Highlights
• Buru receives $3.4 million from Roc Oil Company Pty Limited (ROC) in consideration
for releasing ROC from future potential decommissioning liabilities at Ungani Oilfield.
• Rafael 3D seismic survey final product delivery now expected by the end of
March/early April 2024.
• Rafael Partner Selection process continuing into Q2 2024.
• Buru withdraws from non-core, low prospectivity exploration permit EP 458.
Buru Energy Limited (Buru, Company) is pleased to provide the following update in relation
to recent activities.
Status of Rafael 3D Seismic Survey Processing and Interpretation
As previously advised, RealTime Seismic (RTS) has been undertaking fast track processing
of the Rafael 3D seismic survey in Australia and in France and this processing step has now
been completed.
The fast-tracked processing has confirmed significant data quality uplift from the vintage 2D
seismic survey which was acquired in 2013 and has reconfirmed the potential of the
significant Rafael conventional gas and condensate resource.
Early interpretation insights from the wider 3D data set outside the Rafael structure also
showed encouraging prospectivity including areas that were not apparent on the vintage
data. These areas include both potential for backfill opportunities for Rafael and new play
types.
The second seismic processing contractor, Earth Signal Processing Ltd (Earth Signal) in
Canada has been processing the Rafael 3D seismic data in parallel with the fast-tracked
processing effort. The Earth Signal processing is applying more detailed and sophisticated
techniques that are more time and resource intensive than the fast-track processing,
including producing a Post Stack Depth Migration (“PSDM”) volume that will provide more
definitive depth modelling of the structural form of the Rafael accumulation. Although this
volume was expected to be available by late February, it is now expected to be available in
late March/early April.
The uplift in data quality seen on the fast-track processed volumes to date has provided
confidence that a more detailed stratigraphic interpretation of the Rafael reservoir will be
possible, and this will assist in both appraisal well location planning and quantification of the
reservoir geometry. To further assist Buru in this reservoir analysis, specialist carbonate
reservoir analysts Cambridge Carbonates have been contracted to review the data and
provide insights from their experience with similar reservoirs.
Once the PSDM seismic volume has been received and any insights provided by Cambridge
Carbonates have been incorporated, a full review of the potential resources of the Rafael
accumulation will be completed.
Canning Basin and Rafael Partner Selection Process
Buru’s strategic partner selection process for the appraisal and development of its 100%
owned Rafael conventional gas and condensate resource is continuing, with ongoing technical
and commercial due diligence being undertaken by Australian and International parties.
This process has seen initial interest from parties seeking exposure to a stand-alone Rafael
gas and condensate development, potential Canning Basin resource upside, and the
possibility of co-located Carbon Capture and Storage to enable greenfield development.
The final Rafael 3D seismic survey products, and individual interpretation of results by the
respective parties are also key inputs to this process, and as such the due diligence process
is expected to continue into Q2 2024.
Ungani Asset Update
As previously announced, Buru assumed full ownership of the Ungani Oilfield on 30
September 2023, following agreement for Roc Oil (Canning) Pty Limited (ROC) to assign its
50% interests in the field to Buru.
This agreement followed ROC’s approval of the recommendation by Buru as Operator to
suspend operations at the Ungani Oilfield in late August 2023 due to ongoing uncertainties
related to the availability of the Fitzroy River crossing, which is a critical piece of
infrastructure along the export route from the Ungani Production Facility to Wyndham.
In December 2023, a new permanent bridge across the Fitzroy River was opened six months
ahead of schedule, creating an opportunity for Buru to explore various technical, logistical,
and commercial options for the future of the Ungani Oilfield.
As part of the agreement to assign its interest, ROC remained liable for its share of costs
associated with the near-term staged suspension of operations, and of costs associated with
the future decommissioning of all wells located within Production Licences L 20 and L 21 and
for other specified restoration/remediation costs.
Buru is pleased to advise that it has successfully negotiated with ROC to immediately
monetise ROC’s share of liability for costs associated with future decommissioning activities
for Production Licences L 20 and L21.
This agreement, in the form of a Deed of Settlement, Termination and Release resulted in
Buru receiving the $3.4 million from ROC previously secured by a parent company guarantee
in exchange for releasing ROC from its obligations relating to future decommissioning
activity, the timing of which is currently undefined.
Withdrawal from Exploration Permit EP 458 (Buru Fitzroy Pty Ltd 60% and
Operator, Rey Resources 40%)
The EP 458 exploration permit lies in the Canning Basin in a remote area to the east of the
main prospectivity trends and as a result of previous exploration activity in the area by Buru,
is considered to have low prospectivity, and Buru considers no drillable targets are present
to be able to fulfil the drilling commitment in the next permit year.
As Operator, Buru therefore recommended that the EP 458 Joint Venture parties not enter
into the next permit year and to surrender the permit.
Buru subsequently issued a notice of withdrawal to Rey Resources (Rey) under the EP 458
Joint Operating Agreement with effect from 1 January 2024, with Buru assigning its 60%
interest and Operatorship of the permit to Rey.
Authorisation
This ASX announcement has been authorised for release by the Buru Board of Directors.