Nice one Spec. I found this slide interesting too. I'm happy it appears we are only targeting oil as to me, it's more bang for your buck and kind of aligns to our "Buru unleashed" phrase where we are highly leveraged to oil. Butler and Hotdog are exciting none the less but hopefully success this year in and around Ungani in 2018 can enable us to look at these gas targets in 2019.
Thoughts on some of those bullets in the presentation:
Upto 4 wells this year in and around Ungani
-I imagine in Ungani it will be 1 well and the obvious choice for me is Ungani-6. The proposed well location has been communicated to us before and it will further derisk the field and enable eventual reserves cert for the whole field. If the rig is still on site (also rained in?) and it could be drilled sooner than we think if we have the right long lead items.....
Not that they have specifically mentioned this, but I think drilling Ungani-6 first it will give us leverage to ramp up beyond 3,000 bopd sustainably and help catch up on some lost production due to weather this quarter (refer to Eric's comments in operations update 5 Feb):
".....but we are doing everything we can to be ready to go as soon as the road re-opens, and we will do our best to catch up on production for the rest of the year.”
Another well in the Ungani field should enable us to hit a short term plateau of c. 4,000 bopd from the core field? We may need to tie in some other wells to maintain plateau but not for a while (FW etc).
- Yakka Munga, Rafael and Kilto have been the wells concentrated on previous corporate presentations so I imagine these are the targets to complete the 4 well program. I too am looking forward to seeing if Eric can pull of a farmout on a "prospect" or "target" basis rather than permit basis.
Total program estimated cost of ~$20m
- I could be wrong, but I believe this would be the program cost to BRU? To me this is incredibly low cost for a 4 well program cost for the proposed targets, especially when previous comms have suggested well costs of c. $10-$12m for the 3 deeper wells oF YM, Rafael and Kilto.
- Could the cost make up look something like this:
*Ungani-6 = $5m
@100% interest = $5m net BRU
*YM, Rafael and Kilto = $30m to $36m total @ 50% retained interest = $15m to $18m net BRU
Total net BRU = $20m-$23m? $20m gross for a 4 well drilling campaign with deep targets seems too low.
Financing partner
The topic of "financing partner" has been raised on the this thread from the presentation. I'll add to the speculation, with my best guess it would be something similar to the previous Alcoa arrangement and that it would be gas targets such as hotdog and butler? Again, pure speculation.
