Buru Energy Limited (ASX: BRU) shares are flying higher today after the company provided a drilling update. At the time of writing, the Buru Energy share price has jumped 6.45% to 16.5 cents.
Let's take a look at the ASX energy company's latest exploration announcement.
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What did the company announce?
The Buru Energy share price is gaining today after the company reported it's ready to start a major drilling and seismic exploration program at its Canning Basin project in Western Australia.
The drilling program, set to commence in June, is the largest to take place at Canning Basin for many years. It will include exploration wells on two large conventional oil prospects as well as the development of a new well on the Ungani Oilfield. Buru interprets this to be "an undrained part of the field".
Buru expects to award the seismic contract within the next few weeks. Terrex Pty Ltd has been selected as the preferred contractor. The seismic exploration will cover roughly 1,200 kilometres of surveys, which Buru expects will take around 50 days to acquire.
Commenting on the exploration program, Buru's executive chair Eric Streitberg said:
Our exploration program is on track, with a lot of hard work and attention to detail paying off. We are planning to use a large rig run by an experienced contractor and have put in place a very experienced drilling team to run the program. We are drilling two of the largest onshore oil exploration targets in the country at a time of rising oil prices and critical domestic oil production declines.
In parallel with the drilling program we will be acquiring a major seismic program that will help us fill our prospect inventory and set us up for a continued drilling program next year.
The program is targeting a total of 97 million barrels of conventional oil, and Buru reports it has received environmental approvals for the drilling of the wells.
Buru Energy share price snapshot
Buru Energy shares have handily outpaced the All Ordinaries Index (ASX: XAO) over the past 12 months, gaining 136% compared to a 53% gain on the All Ords.
Year to date, the Buru Energy share price has continued to perform well, up 27% so far in 2021.
