Buru Energy Halts Drilling Program in Australia's Ungani Oil Field

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Researched by Industrial Info Resources Australia (Perth, Australia)--Buru Energy (ASX:BRU) (Perth, Australia) decided to stop drilling at the Ungani oil field, which is part of its Canning Basin exploration program, following poor drilling results.

On Friday, April 11, Buru announced its decision to release the specialty-built drilling rig under contract since earlier this year. The drilling program is now under owner review, with Buru allowing for time to conduct a detailed cost review.

Buru Energy is negotiating a release arrangement with Advanced Energy Group (Perth, Australia), the operator of the Crusader 405 drilling rig. The contract between Buru Energy and Advanced Energy Group was for four wells, with an extension option.

The Crusader 405 was chosen for use in the Canning Basin because of its high level of mobility and reliability. "We [Advanced Energy Group] invested significant time and effort finding the right rig for Western Australia," said Cameron Manifold, the managing director of Advanced Energy Group, when the contract was signed in August 2013. "We have now assembled a world-class rig crew to operate and maintain Crusader 405, and are focused on the creation and delivery of value to our clients."

The Ungani oil field is approximately 200 kilometres east of Broome, in the state of Western Australia. Buru Energy is producing crude oil from two wells at the field, and it is shipping its product to Singapore from Wyndam. The two producing wells are known as Ungani 1 and Ungani 2.

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