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Buru Energy doubling oil handling capacity at Ungani Oilfield and close to completion on development wells

New storage tanks at the Canning Basin project will be commissioned shortly.
Buru Energy doubling oil handling capacity at Ungani Oilfield and close to completion on development wells
Ungani field infrastructure

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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