Bru- Buru Energy Canning Basin Superbasin

[hal]

nice announcement today.

Potential Hydrocarbon column(most likely oil) found over 57 metres with probable 11.7metres Net pay.

Nothing flowing yet but we should know within a week.

Announcement is at http://www.buruenergy.com.au/getfile/476.pdf

[hal]

nice announcement today.

Potential Hydrocarbon column(most likely oil) found over 57 metres with probable 11.7metres Net pay.

Nothing flowing yet but we should know within a week.

Announcement is at http://www.buruenergy.com.au/getfile/476.pdf

Another announcement from Buru Energy today and they have had oil flow at a peak of over 1600 bopd api37 at the Ungani 1 well.

Check out the announcement on Buru's site.

Buru have huge acreage in the Canning Basin Western Australia.

Check it out yourself as this company could really have a good future. They have put out an investor report today as well.

[hal]

http://www.upstreamonline.com/live/article1246661.ece

[The Big Ease]

A stunning announcement.

[Huang Chung]

Don't know much about oil & gas, but BRU seems like it could be headed for greatness in the next 5 years. I think that overlay of Texas on the Canning Superbasin is quite stunning in terms of what it could mean if BRU's stars align.

[Rabbi]

Don't know much about oil & gas, but BRU seems like it could be headed for greatness in the next 5 years. I think that overlay of Texas on the Canning Superbasin is quite stunning in terms of what it could mean if BRU's stars align.

Peter Strachan of stock analysis has a risked value of $15 on exploration upside for BRU. This is an aggressive junior oil company company and with major Mitsubishi along for the ride upside could be huge. At the moment, sentiment has turned, with the reef fish swimming all over the place.
Wait for more positive news before buying.

[upside_umop]

Things are getting crazy with this company. Is on track to be the onshore woodside...
Drill report this morning confirmed gas presence in the Laurel formation and if it does in the next drill too, it could mean there is 20 + TCF and 100's mmbbls of oil recoverable. FYI, 1 TCF of gas is around 160 mmboe of oil.

This co is now an $800m market cap, however it would only get tasty for the majors once it's $5b. So a bit of upside yet..

[hal]

Things are getting crazy with this company. Is on track to be the onshore woodside...
Drill report this morning confirmed gas presence in the Laurel formation and if it does in the next drill too, it could mean there is 20 + TCF and 100's mmbbls of oil recoverable. FYI, 1 TCF of gas is around 160 mmboe of oil.

This co is now an $800m market cap, however it would only get tasty for the majors once it's $5b. So a bit of upside yet..

I think that is only for the Valhalla region and only the Laurel formation which is being extended by the Paradise 1 well and the Asgard well. One step at a time I suppose but it is looking promising.

Yulleroo 3 is also being drilled at the moment and it could prove up a lot more gas/liquids as well.

They have also applied for the production license for Ungani oil as per yesterdays announcement. This is for a whole oil field not just one well.

Good luck to all holders

[Rabbi]

Peter Strachan of stock analysis has a risked value of $15 on exploration upside for BRU ......

BRU SP now frog marching upwards again, with two drills on the go and an EPT of Ungani about to commence. The analyst in question also stated in the report-which is now public knowledge- that BRU upside is "unquantifiable".

At the moment they are just testing to see what the extent of the gas discovery could be as a contingent resource. If-and this if is getting smaller as they drill more wells- they prove up significant 2P reserves of gas and liquids-they will be gobbled up by a major.

I'm still holding .:D

[ELYOB]

The fact is BRU are not big enough to ride this elephant . It is like trying to wash the elephant with a toothbrush. A major needs to crank up Basin operations . More rigs .....oilfield equipment ..... etc.,.

[The Big Ease]

If the market wakes up and gives BRU the respect it deserves, then it might be able to ride the elephant for a few more years.
Woodside wasn't always such a big company.

But you are quite right, both BRU and NSE hold acreage the size of the Cooper basin's most prospective zones. That is enormous.
One presentation showed a map of Texas next to the Canning Basin. It really does put it into perspective. The place is HUGE and it is seemingly full of hyrdocarbons.
No way will either of these companies survive on their own. Too juicy.

[Toulouse - Luzern]

Notice posted today by S&P indexes.

BRU will be in S&P ASX All Australian Index from 15 June 2012 after market close.

DTE Dart Energy and ERA Energy Resources Australia will both be out of this index and also the ASX200.

(E&OE)

[hal]

It was a really big week for Buru with big announcements and a capital raising to buy more interests in the Canning.

Asgard1 appears to be a great success with conventional & unconventional hydrocarbons. They had to deepen the well as they were still in the hydrocarbon zone at the proposed total depth. This well extends the Valhalla accumulation a further 35km(south east).

They will now be going to drill Ungani North 1 which has been drilled close to the target before rig problems caused the well to be suspended. This well only has about 250 m to be drilled before they should reach the target zone.

The extended production test on their Ungani oilfield is ongoing and they are very happy with the way it is producing.

They are also trying to lease more rigs to increase the drilling next year.

Lots of good presentations this week and they now have about 17 million acres in the Canning Basin.

www.buruenergy.com.au

[Corporate]

Great summary hal. I bought in this week BRU!

They have an absolutely dominant position and in 10 years if they aren't taken over, BRU could be the Woodside.

[Joshuatree]

Hi what do you guys think re REY's (i dont hold)position in this.They have 10 % free carried til production. Very arguably the best 10%.Will BRU buy them out or will REY somehow come up with the dough to prempt them. It seems that REY can stimy this deal and have first rights.Alot of heavy ramping by one transparent dominating poster on REY on another forum

[hal]

Hi what do you guys think re REY's (i dont hold)position in this.They have 10 % free carried til production. Very arguably the best 10%.Will BRU buy them out or will REY somehow come up with the dough to prempt them. It seems that REY can stimy this deal and have first rights.Alot of heavy ramping by one transparent dominating poster on REY on another forum

My opinion is that REY won't have any choice as far as Buru getting the 90%. The reason is that Buru has taken over the company not just the 90% of the acreage. Therefore the ownership of the 90% hasn't changed as it is still owned by Gujarat NRE. It is just that Buru now owns Gujarat NRE. As far as Mitsubishi getting half I am not sure but I guess Buru wouldn't have offered it if there was an issue.

I am pretty sure they have lawyers working in the company so they should have all of this covered.

Time will tell but it in my opinion it seems as though it is a non issue.

I thought I better add that i have no idea about the laws in the oil business so these are only just my thoughts.

[Corporate]

I thought about REY. But you can't go past BRU.

10% of two permits is nothing and the management team seems pretty average to me!

[The Big Ease]

I agree Corporate, but the value proposition is getting awfully tempting.
It has touched 6.2 cents a couple of times now. Still to go lower IMO.

I regret not investing in BRU in January. Hopefullly NSE will erase those thoughts soon.

[hal]

I agree Corporate, but the value proposition is getting awfully tempting.
It has touched 6.2 cents a couple of times now. Still to go lower IMO.

I regret not investing in BRU in January. Hopefullly NSE will erase those thoughts soon.

Buru certainly seems to be positioning itself for excellent growth over the next few years.

They have so many options and seem to be very systematic about opening up the different resources they have in the Canning.

The latest presentation says a lot in my opinion.

[hal]

interesting news today

http://www.lngworldnews.com/buru-energy-mitsubishi-strike-canning-basin-gas-deal-australia/

http://www.miningweekly.com/article/wa-inks-gas-agreement-with-buru-mitsubishi-2012-11-07

[Crypto Crude]

i bought a chunk of bru today at 37.5c... i was tossing up a few stocks like hzn and sxy recently but think theres heaps of room for bru to again reach those dizzy heights of its past... some big drilling coming after the wet season...

[Crypto Crude]

bru is really struggling to break through 40 cents...
really excited about the future of this company... waiting patiently

[Crypto Crude]

super excited watching buru today////
I think this easily gets back to $1
:cool:
^sc

[Corporate]

super excited watching buru today////
I think this easily gets back to $1
:cool:
^sc


What's driving this sudden interest in BRU Shrewdy?

[Crypto Crude]

hey corporate... id say its mainly the dry drilling season coming on and buru have lots of drilling coming... whereas a lot of other oilers are churning along on fundamentals.. also other factors like change of oil market and native title agreement... bru is now my biggest holding... close at 63cents... holding through

[Rabbi]

Buru energy has been a major dud over the years but don't underestimate the determination of CEO Eric Streitberg to turn this unloved junior oiler

around. With production about to resume from four wells after tropical cyclones washed out the roads, and the oil price at an all time high this company

should be a nice little earner. 3000 barrels a day from their 100% owned Ungani discoveries with more exploration upside later in the year.

This is a pure oil revenue play but it looks like it's starting to take off as investors see further exploration underpinned by a

significant revenue stream.

DYOR

[bermuda]

Buru energy has been a major dud over the years but don't underestimate the determination of CEO Eric Streitberg to turn this unloved junior oiler

around. With production about to resume from four wells after tropical cyclones washed out the roads, and the oil price at an all time high this company

should be a nice little earner. 3000 barrels a day from their 100% owned Ungani discoveries with more exploration upside later in the year.

This is a pure oil revenue play but it looks like it's starting to take off as investors see further exploration underpinned by a

significant revenue stream.

DYOR

Rabbi,
Agree entirely. Pure revenue is about to pour into BRU's bank.

[Rabbi]

Apparently CEO Eric Streitberg got a standing ovation at the AGM today. Eric pulled the reins in after the
Oil price collapsed in 2014 and stopped production from their 2 producing wells. It was only late last year that they
restarted production, and after a capital raising at 15 cents Buru drilled 2 more development wells which were both successful.
One has tested at about 1200 bopd but they are having trouble getting the other one to flow, mainly due to drilling mud,
fluids, and shale falling into the well, after they couldn't clean up the well because the rig had to be moved to the
other site. Latest unofficial news was that this well was starting to flow although this was only AGM talk .

What you might call a comeback story with plenty more to come.

[upside_umop]

Agree Rabbi, the story is only in it's first chapter. I've been buying over the last 6 months or so and believe there is more to come. It will be volatile, as it always has been but a good pipeline of activity:

Ungani could be flowing 5,000 bopd by year end I believe. Eric has recently been touting 3,000 bopd but if you rewind a few years back, he was more confident at 5,000, 7,500 and even 15,000 if you read some analyst reports. 5,000 would be a step change in terms of economics and opens pathways to pipeline to the highway, Broome export route or other scalability options.
- Ungani 4 : Eric commented at the AGM that swabbing is going well and they're expecting it to flow soon. No reason to believe this shouldn't flow like the other wells eventually at sustained rates of c. 750 - 1,000 bbls a day (IMO)
- Ungani FW : To be revisited and potentially tied in to Ungani production facility. This drill was originally a surprise because aswell at Ungani dolomite, the Reeves formation came in with some pay - although not as extensive as Ungani dolomite, the Reeves is thought to be a lot more productive.
- Ungani West : To be drilled 100% BRU. To me this is more of an appraisal well and could quickly be tied in to Ungani facility infrastructure.
-Ungani North-1 : To be revisited. This is a large structure and estimated recoverable oil upto 40 mmbls in dolomite I believe....if we can get required flow rates from here it could be amazing. Also appear to be relooking at the Reeves formation here too..

Farmout activity
Then there is farmout discussions for a 3 well campaign aimed from the 3rd quarter of this calendar year - Kurrajong, Yakka Munga and Rafael ( this well deferred until next year due to rig requirements).

Gas and shale
The basin centred gas accumulation is there and once the WA Fraccing moratorium comes to the same conclusion as every other inquiry, Mitsubishi will start doing the donkey work on the Laurel which we can leverage off in our adjacent permits.
Twiggy will start doing his work on the Goldwyer shale which we also have extensive 100% permits over big prospective chunks.
I view these two as free options with large upside but don't attribute too much value atm.

Exciting year ahead.

Also have a few HZN, CTP and BUL - we really should get these threads going again as although a lot have been burnt over the last 4-5 years, this sector is hot. Obviously a lot of this is to do with the oil markets and geopolitical events which can dictate things a bit...

[Rabbi]

Upside Pretty good synopsis of where we are are at with BRU, but I guess only time will tell if it can achieve the Blue sky potential pundits once thought it had.

Without the gas , which was where most of the hype revolved, they have to rely on finding more oil, which, as you say, is always riddled with risk.
I venture to say the market will wait and see if they can resolve the issue with Ungani 4 before there is any more SP upside. Then it only a matter
of how much of the black stuff they can consistently produce and roll down the highway. Fair to say that a few who bought in at 15 cents will be taking a profit but
still looks cheap to me on the revenue metrics. Essentially they were running out of cash at the end of the quarter without any production, but now this shouldn't be a problem.
They also have to fund the upcoming drilling program and as yet no farmin partner has been confirmed, not forgetting the 7 million still owed to Alcoa.
So not all beer and skittles yet, but they are slowly getting there

[upside_umop]

Cheers Rabbi, agree that only time will tell. Most analysts forecast Ungani cashflows to support the current share price and there is obviously risked bluesky as you say.

Gas would be nice and that was the catalyst of the share price run from 40 cps to $3 + earlier in the decade (makes me sound old!) but I'm quite happy concentrating on the good oil. A number of derisked prospects to be drilled in 3rd quarter (subject to farmin) but I think we will be drilling at least another in Ungani ourselves and tying in other discoveries (Ungani FW and Ungani North).

Alcoa loan is $7.5m accruing interest but given operating cashflow should be c. $50m for the next 3 years, I think it's quite minimal. Who knows, Alcoa may do another deal as a financial partner if the fracking ban is lifted to utilise Yulleroo gas...

[bermuda]

uu,
You are onto a winner here. I have not got any but wish I had. It will take a while but the cash flow is pretty convincing. (not that I have studied it in depth )'
This is beautiful oil wanted on the international oil market.
Nice to hear from you. I don't check in here that much. Best.

[bermuda]

uu,
You are onto a winner here. I have not got any but wish I had. It will take a while but the cash flow is pretty convincing. (not that I have studied it in depth )'
This is beautiful clean oil.
This is a stock to follow.
Best
Bermuda

[bermuda]

BRU has been smacked around unfairly.
GLTA

[upside_umop]

Hey Bermuda - been a while and good to hear from you too.
BRU has a few challenges ahead but it could be very special if they finally crack the canning. The 5 wells tied in already support the share price and targets are exciting. Like all oil stocks, we need some luck with the drill bit. And stability in oil price market - the Saudi's look to have achieved that for now.
You should buy a few for interest. Also check out CTP, Cottee has pulled a masterstroke with QLD CSG permit and getting Incitec Pivot to fund it.

[Rabbi]

Roc Oil has farmed into the Ungani field for 50% at a cost of 64 million and will fund 20 million of a 25 million 4 well
exploration program. Mitsubishi handed back the Ungani Oil field and permits to Buru in exchange for a 100% of some of the gas permits at a time
when the oil price was low.
So Bru has a new experienced partner, at a time when they have solid production revenue, the oil price is much higher, and they are heading into a
new drilling campaign.
No significant reaction from the market as yet as it will take a few days to digest, although I note the volume has increased.

[Rabbi]

I have to say this stock has been a disappointment but Origin must see potential as they have farmed in to the upcoming drilling campaign.
Buru has just completed a capital raising at 15 cents for institutions and 16 cents retail after having burnt most of the $80 million that ROC
tossed them when ROC farmed into Ungani.

The two upcoming drilling prospects are being described as company makers if either is successful given they are two of
the biggest onshore targets to be drilled in Australia.

The Canning is a bit like what the Cooper basin used to be when it was frontier territory and relatively unexplored.
I can't remember the Company but the CEO was Brad Lingo when they were lucky enough to discover the Bauer field
in the Cooper which was big by Cooper standards. They got taken over by Beach at a very healthy premium so these things
can happen.

One for anyone up for adventure on the high seas of the Canning and some spare change lying around. D.Y. O. R.

[Rabbi]

https://hotcopper.com.au/threads/buru-spuds-currajong-1-first-well-in-2021-drilling-program.6140039/

First well Currajong 1 spudded 1st July. A large prospect and the following well Rafael 1 is even larger, a veritable monster of an onshore prospect.
Success at either would be a company maker but I would put the odds at about 20% so not exactly wildcat but not risk free either.
Still plenty of time to get on board

[Rabbi]

Hydrocarbons found at Currajong 1 Current planning is for four zones in the dolomite section to be tested individually, and a combined flow test will then be undertaken once tests of the individual zones are completed. The testing program is expected to take up to two weeks to complete.


Rafeael 1 drilling underway and considered one of the most exciting onshore prospects ever drilled in Australia. Good you tube video on the Rafael prospect available.
www.youtube.com/watch?v=UuOoemMheUY (http://www.youtube.com/watch?v=UuOoemMheUY)

Still a good entry point at 14 cents-15 cents for anyone interested..

[Joshuatree]

Thanks .Hey Rabbi, Upside Mop,Bermuda etc I believe the oil price will go up as exploration drops andESG investing kicks in ,ICE only using re 20% of Oil etc.If one wants a small exposure to oil but with a low risk to proven producers maybe a developer producer Def no explorers what would you be in? Woodside is the obvious one esp if it scores the BHP oil assetts,but maybe little old NZO,Horizon and some above?

[Rabbi]

If you wanted exposure to oil I wouldn't recommend anything because by definition, and in reality,you are held hostage to oil price volatility.

My personal favourite is Senex energy, a pure coal seam gas company with brilliant management who have just signed multi gas sales agreements.

They sold all their Cooper Basin Oil assets to Beach Energy for 80 million to concentrate on the burgeoning gas business.

As there is a shortage of gas on the East Coast of Australia it doesn't look like they have much downside risk, although in saying that, their SP has been underperforming,

so either Senex is cheap on fundamentals, or the market knows something I don't know. In any case DYOR

[Joshuatree]

Thanks Rabbi, I think we may be in for a global energy shortage run.Will try again to add a link later.

[Rabbi]

In today's environment of rising oil prices you could invest in companies such as Woodside, Santos, Origin, Oil Search, even Beach and there is maybe still plenty of upside.
You have to remember that only two months ago this was one of the most beaten down sectors in the market and share prices were languishing.
But who knows what is going to happen in the future, the oil price being contingent on so many other contingencies, foresight is impossible.
My observation, - from investing for over 20 years in this sector- is a buy and hold strategy is not a good strategy.
These days I only hold Beach Buru Senex and Otto. Two ( Beach and Senex) are relatively mature and both pay dividends.
The other two are juniors who seem to gobble up more money than they earn. OEL has had to suspend exploration as it is basically broke,
while Buru is in the middle of an exciting and expensive drilling campaign. Company should have test results on Currajong and Rafael drilling any day now,
that is barring any unforeseen problems like loosing the downhole assembly, drill bit etc. etc.
One lives in hope. :t_up:

[Rabbi]

https://stocknessmonster.com/announcements/bru.asx-6A1055313/

One duster, one result to come. Punters that bought up large on the hype are feeling aggrieved to say the least. Name of the game is not to get too greedy and overplay your hand.

[Joshuatree]

[QUOTE=Rabbi;915027]"In today's environment of rising oil prices you could invest in companies such as Woodside, Santos, Origin, Oil Search, even Beach and there is maybe still plenty of upside."

"These days I only hold Beach Buru Senex and Otto. Two ( Beach and Senex) are relatively mature and both pay dividends."

Good advice. I think this global energy shortage for oil, gas and coal is going to run for quite some time unfort ,imo. Ive invested in Woodside, Horizon and a small leftover holding in NZOG atp..

[Rabbi]

One can't overemphasize how difficult it has been to" crack" the Canning Basin. Buru is now on its 3rd joint venture partner having burnt out both Mitsubishi Corp. and Roc Oil.
They were lucky 12 years ago when they discovered Ungani but the oil flow rates from Ungani production have been abysmal to say the least.

Still looking for the elephant in the room which is going to turn into an an expensive exercise if they can't find it soon.
Its a pity the gas infrastructure isn't there as I feel that's where the potential lies.

[Rabbi]

.... and the denouement is about to unfold. It seems they have a sniff of hydrocarbons in the overlying Anderson formation which may or may not be prophetic

https://hotcopper.com.au/threads/operations-update.6370772/

[Rabbi]

Hold your breath...

https://www.businessnews.com.au/article/Buru-Energy-punching-towards-Canning-Basin-oil-reservoir

[Rabbi]

Canning dolomite reservoir section at Raphael proving a challenge so they gotta be careful. Looks promising so hold your ticket on the important factors ie Gas/ condensate Oil/ wet gas as to what it flows, as there appears to be plenty
of reservoir pressure.

https://stocknessmonster.com/announcements/bru.asx-6A1061644/

[Rabbi]

https://stocknessmonster.com/announcements/bru.asx-6A1064168/

Looks like a significant wet gas discovery, with low CO2, good ratio of condensate with LPG. Now awaiting flow testing but with well pressure at 6000psi I'm looking forward to the result.

[Rabbi]

All the indications are heading in the right direction.......

https://www.youtube.com/watch?v=K7eYNPIZkx8