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Buru Energy's shares trade higher as all going to plan at Ungani

The results of the logs are anticipated to be available on Friday.
Buru Energy's shares trade higher as all going to plan at Ungani
Buru shares have gained circa 50% in the past two months

Buru Energy Ltd's (ASX:BRU) shares are trading 5.3% higher this morning at $0.30 with 765,000 changing hands as the company progresses drilling at the Ungani 4 development.

The Ungani 4 well is located in Production License L20 in the Canning Basin of north-western Australia, 97 kilometres east of Broome.

The well has been drilled ahead in a 6 inch (152 mm) hole to 2,249 metres measured depth, and the current operation is pulling out of the hole prior to logging.

Buru outlined that the top of the Ungani Dolomite reservoir is interpreted from drill rate and drill cuttings to have been encountered at 2,137 metres measured depth.

The drill rates, drill cuttings and oil shows observed while drilling through the reservoir are consistent with the other producing wells in the Ungani Oilfield.

The oil water contact in the well also appears consistent with that seen in the rest of the field.

Subject to confirmation from logs, the interpreted top of the reservoir and the oil water contact imply a gross oil column in the well in excess of 60 metres.

This compares to an oil column of 58 metres in Ungani 1ST1 and 54 metres in Ungani 2.

Next steps

The forward plan for the well is to continue to pull out of the hole and then run a comprehensive logging suite.

The results of the logs are anticipated to be available on Friday of this week subject to operational constraints.

The well is being drilled by the DDGT1 rig and is located some 500 metres to the southwest of Ungani 1ST1 on a separate drilling pad and is designed to provide an additional drainage point in the Ungani Oilfield and to verify reservoir continuity.

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