Buru tar­gets ex­plo­ration at oil wells near Un­gani field

Broome Advertiser - - News - Pe­ter Milne

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 last week 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 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 fort­night 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 Mit­subishi, 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.”

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