Buru keen to explore gas field around Ungani
Canning Basin oil producer Buru Energy wants to partner up for oil exploration a year in the wake of its joint venture with Mitsubishi ending.
Buru executive chairman Eric Streitberg told the company’s annual meeting yesterday that he was hopeful he could soon announce a farm-in to support the drilling of three exploration wells this year in the vicinity of Buru’s producing Ungani oil field, 90km east of Broome.
He said that the exploration was needed as the full flush of Ungani production would last only three to five years and then slowly tail off over 20 years.
Ungani production has restarted in the past week after heavy flooding cut access to the site in January.
Mr Streitberg said the flooding occurred just after two additional wells had been drilled and two others fitted with pumps to boost output.
“We were ready to go but unfortunately were hit by three cyclones in a row,” he said. The access road has now been improved.
After the split last year with Mitsibushi which gave the Japanese company the Valhalla gas prospect, Buru retained Ungani and the Yulleroo gas field, about 170km east of Broome.
“The oil is immediate and highly profitable but relatively short-term whereas the gas is very long term but a huge resource,” Mr Streitberg said.
Development of Yulleroo requires a positive outcome from the State Government’s fracking inquiry that is due to report by the end of the year.
Mr Streitberg said the inquiry was consulting widely and the process appeared to be working well. “’We’re pretty confident that we’ll get a clean bill of health,” he said. “There may well be some changes to regulations.”
Buru Energy shares closed yesterday at 39¢, up 2.5¢, or 7 per cent.
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