Buru Energy Upgrades Ungani Oil Resources 200% to 660k Barrels

Buru Energy (ASX: BRU) said it has more than tripled the estimated remaining recoverable oil at its onshore Ungani field in Western Australia's Canning Basin. The company now books 660,000 barrels of 2C contingent resources, up from 220,000 barrels – a 200% increase.

The stock rose 16.7% to 1.4 cents in Monday trade, giving it a market cap of A$13.85 million.

Buru put the upgrade down to a detailed reservoir review. An independent engineer ran simulation models on alternative production methods, the company said. The field has sat under care and maintenance since August 2023, when Buru suspended output because the operating model – using electric submersible pumps and trucking crude more than 1,000 km to Wyndham for export to Asian refineries – proved too costly. Trucking and export expenses ate more than half of operating costs.

Chief Executive David Maxwell said changing that model was the priority. “The increase in the estimated Ungani 2C Contingent Resources is a significant value uplift opportunity for Buru at a time when the strategic importance of local energy security is clearly evident,” he said. “Changing the operating model and significantly reducing the transport and operating cost are the objectives of our assessment of new and more valuable offtake and market options in the region – including a micro-refinery.”