Big plans for oil, gas finds
After more than five years of “looking for a needle in a haystack”, Buru Energy caused a flurry of excitement both on the stock market and within the Kimberley last week, announcing it had identified up to 20 million barrels of oil in wells on the Ungani oilfield near Broome.
Buru started oil and gas exploration at a number of sites in the Kimberley late in 2006.
Late last year it made a significant discovery of oil at Ungani, on Yakka Munga Station 100km east of Broome, and last week revealed the field had potential for 5-20 million barrels of recoverable oil – and potentially up to 300 million barrels within the greater exploration area.
Speaking to the Broome Advertiser last week, Buru executive director Eric Streitberg said two wells at Ungani had been drilled during testing, and measured good flow rates.
An “extended production test” is planned to start soon – likely mid-April, but appraisals to determine the project’s true potential and size of the site would take at least a year, Mr Streitberg said.
“As far as the actual geology goes, we’re very pleased all the hard work over the past five to six years is starting to bear fruit…it is like looking for a needle in a haystack,” Mr Streitberg said.
“It’s a great opportunity to add some value here, while…having a low impact, socially and environmentally.
” Meanwhile Buru also aims to prove up an accumulation of gas on the Yulleroo area, on Roebuck Plains Station, and eventually – 2014 at the earliest, pipe to existing LNG plants in the Pilbara.
Having already secured a contract to supply gas to Alcoa in Kwinana, Buru also has Verve and Western Power in its sights.
Mr Streitberg said there was the potential for Buru to eventually become the biggest domestic supplier of gas to WA.
He said while the company’s operation did not include hydraulic fracturing or “fracking”, it could in the future, but Buru was committed to being “totally transparent”.
He said Buru was not competing with other oil and gas companies such as Woodside, and would not look to use the processing plant at James Price Point.
“We will pipe it a long way – our view is to be a supplier into the domestic market … potentially to become the biggest supplier of gas in WA, yes,” Mr Streitberg said.
