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Buru Energy moving steadily towards 1,800 barrels of oil per day at Ungani Oilfield

Published: 15:18 23 Jul 2018 AEST

Ungani production operations
Ungani production operations

Buru Energy Limited’s (ASX:BRU) production optimisation activities at the Ungani Oilfield are continuing with well operations at Ungani 4 and Ungani 5 close to completion.

At Ungani 4 the beam pump was successfully installed and the well is now producing at the currently configured pump capacity of about 440 barrels of fluid per day with oil production of about 310 barrels of oil per day (bopd), which is in line with expectations.

The Ungani 5 well was put back on production as of 21 July and is currently being flow rate tested.

Total field production with all wells on stable production is expected to be up to 1,800 bopd.

WATCH: Buru Energy accelerating exploration efforts following Roc Oil transactions

In May 2018, Buru entered into a transaction to sell 50% of the Ungani Field to Roc Oil (Canning) Pty Limited.

Under the terms of the agreement, Buru received $13 million of the purchase price immediately with the remaining $51 million of the purchase price payable upon the approval and registration of the Ungani production licence transfers.

This registration process is the responsibility of Roc and is being progressed as expeditiously as possible.

Forward plan

Buru is well funded with about $20 million in cash as of 30 June 2018 prior to the receipt of the remaining funds from Roc.

The company’s 2018 rig operations program is planned to commence in late August with a partial carry through the exploration program by Roc.

Ungani field rig operations will include the installation of a downhole pump in Ungani 5 and either optimisation work on Ungani 4 or potentially a new horizontal well.

The rig program will also include two exploration/appraisal wells, Ungani West and Kurrajong, and a contingent well at Yakka Munga dependent on weather conditions.

Work is continuing on preparation of the DDGT1 rig for this program and on the sourcing of long lead drilling items, all of which are proceeding on schedule.

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