Ungani project is a high-quality conventional asset, Buru has an active exploration program aimed at increasing its oil resources.

Analysts at Hartleys value the company as 61 cents per share.

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