Buru Energy confirms 2021 Canning Basin exploration program drilling order and SPP extension

Buru Energy Limited (ASX:BRU) (OTCMKTS:BRNGF) (FRA:BUD) is on track to commence its 2021 exploration program at the Canning Basin Joint Venture with Origin Energy Ltd Ltd (ASX:ORG) (OTCMKTS:OGFGY) (FRA:ORL) in mid-June. First rig loads are due to be picked up next week, with site works close to completion at the Currajong 1 location (previously named the Kurrajong well) which will be the first well drilled. The second well in the program has now been confirmed as Rafael 1 with the Ungani 8 well to be drilled as the last well in the 2021 program subject to joint venture contractual arrangements being finalised. Buru will be carried by Origin for the first $16 million of the associated well costs. “Large conventional onshore oil targets” Notably, the Currajong 1 well is just 30 kilometres west of the Ungani Oilfield and is expected to have similar geology with mean prospective resources of around 29 million barrels of recoverable oil. Buru executive chairman Eric Streitberg said: “We are very excited that we will now be drilling the two conventional oil exploration wells back-to-back. “These prospects are two of the largest conventional onshore oil targets to be drilled in Australia for many years and success would have the potential to provide a considerable boost to Australia’s liquid fuels production.” The company expects that the Currajong 1 well will spud in mid-June and the Rafael 1 well will spud in late July or early August 2021. Program location map. Share purchase plan extension The company has advised that the closing date of the recently announced share purchase plan (SPP) offer will be extended from Monday, May 24, 2021, to the revised closing date of Friday, June 4, 2021. The extension will ensure that all eligible shareholders have additional time to participate in the offer, considering the additional information released around the confirmation of the well order and timing with the two high impact exploration wells being drilled back-to-back and planned to commence in around four weeks’ time. Eligible shareholders are able to apply for SPP shares at an issue price of A$0.16 per SPP share up to a maximum of A$30,000 in value or a total of 187,500 shares without incurring any brokerage. Shareholders that have already applied for SPP Shares under the offer are not required to resubmit their application form unless they wish to apply for additional shares up to the maximum application amount. All other terms and conditions of the offer remain the same as set out in the SPP Booklet released on May 6, 2021. The revised indicative timetable for the offer.