Buru closer to Currajong 1 spud

ENSIGN Rig 963 has been mobilised from the Northern Territory to Buru Energy’s Currajong 1 drill site in the Canning Basin, as the company makes final preparations to begin its two-well exploration campaign in the coming weeks.
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Mark Tilly

Journalist

Mark Tilly

Both will be largely funded by joint venture partner Origin Energy, which is farming-in for a 50% interest in the respective permits by carrying Buru for $16 million. 

Currajong-1 will be drilled in permit EP 391 while Rafael-1 will be drilled to the southeast in EP 428. 

Rafael 1 will spud late July or early August, with initial work on the well pad and access road completed and mobilisation of Buru and contractor personnel to complete the work to begin soon. 

Buru said final wellsite works at Rafael, including installation of impermeable liners, will begin soon to ensure the well site is ready for the rig to arrive once Currajong 1 is drilled. 

Both wells are large conventional oil prospects with a combined total of some 97 million barrels of prospective resources. 

Buru noted the estimated chance of discovery of its ‘Best Estimate' prospective resources is 26% for Currajong and 21% of Rafael. 

The prospective resource estimate was prepared by executive chairman Eric Streitberg. 

Currajong's best estimate prospective resource  is 17 million barrels of oil and Rafael's is 37MMbbls, both on a gross basis. 

The company is also pursuing a seismic survey program at its Ungani 8 well, granting the contract to Terrex, who will mobilise to site once it finishes its current work in the Perth Basin. Terrex acquired 14,000 kilometres for Buru from 2009-2015 in the Canning. 

Buru noted the crew will be slightly late due to the current work taking longer than expected and will now arrive in late June. 

The Celestine 2D survey will cover some 1100km across EP457 and EP458 to further define a new geological concept that has the potential for large conventional oil accumulations, the company said. 

"We are very much looking forward to the drilling of the two exploration prospects," Streitberg said. 

"We are also very keen to see the results of the seismic program that is being acquired over some particularly interesting areas of our permits." 

Streitberg also noted the company was working on a process to reduce its overall emissions, saying "we want to ensure we have a plan for the development of oil resources we hope to find with the lowest emissions intensity possible", without elaborating further. 

 Buru's shares are down 3.1% at 15.5c.