Buru Energy has reported substantial progress across its operations in the second quarter of 2024.The company announced several key developments in its quarterly report released 24 July 2024.
A major highlight was the execution of a farm-in agreement with Sabre Energy for a 70 per cent interest in the Ungani Oilfield. The deal includes a $1 million contribution from Sabre towards restarting production at Ungani, as well as a $5 million carry for drilling the high-impact Mars exploration well.
Buru also revealed the identification of a promising new oil prospect called Rafael Shallow in permit EP 428. The company estimates the prospect could hold between 3.2 million and 79 million barrels of recoverable oil. Planning is underway to drill the prospect later in 2024.
For its Rafael gas and condensate discovery, Buru completed pre-front end engineering design work that identified a cost-effective, smaller footprint development concept.
The company’s integrated energy subsidiaries also made headway. 2H Resources continued negotiations for land access agreements in South Australia and began trialing equipment for soil gas sampling in Western Australia. Meanwhile, GeoVault advanced its assessment of carbon dioxide storage formations in the Canning Basin.
On the corporate front, Buru successfully completed an unmarketable parcel share sale facility, reducing its shareholder count by 34 per cent to approximately 4000. The company ended the quarter with a cash balance of $10.9 million and no debt.
Buru chief executive officer Thomas Nador said it has been another very active period for Buru, with significant technical, commercial and pre-operations readiness work dominating the quarter.
“An oil discovery would provide a rapid development path that would add substantial value for Buru, and an additional funding path for Buru’s 100 per cent owned Rafael deep gas and condensate project, which remains the Company’s development priority,” he said.
“To this end, engineering and commercial work to refine the Rafael Phase 1 project continued during the quarter, with a smaller footprint, cost competitive concept identified as part of pre–Front End Engineering Design phase of development.”
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