- Buru Energy (BRU) is preparing to commence its exploration drilling and seismic program at Canning Basin in Western Australia
- The upcoming program will include exploring wells on two large conventional oil prospects, as well as the development well on the Ungani Oilfield
- Buru is planning on commencing the drilling program in early to mid June
- According to the company, this is the most wide-ranging exploration program in the Canning Basin for many years
- On the market today, Buru is up 6.45 per cent and is trading at 16.5 cents per share
Buru Energy (BRU) is set to commence a major Canning Basin exploration drilling and seismic program.
The upcoming program will include exploring wells on two large conventional oil prospects, as well as the development well on the Ungani Oilfield (Ungani 8), interpreted to be an undrained part of the field.
For the drilling, Buru will use a high capacity rig that has recently been drilling deep and complex wells in other Australian basins.
Kurrajong 1 will be the first well in the drilling program, followed by the Ungani 8 development and then the Rafael 1 exploration well.
Buru will commencing the drilling program in June and is targeting 97 million barrels of conventional oil.
Canning Basin is located in the southwest Kimberley region around 2300 kilometres north of Perth.
Executive Chairman Eric Streitberg says the exploration program is on track.
“We are planning to use a large rig run by an experienced contractor and have put in place a very experienced drilling team to run the program. We are drilling two of the largest onshore oil exploration targets in the country at a time of rising oil prices and critical domestic oil production declines,” he said.
“In parallel with the drilling program we will be acquiring a major seismic program that will help us fill our prospect inventory and set us up for a continuous drilling program next year,” he added.
Notably, under the terms of the farm-in agreements, Buru will be carried for $16 million of the cost of the drilling of the two exploration wells in the program.
According to the company, this is the most wide-ranging exploration program in the Canning Basin for many years.
On the market today, Buru is up 6.45 per cent and is trading at 16.5 cents per share at 12:01 pm AEDT.