- Buru Energy (BRU) has completing lifting crude oil at the Wyndham Port under a marketing agreement with BP Singapore
- The oil is produced at Buru’s 50 per cent owned Ungani Oilfield in WA and is then trucked to the Wyndham Port for BP to ship to Southeast Asian refineries
- Unfortunately though, heavy rains have impacted production and caused lifting delays
- But the increase in the oil price from the previous oil liftings has compensated for the lower production volumes
- Looking ahead, Buru plans to install special pumps in the Ungani wells and drill another well to improve oil production
- Buru ended Friday’s session in the grey with shares closing at 17.5 cents
Buru Energy (BRU) has completing lifting crude oil at the Wyndham Port for a total of about 70,000 barrels of oil.
The oil is produced from the Ungani Oilfield which is located 90 kilometres east of Broome, Western Australia. Buru owns a 50 per cent operating interest in this oilfield with Roc Oil Company owning the other 50 per cent stake.
The oil is then trucked to the Wyndham Port where it’s stored in an 80,000-barrel tank. Then, Buru Energy’s marketing partner, BP Singapore, buys the oil and ships it to Southeast Asian refineries.
Under terms of the marketing contract, Buru’s 50 per cent revenue share from the lifting is estimated to be about $2.5 million. However, the price will be finalised at the end of this month.
Unfortunately, the late wet season and heavy rains have impacted production from Ungani which resulted in oil being lifted later than expected. But the increase in the oil price from the previous oil liftings has compensated for the lower production volumes.
A recent workover was conducted to reconfigure the tubing in the Ungani 7H well. However, this didn’t lead to much of an improvement. So, a larger electric submersible pump (ESP) was installed in the well to improve the oil rate.
The company is also planning to install an ESP in the Ungani 5 well from April 12. Furthermore, BP and Buru have agreed to drill another well on the Ungani Oilfield.
With more and more wells operating, overall production and oil recovery is expected to stabilise and improve.
Buru ended Friday’s session in the grey with shares closing at 17.5 cents.