Buru Energy Limited (ASX:BRU) (OTCMKTSL:BRNGF) (FRA:BUD) is set to kick off a major exploration program in the Canning Basin that will include three wells and a regional seismic program.
The Kurrajong 1 exploration well will be the first well in the drilling program, followed by the Ungani 8 development well and then the Rafael 1 exploration well - with the program expected to commence in early to mid-June.
This drilling campaign is targeting a total of 97 million barrels of conventional oil with 28 million barrels from Kurrajong and 69 million barrels from Rafael (mean prospective resources).
Access approvals for the program are in place with the WA regulatory authorities recently providing environmental approvals while negotiations for the rig contract are underway.
The company is also planning a program of around 1,200 kilometres of seismic surveys.
“Exploration program on track”
Buru executive chairman 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.”
“This is the largest and most exciting exploration program in the Canning Basin for many years and we are very keen to get started.”
Drilling program
The Kurrajong 1 exploration well is expected to have similar good quality reservoir to the Ungani Oilfield and is at similar depths, with the total depth of the well expected to be around 2,500 metres.
The Rafael 1 well has over 450 metres of mapped closure and is a large regional structure that is interpreted to have similarities to Devonian aged carbonate structures in Western Canada that are very large and prolific oil producers.
The total depth of the well is expected to be around 3,800 metres.
Major seismic program planned
Streitberg said: “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 Celestine 2D survey across the EP 457 and EP 458 area is planned as the first and largest part of the program to further define a new geological concept that has the potential for large conventional oil accumulations.
Program location map.
Farm-in agreements
This is the most wide-ranging exploration program in the Canning Basin for many years and under the terms of the farm-in agreements executed in December with Origin Energy Ltd (ASX:ORG), Buru will be carried for $16 million of the cost of the drilling of the two exploration wells, as well the seismic program across several permits.