Buru Energy Limited (Buru, Company) is pleased to announce that it has
entered into a Farm-in Agreement (FIA) with Sabre Energy Pty Ltd (Sabre) for the drilling
of the high impact Rafael Shallow oil target in EP 428 in Western Australia’s onshore Canning
Basin (the Transaction).
Highlights
• Sabre will carry Buru for A$6 million of the costs associated with the drilling and testing
of the Rafael Shallow exploration well to earn a 50% interest in a Commercial Discovery
and subsequent Production Licence, with Buru retaining 50% interest and Operatorship.
The A$6 million cost contribution represents a full carry of the well by Sabre, based on
Buru’s current estimate of drilling costs.
• Subject to a Commercial Discovery being declared, Sabre will pay Buru a further A$1.5
million in recognition of prior exploration expenditures incurred in relation to the Rafael
Shallow prospect.
• Buru’s internal assessment of the Rafael Shallow prospective resource volumes of
recoverable oil indicates a range of between 3.2 MMstb (low estimate) and 79 MMstb
(high estimate), with a Best Estimate of 19 million barrels1.
• An oil discovery could provide a rapid development path that would add substantial
value for both Buru and Sabre and 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 this existing resource.
• Negotiations for a drilling rig contract are well advanced, drilling equipment and
materials have been secured, and on-ground preparations and approvals are underway.
Commencement of Rafael Shallow drilling operations is targeted for late 3Q 2024 as
part of a two well exploration drilling campaign in 2024 that includes the Mars 1 well.
Commenting on the transaction, CEO Thomas Nador said:
“This latest Transaction with Sabre Energy further demonstrates the strong alignment
between our respective organisations and our common belief in the prospectivity of the
onshore Canning Basin.
Buru received strong interest from the market for participation in the drilling of the high
impact Rafael Shallow prospect. Sabre’s proposal provides Buru with excellent value for the
Rafael Shallow prospect farmout and also offers significant strategic synergies with the
Ungani partnership established earlier this year.”
Regie Estabillo, Managing Director of Sabre Energy further noted:
“This Transaction shows that, like Buru Energy, we are enthusiastic about the onshore
Canning Basin and are prepared to invest in the drill bit to create value for our venture with
Buru.
We are looking forward to the drilling program planned for later this year and are quickly
building our own organisational capability to support Buru as operator of Rafael Shallow, and
our future operatorship of the Ungani Oilfield.”
Rafael Shallow Prospect
Interpretation of the recently acquired Rafael 3D volume identified a highly prospective
closure in the shallow geological section partly overlying the Rafael gas and condensate
bearing structure that was not apparent on the wide spaced legacy 2D data. The structure
is of considerable size (18 sq kms) and has over 125 metres of vertical closure in a threeway dip closed structure. The top and cross fault seals are provided by the thick and
regionally extensive Noonkanbah Formation organic rich shales with a lack of internal faulting
contributing to robust structural integrity.
The target reservoirs in the closure are the Poole Sandstones and Grant Formation at less
than 1,200 metres depth. The Poole and Grant reservoirs are clastic (sandstone) reservoirs
similar to the previously discovered shallow oil pools on the Lennard Shelf in the vicinity of
the legacy Blina Oilfield.
This is a new prospect type for this part of the Canning Basin, and it is considered to have
potential for regionally significant volumes of liquids.
The target formations for the Rafael Shallow well are at a depth that can be safely and
effectively drilled by a cost effective smaller mobile rig similar to that used to drill a number
of the Ungani development wells and Canning Basin exploration wells.
The Company is currently in advanced discussions with a rig vendor to drill the Rafael Shallow
prospect in campaign with the Mars prospect, and is targeting to drill both prospects during
the 2024 operating season.
The drilling of the prospects is subject to the usual regulatory and other stakeholder
approvals.
Rafael Shallow Prospective Resources
Prospective Resources of the Rafael Shallow prospect as determined by Buru are set out
below. The Prospective Resources are in Exploration Permit EP 428 held 100% by Buru:
Prospective Resources Low Best High
Recoverable Liquids (million barrels) 3.2 19 79
Prospective Resources relate to the estimated quantities of petroleum that may potentially
be recovered by the application of a future development project(s) and relate to undiscovered
accumulations. These estimates have both an associated risk of discovery and a risk of
development. Further exploration, appraisal and evaluation is required to determine the
existence of a significant quantity of potentially moveable hydrocarbons.
Full disclosures in relation to the Prospective Resource estimates are set out in the Buru ASX
Release dated 24 April 2024.
Buru is not aware of any new information or data that materially affects this assessment and
that all material assumptions and technical parameters underpinning the estimates continue
to apply and have not materially changed.
Background to the Transaction
Following the identification of the Rafael Shallow prospect, Buru undertook a marketing
campaign to invite interested parties to submit bids to partner with Buru in drilling this
significant prospect during the 2024 Canning drilling season. This campaign generated strong
interest from Australian and international E&P companies, with Sabre’s bid being selected as
the most compelling in terms of value and synergies with its recent farm-in transaction for
the Ungani Oilfield and associated licenses.
As part of this Transaction Buru has also granted Sabre a time limited right of first refusal to
acquire an interest in the underlying EP 428 permit with a view to participate in the
development of the Rafael gas/condensate discovery and for further exploration “running
room” on the back of drilling Rafael Shallow.
About Sabre Energy
Sabre Energy Pty Ltd (Sabre) is a private Australian upstream energy company focused on
assets that deliver accelerated revenue and sustainable supply generation. Sabre is chaired
by Mr. Allan Bougoure, a highly successful provider of services to the oil and gas industry,
and Managing Director, Mr. Regie Estabillo, an experienced petroleum engineer and former
Chief Operating Officer of Omega Oil and Gas (ASX:OMA).
As a relatively new company within the Australian oil and gas industry Sabre has been
extremely successful in building a significant portfolio of production and exploration assets
in a relatively short time frame with a demonstrated ability to attract strong investor funding.
Sabre specialises in the exploration, appraisal and development of critical onshore energy
assets that support local and regional economic growth while helping preserve Australia’s
energy security.
Sabre is supported by experienced energy professionals with specialist skills and experience
in commercialising Australian onshore energy assets. Sabre is actively investing in Australian
onshore oil assets, most recently farming into PELA 679 in the Cooper/Eromanga Basin.
Sabre’s investment in the Rafael Shallow prospect in Western Australia’s Canning Basin is an
exciting addition to the company’s growing portfolio of first-class resources assets, which
includes a 70% interest in the Ungani Oilfield (pending customary approvals). Sabre
recognises the immense potential of the Canning Basin and is committed to further
investment as a trusted partner with Buru to help unlock the basin’s energy resources.
Authorisation
This ASX announcement has been authorised for release by the Board of Directors of Buru
Energy.
