Buru Energy ships 71,038 barrels of oil under new marketing agreement with BP Singapore

Buru Energy Limited (ASX:BRU) completed the latest lifting of Ungani crude from the CGL storage Tank 10 at Wyndham Port on September 26, 2020, by the Anichkov Bridge oil tanker. Anichkov Bridge lifted a total of 71,038 barrels gross with Buru’s share being 50%. The previous lifting of 74,819 barrels gross was completed on July 16, 2020. Production between the two liftings was impacted by production downtime required to install an electric submersible pump (ESP) in the Ungani 7 well. New marketing agreement with BP The latest lifting was the first under the new marketing agreement with BP Singapore Pte Limited (BP). BP has purchased the crude free on board (FOB) Wyndham and will deliver it to a refinery in South East Asia. Under the marketing contract, the price received will be the actual price BP sold the crude to the refinery (a fixed differential to the average dated Brent price for the month of October), less shipping and associated costs. Under these terms Buru’s 50% revenue share from the lifting is estimated at between A$1.6 million and A$1.7 million, with the price finalised at the end of October. Current field production is about 1,200 barrels of oil per day and the next lifting is expected to be in late November. Ungani Far West 1 operations Recompletion operations on the Ungani Far West 1 well have commenced with the removal of the existing completion from the well with the Buru Jacking Platform. Operations have now been temporarily suspended pending the availability of the operators for the contractor’s onsite wireline unit. The operators are working in the Perth Basin and are expected to be onsite at Ungani to conduct the perforation of the Reeves Formation test zone in about one week.