(MENAFN- ProactiveInvestors)
’s (ASX:BRU) ongoing exploration program in Western Australia’s onshore Canning Superbasin has advanced with the spudding of a conventional oil well that could add significantly to currently estimated volumes at the project.
Atlas Rig 2 spudded the Ungani Far West 1 conventional oil appraisal well on Saturday November 28 just one kilometre off the Ungani access road within a granted production license 3.3 kilometres southwest of Buru’s Ungani Oilfield.
Ungani Far West 1 has a programmed maximum total depth of 2600 metres and is reported to take around 48 days and is targeting conventional oil in the area’s Lower Laurel carbonates which are prolific producers at Ungani.
The Ungani Far West closure lies within the greater Ungani structural complex and is mapped as being an independent structural feature with vertical closure of some 50 metres.
By no means a wildcat target this well is considered low-risk with high value-adding potential since the discovery of oil here could add significantly to currently estimated Ungani volumes close the existing production facilities at Ungani.
Ungani Far West 1 is planned to acquire a full core over the Ungani Dolomite section which will provide the company with further critical insights into the reservoir character of the highly productive Ungani Dolomite reservoir of the adjacent Ungani Oilfield.
This information will also assist the company to optimise and refine the Ungani oil resource volumes.
About Ungani
Buru’s conventional oil discovery at Ungani about 150 kilometres east of Broome in 2011 was the first significant onshore oil discovery in WA in 10 years.
The company has since proven that the Ungani Dolomite reservoir trend extends over at least 200 kilometres and has observed enough oil shows to confirm the petroleum system is working all the way down the trend.
This effectively validates the prospects all along the trend and helps underpin the prospectivity of the current drilling.
Commercial production at the Ungani site began in July with cashflow being generated and excellent reservoir performance confirmed by an extended production test (EPT) and flow testing.
Production during the EPT was about 470000 barrels gross.
Initial start-up production was at 1250 barrels of oil per day with targets of 2500 and 3000 barrels of oil per day planned to follow as the project advances.
Analysis
Spudding of this well is significant since its proximity to the Ungani Field offers so much upside for resource expansion and will provide strong newsflow which could represent price catalysts for Buru stock.
The well’s physical positioning within a mapped 3D seismic area of the broader Ungani structural complex establishes Ungani Far West 1 as a low-risk well.
Continued low-risk exploration in Buru’s wider project area in this region is also expected to deliver additional newsflow as the company opportunistically pursues a “back-to-basics” portfolio building strategy during a downturn for energy prices.
The exploration work has also benefited from efforts to reduce costs by innovative rig selection and these results are showing wells can be drilled for less than half the cost of previous campaigns.
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