Buru Energy continues to maintain a stable production base of between 960 and 1000 barrels of oil per day from its Ungani oilfield in the Canning basin in WA’s Kimberley region.
Work to upgrade the fluid handling capacity of the production facility is also on track with the company using items from its current regional inventory to reduce costs.
The company has also signed a new oil sales and lifting contract on more favourable commercial terms with Petro-Diamond Singapore to replace its existing contract with Trafigura expiring on 30 June 2019.
Buru is also preparing to sidetrack the Ungani-6H production well where the drilling has been delayed by rig downtime and repairs, managing lost circulation zones and difficult drilling conditions in the Ungani Shale section immediately above the reservoir.
Once the sidetrack intersects the target Ungani Dolomite reservoir, the NGD 405 rig will case the well and move to the Yakka Munga prospect to drill the re-named Adoxa-1 exploration well.
Adoxa-1 will be followed by the Rafael-1 exploration well and a decision will then be made to drill either the Miani-1 exploration well or return to the Ungani field to drill the Ungani-7H well.
Both Rafael-1 and Miani-1 have been reviewed by an independent auditor who has confirmed that Buru’s interpretation of the prospects is reasonable and supported by the available data.
Buru said the decision to delay the drilling of Ungani-7H was made to review the well design in light of the Ungani-6H delays and implement any required changes.
Meanwhile, preparations for the coiled tubing operation on Ungani-6H are almost complete and the equipment will be mobilised once casing of the well is finished.
This equipment is expected to take about four weeks to mobilise and will be used to carry out underbalanced drilling of the horizontal section at Ungani-6H.
The unit is expected to be demobilised after the Ungani-6H coil tubing operation and then remobilised as required for any subsequent operations, including Ungani-7H.
Buru and joint venture partner Roc Oil have also agreed to carry out further appraisal work on the Ungani North-1 well.
This will involve removal of the existing completion string and re-entry of the Ungani Dolomite oil zone.
A decision may then be made to perforate and test the overlying Reeves Formation where petrophysical interpretation suggests that zones similar to the oil-bearing Reeves Formation oil zones in Ungani Far West may be present.
Separately, Buru is investigating the significance of an initial flush production of about 600 barrels of oil at high flow rates while preparing to carry out a workover and test of the Yellowdrum section within the Blina-4 well at the wholly-owned Lennard Shelf areas.
The company is also preparing a plan to use its jacking platform to carry out proposed conventional gas tests at the Yulleroo unconventional gas field.
