Buru Energy Ltd (ASX:BRU, OTC:BRNGF) has moved from strength to strength in recent days, having yesterday executed a second agreement with Sabre Energy to drill the Rafael Shallow exploration well in parallel with previously announced plans to restart operations at the Ungani Oilfield.
Now, the company has inked a letter of intent with Silver City Drilling, taking the first steps to secure a drilling rig for its exploration program of two wells – one at the Rafael Shallow oil prospect and one at the Mars prospect.
Additional funding path for Rafael Deep
“The execution of a Letter of Intent for the SCD Rig 24 is further evidence of the progress of Buru’s plans to get back to the drill bit and create value for our shareholders in the short term,” Buru Energy CEO Thomas Nador said.
“Exploration success at Rafael Shallow or Mars has the potential to provide substantial value for Buru through the expedited development of oil, which has been a demonstrated source of revenue for Buru, the traditional owners, the WA Government and the local Kimberley community.
“A new oil discovery will provide an additional funding path for Buru’s 100%-owned Rafael Deep Phase 1 gas and condensate project, which remains the company’s development priority for that existing resource.”
BRU expects to begin drilling late in this third 2024 calendar quarter or early in the next, once regulatory approvals are in place.
“Silver City Drilling is looking forward to being part of Buru’s Canning Basin Drilling Campaign,” Silver City Drilling director Viv Oldfield said.
“I would like to thank Thomas and the Buru team for giving the opportunity to Silver City.
“I am optimistic that success in the upcoming wells will lead to renewed interest in exploratory drilling and I look forward to supporting Buru and its joint venture partner Sabre Energy for years to come.”