Page 14 - AsianOil Week 26

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Buru changes drilling order at WA oilfield
PROJECTS & COMPANIES
BURU Energy has changed its drilling sched- ule for the Ungani oil eld onshore Western Australia a er experiencing what it described as “difficulties and delays” in drilling the Ungani 6H well. The independent said on June 27 that while it was close to completing Ungani 6H, delays had prompted the venture to defer drilling of Ungani 7H.
Buru has a 50% operating interest in the conventional oil eld, which lies in the Canning Basin’s L20 and L21 production licences, while Roc Oil Co. (ROC) holds the remaining 50%.
Buru attributed the delay to rig maintenance issues as well as challenging drilling conditions in the shale section above the reservoir. It added that Ungani 7H’s delay would give it time to review its well design and apply the lessons it had learned during Ungani 6H’s drilling.
With Ungani 7H on the backburner, Buru now intends drill the Yakka Munga prospect, which has been renamed Adoxa 1. Once the drilling of Ungani 6H has been wrapped up, the independent will carry out preventative mainte- nance on the rig prior to its mobilisation.
Buru will then drill Rafael 1, followed by either Miani 1 or Ungani 7H, depend- ing upon various approvals and operational
considerations. Buru said the joint venture was reviewing Rafael 1’s nal well proposal.
Buru said last week that overall production from the Ungani oilfield was averaging 960- 1,000 barrels per day (bpd) and that 73,780 barrels had been li ed from Wyndham Port on May 23. e partners received a nalised free- on-board (FOB) price of around A$95 ($66.44) per barrel for the cargo, which was loaded onto the MT Ocean Autumn.
Oil output from the eld, which is located around 90 km east of Broome and currently includes ve production wells, is trucked to the port. Buru added that the venture was car- rying out minor well interventions and mainte- nance in order to assist with daily production rates. Moreover, its e orts to upgrade the eld’s production capacity ahead of Ungani 6H’s start-up are “proceeding satisfactorily”.
Buru signed a new oil sales contract with Petro-Diamond Singapore ahead of the June 30 expiry of its agreement with Tra gura. While Buru said Tra gura had provided excellent ser- vice, it noted that it had reached a better deal with Petro-Diamond.
Buru has said the field is profitable at oil prices greater than $30 per barrel.™
Real Energy secures Queensland pipeline licence
PIPELINES & TRANSPORT
AUSTRALIA’S Queensland State government has awarded Real Energy a licence to build and operate a natural gas pipeline that will connect its three producing wells in the Cooper Basin to a Santos-operated processing plant. e 14-km pipeline will pump gas from the Tamarama wells in the ATP927 permit to the Mount Howitt facil- ity. Real Energy said the licence would run for 30 years and could be renewed if necessary.
A er the gas reaches the Mount Howitt facil- ity, it will be pumped into Santos and Beach Energy’s gas gathering infrastructure. Three companies signed binding deals on gas process- ing and transportation in October 2018.
Real Energy said the new licence coupled with the deals with Santos and Beach, and opened the door to commercialising both the Tamarama wells and other potential wells at its wholly owned Windorah gas project.
“Securing this permit is a critical step for- ward for Real Energy and provides a pathway to commercialise our signi cant gas resource,” Real Energy’s managing director, Scott Brown,
said. Windorah has an independently assessed contingent gas resource (3C) of 672bn cubic feet (19.03bn cm), based on the area surrounding Queencli -1 and Tamarama-1.
“It essentially means we can commence con- struction of the pipeline. This permit greatly assists gas o ake negotiations and our ongoing discussions with debt nanciers for pipeline con- struction,” the executive added.
In February, Brown said the company had received “significant interest” from several groups over funding the pipeline project. He added: “Real Energy is in discussions with groups interested in providing debt nance in respect to some or all of the expenditure required for the pipeline and associated infrastructure.”
At the time, the company said it was well placed to convert some its contingent resources into reserves in the “near term”. e company also called for formal expressions of interest (EoIs) for the sale of up to 5 petajoules (130.24mn cm) of Windorah gas over three years a er receiving “strong interest” from potential buyers.™
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w w w . N E W S B A S E . c o m Week 26 03•July•2019