Buru Energy’s permits are in the Canning Basin, an area in the SW Kimberley region some 2,300 kms north of Perth. The area is low relief and is dominated by rangelands with large cattle grazing properties covering most of the area.
The Canning Basin is the largest sedimentary basin in Western Australia covering an area of some 530,000 sq kms. Geologically, the basin has similarities with highly productive Palaeozoic basins worldwide and is one of the few remaining areas in onshore Australia that is under-explored for petroleum.
Buru Energy holds the dominant acreage position in the Canning Basin. In addition to the significant conventional Ungani Oilfield and the tight wet gas resources of the Laurel Formation, Buru Energy has an extensive and highly prospective exploration portfolio covering oil and gas prospects that are well defined on both 2D and 3D seismic. The portfolio covers a range of prospect sizes and play types from proven Ungani lookalikes to high potential play types for oil and gas. The majority of these high value prospects are on 50% owned acreage providing a significant equity position .
In May 2018 Roc Oil Limited purchased a 50% interest in the Ungani Oilfield for a total cash payment of $64 million and agreed to farm in for a 50% interest in exploration permits EP 391, EP 428 and EP 436 by paying $20 million of a $25 million exploration program of up to four wells.
It is intended that up to four wells will be drilled in the 2018 and 2019 drilling seasons with the wells to be drilled in the 2018 season by the DDGT1 Rig 1 to include the Ungani Dolomite conventional oil prospects at Kurrajong and Ungani West. The Yakka Munga prospect is also scheduled to be drilled in the 2018 season subject to timing and cost considerations. It is intended that the Rafael prospect will be drilled in the 2019 drilling season with an appropriate larger rig.