ASX-listed Buru Energy has got its new drilling in Western Australia’s onshore Canning Basin off to a flying start with the first casing set in the Currajong 1 exploration well. Targeting 28 million barrels of conventional oil, Buru’s drilling of Currajong 1 is due to conclude in the next two weeks. A second well targeting 69 million barrels of oil at Rafael 1 is set to follow.
After spudding of the Currajong 1 well earlier this month the hole has been drilled to the intermediate casing depth of 715.5m and casing has been run to 713m and cemented in place. The well is targeting a large structure defined by 3D seismic surveying at 2,300m depth.
At the completion of Currajong 1 the rig will be moved about 50km east to commence drilling the Rafael 1 exploration well. The well is designed to test a large structural target defined by a 2D seismic grid and is set to be drilled to about 3,800m depth.
Interestingly, management have said the two wells show geological similarities to existing Devonian-age oil fields in the Canning Basin, Buru’s 100 per cent-owned Blina oilfield and its Ungani oilfield.
An extensive 2D seismic survey is set to commence in late July. The company has said the survey is aimed at defining a new geological concept that has the potential for large conventional oil accumulations.
Buru is carried by its equal partner, Origin Energy, for $16 million of the cost of the two wells and a further $6m seismic program.
The latest lifting of Ungani crude oil from Wyndham Port has also been completed for an impressive 74,000 barrels. Under a marketing contract with BP Singapore Pte Limited, the price received by Buru and Origin will be BP’s actual refinery sale price less shipping and associated costs. Management says Buru stands to add about $3.2 million to its balance sheet.
Buru’s Executive Chairman Eric Streitberg said: “The first part of the Currajong program has gone according to plan with the rig operating efficiently and the operation on schedule. We have an exciting few weeks coming up and are very much looking forward to what Currajong and then Rafael has in store for us. The oil lift and sale will also provide a welcome boost to our finances in a climate of strengthening oil prices with strong global demand.”
The Canning Basin is said to be the largest sedimentary basin in Western Australia covering some 530,000 square kilometres, with Buru’s tenure taking in a mammoth 22,000 sq.km.
Recent data from the US indicated declining global crude oil and gasoline inventories were pushing up the price of WTI crude, which has surged from under US$40 per barrel late last year to about US$74 per barrel currently. Welcome news to Buru as it works to expand its resources and production in an enviable onshore oil and gas address.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
