Western Australian focused oil and gas company Buru Energy (ASX:BRU) has confirmed it will commence a major drilling program in the Canning Basin in June, following a Letter of Intent being agreed with drilling rig operator Ensign.
Buru has contracted Ensign Rig 963, a sister rig to Ensign 970 that is currently operating at West Erregulla in the Perth Basin.
A Letter of Intent has been agreed with Ensign including a deposit for initial rig mobilisation, and the formal rig contract is being finalised.
Spud date of the first well, Kurrajong 1, is on track for early to mid-June with site construction underway.
In March, Buru announced the drilling campaign was targeting a total 97 million barrels of conventional oil (mean prospective resources) and confirmed that the drilling program would also include a development well at the producing Ungani Oilfield.
The exploration well Kurrajong 1 will be followed by the Rafael 1 well which is being drilled on a large structure that is interpreted to have similarities to Devonian aged carbonate structures in Western Canada that are very large and prolific oil producers.
Buru managing director Eric Streitberg said:
“it is the most wide-ranging exploration program in the Canning Basin for many years and added that under the terms of the farmin agreements executed in December last year with Origin Energy Group (ASX:ORG), Buru will be carried for $16 million of the cost of the drilling of the two exploration wells in the program, in addition to a further significant seismic program carry across several Buru operated permits.”