Buru Energy is set to kick off its 2021 oil exploration program in the Canning Basin in the north of Western Australia where it is targeting 97 million barrels of conventional oil from back-to-back wells. A rig has been mobilised at Buru’s first Currajong 1 well with a second well, Rafael 1, to follow. A seismic survey to define new targets is also on the cards.
The company will be carried for $16 million of the cost of the two wells and a further $6m for the cost of the seismic program by its 50-50 partner, Origin Energy.
The Ensign 963 rig is being inspected ahead of final testing prior to the start of drilling at Currajong 1. The well is set to be drilled to about 2,400m depth on a large structure previously defined by 3D seismic surveying.
After drilling Currajong 1, the rig will be shifted to Rafael 1 where site preparations are being finalised.
Rafael 1 is planned to a depth of 3,800m and Buru is looking to tap into a large structure defined by a 2D seismic grid.
Buru’s Executive Chairman, Eric Streitberg said: “We are very pleased to have recently finished our successful capital raising and are now fully funded for the 2021 program and future activity. The rig-up of the Ensign 963 drilling rig is going very well and the Ensign crew are very professional and experienced. Although commencement of the drilling program has been slightly delayed, we are being very diligent about making sure that the rig is fully fit for purpose and thoroughly inspected before we accept it and commence drilling.”
Currajong 1 and Raphael 1 wells are said to exhibit geological similarities to the two existing Devonian-age oil fields in the Canning Basin, Buru’s 100 per cent-owned Blina oilfield and its 50 per cent-owned Ungani oilfield.
Buru’s Ungani production facility churns out between 900 and 950 barrels of oil per day from the Ungani oilfield under an equal joint venture partnership with ASX-listed, Roc Oil.
The company has scheduled an oil lifting from the Wydenham tank at Ungani for early July. It is looking to increase the oil flow rate to capitalise on strong oil prices.
The price of oil has surged in recent months from below $50 per barrel at the start of the year to above $70 per barrel presently.
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