PriceSensitive

Buru Energy (ASX:BRU) reports flow test delay due to COVID-19 restrictions

ASX News, Energy
ASX:BRU      MCAP $65.79M
13 December 2021 11:47 (AEST)

Source: Buru Energy

Planned flow testing at Buru Energy’s (BRU) Rafael-1 well has been delayed due to recent COVID-19 related border closures.

Rafael is located onshore within the Canning Basin of Western Australia, and the energy stock was planning a high-pressure gas flow test of the Ungani Dolomite section.

Special equipment is being organised for the test, while specialised operators were also going to be flown in from South Australia and Queensland.

However, WA recently closed its border to South Australia amid a COVID-19 outbreak, and the state has strengthened its border with Queensland after multiple cases were recorded multiple cases were recorded.

As a result of the border closures, Buru now advises Rafael-1 will be delayed for roughly one month, with flow testing now planned for mid-January.

Buru Energy Executive Chairman Eric Streitberg said the delay was disappointing.

“Whilst we are obviously disappointed that we will have to wait a few more weeks for the flow test results, what is important is to be able to conduct it safely and with appropriately qualified personnel,” he said.

“We are mobilising all the required equipment to site so that we can get started as soon as the personnel can get up to Rafael, and we have our wet season contingency plans in place to make sure there aren’t any hiccups on that side.”

BRU also advises its planning to spud the Ungani 8H development well this week, with the drill rig almost mobilised at site.

Additionally, the company revealed an additional potential reservoir section has been identified in Rafael 1, but they won’t be tested in upcoming flow testing.

Shares in Buru Energy were down 8.33 per cent at 19.3 cents each at 11:47 am AEDT.

Related News