Buru Energy

Buru raised about $40 million through an institutional share placement, priced at $2.75 a share, specifically to fund its acquisition of Gujarat NRE Oil Limited's 90% interests in exploration permits EP457 and EP458 (for $36 million) and a related right to a further permit area - a raise tied directly to expanding its Canning Basin acreage, not a sign of financial distress.

capital raising announcement

Buru Energy agreed to acquire a 90% interest in permits EP457 and EP458 (buying Gujarat NRE Oil Limited outright for $36 million) plus a 50% interest in an adjoining application area from Backreef Oil Limited for $3.5 million, expanding its position around the Ungani oil trend and Valhalla gas discovery - funded by a ~$40 million institutional placement.

asset acquisition disposition

Buru agreed to acquire Gujarat NRE Oil Limited outright for $36 million cash, gaining an indirect 90% interest in exploration permits EP457 and EP458 (the "Fitzroy Blocks") in the Canning Basin - Rey Resources holds the other 10%, free-carried by Gujarat until production begins. Buru also gave Mitsubishi Corporation an option to buy half of Buru's new interest in these permits on the same terms.

farm in farm out agreement

Asgard-1 confirmed a 35km southeast extension of the Valhalla tight-gas trend after deepening to 3,524m for continued gas shows - a materially positive read on Valhalla's resource potential - and the rig was then released to resume the previously-suspended Ungani North-1 well, while the Ungani EPT continued to outperform its planned flow rate.

drilling progress report

Asgard-1 reached 2,680m after intermediate casing at 1,957m; gas shows from the Upper Laurel Clastics top (1,919m) resembled Valhalla North-1's - an encouraging sign the regional Laurel gas accumulation extends some 35km from Valhalla.

drilling progress report

Buru restructured its senior team for its next growth phase: Chris Bath joined as CFO/Company Secretary, Bill Williams as Chief Commercial Officer, and Damian Ogburn as Chief Scientist, while Marie Malaxos was promoted to COO and Lauren West to General Counsel.

director officer appointment

Three months into the Ungani Field's Extended Production Test, pressure and production data lifted confidence to a minimum of 8 million barrels of mobile oil (up from 5 million), with Ungani-2 now producing over 85% clean oil.

drilling progress report

In a Company Insight interview, Buru confirmed it had just spudded Asgard-1 - 35km southeast of Valhalla-2, designed to test how far the Valhalla basin-centred gas accumulation extends - while also flagging Century Rig #7's release, Ensign Rig #32's move to complete Ungani North in mid-to-late October, and plans to drill Cyrene-1 and test the unconventional Goldwyer Shale. (Well registry note: Asgard-1's spudDate was corrected from 2012-05-07 to late August 2012 based on this interview - see accompanying data-quality fix.)

drilling spud

A mechanical failure in Century Rig #7's drawworks damaged the top drive during a routine bit trip on Ungani North-1; drilling was suspended and the well will likely be secured and finished later by Ensign Rig #32 after Asgard-1.

drilling progress report

Yulleroo-3 reached a revised total depth of 3,712 metres with stronger-than-expected gas shows continuing over 1,000 metres above the previously mapped top of the Yulleroo gas field, plus a surprise conventional-quality sand around 3,200m that could materially lift flow rates - results Buru said also pointed toward a broader basin-centred gas accumulation similar to Valhalla.

drilling result

Yulleroo-3 reached 3,603m; logs and sidewall cores identified a sand package (~3,200m) with porosity and permeability in the 'conventional' rather than 'tight' range - a genuinely encouraging reservoir-quality finding.

drilling progress report

Yulleroo-3's logs confirmed an extensive gas-charged section from ~2,130m to the 3,578m total depth - some 1,110m above the previously mapped gas top in Yulleroo-1, with good stratigraphic correlation between the two wells.

drilling progress report

Ungani's Extended Production Test began 31 May 2012, alternately producing/shutting in Ungani-1 and -2 for pressure data - both wells performed at or above expectations with no pressure depletion or water production.

production update

Paradise-1's deepening operation ended with live oil recovered to surface from the Lower Grant/Anderson zone during abandonment prep; Buru suspended the well (reversing the original plug-and-abandon plan) to allow further testing.

drilling result

The $50 million institutional placement announced the day before was completed, oversubscribed, confirming the funding for Buru's expanded 2012 Canning Basin exploration and appraisal program.

capital raising announcement

Buru launched a fully underwritten $50 million share placement to institutional investors, priced at $3.00 a share (a 7.1% discount), to fund an expanded exploration and appraisal program across its Canning Basin permits - including continued work on the Ungani oil field and early planning to commercialise its Valhalla and Yulleroo gas discoveries. The raise was designed to fully fund Buru's 2012 program and part of 2013.

capital raising announcement

Paradise-1's deepening reached 2,798m; the Upper and Lower Laurel Clastics tops were identified (1,968m/~2,731m), and the interpreted top of the regional overpressured section (2,786m) brought a sharp jump in gas readings.

drilling progress report

Valhalla North-1 confirmed the Valhalla gas accumulation is likely a regional basin-centred gas system; Paradise-1's deepening showed similar Upper Laurel gas shows, and Yulleroo-3 began appraising whether Yulleroo shares the same basin-centred character.

drilling progress report

Ungani's Extended Production Test began with first oil produced from Ungani-1/1ST1 at initial rates over 2,000 bopd, though output would be managed to ~400 bopd average given the facility's 1,000 bopd design cap and transport limits.

production update

The WA Minister for Mines and Petroleum issued a Declaration of Location over the Ungani Field, a critical regulatory step toward Buru's Production Licence application for the field.

regulatory community update

Independent consultants McDaniel & Associates confirmed Buru's Valhalla area holds a genuine Basin Centred Gas Accumulation, estimating a risked mean of 6.5 TCF of gas and 187 million barrels of liquids recoverable (15 TCF/432 million barrels unrisked) - a result Buru said would be further tested by the planned Asgard-1 well 35km to the southeast.

resource reserve update

Completed Valhalla North-1 logging confirmed a similar gas-bearing reservoir to Valhalla-2 over a ~1,300m interval; the well will be cased and suspended for further evaluation, freeing the rig for an initial Yulleroo appraisal well.

drilling progress report

Buru began preparing Ungani's Extended Production Test (start-up ~6 weeks out) and raised the greater Ungani exploration area's mean risked potential resources above 300 million barrels, alongside the existing 5-20 million barrel Ungani Oilfield range.

quarterly activities report

Buru began on-ground works for the Ungani Field's Extended Production Test after securing final Government, JV, and Traditional Owner approvals, targeting first production around mid-April 2012.

production update

Valhalla North-1 reached 3,356m (pulling out for a bit inspection due to slow drilling); the Lower Laurel Clastics top (~2,830m) showed continued high background gas with peaks up to 1,300 units.

drilling progress report

Ungani-2's cleanup flow began with natural flow established and fluid rates, oil volumes, and pressures all rising as expected, ahead of a short multi-rate test and suspension pending the Ungani Field's extended production test.

drilling progress report

Chairman Graham Riley, Executive Director Eric Streitberg, and COO Tom Streitberg together committed almost $6 million to exercise options and buy more Buru shares - a real insider vote of confidence after a strong year.

director interest notice

Buru recapped a highly successful 2011 program - the Ungani oil discovery, a large potential Valhalla wet-gas accumulation, and independent confirmation of Yulleroo - with drilling continuing through the wet season and Paradise-1's deepening planned for 2012.

joint venture update

Mitsubishi Corporation committed A$40M of a A$50M 2012 Unconventional Exploration Program (earning a 50% interest in Buru's unconventional resources), to focus on appraising the Valhalla and Yulleroo accumulations.

joint venture update

A 63m core cut at Ungani-2 (2,242-2,305m, 5.1m recovered) showed oil shows consistent with Ungani-1ST1, with live oil visibly bleeding from vugs and fractures in the recovered core - a strong positive sign as the well reached 2,327m.

drilling progress report

Ungani-2 reached its 2,440m casing point; the top of the oil-bearing Ungani Dolomite was found at 2,230m (27m high to prognosis, near Ungani-1ST1's own reservoir elevation) with similar oil shows - real confirmation the field extends between the two wells.

drilling progress report

Ungani-2 spudded at 07:00hrs on 2 November 2011, the fourth well of the 2011 Buru-Mitsubishi program, drilled to confirm the extent of the oil accumulation and the oil/water contact already found by Ungani-1ST1 - an early step in proving up what became the Ungani Oilfield.

drilling spud

Ungani-1ST1 flowed 1,500 barrels of fluid per day on a small choke at 230psi and was cleaning up well (up to 15% filtrate/formation fluid) before being shut in at 430psi ahead of moving the rig to Ungani-2 - a genuinely encouraging early sign for the eventual Ungani discovery.

drilling progress report

Ungani-1ST1 flowed light oil (about 37° API, essentially no gas) at a peak rate of 1,647 bopd on a cased-hole test - Buru called it a 'stunning result' and the first significant onshore Western Australian oil discovery since 2001, though the full size of the accumulation remained unknown pending an immediate appraisal well 500m northeast of the discovery.

flow test result

Buru raised $17.81 million by placing new shares with two institutional investors at $0.65 each (a small discount to its recent trading price), and said it would also let existing small shareholders buy shares on the same terms through a Share Purchase Plan (SPP) - a scheme that lets retail holders top up their stake directly from the company, without brokerage.

capital raising announcement

Ungani-1 reached its 1,997m section total depth in the top Laurel carbonates, with oil shows noted in both the Grant Sandstones (945-970m) and Anderson Formation (1,500-1,530m) - significance still to be determined.

drilling progress report

Pictor East-1 reached its 1,706m total depth; logs and pressure data confirmed a significant hydrocarbon column (~7m net porous section) in the Nita Formation, with composition (oil vs gas) pending lab analysis of pressurised samples.

drilling progress report

Ungani-1 spudded at 16:00hrs on 13 August 2011, the third well of the 2011 Buru-Mitsubishi program (Mitsubishi carrying 80% of cost), targeting oil in the Grant/Anderson Formations and gas in the Laurel Formation near the Yulleroo Field - the well that would go on to deliver Buru's flagship Ungani oil discovery.

drilling spud

Full logging and coring of Valhalla-2 suggested a wet-gas-charged section spanning at least 1,300m of the Laurel Formation - preliminary evidence of a potentially substantial regional gas accumulation.

drilling progress report

Valhalla-2 drilling wrapped up with a preliminary read of a wet-gas-charged Laurel Formation section over at least 1,300m - several Tcf of gas and over 50 million barrels of condensate/NGLs across the wider Valhalla area - which Buru likened to the liquids-rich Granite Wash tight gas play in the US; the rig then moved on toward Ungani-1's spud, Century Rig #7 mobilised to Pictor East-1, and Yulleroo-2's flow testing and 3D seismic continued.

drilling result

Valhalla-2 reached its 3,390m total depth, penetrating the Lower Laurel gas sands as prognosed with continued good-to-excellent gas shows and further flaring.

drilling progress report

Valhalla-2 reached 2,789m with continuous high background gas and good-to-excellent shows, including one six-hour continuous gas flow to surface (no stabilised rate established).

drilling progress report

Valhalla-2 reached 2,200m, intersecting the primary-objective Upper Laurel gas sands on prognosis with good-to-excellent gas shows and poor-to-fair oil shows, similar to Valhalla-1ST1.

drilling progress report

Valhalla-2 spudded at 12:00hrs on 6 June 2011, the first well of the 2011 Buru-Mitsubishi Joint Exploration Program (Mitsubishi carrying 80% of cost), testing conventional and unconventional gas reservoirs following up on shows seen in a 2007 ARC Energy well that was never flow tested - combined P50 potential of roughly 320 Bcf of gas and 10 million barrels of condensate across the targets.

drilling spud

Independent consultants NSAI, plus Buru's own analysis, put combined mid-range unrisked in-place volumes across four key unconventional Canning Basin plays (Laurel, Noonkanbah, Frasnian, Nita-Goldwyer Formations) at 362 Tcf of gas and 50 billion barrels of oil, with mid-range recoverable resources of 66 Tcf and 4 billion barrels - the most prospective being the Laurel Formation tight gas play at 50 Tcf recoverable, which Buru said also looked likely to carry significant associated liquids based on Yulleroo-2's flowback.

resource reserve update

RISC's independent assessment estimated a mean 352 PJ of ultimately recoverable sales gas plus 13.4 mmboe of liquids in the Yulleroo field (EP391), with 36 mmboe net to Buru's 50% interest.

resource reserve update

Rig-up began at Valhalla-2, the first well of the 2011 Buru-Mitsubishi Joint Exploration Program, targeting over 300 Bcf of recoverable gas (P50) as a follow-up to gas/oil zones seen in the earlier Valhalla-1 well - a result Buru said could become a cornerstone resource for its planned Great Northern Pipeline; Sundown oilfield well workovers also began in parallel.

drilling scheduled

Paradise-1 reached its 1,700m casing point; wireline logs and sidewall cores identified an anomalous hydrocarbon-indicated zone at 904-914m (best reservoir quality 904-909m) - the zone that would later be flow-tested.

drilling progress report

Mitsubishi Corporation committed a further A$40M of a A$50M 2011 exploration program plus up to A$50M of Ungani-area development costs, on top of its existing A$22.4M 2010 program commitment - a strong vote of confidence in the Canning Superbasin.

joint venture update

Stokes Bay-1's testing recovered 2,760 barrels of reservoir fluid that was 100% water with no hydrocarbon indications; the well was suspended.

well test result

Buru began stimulating and testing the Yulleroo-2 gas well (permit EP391) under its June 2010 Farm-in Agreement with Mitsubishi Corporation (MC) - MC was funding 80% of a $22.4 million 2010 Canning Basin work program to earn an initial 40% interest across most of Buru's permits, the first year's cost-carry tranche under the broader up-to-$152.4 million MC farm-in.

joint venture update

Paradise-1 spudded at 18:00hrs on 18 October 2010 - the third well of the 2010 campaign and the first well of Buru's new Joint Exploration Program with Mitsubishi Corporation - testing a stacked-reservoir prospect with P50 potential of about 16 million barrels of oil plus over 200 Bcf of gas.

drilling spud

Buru's rig moved to Paradise-1, the first well drilled under its new Joint Exploration Program with Mitsubishi Corporation (which funds 80% of costs as part of a $22.4 million 2010 commitment to earn an initial 40% interest across most of Buru's permits); the target zone had shown an untested 11-metre oil column in a nearby 2007 ARC Energy well (Valhalla-1) that was never flow tested.

drilling scheduled

New Standard Energy (a 10% Buru shareholder) highlighted an independent RISC report confirming large Goldwyer shale gas potential (40-480 Tcf GIIP) alongside Buru's newly announced $152.4M farm-in with Mitsubishi Corporation over adjacent Canning Basin acreage.

farm in farm out agreement

Buru signed a landmark, up-to-A$152.4 million Farm-in Agreement with Mitsubishi Corporation (MC) to jointly explore and develop its entire Canning Superbasin position: MC can earn up to a 50% interest across most of Buru's exploration permits by funding up to $102.4 million of exploration costs ($62.4M conventional, $40M unconventional) plus up to $50 million of future development costs, and separately has the right to buy into Buru's production permits at a price set by an independent expert off proved-plus-probable (2P) reserves. This is the founding deal behind the Buru-Mitsubishi Joint Exploration Program that drove Buru's exploration activity for years afterward.

farm in farm out completion

Fairwell-1 spudded at 01:00hrs on 18 May 2010, the first well of Buru's six-well 2010 Canning Basin campaign, targeting a combined P50 4.8 million barrels of oil across the Grant and Yellow Drum Formations.

drilling spud

Buru kicked off its six-well 2010 Canning Basin drilling campaign, mobilising the refurbished Fairway Rig to spud the shallow Fairwell-1 well - targeting a combined P50 4.8 million barrels of oil across two horizons - as the campaign's first well.

drilling scheduled

Buru confirmed the first three wells of its six-well 2010 Canning Basin campaign - Leander-1 and Fairwell-1 (near the producing Sundown/Blina fields) and Paradise-1 (a larger oil/gas/condensate structure) - and engaged Terrex Seismic for 2D surveys later that year to firm up further targets.

drilling scheduled

Buru's founding Managing Director Adrian Cook formally left the board (having already announced his departure as MD two weeks earlier), while Peter Jones joined as a new non-executive director - the formal board-level completion of a planned executive handover, not a boardroom dispute.

director officer appointment

Buru Energy issued 18,000,000 Fully Paid Ordinary Shares (for acquisition of NSE's interests in Canning Basin exploration permits), taking total ordinary shares on issue to 180,119,728.

appendix 3b new issue