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Buru Energy continues Ungani Oilfield production ahead of May lifting, slashes corporate personnel costs 50%

Field operating costs are also being reduced and the current global crude market environment is being closely monitored.

Buru Energy Ltd - Buru Energy continues Ungani Oilfield production ahead of May lifting, slashes corporate personnel costs 50%
Buru is reducing corporate personnel costs by more than 50%

Buru Energy Ltd (ASX:BRU) is continuing production from the Ungani Oilfield joint venture, about 90 kilometres east of Broome in WA, with the next lifting scheduled for mid-May.

The received price for this lifting under the current lifting contract will be based on the average Brent price over the month of May.

The JV is continuing production at this stage assisted by the ability to reduce field operating costs and corporate personnel costs while the current global crude market environment is being closely monitored.

COVID-19 management protocols have had no material effect on Buru’s operational capability in line with operations being staffed locally with no FIFO staff and not being in proximity of any Kimberley remote Aboriginal communities.

Corporate costs

Buru is reducing corporate staff salaries by between 20% and 75% across a range of management and operational positions.

These measures will also include several redundancies across the business.

Individual salary reductions have been determined by the requirements for employees to be available to ensure the safe and environmentally compliant operating capability of the company.

The executive chairman will initially reduce his salary by 55% and non-executive directors will reduce their fees by 40%.

These measures, which will result in an overall reduction of the company’s personnel costs, excluding Ungani production, of more than 50% are effective from April 1 and will be reviewed on a quarterly basis or as required.

All other non-personnel overheads are also being reduced to the full extent practicable.

Capital expenditure

In relation to capital and exploration expenditures, Buru has no material permit obligations and has deferred all discretionary expenditure including non-essential capital expenditure on the Ungani Oilfield.

Farm-out process

The farm-out process for the company’s Canning Basin exploration areas is continuing with interest shown from several parties.

Technical due diligence material will be available to parties in the coming weeks as the database compilation is completed and the virtual data room becomes operational.

Quick facts: Buru Energy Ltd

Price: 0.105 AUD

ASX:BRU
Market: ASX
Market Cap: $45.37 m
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