Buru Energy Terminates Ungani North-1 Drilling Contract with Century Rig 7

Australia's Buru Energy has terminated its contract with the Century Rig 7, and it is now planning to complete drilling the Ungani North-1 well with the Ensign Rig 32, the company said Tuesday.


The company had issued a statement on Monday stating that "a mechanical failure in [the Century Rig 7's] draw-works has resulted in damage to the top drive and potentially to other parts of the rig."

"No injuries occurred as a result of the incident and the damage to the top drive and rig generally is currently being assessed," Buru Energy said in a statement on Tuesday.

Since Ungani North-1 has not reached its primary geological target, Buru Energy has mobilized the Ensign Rig 32 to continue with the drilling project. The Ensign Rig 32 is drilling at the Asgard-1 well at present.

"It is not clear when we can resume drilling works at Ungani North-1," Buru Energy's executive director Eric Streitberg told Rigzone in a telephone interview.

Streitberg added that Buru Energy was able to quickly mobilize a back-up rig to the Ungani North-1 site due to its long-term contract with Ensign Rig 32.

Ungani North-1, sited on Western Australia's onshore Canning Basin, will be drilled to a depth of 9,843 feet (3,000 meters) and will target the Ungani Dolmite section which is the oil producing reservoir in the Ungani Field. Ungani North-1 could hold a mean recoverable volume of 30 million barrels of oil, Buru said in a statement on July 6, 2012. The secondary target of the well is to test the Nullara section, which lies below the Ungani Dolmite section.

The well was spud on July 5, 2012.

Ungani North-1 is the fourth well to be drilled in the Buru-Mitsubishi Corp (MC) Joint Venture. In June 2010, MC bought a 50-percent stake in thirteen convention oil and gas exploration permits owned by Buru in the Canning Basin. After acquiring the interest, Buru and MC had started on a joint exploration program in 2011.



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