BRU 3.80% 8.2¢ buru energy limited

So if wet season finishes 1st April and starts 31st Oct - gives...

  1. 423 Posts.
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    So if wet season finishes 1st April and starts 31st Oct - gives us 7 months. 105 days per well and well design already planned - drilling contractor appointment may be imminent?

    'Origin will spent $16 million on an initial work program, which includes a commitment to drilling the Rafael 1 and Kurrajong 1 wells in 2021.'

    Rafael 1
    After careful review of the current drilling program progress, the Board has now taken the decision to defer the drilling of the Rafael 1 well. This prudent commercial decision to defer the drilling of this high cost well has been driven by a number of factors including Buru’s exposure to 100% of the costs of drilling the well under the joint venture sole risk provisions.
    The projected costs for the well have also increased as the Rafael 1 well design has been modified in light of the issues encountered with the drilling of the Ungani 6 well. The modified well design provides additional assurance that the objective can be reached in an appropriate hole size and this has materially increased the projected cost of the well. As a sole risk operation under the current JV arrangements the Company would have 100% exposure to these costs and, significantly, also to any unforeseen cost increases, given that the well is being drilled in a part of the basin that has little offset well data for calibration of drilling times and potential drilling problems.

 
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