Buru Energy defers Canning exploration work
Buru Energy Ltd., Perth, has decided to defer its 2009 drilling program in the onshore Canning basin in the Kimberley region of northwest Western Australia to conserve cash.
MELBOURNE, Jan. 14 -- Buru Energy Ltd., Perth, has decided to defer its 2009 drilling program in the onshore Canning basin in the Kimberley region of northwest Western Australia to conserve cash while the company reviews its entire exploration portfolio.
Buru will use the deferral to try and identify drilling targets in areas closer to its existing oil fields, or in areas that enable cost-effective development using existing oil production infrastructure.
This includes the possibility of acquiring 3D seismic coverage over its Blina and Sundown oil fields about 100 km east of Broome in the hope of delineating new low-risk drilling targets.
The company will also review its plans for the more isolated central and southern parts of the Canning basin that have high potential prospectivity, but greater exploration costs due to difficult access as well as native title and other approval issues.
In addition, Buru plans to halve its production at Blina and Sundown from a total of 200 b/d to 100 b/d to reduce field operating costs.
At present the company has cash reserves of $60 million (Aus.) and is scrutinizing a number of opportunities that have been offered by third parties outside its Canning base.
Buru was formed last year from the demerger of Arc Energy's Canning assets from the merger of Arc and Australian Worldwide Exploration.