Oil and gas company Buru Energy has flagged job cuts and the sale of acreage in the Canning Basin to save costs, as a drilling contractor employed at Buru’s Ungani project falls into administration.
Buru announced today plans to reduce staff levels “to as low a level as practicable”, with several corporate positions already made redundant.
It has also announced the sale of several permits in the Canning Basin.
“Application has been made to the Western Australian regulatory authorities for the relinquishment of the areas known as the Coastal and Acacia permits,” Buru said.
“Although areas of high prospectively remain in these permits, they are remote and geologically high risk, and the work commitments would entail the drilling of a number of wells over the next few years if the permits were retained.
“The relinquishment of these areas is considered a response to a combination of long term technical evaluation and current economic conditions.”
Buru also said it would relinquish other eastern application areas, which contain good prospectively for laurel formation gas accumulations but were remote.
“They also cover areas with significant environmental and Aboriginal heritage values which also include complex and potentially overlapping native title claims and determinations,” it said.
Meanwhile, FTI Consulting announced today that it had been appointed as voluntary administrators of Brisbane-based Titan Energy Services.
A subsidiary of Titan is currently drilling at Buru’s Ungani far west 1 well.
“Buru is working with the administrator to ensure there is no interruption to the planned drilling schedule,” Buru said.
Chairman Eric Streitberg thanked shareholders for their support during a challenging year for Buru.
“The company has excellent assets and is one of the most active onshore explorers outside the Cooper Basin,” Mr Streitberg said.
“We are firmly of the view that the oil and gas industry has much to contribute to the maintenance of our way of life and to Australia’s future prosperity and we will work to ensure Buru is a significant part of that contribution.”
Buru shares were 0.9 per cent higher to 21.7 cents each at 11:20am.
