• 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 provides the following update in relation to recent activities.

Status of Rafael 3D Seismic Survey Processing and Interpretation 

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 

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 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.