(MENAFN- ProactiveInvestors - Australia) Buru Energy's (ASX:BRU) Ungani drilling has returned results that confirm the high quality of the field with initial independent volumetric estimate of gross 2C contingent resources up 1.9 million barrels from previous estimates.
Estimates of 2C resources at the Ungani field, where Buru has 50% interest, by RISC stands at 9.9 million barrels with further upside potential of up to 20 million barrels following completion of 3D seismic survey and further appraisal drilling slated for 2013.
RISC has also assessed the Ungani North area, and has estimated that on the current data, the gross 2C contingent resources in Ungani North are approximately 6 million barrels.
The estimates are expected to be updated following a satisfactory flow test with potential for further upside.
RISC has not assessed the significant oil and gas shows seen in the deeper Nullara section of the well.
Buru had earlier said that the Ungani field produced at an average rate of 464 barrels of oil per day from the Ungani 2 well during November, which was in excess the planned rate of some 400 barrels of oil per day.
Since the end of November, without any change in surface operational settings, the Ungani 2 oil rate has begun to increase and water cut has begun to decrease with the well currently producing over 600 bopd at steady pressure.
The flow rate for the field on full production continues to be expected to be at the planned rate of 5,000 bopd.
The benchmark for Ungani crude, which is pegged to Malaysian Kikeh crude, has also advanced with the Malaysian crude selling at a premium of between US$5-$9 to Brent prices, indicating Buru will realise a higher price for its oil.
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