Proactiveinvestors Australia Buru Energy Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia Buru Energy Ltd RSS feed en Sat, 25 May 2019 03:09:01 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - Buru Energy on schedule with Ungani 6H well drilling program ]]> https://www.proactiveinvestors.com.au/companies/stocktube/13468/buru-energy-on-schedule-with-ungani-6h-well-drilling-program-13468.html Thu, 23 May 2019 20:17:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/13468/buru-energy-on-schedule-with-ungani-6h-well-drilling-program-13468.html <![CDATA[News - Buru Energy starts intensive campaign aiming to increase production and drill high potential exploration wells ]]> https://www.proactiveinvestors.com.au/companies/news/220276/buru-energy-starts-intensive-campaign-aiming-to-increase-production-and-drill-high-potential-exploration-wells-220276.html Buru Energy Limited (ASX:BRU) has started its 2019 works program focused on drilling of exploration and development wells with strong potential to increase production at the Ungani Oilfield Joint Venture in WA’s northwest.

An extensive development, appraisal and exploration program by Buru and JV partner Roc Oil Company (ROC) is expected to take up most of the 2019 drilling season.

Mobilisation of an NGD 405 drilling rig, the coil tubing drilling unit and various ancillary services into the Canning Basin has seen the JV begin drilling of Ungani 6H well.

READ: Buru Energy spuds Ungani 6 development well

The rig has drilled and cemented the surface casing section to a depth of 945 metres.

This program has been successful with minor rig maintenance downtime as expected during start-up.

It is intended to drill the directional section to intersect the top of the Ungani Dolomite reservoir before running the next casing string and suspending the well for the Coiled Tubing Underbalanced Drilling (CTD-UBD) penetration of the reservoir.

The partners have agreed to the initial activity program for the JV, and technical work is continuing to firm up the remainder of the drilling and operations program.

Levels of equity participation in the activities will be confirmed as discussions with the JV and potential farm-in parties are concluded.

Ungani Oilfield location map.

Construction has been completed at the Ungani 7H drilling site, which is the next component of the program.

This well will be adjacent to the Ungani 4 well pad, which gives the optimum directional angle for drilling to the Ungani 7H bottom hole location.

The JV is finalising the technical review of the bottom hole location for the Ungani 7H horizontal well.

READ: Buru Energy on fast-track to start new drilling program at Ungani Oilfield JV

Drilling and casing of the deviated section of the Ungani 6H well to the point of intersection of the Ungani reservoir is expected to be finalised by the end of May.

The NGD 405 rig will then be moved to drill and case the equivalent pre-reservoir section on Ungani 7H, after which the rig will be moved to the Yakka Munga 1 exploration well location.

Following completion of drilling and casing at Ungani 6H and Ungani 7H the CTD-UBD package will be mobilised to drill the respective underbalanced horizontal reservoir sections in these two wells.

Yakka Munga 1 preparations

At Yakka Munga 1 the access road and site clearing works have been completed.

All ground disturbing activities having been carried out under the on-site supervision of Traditional Owner heritage monitors and in close consultation with pastoralists who manage Yakka Munga station.

Site works at Yakka Munga 1 (left) and Yakka Munga heritage monitors.

Technical work on the Rafael 1 prospect will be finished shortly and the prospect will then be considered by the JV.

In order to ensure Rafael 1 is drill ready at the conclusion of the Yakka Munga 1 drilling, the access road and drill pad is being constructed and the long lead items for the well have been sourced.

Buru is also progressing technical work on the Miani (Hotdog), Blina Yellowdrum and Lennard Shelf prospects as well as the Yulleroo conventional gas project.

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Wed, 15 May 2019 16:01:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220276/buru-energy-starts-intensive-campaign-aiming-to-increase-production-and-drill-high-potential-exploration-wells-220276.html
<![CDATA[News - Buru Energy spuds Ungani 6 development well ]]> https://www.proactiveinvestors.com.au/companies/news/219699/buru-energy-spuds-ungani-6-development-well-219699.html Buru Energy Ltd (ASX:BRU) spudded the Ungani 6 development well at 4:40 hours on Saturday, May 4, 2019, at the Ungani Oilfield joint venture project in WA.

The Ungani 6 well surface is on Production Licence L20, 160 metres to the north of the Ungani 1 and 2 wellheads and immediately adjacent to the Ungani Production Facility.


NGD 405 rig at Ungani 6 location

Buru Energy and Roc Oil (Canning) Pty Ltd each have a 50% equity interest in the well and in L20.

Buru’s executive chairman Eric Streitberg said: “We are very pleased to be moving from the appraisal to the development phase of the Ungani Oilfield.

“The experience gained from the drilling and production of the existing vertical wells has allowed us to design the Ungani 6 and the following Ungani 7 well to maximise the production rate and oil recovery from the new wells.”

The Ungani 6 well is being drilled by the NGD 405 rig as a deviated well to a total measured depth of about 2,340 metres to initially intersect the Ungani Dolomite reservoir.

The well will then be cased and suspended, and the rig released to drill the Ungani 7 well in a similar configuration, after which the rig will be moved to the Yakka Munga 1 exploration well site.

 

The horizontal underbalanced Ungani Dolomite reservoir sections of both Ungani wells will then be drilled with the Haliburton coil tubing unit.

The initial Ungani 6 drilling operations with the NGD 405 rig are expected to take some 20 days.

Prior to the coil tubing drilling (CTD) operations both wells will be tied back to the Ungani Production Facility so that production from the wells will be able to be commenced shortly after CTD operations are completed.


Ungani 6 schematic well path

Streitberg added: “Underbalanced horizontal drilling is routine practice in the development of similar fields and we are very pleased we have been able to source the equipment and expertise needed to undertake this operation.

“We look forward to a successful outcome with the initial Ungani development well program and our subsequent high impact exploration drilling campaign in the remainder of 2019.”

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Mon, 06 May 2019 12:13:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219699/buru-energy-spuds-ungani-6-development-well-219699.html
<![CDATA[Media files - Buru Energy enjoys Ungani success ahead of major drilling program ]]> https://www.proactiveinvestors.com.au/companies/stocktube/13014/buru-energy-enjoys-ungani-success-ahead-of-major-drilling-program-13014.html Tue, 16 Apr 2019 01:11:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/13014/buru-energy-enjoys-ungani-success-ahead-of-major-drilling-program-13014.html <![CDATA[News - Buru Energy on fast-track to start new drilling program at Ungani Oilfield JV ]]> https://www.proactiveinvestors.com.au/companies/news/218460/buru-energy-on-fast-track-to-start-new-drilling-program-at-ungani-oilfield-jv-218460.html Buru Energy Limited (ASX:BRU) is rapidly advancing preparations for a new drilling program at the Ungani Oilfield joint venture onshore in WA ’s southwest Kimberley region as it seeks to add to the oil bounty.

Preparations at the Ungani 6 well site have been completed with the drill pad liner installed and the drilling cuttings sump completed and lined.

Three wells planned

Site works at the Ungani 6 well location.

Work has also started on the Ungani 7 drilling pad which is adjacent to the Ungani 4 well, and this is expected to be completed shortly.

Civil works contractors will then start work on the Yakka Munga 1 well site at the JV with Roc Oil (Canning) Pty Limited in the Canning Basin.

Early site works at the Ungani 7 location.

These wells will be drilled with an NGD Loc 405 rig which is being transported to the site from Perth.

Mobilisation of the rig began on April 10 and is expected to be completed today with all 44 loads expected to be in place at the Ungani 6 well site by Saturday, April 13.

Containerised configuration

Loadout of the rig has been facilitated by its containerised configuration.

A rig support camp is being rigged up and the rig-up crew is due at the site today.

READ: Buru Energy to restart drilling efforts in June quarter

NGD Loc 405 will then be assembled, a task simplified by its modular nature, with a final acceptance inspection to be carried out before the well is spudded.

The section of the well to be drilled by the rig to the top of the Ungani reservoir is expected to take about three weeks to drill and case.

READ: Buru Energy buoyed by review which indicates strong gas and liquids potential for Butler conventional sand prospect

When this is completed, the rig will be moved to drill and case the equivalent pre-reservoir section on Ungani 7, after which the rig will move to the Yakka Munga 1 exploration well location.

Buru expects this sequence will be completed around mid-June when the Coiled Tubing Underbalanced Drilling (CTD-UBD) package will be mobilised to drill the underbalanced horizontal reservoir sections in Ungani 6 and Ungani 7.

All ground disturbing activities have been carried out under the on-site supervision of Traditional Owner heritage monitors.

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Fri, 12 Apr 2019 12:33:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218460/buru-energy-on-fast-track-to-start-new-drilling-program-at-ungani-oilfield-jv-218460.html
<![CDATA[News - Buru Energy buoyed by review which indicates strong gas and liquids potential for Butler conventional sand prospect ]]> https://www.proactiveinvestors.com.au/companies/news/218370/buru-energy-buoyed-by-review-which-indicates-strong-gas-and-liquids-potential-for-butler-conventional-sand-prospect-218370.html Buru Energy Limited (ASX:BRU) is encouraged by an independent review that confirms the potential for significant gas and liquids resources at the Butler Sand prospect in the northern Canning Basin near the WA town of Derby.

The report by globally recognised independent specialist resource assessment consulting group ERC Equipoise Pte Ltd (ERCE) was commissioned by two interest holders in two exploration permits – Buru and Doriemus PLC (ASX:DOR).

READ: Buru Energy to restart drilling efforts in June quarter

ERCE confirms the view of the interest holders that the prospect has the potential to host a very significant conventional gas and liquids accumulation in conventional Butler Sands.

It estimates gross unrisked mean prospective resources of 3.14 TCF of recoverable gas, with an associated 42 million barrels of condensate.

Prospective recoverable gas resources in the Butler Sand prospect by permit and equity interest.

The Butler undrilled exploration prospect is a regionally significant onshore conventional gas, condensate and oil prospect that straddles permits EP 487 and EP 129.

Doriemus chairman David Lenigas said: “This is a great result and gives us the confirmation we need to aggressively pursue the drilling of this prospect.”

His sentiments were echoed by Buru’s executive chairman Eric Streitberg: “We are very excited to have identified a play that we have been chasing in the Canning for some years and to now have a chance to get it tested, and will work closely with Doriemus to help them achieve their objective of getting the well drilled this year.”

READ: Buru Energy ships 70,000 barrels of oil in March lifting as production remains steady at Ungani

The Butler prospect is mapped on good quality 2D seismic data and this demonstrates that the prospect is principally contained in two permits, EP 487 with Doriemus farming in to earn a 50% interest from the 100% interest held by Rey Resources Limited (ASX:REY), and EP 129 held 100% by Buru.

Location of the Butler prospect.

ERCE has further identified that the regionally pervasive Basin Centered Gas System (BCGS) accumulation in the Laurel Formation is also likely to be present in the permits, including underlying the conventional Butler Sand prospect.

This accumulation is likely to have contributed to the source of the potential gas and liquids accumulation in the Butler Sand, and to also contain significant quantities of gas and liquids in tight sands.

Streitberg said: “The Butler Sand prospect is a unique and extremely attractive play.

“The Butler area appears to have a very different Laurel Formation depositional history to other areas of the basin, with potential to have much coarser grained sediments and hence more porous and permeable reservoirs than elsewhere along the Lennard Shelf margin of the Fitzroy Trough.”

Forward plan

Doriemus and Buru are collaborating on plans for drilling of the Butler 1 well to a total depth of up to 4,000 metres at a location in EP 487 close to the boundary of EP 129.

The well could potentially be drilled with the Loc 405 rig at the completion of Buru’s drilling program that is due to begin shortly with the Ungani 6 development well.

Lenigas added: “The identification of the Butler Sand play provides an exploration target that could potentially deliver high flow rates and recoveries from good to excellent reservoir sands with potential resources that are more than sufficient to support a major gas and liquids development with low capital costs and low environmental impact.”

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Thu, 11 Apr 2019 12:15:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218370/buru-energy-buoyed-by-review-which-indicates-strong-gas-and-liquids-potential-for-butler-conventional-sand-prospect-218370.html
<![CDATA[News - Buru Energy to restart drilling efforts in June quarter ]]> https://www.proactiveinvestors.com.au/companies/news/216988/buru-energy-to-restart-drilling-efforts-in-june-quarter-216988.html Buru Energy Limited (ASX:BRU) (FRA:BUD)(OTCMKTS:BRNGF) is an energy company that specialises in exploring and developing oil and gas projects onshore in the Canning Basin of Western Australia. It is run by founding shareholder Eric Streitberg, a geologist and geophysicist with more than 40 years experience in the petroleum and oil & gas industry. The executive chairman is also a director and former chairman of the Australian Petroleum Production & Exploration Association (APPEA) and a former chairman of the Marine Parks and Reserves Authority of Western Australia.

Streitberg previously headed up ARC Energy Limited (then ARC:ARQ) as a managing director, growing the then junior oil & gas explorer into a mid-size Australian producer before its $508 million takeover by Australian Worldwide Exploration Limited (then ASX:AWE). AWE was later bought by Mitsui & Co Ltd (TYO:8031) (FRA:MTS1) (OTCMKTS:MITSY) (OTCMKTS: MITSF) for about $580 million.

What does Buru Energy own?

The key assets are Buru’s Canning Basin exploration permits in the southwest Kimberley region about 2,300 kilometres north of Perth.

Buru dominates the basin’s onshore energy activities and picked up 100% ownership of Ungani oilfield from Mitsubishi Corp (TYO:8058) (FRA:MBI) (OTCMKTS:MSBHY) (OTCMKTS:MSBHF) in a May 2017 asset swap.

The company then started farming in Roc Oil (Canning) Pty Limited to the field in May 2018.

Roc bought a 50% interest in Ungani Oilfield for $64 million cash, agreeing to farm into its exploration permits EP 391, EP 428 and EP 436 by paying $20 million of a $25 million exploration program for up to four wells.

Partner Roc now has a 50% equity interest in Ungani 4ST1 well and in production licence L20 which it is located upon.

The exploration program is a key focus for Buru, which is engaged in an active exploration program at Ungani.

Buru has a speculative buy recommendation from Taylor Collison and has set accelerated development of Ungani oilfield and exploration of the company’s portfolio of prospects as its strategic focus.

The drilling program is due to start up again in May 2019, with Taylor Collison believing success could deliver upside beyond the value of any oil discoveries.

Two wells will be drilled on Ungani trend in the upcoming drilling program to start in the June quarter, as the company draws on its exploration budget primarily made up of Roc funds.

Taylor Collison believes the carry through of $20 million of exploration spend puts the company in a “strong financing position”.

The four-plus-two exploration and production well drilling program will feature drilling at production support wells at Ungani-6 and Ungani-7 and Yakka Munga 1 exploration well1.

Support well Ungani-6 may be drilled as a horizontal well or alternatively in a high-angle deviated configuration.

The decision comes after Buru and Roc joint venture reviewed the Ungani operation and made the call to horizontally drill two development wells on the oilfield, Ungani-6 and Ungani-7, one after the other.

Ungani 6 well is expected to be drilled from an area adjacent to Ungani Production Facility with a pad expected to be completed in April 2019 when drill rig components start arriving for a well spudding tipped for early May well spud.

The third well in the program, wildcat exploration well Yakka Munga 1, will be drilled to about 2,400 metres below surface, in the regionally significant Yakka Munga structure.

Emerging play, the Reeves Formation, is expected to be about 700-metres wide at Yakka Munga.

Buru will target the formation with drilling after its sandstones proved oil-bearing at Ungani Far West-1.

The Rafael, Hotdog and Butler prospects may be targeted this field season. Due diligence work is underway at Rafael this month, as the potential fourth exploration well in Buru’s program, along with Hotdog and Emanuel prospects.

Hotdog and Emanuel are at Buru’s wholly-owned Blina Field, in the Lennard Shelf area, where the company has production-tested potential bypassed oil zones in Yellowdrum Formation.

Buru holds assets with hydraulic fracturing potential in WA, where a State Government moratorium on fraccing was lifted in November 2018.

The assets have a major accumulation of tight gas and condensate that could be evaluated and developed as a major resource once regulatory reform is fully implemented.

Buru’s licences are within the small portion of WA land that would be able to be fracced following the reform.

What is Buru Energy’s capital backing?

Buru is bringing in revenues by actively selling oil.

The company’s buying partner Trafigura shipped 70,278 barrels of oil out of the Wyndham port on March 12, 2019. This steady production lift followed an earlier shipment of 69,686 barrels of Buru oil out of the port about six weeks earlier on January 1, 2019.

Trafigura stores Buru’s oil at the port and buys it free-on-board at the port town at the time of shipping at a fixed discount to Brent oil prices, allowing it to account for the shipping costs of visiting regional refineries.

In March its payment brought in an interim figure of about $3 million to Buru net of shipping cost allowance cost.

The company is well funded, having $64 million of cash reserves at the end of the December quarter of 2018.

Buru expected to spend $2.2 million on exploration and evaluation in the March quarter of 2019, tipping $3.1 million of cash outflows for the period.

Its March quarterly report is expected by late April 2019.

Inflection points

Ungani and Blina field successes

Majority discoveries and milestones

Ongoing oil sales revenue

Future horizons for fraccing in the now-welcoming jurisdiction of Western Australia

Executive chairman Eric Streitberg highlights value onshore in Canning Basin

Executive chairman Eric Streitberg said last year the Canning Basin “was not a complicated oilfield to produce.”

He told the September 2018 GoodOilConference Perth: “Very recently we’d begun to share the basin with a number of other people coming in,

“Finder, focused on unconventional oil on the Broome platform and the Squadron Offshore Group, which is backed by Mindaroo, Andrew Forrest’s company, … put a big footprint on the basin outside the Fitzroy trough.

“That’s been a great outcome for us because there are no operators on the basin, we’re starting to have a bit more synergy and activity.”

Buru executive chairman Eric Streitberg will deliver a 10am address next Wednesday on day 1 of the March 27-28 Australian Energy & Minerals Investor Conference at Royal on the Park Brisbane.

 

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Thu, 21 Mar 2019 21:45:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216988/buru-energy-to-restart-drilling-efforts-in-june-quarter-216988.html
<![CDATA[News - Buru Energy retains speculative buy rating from Taylor Collison ]]> https://www.proactiveinvestors.com.au/companies/news/216807/buru-energy-retains-speculative-buy-rating-from-taylor-collison-216807.html Buru Energy Ltd (ASX:BRU) recently completed a further oil shipment from its Ungani operations onshore Western Australia, with a lifting of 70,278 barrels by Trafigura.

Adelaide-based broker Taylor Collison has retained its speculative buy rating for Buru.

Following is an extract from Taylor Collison’s recent report:

Our View

The 2019 drilling season is set to commence in May and for Buru Energy, as a leveraged play on the potential of the Canning Basin, success could deliver upside significantly beyond the value of any oil discovered.

The company has indicated it will likely drill two wells on the Ungani Oil trend, which has been hinted at as a transformational opportunity…success lifts the prospectivity of the portfolio, however, failure could be a ‘back to the drawing board’ moment.

The company is cashed up and carried through $20 million of exploration spend which puts it in a strong financing position.

Canning Basin – a drilling campaign set to kick off

Buru Energy (BRU 50%, Roc Oil 50%) is set to commence the 2019 drilling campaign, scheduled from 1-May with a 4 + 2 programme featuring a mix of exploration and production wells on the Ungani field.

The programme is yet to be finalised but confirmed targets include production support wells at Ungani-6 and -7; and the Yakka Munga exploration well, targeting the same production horizon (the Reeves Formation) successfully completed at Ungani Far West-1.

The Reeves Formation is noted by the company to be an emerging play and is expected to be >700m thick at this location.

Whilst the entire programme has not been firmed, Buru has highlighted the Rafael, Hotdog and Butler prospects of being of interest.

Ungani-6 may be drilled as a horizontal well or in a high angle deviated configuration…it will be interesting to assess the impact of this completion style on production rates.

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Wed, 20 Mar 2019 16:46:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216807/buru-energy-retains-speculative-buy-rating-from-taylor-collison-216807.html
<![CDATA[News - Buru Energy ships 70,000 barrels of oil in March lifting as production remains steady at Ungani ]]> https://www.proactiveinvestors.com.au/companies/news/216602/buru-energy-ships-70000-barrels-of-oil-in-march-lifting-as-production-remains-steady-at-ungani-216602.html Buru Energy Ltd (ASX:BRU) has completed a further oil shipment from its Ungani operations onshore Western Australia, with a lifting of 70,278 barrels by Trafigura from the storage tanks in Wyndham Port on March 12, 2019.

Wyndham ship loading

The interim receipt to Buru (net of shipping cost allowance) was about $3 million. The previous lifting was completed on January 1, 2019 for 69,686 barrels (gross).

Ungani production operations

The northern wet season has seen lower than average rainfall in contrast to last year’s flooding events.

There have been some short periods of precautionary closures of the Ungani access road but these have not affected production.

The Ungani 4 ST1 well is now back on production with a beam pump and is delivering some 200 barrels of oil per day during a test phase.

It is intended to reconfigure the downhole completion when the wireline unit to be used for the drilling program becomes available and this is expected to increase the oil rate.

Overall field production is averaging some 1,200 barrels of oil per day.

2019 drilling program

Ungani Development wells

Following a detailed technical review of the drilling operation and logistics the Buru/Roc Joint Venture has now agreed to drill two horizontal development wells on the Ungani Oilfield.

These wells will be drilled back to back to maximise operational efficiency.

The Ungani 6 well will be drilled from an existing cleared area adjacent to the Ungani Production Facility.

The well pad is currently under construction and will be completed in time for the arrival of the first of the rig components in April with a planned early May well spud.

Exploration wells

The third well in the joint venture drilling program will be Yakka Munga 1 which is a wildcat exploration well on the regionally significant Yakka Munga structure.

Yakka Munga 1 will be drilled to a maximum total depth of some 2,400 metres with its principal objectives being the Reeves Formation sandstones which are oil bearing in the Ungani Far West 1 well.

Detailed technical work is ongoing on the Rafael prospect as the potential fourth well in the program following Yakka Munga 1, during the third quarter this year.

This technical work includes reprocessing of the seismic data over this large structure and further quantification of the source, seal and reservoir parameters for the prospect.

Similar due diligence work is underway on the Hotdog prospect, the Emanuel prospect, and the production testing of potential bypassed oil zones in the Yellowdrum Formation at the Blina Field, all of which lie in the 100% Buru owned Lennard Shelf areas.

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Mon, 18 Mar 2019 16:15:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216602/buru-energy-ships-70000-barrels-of-oil-in-march-lifting-as-production-remains-steady-at-ungani-216602.html
<![CDATA[News - Buru Energy on track to begin 2019 drilling program in Canning Basin ]]> https://www.proactiveinvestors.com.au/companies/news/215176/buru-energy-on-track-to-begin-2019-drilling-program-in-canning-basin-215176.html Buru Energy Limited (ASX:BRU) is on track to begin the 2019 drilling program on the Ungani Oilfield joint venture with Roc Oil with the specialised NGD Rig 405 undergoing pre-acceptance checks and field site construction commenced.

The rig from NewGen Drilling Pty Ltd is undergoing pre-acceptance checks in Fremantle before being mobilised to the Canning Basin project onshore WA.

These checks include mechanical and electrical inspection and verification of compliance.

READ: Buru Energy attracts speculative buy rating from broker Taylor Collison

Buru expects the rig to be mobilised in early April after field site construction has been completed.

The partners expect to undertake a ‘soft’ mobilisation using transport as available with the intention of reducing costs.

Due to its modular nature and self-erecting capability, the NGD Rig 405 is well-suited to remote operations in areas such as the Canning Basin.

Senior personnel familiar with the rig and its operation have been contracted by the partners to provide supervision and training.

The NGD Rig 405.

The targeted spud date for the first well is May 1, 2019, and the required long-lead items have been ordered with delivery on-track to meet this schedule.

Ungani 6 first 2019 well

Buru and Roc Oil have agreed that the first well in the 2019 program will be Ungani 6 with the subsequent well to be Yakka Munga 1.

Detailed reviews of the design for Ungani 6 well are being carried out.

It will be drilled in a high angle deviated or a horizontal configuration from an already cleared location beside the Ungani Production Facility.

Minimum four-well program

A minimum four-well program is expected utilising NGD Rig 405 and Buru and the joint venture are undertaking technical and corporate reviews of up to four more wells to be drilled following Yakka Munga 1.

Reviews of the results of Ungani 4 and 5 along with production results from Ungani 1 and 2 wells suggest that the Ungani field is not being effectively drained by the existing wells.

At least two additional wells in the central fault block are required for full field development.

Detailed well performance reviews have also identified that drilling future reservoir intersections horizontal and underbalanced may provide enhanced productivity and recovery, and the analysis to confirm this is close to completion.

Wildcat exploration well planned

Yakka Munga 1 will be a wildcat exploration well on the regionally significant Yakka Munga structure.

The JV partners plan to drill this to a depth of some 2,100 metres with its principal objectives being the Reeves Formation sandstones which are oil-bearing in the Ungani Far West 1 well.

This is an emerging Canning Basin play and the Reeves section in Yakka Munga 1 well is prognosed to be over 700 metres thick, with a substantial part of the section never previously penetrated in the Basin.

Although the JV is yet to decide on a third well and will use Ungani 6 results to aid in this task, at this stage it is proposed to be the Ungani 7 production well.

A number of other high impact prospects are being considering, including Rafael in the 50/50 ROC JV permit area, and Hotdog which is in Buru’s 100%-owned Lennard Shelf area.

All of these are able to be drilled with the contracted NGD drilling rig.

READ: Buru Energy completes 70,000-barrel oil lifting from Ungani oilfield

At the Ungani operations production remains steady at in excess of 1,000 barrels of oil per day.

The JV expects that the next crude lifting by Trafigura from the CGL storage tank at Wyndham Port will be in mid-March.

Unloading a crude tanker at Wyndham Port.

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Mon, 25 Feb 2019 14:45:00 +1100 https://www.proactiveinvestors.com.au/companies/news/215176/buru-energy-on-track-to-begin-2019-drilling-program-in-canning-basin-215176.html
<![CDATA[News - Buru Energy completes 70,000-barrel oil lifting from Ungani oilfield ]]> https://www.proactiveinvestors.com.au/companies/news/211875/buru-energy-completes-70000-barrel-oil-lifting-from-ungani-oilfield-211875.html Buru Energy Ltd (ASX:BRU) has completed a further oil lifting at its Ungani operations onshore Western Australia, with a lifting of about 70,000 gross barrels of oil from the Wyndham storage tanks.

This has exceeded initial expectations of about 60,000 barrels.

As the lifting was completed in January the received price will be calculated on January pricing in accordance with Buru’s Trafigura contract.

The previous lifting on October 21, 2018, was for 74,400 barrels of oil.

Buru has maintained a strong balance sheet with more than $60 million in cash on hand.

The company recently made its 2018 Alcoa debt repayment of $2.5 million plus interest, with the remaining $5 million liability repayable in two equal instalments on December 31, 2019 and 2020, respectively.

New production well on stream

Testing of the Ungani 4 well is ongoing with oil flows of several hundred barrels a day with only minor amounts of water.

This provides Buru with confidence in the interpretation that the oil water contact in the well is close to the original field oil water contact.

The oil and gas company is preparing its 2019 drilling program, having executed the drill rig contract for NewGen Drilling Pty Ltd Rig 405 which due to its modular nature and self-erecting capability is well-suited to remote operations in areas such as the Canning Basin.

With the contract executed a full rig inspection and appropriate functionality testing will be completed ahead of mobilisation

The Ungani joint venture will meet in late January or early February to finalise the 2019 program and the order of wells to be drilled.

READ: Buru Energy attracts speculative buy rating from broker Taylor Collison

As part of the regional review of its acreage for the drilling program Buru has identified a large stratigraphic trap prospect known as Butler in Buru;s 100%-owned exploration permit (EP) 129 in the northeast Canning Basin.

The Butler prospect lies partly on Buru’s permit and partly on the adjacent EP 487 tenement, with the owners of EP 487 indicating they intend to drill butler in 2019.

This would complement Buru’s planned Canning Basin exploration program this year.

The NGD Rig 405 will be used for the 2019 drilling campaign

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Wed, 02 Jan 2019 19:58:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211875/buru-energy-completes-70000-barrel-oil-lifting-from-ungani-oilfield-211875.html
<![CDATA[News - Buru Energy attracts speculative buy rating from broker Taylor Collison ]]> https://www.proactiveinvestors.com.au/companies/news/211693/buru-energy-attracts-speculative-buy-rating-from-broker-taylor-collison-211693.html Buru Energy Ltd (ASX:BRU) has carved out a niche for itself on the back of the Ungani oil discovery in the Canning Basin of Western Australia.

The company has a 50% operating interest in the currently producing Ungani oilfield.

Adelaide-based broker Taylor Collison has initiated coverage on Buru with a speculative buy rating.

The following is an extract from Taylor Collison’s research report:

Our View

Buru Energy sits in the middle of the spectrum as a leveraged play over the prospectivity of the Canning Basin which has teased with finds that keep investors and the company interested without yet delivering the big breakthrough.

The Ungani Oil Project is a perfect example as a producing field, not quite delivering sufficient operating margins and hinting at the potential of a transformative oil trend.

The Canning Basin offers enormous potential but also requires significant capital.

The company is cashed up and carried through $20 million of exploration spend which puts it in a strong financing position and a return to drilling from mid-April should provide some investment excitement.

Although there is oil production and a gas opportunity, the company is looking for the next development to provide commercial scale and we suggest is still to be considered as an exploration play.

It’s all down to the next set of wells.

Key Points – Initiation

• Cashed up and ready to go – A deal with Roc Oil sees BRU cashed up with some $71 million as at 30-Sep and a carry through $20 million of exploration expenditure…a strong balance sheet position effectively affording the company a free shot at 2019 drilling.

BRU can accelerate work programmes and fast-track a development on success but the Ungani analogue points to caution – project capex can be high and with an extensive acreage spread, the next success could require many wells…$70 million may not last as long as we think.

The basin has teased for a long time, with Ungani being the first oil development in some 30 years. We still consider the Canning Basin as a frontier play and frontier plays need capital.

• Ungani highlights the uncertainties – A project that has produced >1 million barrels and yet still has only contingent resource bookings is a conundrum.

Well performance has been variable and an optimal development plan is uncertain matching the risk to the recoverable reserves estimate.

Ungani could point to greater things as we don’t see it on balance as being a one-off, but dolomitic reservoirs can be fickle, growing margins requires production scale and the company is still evaluating an optimal well design, with a horizontal well likely to be drilled in 2019 – could that be a game changer?

• The share price reflects an exploration play – Reserves metrics suggest BRU is ‘fully’ priced on Ungani volumes (assuming 2C = 2P) although this is a relative rather than absolute outcome.

Given the uncertainties associated with future oil recoveries and the long dated nature of the Yulleroo gas discovery we see the company as an exploration play chasing the oil trend with the share price linked to drilling success.

Although success rates have been low, we see the 2019 drilling programme as critical with perhaps the potential to support the oil trend geological model and providing a development solution to any next phase projects.

We assign a rating of Speculative BUY but do highlight the high-risk nature of the investment opportunity.

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Mon, 24 Dec 2018 08:03:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211693/buru-energy-attracts-speculative-buy-rating-from-broker-taylor-collison-211693.html
<![CDATA[News - Buru Energy expects next lifting of 60,000 barrels from Ungani Oilfield this month ]]> https://www.proactiveinvestors.com.au/companies/news/211198/buru-energy-expects-next-lifting-of-60000-barrels-from-ungani-oilfield-this-month-211198.html Buru Energy Limited (ASX:BRU) expects the next Ungani Oilfield sale lifting of approximately 60,000 barrels gross by Trafigura from the WA port of Wyndham later this month.

Oil from Buru and Roc Oil’s joint venture project in the Canning Basin about 100 kilometres east of Broome is trucked to Wyndham where it is stored in CGL storage Tank 10 before being picked up by a Trafigura vessel.

Trafigura sales agreement

Trafigura buys Buru oil free-on-board at the port town at a fixed discount to Brent oil price to account for the shipping costs of visiting regional refineries.

This month’s lifting will boost Buru’s healthy balance sheet.

The company forecasts that it will have more than $60 million in cash at year-end after the lifting and repayment of the next tranche of the Alcoa debt in late December.

READ: Buru Energy oilfield production drill campaign underway

Buru’s is averaging around 1,150 barrels of oil per day gross from the Ungani Oilfield.

The drilling program for 2018 has been completed and the company is preparing for the 2019 campaign.

Contract for NGD Rig 405

A contract with NewGen Drilling Pty Ltd for the hire of NGD Rig 405, a 5,000-metre depth capacity containerised automated rig, is expected to be signed shortly.

The 2019 drilling program is targeted to start as soon as practicable after the wet season, and this is expected to be mid-April to early May.

The NGD Rig 405 will be used for the 2019 drilling campaign.

Range of prospects being considered

A range of exploration prospects are under consideration for drilling, some of which have been upgraded by the recent 3D seismic reprocessing program.

These prospects are being reviewed and ranked by the JV.

The 2019 program will focus on the wildcat conventional oil exploration program and on drilling further wells at Ungani, potentially including horizontal wells.

Ungani area prospects under consideration for 2019 program.

This will require a rig with considerably more capability than the DDGT1 rig used for the 2018 program, which has been demobilised.

As such, the NGD Rig 405 has been chosen and rig contract negotiations with NewGen are close to completion.

The fully automated modular rig also has the capacity to drill high angle and horizontal wells.

Up to four wells for JV

It is expected that the 2019 program will include up to four wells for the JV and the rig may also be used to drill wells on Buru operated acreage outside the Roc Oil JV.

As well as finalising the 2019 drilling program, during the wet season, the joint venture partners will evaluate the results of the 2018 drilling and testing program.

Results of the recently drilled wells and further production data and testing will be incorporated into the static and dynamic reservoir models to revise the resource potential of the field.

This will also guide the further drilling program in the field that may include the drilling of horizontal oil production wells.

A program of well interventions and optimisations over the last few months has identified an ongoing program of work to maintain and increase production.

The JV’s particular focus of this ongoing program will be the Ungani 1ST1 and Ungani 2 wells that are being produced using high rate electric submersible pumps.

Production facility and transport operations have been running smoothly with a program of de-bottlenecking and optimisation of the production facilities being undertaken.

Acquisition of additional interest in Canning Basin Permits

Further to continued negotiations with Mitsubishi as part of the asset swap transaction of May 2017, Buru entered into an agreement to purchase Mitsubishi’s 37.5% interests in exploration permits EP 457 and EP 458.

Under the terms of the permit JV agreements, the other participant in the permits, Rey Resources Limited, exercised its pre-emptive rights.

Consequently, the interests in the permits will now be Buru 60% and Rey 40% after settlement of the transactions, which is expected early in 2019.

The permits are prospective for conventional oil in a number of formations with the Victory 1 well drilled by Buru recovering oil from the Laurel Formation.

The JV will now review the prospectivity of the permits with the objective of maturing stand-alone drilling targets as soon as possible.

The forward program is likely to include the reprocessing of existing 2D seismic data and potentially the acquisition of new seismic data in 2019.

Location of EP 457 and EP 458.

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Fri, 14 Dec 2018 15:04:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211198/buru-energy-expects-next-lifting-of-60000-barrels-from-ungani-oilfield-this-month-211198.html
<![CDATA[News - Buru Energy to benefit as WA government lifts fraccing moratorium ]]> https://www.proactiveinvestors.com.au/companies/news/210079/buru-energy-to-benefit-as-wa-government-lifts-fraccing-moratorium-210079.html Buru Energy Ltd (ASX:BRU) has large land holdings in Western Australia’s Canning Basin where it has defined a major accumulation of tight gas and condensate.

As part of its appraisal of this resource, it has undertaken fraccing activity in three wells with no impact on the environment.

Buru’s further appraisal and development of this major resource has been on hold since the Western Australian government put in place a fraccing moratorium and inquiry process as part of its election commitment.

On receipt of the independent inquiry report, the Western Australian Government has now said it will lift the moratorium on all existing permits including Buru’s permits in the Canning Basin.

Restarting exploration and appraisal activity

The next step for Buru, once the proposed regulatory changes are implemented, is to continue with exploration and appraisal activity to build on its already extensive knowledge of the gas resources and the environment and the social framework.

Buru’s executive chairman Eric Streitberg commented that this result was in line with the extensive scientific inquiries carried out in Australia, including those undertaken by the Traditional Owners in the Kimberley, that fraccing can be safely conducted with no risk to water supplies or the environment.

Independent science welcomed

He welcomed the independent science and urged that this be accepted rather than the alarmist and misleading claims of activists.

The unconventional gas resources in the Canning basin are extensive but activity has been concentrated in the east at Valhalla and Asgard and in the west at the Yulleroo Gasfield.

At Buru’s 100%-owned Yulleroo Gasfield, a 2C Contingent Resource net to Buru has been determined of some 714 petajoules of recoverable gas with 24.9 million barrels of associated condensate and natural gas liquids.

Four wells have been drilled at Yulleroo to define the resource and Buru undertook a frac of three zones in the vertical Yulleroo 2 well in 2010 which produced flow rates that demonstrated a path to commercial development of the resource.

The wells have also defined the potential for a substantial resource of conventional gas which Buru will also be further evaluating.

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Wed, 28 Nov 2018 13:53:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210079/buru-energy-to-benefit-as-wa-government-lifts-fraccing-moratorium-210079.html
<![CDATA[News - Buru Energy spuds Ungani West 1 exploration well ]]> https://www.proactiveinvestors.com.au/companies/news/207235/buru-energy-spuds-ungani-west-1-exploration-well-207235.html Buru Energy Limited (ASX:BRU) has spudded the Ungani West 1 exploration well in an early evening start for its latest drilling campaign.

The 5.45pm spudding at the Canning Basin project in Western Australia was achieved after market close yesterday and marks the company’s return to drilling exploration at the site.

READ: Buru Energy oilfield production drill campaign underway

The well is located on production licence L20, with Buru and its joint venture partner Roc Oil (Canning) Pty Ltd both holding 50% stakes in the well and licence.

Buru reported today: “The Ungani West 1 well is being drilled by the DDGT1 rig to a total measured depth of about 2,400 metres.”

The company stated drilling at the prospect was expected to take 28 days.

The well is located in between the established Ungani Oilfield and the newly-producing Ungani Far West Oilfield.

READ: Buru Energy gets good flow rates from Ungani Far West, begins Ungani 4 sidetrack operations, Roc Oil farm-in completed

Buru executive chairman Eric Streitberg highlighted the prospectivity, describing the prospect as “well located between two producing oil fields”.

Streitberg said: “We are very pleased to be drilling this exploration well as part of the 2018 drilling campaign.

“We have … been proactive in ensuring we can get the well onto production quickly if it is a discovery to add to the production from the Ungani complex.”

Buru reported in its drilling update: “If successful, the well will be tied back to the Ungani Production Facility using pre-ordered materials to provide for early production from the well.”

Buru is providing weekly production updates with the market as it advances its drilling campaign.

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Tue, 16 Oct 2018 20:11:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207235/buru-energy-spuds-ungani-west-1-exploration-well-207235.html
<![CDATA[News - Buru Energy oilfield production drill campaign underway ]]> https://www.proactiveinvestors.com.au/companies/news/206945/buru-energy-oilfield-production-drill-campaign-underway-206945.html Buru Energy Ltd (ASX:BRU) is continuing production drilling activities at the Ungani oilfield in Western Australia’s Canning Basin.

The company’s drill program takes in assets such as Ungani West 1 and Ungani 4ST1 wells onshore in the basin.

READ: Buru Energy gets good flow rates from Ungani Far West, begins Ungani 4 sidetrack operations, Roc Oil farm-in completed

This week, Buru has been moving a DDGT1 rig to its Ungani West 1 exploration well.

Drilling is expected to take 32 days before the rig is moved back to Ungani 4ST1 so the company can wrap up Ungani Dolomite reservoir section drilling.

Equipment to reconfigure the top of the reservoir lining at Ungani 4ST1 is in transit from an overseas supplier and is expected next week.

Workers unload Buru oil at Wyndham storage tank.

Buru has already completed sidetrack operations at Ungani 4 with the intention of improving well productivity with drilling.

Buru previously shared it believed the likely explanation for past underperformance at the well was a complex and sub-optimal completion that was run to isolate its overlying unstable Laurel Shale section.

Another possibility flagged was well performance could have been affected by the reservoir being less well-developed at this location.

Buru is updating the market each trading week as it undertakes its activities and progresses its drilling efforts.

READ: Buru Energy production at Ungani oilfield nears 1 million barrels, Trafigura lifts another 51,962 barrels

Oilfield operator Buru is exploring three exploration permits with its farm-in partner Roc Oil (Canning) Pty Limited in the basin about 100 kilometres east of Broome in the Kimberly region.

Roc Oil’s agreement with Buru was formalised back in August with the termination of a legacy agreement from 2012 which Buru held with the Government of Western Australia.

The transaction was completed late last month after Roc met its conditions by paying $13 million upfront payment to Buru and $51 million after the state’s Department of Mines, Industry Regulation and Safety approved and registered Ungani licence name transfers required under the deal.

Roc was to farm into its 50% interest in the three exploration permits by committing $20 million to exploration on the permits.

Partner Roc now has a 50% equity interest in Ungani 4ST1 well and in production licence L20 which it is located upon.

READ: RIU GoodOilConference examines State’s Canning Basin

An aerial view of activity at drilling operations at Ungani 5 last year.

Buru waved off a ship in the Kimberley port of Wyndham in August containing more oil that its partner Trafigura lifted from its CGL storage Tank 10 at the port town.

Trucks transport oil from the Ungani oilfield to Wyndham.

Trafigura buys Buru oil free-on-board at the port town at a fixed discount to Brent oil prices to account for the shipping costs of visiting regional refineries.

Trafigura’s August lifting of 51,962 barrels gross from the 80,000-barrel storage tank attracted a provisional received price of $88.38 per barrel, with Buru’s share being from 25,981 barrels.

Production at Ungani Far West 1 has delivered high fluid rates of 1,000 barrels a day with about 50% oil cut at the oilfield.

The company neared the 1 million barrels production milestone last quarter and had been working towards a production target of 1,800 barrels a day in mid-September.

Buru’s current operating costs lie between $30 and $35 a barrel.

 

Buru’s longer term plan is to produce 3,000 barrels a day, its executive chairman Eric Streitberg highlighted at last month’s GoodOilConference Perth.

Streitberg described the play-opening conventional Ungani oil field as a “very easy, simple system.”

“It’s not a complicated oilfield to produce.”

Streitberg reported the company was focused on upping its production take with efforts to enhance wells, de-bottleneck and commission additional production wells.

The company may introduce Ungani South and Ungani East production wells, and horizontals next year.

Buru has 22,000 gross square kilometres of acreage in the Canning Basin, or 13,074 square kilometres net.

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Thu, 11 Oct 2018 22:10:00 +1100 https://www.proactiveinvestors.com.au/companies/news/206945/buru-energy-oilfield-production-drill-campaign-underway-206945.html
<![CDATA[News - Buru Energy gets good flow rates from Ungani Far West, begins Ungani 4 sidetrack operations, Roc Oil farm-in completed ]]> https://www.proactiveinvestors.com.au/companies/news/204085/buru-energy-gets-good-flow-rates-from-ungani-far-west-begins-ungani-4-sidetrack-operations-roc-oil-farm-in-completed-204085.html Buru Energy Ltd (ASX:BRU) has started sidetrack operations at its Ungani 4 well and production testing at its Ungani Far West 1 well as oil output increases at the Ungani operations. 

Ungani is an onshore oil field in the Canning Basin, about 100 kilometres east of Broome in the Kimberly region of Western Australia.

The company is also now proceeding with its farm-in transaction with Roc Oil (Canning) Pty Limited following official termination of a legacy agreement with the WA Government.

READ: Buru Energy production at Ungani oilfield nears 1 million barrels, Trafigura lifts another 51,962 barrels

Sidetrack operations at Ungani 4 began with removal of the beam pump and preparations for the installation of a DDGT rig over the well.

The operation is expected to take 14 days to drill to the new bottom hole location, which is 60 metres southwest of the current bottom hole location, and 20 days in total to complete the operation.

The sidetrack at Ungani 4 is being drilled with the objective of improving well productivity, which has been below expectations.

Buru tenements in the Canning Basin.

Buru believes the most likely explanation for the underperformance is the complex and sub-optimal completion that was run to attempt to isolate the overlying unstable Laurel Shale section.

There also remains the possibility that the well performance has been affected by the Ungani Dolomite reservoir being less well-developed at this location.

The reservoir quality was unable to be determined from the restricted suite of logs obtained from the well.

If the underperformance is explained by the reservoir being less developed, there is a provision for the well to be sidetracked again to the north towards currently producing wells.

Production testing at Ungani Far West 1

Operations to production test the Ungani Far West 1 well have begun, with the well producing at high daily fluid rates of 1,000 barrels at about 50% oil cut.

The initial production test and clean up flows will determine the productive capacity of the well prior to running the artificial lift system (beam pump).

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

After the Ungani 4 sidetrack is completed, the rig will be moved to drill the Ungani West 1 exploration well where site preparations are close to complete.

Farm-in now unconditional

The farm-in with Roc Oil pertains to Roc acquiring a 50% interest in three Canning Basin exploration permits by paying $20 million of the next $25 million of exploration expenditure on the permits.

It was conditional on the termination, by an Act of the Parliament of Western Australia, of a state agreement dated November 7, 2012.

After being approved by the WA Legislative Assembly and the Legislative Council, the act has received royal assent and is an Act of Parliament as of August 21, 2018.

Consequently, the farm-in agreement with Roc Oil is now unconditional.

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Tue, 04 Sep 2018 11:44:00 +1000 https://www.proactiveinvestors.com.au/companies/news/204085/buru-energy-gets-good-flow-rates-from-ungani-far-west-begins-ungani-4-sidetrack-operations-roc-oil-farm-in-completed-204085.html
<![CDATA[News - Buru Energy production at Ungani oilfield nears 1 million barrels, Trafigura lifts another 51,962 barrels ]]> https://www.proactiveinvestors.com.au/companies/news/203236/buru-energy-production-at-ungani-oilfield-nears-1-million-barrels-trafigura-lifts-another-51962-barrels-203236.html Buru Energy Limited (ASX:BRU) is nearing production of one million barrels of oil at its Ungani operations in Western Australia with Trafigura lifting further oil from CGL storage Tank 10 at Wyndham on August 16, 2018.

Ungani is an onshore oil field in the Canning Basin, about 100 kilometres east of Broome in the Kimberly region of Western Australia.

The lifting was of 51,962 barrels gross (Buru’s share 25,981 barrels) and the provisional received price was $88.38 per barrel.

The final price will be determined at the end of August 2018 in accordance with the Trafigura contract.

(To view coverage of the vessel setting off click here.)

READ: Buru Energy set to reach one million barrels of cumulative production at Ungani oilfield

Buru is continuing to increase production to target levels with a beam pump planned to be installed shortly on Ungani 5 and regulatory approval for the start of production from Ungani Far West 1 expected to be received shortly.

Work is proceeding on schedule on pre-spud maintenance and inspection of the DDGT1 rig, with the first operation planned to be the side track of the Ungani 4 well.

Furthermore, work has also commenced on the site construction of the Ungani West 1 well location.

This well will be drilled immediately following the completion of the Ungani 4 side track.

Corporate update

The termination of the State Agreement dated November 7, 2012, by an Act of the Parliament of Western Australia is a pre-condition to a number of agreements and transfers including the farm-in transaction with Roc Oil.

This Act was approved by the Western Australian Legislative Assembly (Lower House) in July 2018 and was approved by the Western Australian Legislative Council (Upper House) on August 15, 2018.

The Bill is now awaiting assent by the Governor and once this occurs the Bill will then become an Act of Parliament.

This is expected to occur in the coming days.

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Tue, 21 Aug 2018 08:10:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203236/buru-energy-production-at-ungani-oilfield-nears-1-million-barrels-trafigura-lifts-another-51962-barrels-203236.html
<![CDATA[News - Buru Energy set to reach one million barrels of cumulative production at Ungani oilfield ]]> https://www.proactiveinvestors.com.au/companies/news/202649/buru-energy-set-to-reach-one-million-barrels-of-cumulative-production-at-ungani-oilfield-202649.html Buru Energy Limited (ASX:BRU) has revealed total cumulative production of 959,000 barrels as of 7 August from the Ungani oilfield, with the production of the millionth barrel expected later in August.

Ungani is an onshore oil field in the Canning Basin, about 100 kilometres east of Broome in the Kimberly region of Western Australia.

The next lifting of oil from Tank 10 in Wyndham by Trafigura is expected to be in mid-August, with expected lifting volumes of some 50,000 barrels gross (Buru’s share 50%).

Meanwhile, production optimisation and balancing activities continue with adjustment of the beam pump operation on Ungani 4 and tests on the various wells.

Ungani 5 production has declined as predicted prior to the installation of artificial lift, and Ungani 4 oil rates have declined at a higher rate than expected, which is interpreted to be due to significant reservoir damage as part of the sub-optimal drilling and completion of that well.

The joint venture has now agreed to undertake a side-track of the well as the first operation with the DDGT1 rig.

Total field production with the wells in their present configuration is currently some 1,400 barrels of oil per day (bopd) with ongoing work to ensure production is increased to target levels.

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

The applications for regulatory approval for the start of production from the Ungani Far West 1 well are currently being processed and are expected to be received shortly.

The target date for production commencement from the well is the end of August.

Forward plan

The 2018 rig operations program is planned to commence in late August/early September with work underway in the field on the preparation of the DDGT1 rig for this program and on the sourcing of long lead drilling items, all of which are proceeding on schedule.

Roc Oil transaction

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.

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.

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Fri, 10 Aug 2018 16:59:00 +1000 https://www.proactiveinvestors.com.au/companies/news/202649/buru-energy-set-to-reach-one-million-barrels-of-cumulative-production-at-ungani-oilfield-202649.html
<![CDATA[News - Buru Energy moving steadily towards 1,800 barrels of oil per day at Ungani Oilfield ]]> https://www.proactiveinvestors.com.au/companies/news/201285/buru-energy-moving-steadily-towards-1800-barrels-of-oil-per-day-at-ungani-oilfield-201285.html 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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Mon, 23 Jul 2018 15:18:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201285/buru-energy-moving-steadily-towards-1800-barrels-of-oil-per-day-at-ungani-oilfield-201285.html
<![CDATA[Media files - Buru Energy accelerating exploration efforts following Roc Oil transactions ]]> https://www.proactiveinvestors.com.au/companies/stocktube/9349/buru-energy-accelerating-exploration-efforts-following-roc-oil-transactions-9349.html Tue, 22 May 2018 20:26:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/9349/buru-energy-accelerating-exploration-efforts-following-roc-oil-transactions-9349.html <![CDATA[News - Buru Energy to receive $84 million through sale and farm-in deal ]]> https://www.proactiveinvestors.com.au/companies/news/197408/buru-energy-to-receive-84-million-through-sale-and-farm-in-deal-197408.html Buru Energy Ltd (ASX:BRU) has entered into two transactions valued at $84 million with Roc Oil in relation to its Canning Basin oil production and exploration assets in Western Australia.

Roc Oil has agreed to buy a 50% interest in the Ungani Oilfield for a cash payment of $64 million.

The parties have also agreed for Roc to acquire a 50% interest in three exploration permits by paying $20 million of a planned $25 million exploration program.

Transactions provide funding, Buru to remain asset operator

These two transactions strengthen the company’s balance sheet and provide the funding to allow Buru to undertake an aggressive exploration program.

This exploration program will commence during this year’s Canning Basin drilling season.

Furthermore, Buru will remain as operator of the Ungani Oilfield and the exploration permits.

Deal secures a partnership with leading oil and gas company

Buru’s executive chairman Eric Streitberg said: “We are delighted to have formed a partnership with a highly experienced Australian based oil and gas company that has strong and aligned backing.

“The transaction recognises the strategic value and prospectivity of the company’s Canning Basin assets and Buru’s expertise and knowledge as operator in that area since 2006.

“It is also significant in that it provides Buru with the balance sheet strength to further develop the company’s assets from internal resources in the short to medium term.

“The exploration program will enable us to potentially replace and increase our oil resources and also allow us to drill the deeper higher value oil targets such as Rafael on an appropriately promoted cost sharing basis.

“The transactions place Buru on a strong footing that comes on the back of its very successful program in 2017 and we look forward to the future with confidence with our new partner.”

$13 million to be received immediately

Of the $64 million to be received for the Ungani Oilfield, $13 million will be received immediately.

The remaining $51 million of the purchase price is payable upon the government approval and registration of the Ungani production licence transfers.

Farm-in transaction does not include unconventional gas assets

The exploration farm-in is for permits EP 391, EP 428 and EP 436 and the $20 million will go towards a $25 million exploration program of up to four wells.

Notably, this farm-in does not include the Laurel Formation unconventional gas assets within the permits which will remain 100% owned by Buru.

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Tue, 22 May 2018 10:16:00 +1000 https://www.proactiveinvestors.com.au/companies/news/197408/buru-energy-to-receive-84-million-through-sale-and-farm-in-deal-197408.html
<![CDATA[News - Buru Energy to ramp up oil production from Ungani oilfield ]]> https://www.proactiveinvestors.com.au/companies/news/196861/buru-energy-to-ramp-up-oil-production-from-ungani-oilfield-196861.html 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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Mon, 14 May 2018 09:02:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196861/buru-energy-to-ramp-up-oil-production-from-ungani-oilfield-196861.html
<![CDATA[News - Buru Energy has oil flowing again at Ungani project in Western Australia ]]> https://www.proactiveinvestors.com.au/companies/news/196465/buru-energy-has-oil-flowing-again-at-ungani-project-in-western-australia-196465.html Buru Energy Limited (ASX:BRU) has brought the Ungani 1 and 2 wells at the Ungani Oilfield Project in Western Australia back into production with strong results.

After a short initial period of free-flow, the pumps in both wells were restarted without incident.

They are now producing a combined total of about 2,400 barrels of oil per day (bopd).

Water cuts of about 10% to 12% are significantly lower than when the wells were shut-in in January owing to adverse weather which caused closure of the access road.

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 view the stock as significantly undervalued with its valuation of 61 cents per share implying substantial potential upside to this morning’s opening price of 36.5 cents.

Ungani 4 and 5

With the field back on production, testing operations have also commenced on the new Ungani 4 and Ungani 5 wells that were drilled late last year before the field shut-in.

Ungani 5 has flow tested at initial rates of up to 1,226 barrels per day of essentially clean oil and is currently shut-in for pressure build-up.

This result is generally in line with expectations and provides important confirmation of additional resources and production from the previously unaccessed Eastern Fault Block of the Ungani Oilfield.

The construction of the Ungani 5 flow line to the Ungani central production facility is expected to be completed and commissioned in about seven days.

Once Ungani 5 is connected it will be produced into the Ungani production facility as part of the company’s long-term operations.

Ungani 4 has been temporarily suspended while Ungani 5 is being tested and connected but operations to maximise production will resume once Ungani 5 testing operations are complete.

Exploration program aimed at multiple targets

Planning for the 2018 drilling program of up to four exploration wells is continuing.

The drilling program will be subject to conclusion of the current farm-out negotiations which are proceeding satisfactorily.

Hartleys analyst Aiden Bradley is of the view that the chance of securing a suitable farm-out partner has been enhanced by the buoyant oil price.

The positive impact of the oil price is evident over the last 12 months (below) when comparing Buru’s impressive share price performance (bottom) with the commodity price movement.

Strong cash flow for remainder of 2018

The planned drilling locations for this program include a range of play types including the proven Ungani Dolomite and the play opening Reeves oil discovery in the Ungani Far West well.

Buru’s cash flows for the first quarter of 2018 were significantly impacted by the unexpected shut-in of the field.

However, management’s projections indicate that it has sufficient financial resources to undertake its ongoing and planned activities which mainly revolve around the 2018 drilling program.

Production cash inflows for the third and fourth quarters of 2018 are forecast to be robust.

Cash on hand should gain momentum as production increases towards the target rate of 3,000 bopd.

Weather interruptions have not impacted fundamentals

Bradley noted that the recent weather interruptions have not impacted his valuation.

He said: “Our 12-month forward valuation and target price remains unchanged at 61 cents per share.

“A small decrease in net present value (NPV) due to the production delay has been compensated by the higher current oil price.

“The NPV10 is based on our base case for the Ungani Oil Field of 3,000 bopd peak production, 6.3 billion barrels of recoverable oil and a $100 per barrel long-run oil price.”

The valuation also contains a heavily risked value for future oil potential along the Ungani Trend.

The broker expects that this prospective play will continue to be de-risked by continued success at Ungani and any positive outcome from Buru’s intended farm-out process.

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Mon, 07 May 2018 13:28:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196465/buru-energy-has-oil-flowing-again-at-ungani-project-in-western-australia-196465.html
<![CDATA[News - Buru Energy set to restart oil production following access road reopening ]]> https://www.proactiveinvestors.com.au/companies/news/196104/buru-energy-set-to-restart-oil-production-following-access-road-reopening-196104.html Buru Energy Ltd (ASX:BRU) has sent 2,541 barrels of crude inventory to the storage tank at Wyndham after fully reopening the access road to its wholly-owned Ungani Oilfield in Western Australia.

Two quads and a triple road train have left Ungani and is now en-route to the storage tank.

The remaining crude oil inventory on site is expected to be lifted later this week in accordance with the detailed field re-start and trucking schedule.

Re-opening of the road access has involved substantial upgrades to a number of areas that had been damaged by the recent anomalous wet season.

Production restart at Ungani Oilfield

Buru has been concentrating on the tie-in of the Ungani 4 flow line and this is substantially complete, and work has now commenced on the Ungani 5 flow line.

Subject to the production results from the Ungani 4 and Ungani 5 wells, the forward plan is to continue to build production to the target rate of 3,000 barrels of oil per day (bopd).

READ: Buru Energy regains some access to Ungani Oil Field

Preparations for Ungani 4 testing operations are now underway and the restart of the Ungani 1 and Ungani 2 is expected later this week.

A further update is expected once the Ungani 4 results are received and the Ungani 1 and 2 wells have been brought back on line.

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Tue, 01 May 2018 13:51:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196104/buru-energy-set-to-restart-oil-production-following-access-road-reopening-196104.html
<![CDATA[News - Buru Energy regains some access to Ungani Oil Field ]]> https://www.proactiveinvestors.com.au/companies/news/195101/buru-energy-regains-some-access-to-ungani-oil-field-195101.html Buru Energy Ltd (ASX:BRU) is able to use the Ungani access road with light vehicles as water levels have generally receded below the roadbed level.

The field crew has been accessing the oilfield and preparations are underway to commence the restart.

This will occur as soon as heavy vehicle access is restored and the current inventory in the storage tanks is able to be lifted.

Heavy vehicle access could be possible as early as the end of this month.

Ramping up to 3,000 barrels of oil per day

Subject to the production results from the Ungani 4 and Ungani 5 wells, the forward plan is to continue to build production to the target rate of 3,000 barrels of oil per day (bopd).

The on-site storage tanks are full with an inventory of some 5,000 barrels of oil due to no access from the road train trucks.

Extra trucks secured to haul the oil upon access

The existing oil cartage contractor Fuel Trans Australia Pty Ltd has committed six road trains in quad configuration for Ungani production on re-start.

This will allow production transport capacity of about 2,400 bopd.

A contract has now also been executed with Road Trains Australia for an additional three road trains in triple configuration to allow for the 3,000 bopd target to be reached.

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Tue, 17 Apr 2018 12:12:00 +1000 https://www.proactiveinvestors.com.au/companies/news/195101/buru-energy-regains-some-access-to-ungani-oil-field-195101.html
<![CDATA[News - Buru Energy maps plan for oil production growth at Ungani ]]> https://www.proactiveinvestors.com.au/companies/news/189696/buru-energy-maps-plan-for-oil-production-growth-at-ungani-189696.html Buru Energy Ltd (ASX:BRU) is back to producing oil and generating revenue from its wholly-owned Ungani Oilfield in Western Australia, following a cyclone event.

The next lifting of oil is expected this week, comprising circa 50,000 barrels.

Buru's forward plan is to continue to build production and transport capacity to the target rate of 3,000 barrels of oil per day by early April.

Key components of this plan include installation of flowlines for Ungani 4 and Ungani 5 and bringing additional trucks into service to match the increases in production capacity as the wells are connected into the central processing facility.

The importance of Ungani 4 and Ungani 5

The Ungani 4 completion program is on track with the drill in liner due to be run over the next couple of days.

A basic suite of measuring while drilling logs have been acquired and these logs indicate an Ungani Dolomite section of some 74 metres above the field oil/water contact.

This compares to an oil column of 58 metres in Ungani 1ST1 and 54 metres in Ungani 2.

Ungani 5 has a swellable packer completion and a similar system will be run in Ungani 4.

As the packers require time to swell set, the test programs on both wells will be undertaken in mid to late January.

The Ungani 4 flowline is substantially complete and will be tied in to the well once the production test is completed.

This well is expected to be able to be brought into production at the end of January.

Planning for the Ungani 5 flowline is well advanced and it is expected to be completed in mid-March.

Ungani 4 and Ungani 5 have provided the platform for Buru to expand its production and resources into a strengthening oil price and increasing market interest.

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Tue, 09 Jan 2018 15:34:00 +1100 https://www.proactiveinvestors.com.au/companies/news/189696/buru-energy-maps-plan-for-oil-production-growth-at-ungani-189696.html
<![CDATA[News - Buru Energy on-track for production tests at Ungani 5 and completion of Ungani 4 ]]> https://www.proactiveinvestors.com.au/companies/news/189360/buru-energy-on-track-for-production-tests-at-ungani-5-and-completion-of-ungani-4-189360.html Buru Energy Ltd (ASX:BRU) is now preparing to reveal data from the production tests at Ungani 5, located within its wholly-owned Ungani Oilfield in Western Australia.

Buru outlined in its last drilling update before the results, that wireline logs have confirmed the reservoir is similar in quality to the other wells in the Ungani Field and have also confirmed there is an oil column of circa 53 metres in the well which is similar to the Ungani 2 oil column.

The open hole completion utilising swellable packers for zonal isolation and production has now been run and the well has been suspended.

Once the packers have been fully activated a production test will be run on the well, which is expected to take place in 2 to 3 weeks’ time.

The rig is currently being moved to complete the Ungani 4 well.

Test programs on both wells and the tie-in of Ungani 4 will then be undertaken in mid to late January.

Importance of Ungani 5

The Ungani 5 well is located 1,140 metres to the east of Ungani 1 on a separate drilling pad and is designed to appraise the oil pool discovered by the Ungani 3 well.

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Tue, 02 Jan 2018 11:58:00 +1100 https://www.proactiveinvestors.com.au/companies/news/189360/buru-energy-on-track-for-production-tests-at-ungani-5-and-completion-of-ungani-4-189360.html
<![CDATA[News - Buru Energy reveals expanded oil potential in Ungani Field ]]> https://www.proactiveinvestors.com.au/companies/news/189332/buru-energy-reveals-expanded-oil-potential-in-ungani-field-189332.html Buru Energy Ltd (ASX:BRU) has received a positive re-rating from the market as the company has started monetising resources through the sale of oil from its wholly-owned Ungani Oilfield in the Canning Basin of Western Australia.

Buru shares last traded at $0.32, double their valuation from August 2017.

READ: Buru Energy doubling oil handling capacity at Ungani Oilfield

The company has now revealed that the oil bearing reservoir in the Ungani 5 well is similar in quality to the other wells in the Ungani Field, while also confirming there is an oil column of circa 53 metres in the well which is similar to the Ungani 2 oil column.

At Ungani 5, a full suite of good quality wireline logs including wireline pressure data has been acquired with no issues.

These results provide the basis for Buru to expand its known resources as these previously did not include any resources in the Ungani 5 area.

The Ungani 5 well is located 1,140 metres to the east of Ungani 1 on a separate drilling pad and is designed to appraise the oil pool discovered by the Ungani 3 well.

Weather update from Cyclone Hilda

The rain associated with Cyclone Hilda which is progressing down the Kimberley coast has affected Ungani operations.

Oil production from the Ungani Field is forecast to be shut-in for up to three days, and may also result in a short delay in running the completion on the Ungani 5 well.

As soon as the weather system has passed, the well will be completed with a series of swellable packers that will allow zonal isolation and separate testing of zones.

Ungani 4 to get underway

News flow will continue early in 2018, as the rig will be moved from Ungani 5 to Ungani 4.

Test programs on both wells and the tie-in of Ungani 4 will then be undertaken in mid to late January.

Ungani production and facilities

The company has completed the installation of new tanks at Ungani to increase the fluid handling at the field up to 8,000 barrels of fluid per day.

The tanks are now in service, with oil handling capacity more than doubling to 4,900 barrels.

As part of the recent work at the facility the Ungani 4 flowline has been substantially completed with the remaining work being the tie-ins to the wellhead and to the facility.

The Ungani 1ST1 and Ungani 2 wells have continued to perform in line with expectations with average production of 1,300 barrels of oil per day.

The Wyndham tank now has 45,600 barrels in storage, with the next lifting expected to be in the second week of January.

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Fri, 29 Dec 2017 12:57:00 +1100 https://www.proactiveinvestors.com.au/companies/news/189332/buru-energy-reveals-expanded-oil-potential-in-ungani-field-189332.html
<![CDATA[News - Buru Energy doubling oil handling capacity at Ungani Oilfield and close to completion on development wells ]]> https://www.proactiveinvestors.com.au/companies/news/188850/buru-energy-doubling-oil-handling-capacity-at-ungani-oilfield-and-close-to-completion-on-development-wells-188850.html Buru Energy Ltd (ASX:BRU) is more than doubling oil handling capacity to 4,900 barrels a day at its wholly owned Ungani Oilfield in the Canning Basin of Western Australia.

New storage tanks being installed at the onshore project will be commissioned shortly.

As well as increasing daily oil handling capacity from 2,400 barrels, the tanks will increase fluid handling at the field to 8,000 barrels.

Trucking capacity being increased

Trucking capacity is also being increased to support increased production.

Buru is also planning its 2018 drilling program of up to four exploration wells.

READ: Buru Energy maintains the drilling pace at Ungani

Discussions with potential farm-in partners for this program are being advanced with a number of Australian and international companies accessing Buru’s data room.

The company resumed production in late October 2017 on the back of improved oil prices with Brent Crude Oil trading near to three-year highs.

Pumping systems have been operating well, delivering fluid to meet the capacity of current road tankers and oil storage.

WATCH: Drilling down into Buru Energy's strong year

Oil from the Ungani Field is trucked to the Wyndham Port and stored in an 80,000-barrel tank.

Recently, circa 55,000 barrels worth an estimated $A4.15 million were lifted from the tank by Trafigura.

Next lifting expected early in 2018

The next lifting is expected to be early in 2018 when Trafigura, with who Buru has an oil sales agreement, has ship availability.

At Ungani 5 drilling is proceeding smoothly with reservoir intersection expected late next week.

Completion planning has been finalised for the well at Ungani 4 and necessary equipment has been procured.

Completion is expected early in the New Year after the rig returns from the Ungani 5 program.

Flowline from Ungani 4

Construction of the flowline from Ungani 4 to the production facility is expected to be substantially completed before the Christmas break.

This will allow connection of the well to the production facility as soon as the initial production test is completed early in the New Year.

Drilling program on track

The Ungani5 development is on track for hitting the reservoir next week and Ungani 4 should be completed early in January.

The field capacity increases will come on line in time for the increased production from the new wells as part of Buru’s target to increase production to 3,000 bopd in the first quarter next year.

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Fri, 15 Dec 2017 14:49:00 +1100 https://www.proactiveinvestors.com.au/companies/news/188850/buru-energy-doubling-oil-handling-capacity-at-ungani-oilfield-and-close-to-completion-on-development-wells-188850.html
<![CDATA[News - Buru Energy maintains the drilling pace at Ungani ]]> https://www.proactiveinvestors.com.au/companies/news/188309/buru-energy-maintains-the-drilling-pace-at-ungani-188309.html Buru Energy Ltd (ASX:BRU) is continuing its drilling program at pace at the wholly-owned Ungani Oilfield, located in the Canning Basin of Western Australia.

WATCH: Aerial view of Ungani Production Facility & Drilling Operations at Ungani 5

The Ungani 5 appraisal well has been drilled ahead in a 12¼ inch surface hole to the first casing setting depth of 918 metres.

The current operation is preparing to run a 9⅝ inch casing.

The well is being drilled by the DDGT1 rig to a prognosed total depth of around 2,200 metres, and is expected to take 33 days to drill and complete.

It is located 1,140 metres to the east of Ungani 1 on a separate drilling pad and is designed to appraise the oil pool discovered by the Ungani 3 well.

READ: Buru Energy continues oil production ramp up amid surging prices ]]>
Wed, 06 Dec 2017 08:42:00 +1100 https://www.proactiveinvestors.com.au/companies/news/188309/buru-energy-maintains-the-drilling-pace-at-ungani-188309.html
<![CDATA[Media files - Drilling down into Buru Energy's strong year ]]> https://www.proactiveinvestors.com.au/companies/stocktube/8422/drilling-down-into-buru-energy-s-strong-year-8422.html Wed, 29 Nov 2017 08:30:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/8422/drilling-down-into-buru-energy-s-strong-year-8422.html <![CDATA[News - Buru Energy continues oil production ramp up amid surging prices ]]> https://www.proactiveinvestors.com.au/companies/news/187868/buru-energy-continues-oil-production-ramp-up-amid-surging-prices-187868.html Buru Energy Limited (ASX:BRU) continues to deliver for its shareholders regarding development and production from its 100% owned Ungani Oilfield, located in the Canning Basin of Western Australia.

Since production recommenced in late October 2017, the pumping systems have been operating well, delivering fluid to meet the capacity of current road tankers and oil storage.

Oil from the Ungani Field is trucked to the Wyndham Port and stored in an 80,000-barrel tanker.

Recently, ~55,000 barrels worth an estimated $A4.15 million were lifted from the tank by Trafigura.

READ: Buru Energy's shares trade higher as all going to plan at Ungani

The next lifting is expected to be early in 2018 when Trafigura, with who Buru has an oil sales agreement, has ship availability.

Plan in place to increase daily pumping capacity

Currently, pumps are producing 1,200 barrels of oil per day as that is the current trucking and field storage capacity.

Additional trucking capacity has been ordered and will be progressively available over the coming weeks.

Furthermore, current installation of new field tanks will increase daily oil handling capacity from 2,400 barrels to 4,900 barrels with work expected to be complete by mid-December.

Ungani 4 well will increase production further

The Ungani 4 well has intersected a 60+ metre oil column similar to the other wells in the field.

Production from Ungani 4 is expected to tie-in with the increase in field capacity expected in mid-December.

Buru is currently sourcing additional equipment for reservoir logging and completion of the well.

While the Ungani 4 completion program is finalised, the drilling rig has been moved to Ungani 5 to drill that well.

Ungani 5 to spud shortly

The Ungani 5 well is a test of the eastern fault block of the Ungani Field and is being drilled to appraise the Ungani 3 well.

The Ungani 3 well was an oil discovery but is interpreted to have not accessed the more porous section of the reservoir.

The well is expected to spud this week and a full update is expected at that time.

Chairman looks forward to Ungani 5

Eric Streitberg, chairman, said: “The Ungani 5 well is also very exciting as it has the potential to add to both reserves and production capacity to the field and we are looking forward to a nice Christmas present when we see the results of that well.

“We are of course also reviewing how we are drilling Ungani 5 to make sure that any potential problems are identified, and contingency plans put in place.”

Recent oil price moves to support balance sheet

Under the sales agreement, oil is sold crude is sold to Trafigura, who is responsible for all shipping related charges to the relevant refinery.

The final realised price of the recent ~55,000 barrel cargo will be dependent on the average Brent price over the month of November.

With Brent Crude Oil recently trading near to its three-year highs, Buru will capture the benefits of the recent oil price surges.

READ: Buru Energy’s forward program fully-funded following oversubscribed placement ]]>
Tue, 28 Nov 2017 15:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/187868/buru-energy-continues-oil-production-ramp-up-amid-surging-prices-187868.html
<![CDATA[News - Buru Energy's shares trade higher as all going to plan at Ungani ]]> https://www.proactiveinvestors.com.au/companies/news/187613/buru-energy-s-shares-trade-higher-as-all-going-to-plan-at-ungani-187613.html Buru Energy Ltd's (ASX:BRU) shares are trading 5.3% higher this morning at $0.30 with 765,000 changing hands as the company progresses drilling at the Ungani 4 development.

The Ungani 4 well is located in Production License L20 in the Canning Basin of north-western Australia, 97 kilometres east of Broome.

The well has been drilled ahead in a 6 inch (152 mm) hole to 2,249 metres measured depth, and the current operation is pulling out of the hole prior to logging.

Buru outlined that the top of the Ungani Dolomite reservoir is interpreted from drill rate and drill cuttings to have been encountered at 2,137 metres measured depth.

The drill rates, drill cuttings and oil shows observed while drilling through the reservoir are consistent with the other producing wells in the Ungani Oilfield.

The oil water contact in the well also appears consistent with that seen in the rest of the field.

Subject to confirmation from logs, the interpreted top of the reservoir and the oil water contact imply a gross oil column in the well in excess of 60 metres.

This compares to an oil column of 58 metres in Ungani 1ST1 and 54 metres in Ungani 2.

Next steps

The forward plan for the well is to continue to pull out of the hole and then run a comprehensive logging suite.

The results of the logs are anticipated to be available on Friday of this week subject to operational constraints.

The well is being drilled by the DDGT1 rig and is located some 500 metres to the southwest of Ungani 1ST1 on a separate drilling pad and is designed to provide an additional drainage point in the Ungani Oilfield and to verify reservoir continuity.

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Wed, 22 Nov 2017 11:16:00 +1100 https://www.proactiveinvestors.com.au/companies/news/187613/buru-energy-s-shares-trade-higher-as-all-going-to-plan-at-ungani-187613.html
<![CDATA[News - Buru Energy’s forward program fully-funded following oversubscribed placement ]]> https://www.proactiveinvestors.com.au/companies/news/183569/buru-energys-forward-program-fully-funded-following-oversubscribed-placement-183569.html Buru Energy Ltd's (ASX:BRU) shareholders have embraced the company's recently outlined strategy to accelerate development of its 100% owned Ungani Oilfield, located in the Canning Basin of Western Australia.

Buru marketed this strategy to investors during its 1 for 5 rights issue to raise $10.2 million at $0.15, with the offer being heavily oversubscribed with $14.5 million in applications received for the entitlement and shortfall shares.

Funds raised are to be used as part of the funding for the multiphase development program being undertaken at the Ungani Oilfield.

This program is aimed at increasing the field’s production capacity and recoverable oil resources and importantly, increasing Buru’s cash flow from the field, which was recently brought back into production through a new export facility.

The first lifting of crude oil from the export facility in Wyndham took place last week.

Details of the raising

The rights issue was heavily oversubscribed with applications totalling $14.5 million against a target of $10.2 million.

All entitlement shares will be issued in full, and normally this would then require a substantial scale back in the shortfall shares applications.

Rather than undertaking such a wholesale pro-rata scale back in respect of shareholders who have applied for shortfall shares, the board decided to make an additional placement of shares of $3.6 million.

This top-up share placement has been made only to existing Buru shareholders who submitted shortfall applications and who qualified as sophisticated and professional investors. 

The company also received very strong interest from new investors from its recent roadshow but did not need to issue shares to new shareholders given the strong take-up from the existing shareholder base.

The additional $3.6 million will provide more funding flexibility and contingency allowances for Buru’s 2017/18 Ungani accelerated development program.

The program is planned to commence later this month with the mobilisation of the drilling rig to Ungani.

Eric Streitberg

Eric Streitberg, executive chairman, commented:

"We are delighted with the strong support demonstrated by Buru’s large shareholder base with more than 2,250 applications received for this capital raising and applications for 42% more than the issue target.

"When we set out to seek the necessary funding to accelerate the development of our Ungani Oilfield, we wanted to give our existing shareholders first priority to participate in this funding process.

"The response to our new strategic direction and upcoming drilling program has been exceptional from both Buru shareholders and other investors as demonstrated by the rights issue take-up as well as the strong market support for the company’s shares."

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Thu, 07 Sep 2017 12:34:00 +1000 https://www.proactiveinvestors.com.au/companies/news/183569/buru-energys-forward-program-fully-funded-following-oversubscribed-placement-183569.html
<![CDATA[News - Buru Energy on-track to monetise first crude from Wyndham, secures drilling rig ]]> https://www.proactiveinvestors.com.au/companies/news/182881/buru-energy-on-track-to-monetise-first-crude-from-wyndham-secures-drilling-rig-182881.html Buru Energy Ltd (ASX:BRU) remains on-track for first oil lifting from Tank 10 in Wyndham of production from its wholly-owned Ungani Oilfield in Western Australia.

Buru has an FOB Wyndham oil sales agreement with Trafigura who have advised that the MT Marlin Ametrine will be arriving to collect the first cargo of crude in early September.

Drilling rig and services contracts

Buru remains busy onsite and has now completed services contracts for the drilling rig and crew for the planned workover and drilling program.

The contracted rig is the ex-Atlas rig that has worked for Buru previously.

The rig has recently completed a program for another operator and is currently “warm stacked” in the north-west of Western Australia which assists with reducing mobilisation costs.

The rig contract, including the camp, is on an innovative fixed price basis.

Halliburton will provide ancillary services including cementing, drilling fluids, mudlogging, and wireline logging under a contract that limits Buru’s cost exposure to the duration of the program.

The planned start date for the mobilisation of the rig to site is mid-September with operations commencing in late September/early October.

Entitlement issue roadshow

Buru said that it has been receiving positive responses from its rights issue roadshow with more than 30 meetings so far with investors and shareholders in Perth, the East Coast of Australia and Singapore.

There will be more meetings in Singapore and Hong Kong this week.

Funds are to be used to accelerate the development at Ungani, including the drilling of two oil wells in 2017 on the Ungani Oilfield, with the aim of increasing production capacity and recoverable oil resources.

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Thu, 24 Aug 2017 07:52:00 +1000 https://www.proactiveinvestors.com.au/companies/news/182881/buru-energy-on-track-to-monetise-first-crude-from-wyndham-secures-drilling-rig-182881.html
<![CDATA[News - Buru Energy nears first sale of oil from the new Wyndham tank ]]> https://www.proactiveinvestors.com.au/companies/news/182499/buru-energy-nears-first-sale-of-oil-from-the-new-wyndham-tank-182499.html Buru Energy Ltd (ASX:BRU) remains on-track at its wholly-owned Ungani Oilfield for the first lifting of crude from the 80,000 barrel Wyndham storage tank in early September.

Free flow production from the Ungani 1 and Ungani 2 wells has now produced 650,000 barrels since the start of production from the field in 2012, including around 50,000 barrels since the production restart in late June this year.

Buru has an FOB Wyndham sale agreement with Trafigura, priced at a fixed discount to Brent to account for shipping costs, with payment terms of three days after lifting.

Buru said that the wells are performing in line with predictions, with wellhead pressures and water cuts consistent with the dynamic modeling data.

Production has been constrained to ~1,000 bopd while the transport and operational systems are fine tuned.

New funds flow as well

Buru recently opened a 1:5 non-renounceable rights issue priced at $0.15, which puts the offer in-the-money by about 22% compared to the 15 day VWAP of 19 cents.

Funds are to be used to accelerate the development at Ungani, including the drilling of two oil wells in 2017, with the aim of increasing production capacity and recoverable oil resources.

The company is currently conducting a roadshow through Australia and Southeast Asia highlighting recent transformational transactions including the asset swap with Mitsubishi and the profitable restart of Ungani production, and has had an excellent response from investors so far.

Eric Streitberg, executive chairman, commented:

"We are very pleased with the positive response to the capital raising and the company’s new strategy, from both existing shareholders and from potential new investors.

"The Ungani wells are performing well and we are very much looking forward to our first sale of oil from the new Wyndham tank.

"We are focused on ensuring that the upcoming workover and drilling program is undertaken as safely, efficiently, and cost effectively as possible, and after a period of limited operations we are very excited to be getting back out in the field and adding value through the drill bit."

Two of Buru’s largest shareholders have each confirmed their support for this capital raising and have confirmed to the company that they intend to take up their full entitlements.

This intended support would account for a total subscription of circa A$1.7 million.

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Wed, 16 Aug 2017 11:25:00 +1000 https://www.proactiveinvestors.com.au/companies/news/182499/buru-energy-nears-first-sale-of-oil-from-the-new-wyndham-tank-182499.html
<![CDATA[News - Buru Energy targets funding to accelerate Ungani development ]]> https://www.proactiveinvestors.com.au/companies/news/181739/buru-energy-targets-funding-to-accelerate-ungani-development-181739.html Buru Energy Ltd (ASX:BRU) will look to raise $10.2 million in a 1:5 non-renounceable rights issue priced at $0.15, a 22% discount to the 15-day volume-weighted average price (VWAP).

Funds are to be used to accelerate the development of Buru’s 100% owned Ungani Oilfield including the drilling of two oil wells in 2017, with the aim of increasing production capacity and recoverable oil resources.

Two of Buru’s largest shareholders have each confirmed their support for this capital raising and have confirmed to the company that they intend to take up their full entitlements.

This intended support would account for a total subscription of circa $1.7 million.

Eric Streitberg, chairman, commented: “The company requires additional capital to undertake this development program in a timely manner.

“Whilst there are several possible ways to access additional funding, the board considers an attractively priced rights issue as the fairest way to allow all shareholders to participate in the forward program.”

Indicative timetable

The proposed indicative timetable for the offer is set out below.

August 1 (Today): Lodgement of prospectus;
August 7: Record date for determining entitlements;
August 10: Prospectus despatched to eligible shareholders;
September 1: Closing date; and
September 8: Shares issued.

Hartleys Limited has been appointed as lead manager and will be managing the placement of any shortfall shares not taken up by Buru shareholders.

Ungani is a multiphase development

Funds raised by the rights issue are proposed to be used as part of the funding for the multiphase development program being undertaken at the company’s 100% owned Ungani Oilfield.

This program is aimed at increasing the field’s production capacity and recoverable oil resources.

The program has already started with the recent recommencement of oil production from Ungani, with production from the existing two wells being progressively increased towards the initial target of 1,250 barrels of oil per day.

Funds to be used on Phase 3

Substantial progress has also been made on the next phase (Phase 2) of the development program.

This work is planned for completion later this year and is aimed at enhancing the production capacity of the existing wells.

This phase of the program will be funded from the company’s existing cash reserves.

The funds raised from the rights issue will be used to accelerate Phase 3 of this program which consists of the drilling of two additional wells planned for the fourth quarter of this year.

The two planned wells are the Ungani 4 vertical development well, and a side-track of the existing Ungani 3 well.

The aim of these two wells is to increase the field’s production capacity to a target of 3,000 barrels of oil per day, as well as confirming and potentially increasing the field’s recoverable oil resource base.

The estimated cost of drilling these two wells is some $9.5 million.

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Tue, 01 Aug 2017 12:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/181739/buru-energy-targets-funding-to-accelerate-ungani-development-181739.html
<![CDATA[News - Buru Energy Ltd restructures debt for flexibility ]]> https://www.proactiveinvestors.com.au/companies/news/180415/buru-energy-ltd-restructures-debt-for-flexibility-180415.html Buru Energy Ltd (ASX:BRU) has entered into an agreement with Alcoa of Australia Limited for the reschedule of its current debt repayment obligations.

Buru owes Alcoa $12.5 million related to an original gas sales agreement entered into in 2007.

Originally, this $12.5 million repayment was due on 30 June 2018 and was unsecured with no interest payable.

Buru and Alcoa have now reached a further agreement to vary the repayment terms under which payments will be made in the tranches set out below:

- $5.0 million to be paid on or before 15 July 2017;
- $2.5 million to be paid on or before 31 December 2018;
- $2.5 million to be paid on or before 31 December 2019; and
- $2.5 million to be paid on or before 31 December 2020.

The debt continues to be unsecured and will now be subject to an agreed market based interest rate on the outstanding balances commencing 1 January 2018, and payable annually in arrears.


Eric Streitberg, chairman, commented:

“We are very pleased to have reached this agreement with Alcoa which provides repayment terms that are more aligned with the company’s operations and expected cash flows.

“The restructure means we now have flexibility in our financial arrangements and are looking forward to the income from the restart of production at Ungani.

“The relationship with Alcoa remains strong and we will continue to consult with them regarding their future gas requirements.”


Tranche repayment details

The $2.5 million annual tranches are further subject to an accelerated capital repayment mechanism based on Buru’s gross revenue from Ungani oil sales exceeding an agreed base level.

This aligns the amortisation of the remaining Alcoa loan to the future oil revenue profile of Buru’s 100% owned Ungani Field, and provides more funding flexibility for Buru to repay this debt from surplus cash flow.

Buru’s cash balance at 30 June 2017 was $18.7 million.


Ungani Oilfield

During June 2017, Buru completed the initial field testing and commissioning program as part of its restart of production from its 100% owned Ungani Oilfield in the Canning basin of Western Australia and is currently ramping up production to 1,250 bopd.

The first proceeds from oil sales from production at Ungani will be received after the lifting of the first ~80,000 barrel cargo from Wyndham expected in September 2017.

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Thu, 06 Jul 2017 11:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/180415/buru-energy-ltd-restructures-debt-for-flexibility-180415.html
<![CDATA[News - Buru Energy delivers first oil from Ungani restart ]]> https://www.proactiveinvestors.com.au/companies/news/179848/buru-energy-delivers-first-oil-from-ungani-restart-179848.html Buru Energy (ASX:BRU)  has now completed the initial field testing and commissioning program as part of its restart of production from its 100% owned Ungani Oilfield in Western Australia.

The field is located in the Canning Basin and will produce at some 800 barrels of oil per day while the transport system is fully commissioned, with progressive steps up to the target production rate of 1,250 bopd.

Oil is currently being trucked from the Ungani Oilfield to the Wyndham Port with first oil now delivered using a new quad road tanker system.


Phase 2 now underway

Further development of the field is being undertaken in phases with the start-up of production being the completion of Phase 1.

Phase 2 will involve the installation of downhole pumps and their associated control and power systems in the Ungani 1 and 2 wells, and an upgrade to the fluid handling system, including additional tankage.

This phase is now underway with the long lead items for the artificial lift system being ordered.

These include the downhole pumps and ancillary well equipment.

Discussions with rig suppliers are also underway to ensure that a rig is available as required to install the pumps.

These discussions indicate that a cost effective solution will be available in the time frame required later this year.


Phase 3

Phase 3 is aimed at the incremental development of the field and will include additional drainage points to capture the identified resources.

The candidates being reviewed include the Ungani 3 eastern field area and a further development well, Ungani 4, to capture production from what is currently interpreted to be undrained areas of the field.

Success in Phase 3 has the potential to significantly increase proven Ungani oil reserves and provide a pathway to an export system through Broome.


Oil sales

Currently, the oil is being trucked to Wyndham Port, where it is stored in a successfully modified 80,000 barrel storage tank.

Negotiations with potential oil marketing parties are ongoing with strong interest shown for the high-quality Ungani crude, particularly for the larger parcels from the enhanced export system with the larger tank.

The first lifting is likely to be in September and marketing arrangements need to be in place to capture the most value from the sale process.

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Tue, 27 Jun 2017 09:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/179848/buru-energy-delivers-first-oil-from-ungani-restart-179848.html
<![CDATA[News - Buru Energy restarts production from Ungani Oilfield ]]> https://www.proactiveinvestors.com.au/companies/news/179416/buru-energy-restarts-production-from-ungani-oilfield-179416.html 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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Mon, 19 Jun 2017 09:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/179416/buru-energy-restarts-production-from-ungani-oilfield-179416.html
<![CDATA[Media files - Buru Energy's Eric Streitberg talks cash flow from transformational asset swap ]]> https://www.proactiveinvestors.com.au/companies/stocktube/7550/buru-energy-s-eric-streitberg-talks-cash-flow-from-transformational-asset-swap-7550.html Wed, 31 May 2017 09:00:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/7550/buru-energy-s-eric-streitberg-talks-cash-flow-from-transformational-asset-swap-7550.html <![CDATA[News - Buru Energy transforms its cash flow and exploration portfolio ]]> https://www.proactiveinvestors.com.au/companies/news/178301/buru-energy-transforms-its-cash-flow-and-exploration-portfolio-178301.html Buru Energy (ASX:BRU) has entered into a transformational transaction with its joint venture partner on its exploration and production assets in the Canning Basin in Western Australia.

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 Ungani Oilfield where production will shortly recommence, 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.

Eric Streitberg, chairman, commented: “This transaction is a logical outcome of the work the joint venture has undertaken in the Canning Basin since 2010.

“We have enjoyed an excellent working relationship with Mitsubishi and we will continue to be engaged with them both through our assistance with the EP 371 operations, and our continued joint venture interest in EP 457 and EP 458.

“This transaction provides both Buru and Mitsubishi the ability to achieve their corporate objectives by progressing their respective projects without the corporate and commercial boundaries currently in place under the existing joint venture arrangements.”

Updates will be provided at the company’s upcoming annual general meeting on 31 May.


Transaction details

Buru, DRC and DRF have entered into an agreement having the following effect:

- DRF has agreed to transfer to Buru its 50% interest in the Ungani Oilfield Production licences (L20 and L21) and its 50% interest in exploration permits EP391, EP431 and EP436;
- DRC has agreed to transfer to Buru its 50% interest in exploration permit EP428;
- Buru has agreed to transfer to DRF, its 50% interest in EP 371 and its 50% interest in the application for special prospecting authority STP-SPA-0065 and STP-AAA-0031 (SPA); and
- DRF and DRC have also agreed that Buru will provide services in relation to EP371, including community engagement and liaison.

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Thu, 25 May 2017 12:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/178301/buru-energy-transforms-its-cash-flow-and-exploration-portfolio-178301.html
<![CDATA[News - Buru Energy closing in on oil production restart ]]> https://www.proactiveinvestors.com.au/companies/news/176242/buru-energy-closing-in-on-oil-production-restart-176242.html Buru Energy (ASX:BRU) remains on track for a mid-year restart of its 50% owned and operated onshore Ungani Oilfield project located 150 kilometres east of Broome, Western Australia.

The program to restart production is progressing well with the modifications to the field facilities, access to Wyndham Port, and finalisation of the trucking contract all on track.

Production from the field will be trucked to the port at Wyndham and stored in an 80,000 barrel tank before being exported via ship southeast Asian or local markets.

The principal work at the field for the startup is the installation of the produced water injection system at the Ungani Far West 1 well.

Other work on the field prior to startup includes some general operational streamlining and the installation of a new load out system.


Port and trucking contract updates

The contract documentation for the use of Wyndham Port has been agreed including the crude oil storage agreement and the contractual terms with the engineering group that will undertake the upgrades at the port.

The work will include the installation of a mixer system which is commonly used for oil storage tanks with long crude residence times.

Trucking bids have also been received from several contractors.

Discussions with short listed tenderers are progressing well with contract award to be made as soon as practicable.


Background

Buru is a Western Australian oil and gas exploration and production company with petroleum assets and tenements located onshore in the Canning Basin in the southwest Kimberley region of Western Australia.

Its flagship high quality conventional Ungani Oilfield project is owned in 50/50 joint venture with Diamond Resources (Fitzroy) Pty Ltd (Mitsubishi).

As well as Ungani, the company’s portfolio includes world class tight gas resources in the Laurel Formation, with extensive 2C gas resources identified at Yulleroo and in EP 371 in the Asgard and Valhalla North wells.


Buru’s competitive advantage

Buru has been laying the foundations for long-term success in the current stabilising oil price environment.

The company has a high equity interest of ~50% in all of its core permits, with a major international partner and minimal work commitments required to maintain its land holding.

It is the operator of all of its core permits and a restart at Ungani will provide Buru with cash flow that will support unlocking further value through restarting its exploration program.

Buru has also been making progress unlocking value within its Canning Basin tight wet gas assets by successfully progressing native title agreements.

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Tue, 11 Apr 2017 08:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/176242/buru-energy-closing-in-on-oil-production-restart-176242.html
<![CDATA[Media files - Buru Energy lays down foundations for long-term success ]]> https://www.proactiveinvestors.com.au/companies/stocktube/7142/buru-energy-lays-down-foundations-for-long-term-success-7142.html Tue, 21 Mar 2017 15:00:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/7142/buru-energy-lays-down-foundations-for-long-term-success-7142.html <![CDATA[News - Buru Energy set to restart oil production from Ungani ]]> https://www.proactiveinvestors.com.au/companies/news/174575/buru-energy-set-to-restart-oil-production-from-ungani-174575.html Buru Energy (ASX:BRU) has completed a restart plan for its 50% owned and operated onshore Ungani Oilfield project located 150 kilometres east of Broome, Western Australia.

Production from the field will be trucked to the port at Wyndham and exported via ship in 80,000 barrel ships to southeast Asian or local markets.

Previous oil export from Wyndham was through a smaller 30,000 barrel tank, and the larger 80,000 barrel tank to be used for the restart brings significant economies of scale and commercial benefits through access to larger ships.

The restart is subject to final joint venture and regulatory approvals and award of the various necessary contracts.

Eric Streitberg, executive chairman, commented:

"The plan to commence export through Wyndham commencing in mid-2017 takes advantage of existing infrastructure that was not previously available, with its improved margins and early utilisation."

The Ungani field has been shut in for over a year after oil prices collapsed to US$30 a barrel.

Buru have taken the time since then to substantially reduce their operating and transport costs.

The restart will provide significant cash flow and is transformational for the company, particularly if production rates are increased when artificial lift is installed later this year.


Ungani restart details

Timing of the restart is dependent on the 80,000 barrel tank returning from diesel service and the required minor modifications being completed, with a mid-year target start date.

A tender process for the contract for transporting the crude from the Ungani Oilfield to Wyndham is currently in progress, together with a detailed review of the safety systems for the trucking operation.

Some minor modifications to the Ungani Oilfield will also be undertaken prior to start-up with the field initially produced on natural flow at a target rate of 1,200 barrels per day.

An artificial lift (electrical submersible pumps) is planned to be installed later in 2017 to maintain and potentially increase production rates.

The restart is subject to final joint venture and regulatory approvals and award of the various necessary contracts.


Background

Buru is a Western Australian oil and gas exploration and production company with petroleum assets and tenements located onshore in the Canning Basin in the southwest Kimberley region of Western Australia.

Its flagship high quality conventional Ungani Oilfield project is owned in 50/50 joint venture with Diamond Resources (Fitzroy) Pty Ltd (Mitsubishi).

As well as Ungani, the company’s portfolio includes world class tight gas resources in the Laurel Formation, with extensive 2C gas resources identified at Yulleroo and in EP 371 in the Asgard and Valhalla North wells.

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Fri, 10 Mar 2017 11:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/174575/buru-energy-set-to-restart-oil-production-from-ungani-174575.html
<![CDATA[News - Buru Energy confirms Laurel tight gas potential and advances Ungani oilfield restart ]]> https://www.proactiveinvestors.com.au/companies/news/170284/buru-energy-confirms-laurel-tight-gas-potential-and-advances-ungani-oilfield-restart-170284.html Buru Energy (ASX:BRU) has used the recent suspension at the Asgard 1 gas well to measure flow rates using an advanced Schlumberger VX multi-phase flow meter.

Asgard 1 is located onshore in the Canning Basin of Western Australia.

The meter allowed precise measurements of fluid flow rates that hadn’t been available during the earlier flow tests and importantly, the well was continually flowing gas and returning stimulation fluid, demonstrating the potential for long term deliverability.

The test also allowed Buru to identify the zones with the highest potential and the company is now planning for a horizontal well in these zones.

As well as further testing operations at Asgard 1, a submission of the Discovery Assessment Report for the Asgard/Valhalla accumulation has been accepted by the Department of Mines and Petroleum (DMP). 

This is a necessary next step to obtaining further title after the recent signing of the land use agreements with the traditional land owners.  The traditional land owners also provided support and logistics to the company during the Asgard test.

The company has also covered off the southern extent of the Laurel gas accumulation in EP 371 by applying for a Special Prospecting Authority over the gas accumulation to the south of the EP 371 permit.

These systematic steps are continuing to add value and certainty to the project.


Oil program update

Ungani

At the company’s Ungani oilfield, preparation for a potential oil production restart is proceeding well, with preliminary engineering work completed for a “future proofed” restart and good progress being made on evaluation of potential lower cost export solutions. 

The mapping of the 3D seismic along the Ungani trend has identified a very good selection of conventional oil prospects, and heritage clearances are planned for a number of these locations with field work to commence early in the New Year.

Expressions of interest have also been called for the supply of a drilling rig for the oil exploration program.

There is also work underway to see if prospects can be identified in the Ungani Dolomite oil trend on the other side of the basin along the Buru 100% owned Lennard Shelf permits.


Background

Buru is a Western Australian oil and gas exploration and production company with petroleum assets and tenements located onshore in the Canning Basin in the southwest Kimberley region of Western Australia.

Its flagship high quality conventional Ungani Oilfield project is owned in 50/50 joint venture with Diamond Resources (Fitzroy) Pty Ltd (Mitsubishi).

As well as Ungani, the company’s portfolio includes world class tight gas resources in the Laurel Formation, with extensive 2C gas resources identified at Yulleroo and in EP 371 in the recently fracced Asgard and Valhalla North wells.

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Mon, 12 Dec 2016 11:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/170284/buru-energy-confirms-laurel-tight-gas-potential-and-advances-ungani-oilfield-restart-170284.html
<![CDATA[News - Buru Energy Ltd secures significant Native Title Agreement ]]> https://www.proactiveinvestors.com.au/companies/news/167961/buru-energy-ltd-secures-significant-native-title-agreement-167961.html Buru Energy Ltd (ASX:BRU) moves closer to unlocking value within its Canning Basin tight wet gas assets by executing another Native Title Agreement covering land within EP371.

The agreement is in the form of a Land Access and Use Agreement (LAUA) with the Warlangurru People.

This agreement follows the recent agreement reached with the Yungngnora People and together the two agreements cover the central and most prospective area of the Laurel Formation trend in this part of the basin. 

Eric Streitberg, executive chairman, commented: “The agreements will greatly facilitate the further appraisal and development of the gas and liquids accumulation in the area of the Valhalla and Asgard wells.”


Background

Buru is a Western Australian oil and gas exploration and production company with petroleum assets and tenements located onshore in the Canning Basin in the southwest Kimberley region of Western Australia. 

Its flagship high quality conventional Ungani Oilfield project is owned in 50/50 joint venture with Diamond Resources Mitsubishi (Fitzroy) Pty Ltd. 

As well as Ungani, the company’s portfolio includes potentially world class tight gas resources, which includes EP371.


EP371

Exploration Permit 371 is part of a 50/50 joint venture with Diamond Resources.

The permit hosts the Valhalla North 1, Asgard 1 and Valhalla 1 and 2 wells.

Buru has a 50% equity stake in the resources for the Valhalla accumulation on EP371 which are:

- Contingent Resources: 288 million 2C barrels of oil equivalent (563 million 3C barrels of oil equivalents); and
- Prospective Resources: 2,403 million barrels of oil equivalent unrisked (Mean case).


Analysis

The Native Title Agreement with the Warlangurru People represents another significant milestone achieved for Buru as it looks to extract value from its world scale tight gas resource.

Buru has the potential for large value delivery from both its oil and tight gas assets in the Canning Basin.

These Native Title Agreement will give Buru the ability to move to a production licence in due course.

A farm-in partner is currently being sought to progress the tight gas assets to the commercialisation and development phases.

With a sustainable business model and defined commercialisation pathway for its Canning Basin assets, Buru is well positioned to deliver value from its large strategic land holding and asset base.

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Wed, 26 Oct 2016 09:10:00 +1100 https://www.proactiveinvestors.com.au/companies/news/167961/buru-energy-ltd-secures-significant-native-title-agreement-167961.html
<![CDATA[Media files - Buru Energy in 'pretty good shape with strong balance sheet' says exec chairman ]]> https://www.proactiveinvestors.com.au/companies/stocktube/6187/buru-energy-in-pretty-good-shape-with-strong-balance-sheet-says-exec-chairman-6187.html Fri, 14 Oct 2016 11:15:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/6187/buru-energy-in-pretty-good-shape-with-strong-balance-sheet-says-exec-chairman-6187.html <![CDATA[News - Buru Energy Ltd positioned to deliver further value on Canning Basin assets ]]> https://www.proactiveinvestors.com.au/companies/news/166055/buru-energy-ltd-positioned-to-deliver-further-value-on-canning-basin-assets-71078.html Buru Energy Ltd (ASX:BRU) has the potential for large value delivery from both its oil and tight gas assets in the Canning Basin located in northwest Western Australia.

The Ungani Oilfield was discovered in 2011 and represents the first new field oil discovery in the Canning for 30 years.

Ungani has produced 600,000 barrels to date and was suspended at minimal cost due to the collapse in the oil price in January 2016.

This new trend oil discovery is positioned for an easy restart subject to further oil price recovery and ongoing work to reduce operating and transport costs.

Thanks to its funding agreement with its major international partner, Mitsubishi Corporation, Buru’s share of any field improvements is carried through to the end of 2016 up to $9 million.

Buru is also close to completing its evaluation of over 1,000 sq km of onshore 3D seismic data over the very prospective Ungani trend.

Preliminary results are very encouraging with a large number of high impact conventional oil prospects being defined.

Any oil exploration is expected to be funded internally from the Buru’s healthy cash balance, which was $38 million at the end of the June quarter.

Within Buru’s strategic land position of a gross 33,200 square kilometres in the Canning Basin, it is also developing a world scale tight gas continuous resource, the Laurel Formation.

The resource has been independently confirmed and a frac program has confirmed the Laurel accumulation’s production potential and led to a contingent resource classification, the next step toward commercialisation.

The Laurel Formation is a basin centred tight gas accumulation defined by numerous historic wells and 8 wells drilled by Buru and the current joint venture.

It is a thick and extensive tight gas system containing shales, sandstones and limestones, similar to the Montney Formation in Canada.

Buru also recently signed another landmark native title agreement that will give it the ability to move to a production licence in due course.

A farm-in partner is currently being sought to progress the tight gas assets to the commercialisation and development phases.

The 2016 calendar year has witnessed a dire oil market, budget cuts, exploration stemmed and contractors going insolvent.

Buru has made the necessary changes to its business to weather these difficult times and during this last year has delivered:

- a successful frac program;
- a new landmark native title agreement;
- an oil discovery at Ungani Far West;
- restructured its balance sheet;
- cut cash costs; and
- set a path back to profitable oil production.

With a sustainable business model and defined commercialisation pathway for its Canning Basin assets, Buru is well positioned to deliver value from its large strategic land holding and asset base.

 

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Mon, 19 Sep 2016 12:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/166055/buru-energy-ltd-positioned-to-deliver-further-value-on-canning-basin-assets-71078.html