Buru Energy (ASX:BRU) has angered shareholders on Wednesday – evident in the HotCopper announcement threads – following news its latest well is a duster.
Drilling conducted at the JV-led Rafael Shallow asset in WA’s onshore Canning Basin under permit EP428 didn’t just find a deposit too watery or too stiff to access, but instead, found no moveable hydrocarbons at all.
Two entities – Twinsouth Holdings Pty Ltd and Jingle Investments Pty Ltd – are the other JV partners at 15% and 10% respectively.
The well punched through both the Poole and Grant target reservoirs at a total depth of 1,203m earlier this week with wireline logging data scoured on Tuesday. In this case, the results weren’t great.
“The well will be plugged and abandoned over the next few days,” the company wrote on Wednesday.
HotCopper users were, understandably, annoyed.
“Guess BRU will be my tax loss selling, very disappointing… thank god I sold half my holding,” user Grossy66 wrote. User JustSayin added: “The new chairman needs to show us what he is made of and come up with a real plan and fast.”
Then there were more who embraced the ribald side of HotCopper, which let’s be honest, is what it’s best known for (as well as surprisingly high-quality analysis in between the noise.)
“This mob couldn’t run a piss up in a brewery! Still pimping themselves for a suitor,” 19Crowe45 wrote, much to this finance journalist’s amusement.
While some were more positive (or less willing to insult management, which is pretty easy to do when you’re losing money), Buru’s own management commentary was, at least, honest. Though, its optimism could have been tone-deaf.
“Although a disappointing result, the lack of exploration success at Rafael Shallow 1 does not undermine or detract in any way from delivering Buru’s strategy,” Buru CEO Thomas Nador said.
“The Rafael (deep) discovery remains the only proven significant conventional gas and condensate resource in onshore Western Australia north of Karratha, providing Buru with a unique opportunity.”
One user simply asked: “How low will we go [today]?,” referencing the company’s share price. BRU last traded at 6.1cps.
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