Ungani Oilfield Production and Sales (L 20 & L 21 – BURU ENERGY 50% and operator)
Buru holds a 50% interest in the Ungani Oilfield and is the Joint Venture operator of the field. The remaining 50% interest is held by Roc Oil (Canning) Pty Limited (ROC). Production from the Ungani Oilfield for the year ended 31 December 2022 totalled ~189,000 bbls at an average rate of ~517 bopd (Buru Energy’s 50% share ~95,000 bbls).
Oil sales are facilitated by secure trucking, storage and export contracts, with the oil being trucked from the Ungani Oilfield to a storage tank at the Port of Wyndham where it is then sold FOB under a marketing agreement with BP Singapore Pte Limited (BP), primarily to SE Asian refineries. Gross sales of Ungani crude during the year totalled approximately 220,000 bbls from three liftings at Wyndham Port, these sales include oil inventory volumes measured at the beginning of the reporting period. Buru Energy’s share of revenue from the Ungani Oilfield for the year totalled ~A$13,893,000 at an average received price of ~A$127/bbl (2021: ~ A$9,608,000 at an average received price of ~ A$88/bbl).
Cost of sales totalled ~A$7,308,000 at A$77/bbl (2021: ~ A$6,541,000 at A$51/bbl) giving a gross profit from sales of Ungani crude net to Buru Energy of ~A$6,585,000 before inventory adjustments and amortisation charges, at an average annualised margin of ~A$51/bbl (2021: ~ A$3,067,000 at ~ A$37/bbl). The increase in costs per barrel is reflective of the higher fuel and shipping costs incurred during the reporting period.
Ungani Oilfield Development
A maintenance well workover was undertaken to replace production tubing and install a larger submersible pump in the Ungani 5 well during the year. The larger pump resulted in an increased oil production rate from Ungani 5 due to its higher fluid capacity.