Buru Energy Ltd is looking to farm down its interest across its exploration portfolio within the Fitzroy Graben and Broome Platform, of the Canning Basin in northwest Western Australia. Buru operates all of the six, largely contiguous, permits which cover over 20,600 sq km (nearly 18,500 sq km net to Buru): EP 391, EP 428, EP 431, EP 436, EP 457 and EP 458. A farminee could acquire up to 50% non-operated interest across a basin-wide controlling position with participation in a proposed four-year work programme comprising prospect seismic acquisition and exploration drilling (circa six wells). Buru has already commenced activities and has begun to derisk prospects through exploration drilling and has been assessing further prospectivity in conventional oil and tight gas plays.  Work Programme  Buru holds 100% interest in EP 391, 428, 431 and 436. In EP 457 and 458, Buru is operator with 60% interest along with joint venture partner Rey Resources (40%) who is also participating in the farm-out. After being awarded the permits between 2004 and 2007, with exception of EP 391 which was awarded in 1995, they have assigned work programmes with no material commitments until 2023. Nonetheless, Buru is planning to systematically explore and develop the basin by targeting the substantial resources and prospects across multiple play types. Seismic acquisition is planned to help identify and mature drillable prospects. A farm-in opportunity across all the permits therefore offers relatively low entry commitments.  To manage the work programmes to date, Buru has been granted permit renewals and suspension/extensions which has been counterbalanced with seismic acquisition, exploration, appraisal and development drilling across the Canning Basin. Proven resources, strong production from the Ungani oil field and multiple new play concepts within the offered acreage could mean a reduced risk for a new player to the region.  Prospectivity  The basin contains thick sequences of Ordovician to Triassic rocks with multiple proven petroleum systems in carbonate and clastic reservoirs. Exploration has led to numerous discoveries in the basin, including the Blina and associated fields, and more recently Buru âs currently producing Ungani oil field.  A number of ready to drill conventional oil prospects, with total prospective recoverable resources exceeding 200 mmbbls gross, have been mapped on existing 3D and 2D seismic data. In addition, significant condensate rich tight gas resources have been defined by a drilling and fraccing program at the Yulleroo Gasfield. The resource has been independently certified at of some 700 bcf (gross 2C) and over 5 tcf of gross prospective resources in the immediate area of the Yulleroo Field, extending to 10âs of tcf prospective resources in the wider basin. An additional Goldwyer tight oil play is also present on the Broome Platform permits.  The carbonate conventional oil play is confirmed by the producing Ungani oil field, with high quality (37 deg API) oil that sells at a premium to Brent. These high quality vugular dolomite reservoirs exhibit multi Darcy permeability and are regionally extensive across a 300 km x 50 km play trend. The Rafael prospect is a large well defined carbonate conventional oil prospect with ~60 mmbbls of unrisked recoverable prospective resources, plus potentially very significant upside depending upon trap fill.  Also across the portfolio are a number of clastic petroleum systems. These include legacy oilfields on the Lennard Shelf in the Anderson and Grant formations, controlled by low relief closures. Considerable potential exists for these reservoirs to form very significant traps in the large central basin anticlines.   An emerging play is the Upper Carboniferous aged clastics in the Reeves Formation that tested oil in the Ungani Far West 1 well. Many of these prospects are defined on existing 3D.  Recent exploration history   Buru acquired 100% interest in EP 391, EP 428 and EP 436 after joint venture partner Roc Oil withdrew in early 2020. Roc entered the permits in late 2018, farming in for 50%. Under the terms for the farm-in, Roc was carrying Buru through part of a work programme across the permits to earn its interest. Roc maintained a back-in right for the Adoxa 1 well, which was drilled in mid-2019. This back-in right is for a maximum of three years and is conditional upon a production licence grant if a successful flow test is completed. Roc will be required to pay back costs in return for 50% interest in any production licence. If the well is not flow tested, the back-in rights will terminate.    Adoxa 1 was defined on 3D seismic and targeted part of the greater Yakka Munga structure, with a new fluvial-deltaic conventional oil play within the Reeves Sandstones as the primary target. Oil within the Anderson Formation formed a secondary target for the well. Buru had estimated gross prospective resources of 66 MMb of oil (P50). The top of the Anderson Formation was encountered at 1,730 m with fair to poor hydrocarbon shows observed in a number of sands. The Reeves Sandstone provided good oil shows between 1,891 and 1,902 m where wireline tests were run.    Seeking to extend the Ungani oil trend, in 2012, Buru spudded the Ungani North 1 well, targeting a separate structure around 6 km north of the Ungani discovery. It was originally estimated to hold 30 MMbo. A thick dolomite reservoir section was encountered with wireline log results interpretation indicating the presence of an oil column up to 44 m in thickness. The sealing shale unit was also reported to be present at location. Gas shows were also observed over limestone and shale intervals in the Nullara Formation, indicative of a gas saturated interval with the presence of oil.    To the west, Praslin 1 exploration well also targeted an Ungani analogue in a top Laurel Carbonate Ungani Dolomite play. Within the identified four-way dip closed structure, wireline logs were undertaken in the dolomite unit. Indications of a gross oil bearing interval of 23 m was found to not contain any moveable hydrocarbons. Hydrocarbon shows below this interval were logged also with indications of tight units.    After the reprocessing of vintage seismic and from recent aerogravity surveys undertaken by Buru in 2014, further potential in the Carboniferous dolomite was mapped in EP 458. The Senagi Prospect, another four-way dip closure was drilled by Buru in 2015. Residual oil shows were observed in the Laurel Formation which was encountered at a depth of 829 m. Although a lack of hydrocarbons were encountered, positive reservoir properties were observed in the target formations, with vugular porosity evident in acquired cores.    Shifting play options, Buru plans to test the Rafael prospect in EP 428, potentially in late-2020 and will form part of Buru's deferred 2019 Canning Basin Exploration Programme. Rafael is considered similar to the Blina field and comprises reefal carbonates, with the Nullara Formation one of the objectives. It is also thought that prospectivity lies within the Reeves Formation. Blina, which lies 100 km to the northeast, produced oil from a Nullara Limestone reservoir but is currently shut-in.  Buru Energy Ltd is offering equity in six exploration permits within the Canning Basin.    Contact details    Parties interested in this opportunity are to contact:  Austen Fresson â Ocean Reach Advisory  Phone: +61 (0) 447 579 541  Email: austen.fresson@oceanreachadvisory.com
Buru Energy Ltd is looking to farm down its interest across its exploration portfolio within the Fitzroy Graben and Broome Platform, of the Canning Basin in northwest Western Australia. Buru operates all of the six, largely contiguous, permits which cover over 20,600 sq km (nearly 18,500 sq km net to Buru): EP 391, EP 428, EP 431, EP 436, EP 457 and EP 458. A farminee could acquire up to 50% non-operated interest across a basin-wide controlling position with participation in a proposed four-year work programme comprising prospect seismic acquisition and exploration drilling (circa six wells).