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 the Rafael 1 and Currajong 1 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.
Currajong 1 is the first well to be drilled in the program and is located some 30 kilometers west of the Ungani Oilfield. It is expected to have similar geology as Ungani and is targeting mean prospective resources of gross 29 million barrels of recoverable oil1. It is expected that the Currajong 1 well will spud in mid-June.
The second well in the program has now been confirmed as Rafael 1 which is expected to spud in late July or early August 2021. Rafael 1 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.
1 - Prospective Resources are the estimated quantities of petroleum that may potentially be recovered by the application of a future development project and may relate to undiscovered accumulations. These prospective resource estimates have an associated risk of discovery and risk of development. Further exploration and appraisal is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. Further information on the above Prospective Resources as required under ASX Listing Rule 5 is included in Buru Energy’s ASX Announcement dated 22 March 2021.