Buru Energy’s permits lie in the Canning Basin, a geological unit in the southwest Kimberley region some 2,300kms north of Perth. The area of Buru’s operations 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 aged 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 also has an extensive and highly prospective exploration portfolio covering oil and gas prospects that are well defined on both 2D and 3D seismic.
Buru Energy has a 50% operating interest in the conventional Ungani Oilfield (production licences L20 and L21), with Roc Oil Company Limited holding the remaining 50%.
The Ungani Oilfield is located approximately 90 kilometres east of Broome and currently includes six production wells and associated production facilities. The produced oil is trucked to the Port of Wyndham where it is stored in an 80,000 barrel tank from where it is purchased FOB by BP Singapore Pte Limited and shipped to SE Asian refineries.
The current 2021 drilling program includes and additional production well on the field (Ungani 8) that will be drilled in Q4 2021.
The Company also holds 100% of a number of legacy fields on the Lennard Shelf in the north of the Basin including the Blina Oilfield where operations to determine the potential for a secondary recovery project are ongoing.
The Canning Basin hosts a major tight wet gas resources with world scale prospective resources. The most well-developed of these resources is the Yulleroo Gasfield where four wells have defined a substantial gas accumulation.
The Origin Energy farm out transaction does not include the Yulleroo Gasfield which is retained 100% by Buru.
The gas is hosted by the thick (+2,000m) Laurel Formation and is located at depths from 2,000 m to beyond 5,000 m below the surface. As the host rocks generally have low porosity and permeability, the large scale extraction of the gas requires hydraulic stimulation (fraccing) to achieve commercial flow rates. There are several zones in the upper part of the section that appear to have the potential for conventional gas flows and the evaluation of these is ongoing. Conventional gas resources could be used to supply local industry including for power generation as a substitute for LNG trucked from the Pilbara.
An independent evaluation of the gas and liquids resources of the Yulleroo Gasfield by RISC determined 2C Contingent Resources net to Buru of some 714 petajoules of recoverable gas with 24.9 MMbbls of associated liquids
Buru Energy has an extensive and highly prospective exploration portfolio including conventional 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 other high potential play types for oil and gas, including the world class Rafael conventional oil prospect.
In December 2020, Buru announced it had entered into a farm out transaction with Origin Energy for a Canning Basin wide exploration program whereby Origin will earn a 50% interest in the EP129, EP391, EP428, EP431 & EP436 permits as well as a 40% interest in the EP457 and EP458 permits held with Rey Resources. Buru will remain as operator of all exploration permits.
The Origin farm in includes a commitment to drilling two exploration wells. Origin will provide individual carry amounts totaling $16 million for these well costs, and has provided an additional $1 million payment to Buru in recognition of past costs.
Buru is currently drilling Rafael 1. It is a relatively deep well at ~3,800 metres, which is a similar depth to previous deep Buru wells in the basin. The well is targeting mean prospective resources of gross 69 million barrels of oil1.
The Origin farm in also includes the acquisition of extensive regional and prospect level seismic programs, with Origin carrying the first $6 million of this seismic acquisition expenditure.