- Buru Energy’s (BRU) joint venture partner Origin Energy (ORG) delays systematic appraisal of the Rafael gas discovery in Western Australia
- Plans for a follow up flow test and acquisition of a 3D seismic survey were well advanced however ORG says more time is required to consider internal approvals
- The delay is expected to see seismic operations deferred to the first half of CY23, meanwhile BRU says the parties are working together to resolve the issues
- In other news, lifting of Ugani crude oil has begun from the Wyndham port and is estimated to result in revenue of $5.5 million for the company
- Buru shares are down 3.70 per cent trading at 13 cents, while Origin shares were down 1.52 per cent trading at $5.84 at 1:35 pm AEST
Buru Energy’s (BRU) joint venture partner Origin Energy (ORG) has pulled the brakes on a systematic appraisal of the Rafael gas discovery.
Buru is the operator and 50 per cent holder of the exploration permit that hosts the conventional wet gas discovery in the Canning Basin of northwest Western Australia, and Origin holds the other 50 per cent.
The parties completed a flow test of the gas condensate earlier this year and had been planning the acquisition of a 3D seismic survey over the structure as well as another flow test as part of a systematic appraisal.
While plans for this work were reportedly well advanced, Origin has indicated that more time is required to consider the internal approvals required for these operations.
The delay is expected to see seismic operations deferred to the first half of 2023 calendar year.
Buru said it is working with Origin to resolve the issues and discussions are ongoing in an attempt to align the parties on technical matters.
In other news, crude tanker Aris has begun lifting Ungani crude oil from the Wyndham Port.
Buru has a 50 per cent operating interest in the Ungani oilfield, east of Broome, and trucks the oil it produces to the Wyndham Port.
The lifting began today and is expected to take a day to complete for around 75,000 barrels.
BRU has a marketing agreement in place with BP Singapore, which has purchased the crude and will deliver it to a refinery in south-east Asia.
Based on the current price of brent oil, Buru anticipates its revenue share will be around $5.5 million, which is $1 million more than its previous largest lifting in February this year.
Over at the joint venture Barbwire Terrace project with Sipa Resources, drilling is set to kick off with up to four diamond drill holes planned to test lead and zinc targets.
Access tracks and drill pads have been prepared ahead of the drill rig mobilising to site next month. The program is estimated to take four weeks to complete.
Buru shares were down 3.70 per cent trading at 13 cents, while Origin shares were down 1.52 per cent trading at $5.84 at 1:35 pm AEST.