Buru Energy to start key Canning Basin extended oil production test within weeks - Proactiveinvestors (AU)

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Buru Energy www.buruenergy.com.au/

Buru Energy (ASX: BRU) is focused on exploring and developing petroleum resources.

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Buru Energy to start key Canning Basin extended oil production test within weeks

Monday, April 16, 2012 by Bevis Yeo

Buru Energy to start key Canning Basin extended oil production test within weeks

Buru Energy (ASX: BRU) expects to start within four weeks the Ungani extended production test in the onshore Canning Basin that will provide valuable data for future appraisal and development.

The company also plans to restart its drilling program that had been suspended by the rain associated with Tropical Cyclone Lua and further rain during March and early April.

Testing of the Ungani-1/1ST1 and Ungani-2 wells is expected to take about six months to complete and will refine the current range of 5 to 20 million barrels of recoverable oil in the Ungani oil field.

Oil produced during testing will be trucked to Kwinana, Perth, for sale to the BP refinery, providing the company with some revenue.

Data obtained from the EPT will be a key in determining appraisal and production well placement and configuration, and will also provide valuable production operations information that will assist in optimising the design of the full field development.

The test will initially be constrained at 400 barrels of oil per day with a planned increase to 1000bpd as experience is gained in the production characteristics of the field and the management of the transportation system.

Ungani-1/1ST1 had flowed fluids at rates of up to 1647 barrels per day with about filtrate, formation fluid and lost circulation material making up 15% of the flow prior to it being shut-in while Ungani-2 flowed at rates of up to 1026 barrels of fluid per day.

Meanwhile, Buru expects to spud the Yulleroo-3 appraisal well at the end of this month using the Ensign Rig 32 and the Paradise Deep well in mid-May with the Century Rig 7.

Yulleroo-3 will appraise the Yulleroo gas discovery based on 3D seismic acquired during 2011 by defining the vertical extent of the accumulation.

The previous 2 wells were still in gas in the Laurel formation after reaching their total depth, raising the possibility that the Yulleroo formation is part of a Laurel Formation basin centred gas accumulation similar to that identified at Valhalla.

Confirmation of this would increase potential gas resources at Yulleroo from current estimates of 332 billion cubic feet of gas and 13.4 million barrels of liquids.

At Paradise Deep, Buru will deepen the existing Paradise-1 well to test both conventional and unconventional targets as well as the potential for a western extension to the Valhalla unconventional wet gas find.

Further wells will depend on the results of the 2 wells though it is expected to include additional appraisal wells on the Valhalla and Yulleroo discoveries as well as further exploration wells along the Ungani trend.

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