- Oil and gas explorer Buru Energy (BRU) has outlined the next steps of its 2021 WA exploration drilling program, slated to begin in mid-June
- The company outlined the first stage of the drilling plan last week, with the Kurrajong 1 well to be the first well drilled under the program
- Today, Buru said it has designated the Rafael 1 well as the second hole to be drilled, with Ungani 8 to be the final well drilled under the program
- Buru owns the wells in a 50/50 joint venture with fellow ASX-listed Origin Energy (ORG)
- Meanwhile, Buru has also extended its $5 million purchase plan announced in late-April
- The company was initially planning to close the purchase plan on Monday, May 24, but the closing date has been pushed back to Friday, June 4
- Under the plan, eligible shareholders can subscribe for $30,000 worth of new BRU shares at 16 cents each
- Shares in Buru are up a slight 3.33 per cent this afternoon to trade at 16 cents per share
Oil and gas explorer Buru Energy (BRU) has outlined the next steps of its 2021 WA exploration drilling program, slated to begin in mid-June.
The company outlined the first stage of the drilling plan last week, with Buru and joint venture partner Origin Energy (ORG) to drill the Kurrajong 1 well as the first step of the program. Buru has since renamed the well to Currajong 1 due to a conflict with an offshore well of which the company has recently been notified.
Today, Buru said it has designated the Rafael 1 well, also owned under the 50:50 joint venture with Origin, as the second hole to be drilled in the program. The Ungani 8 well will be the final well drilled as part of the 2021 program.
All of the wells lie within the Ungani Oilfield in Western Australia's Canning Basin. Buru said it expects the Currajong 1 well to spud in mid-June and Rafael 1 to spud in late July or early August.
Buru Chairman Eric Streitberg said the company is excited to be drilling the two conventional oil exploration wells back-to-back.
"These prospects are two of the largest conventional onshore oil targets to be drilled in Australia for many years and success would have the potential to provide a considerable boost to Australia's liquid fuels production," he said.
Announced in tandem with the updated drilling plan is an extension to the $5 million share purchase plan announced by Buru at the end of April.
Under the terms of the plan, eligible shareholders can subscribe for up to $30,000 worth of new shares at 16 cents per share — an 18.63 per cent discount to Buru's five-day volume-weighted average price from when the plan was announced.
The purchase plan opened on May 6 and was initially supposed to close on Monday, May 24. Today, Buru said the closing date has been extended to Friday, June 4.
The share purchase plan is part of a wider capital raising plan under which Buru has already raised $15 million through a share placement.
Shares in Buru Energy are up a slight 3.33 per cent this afternoon to 16 cents per share. The company has an $80 million market cap.