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Buru Energy to benefit as WA government lifts fraccing moratorium

An independent scientific inquiry commissioned by the West Australian government has concluded that fraccing is low risk when conducted properly with appropriate regulation. This report mirrors the previous 13 reports conducted in Australia.

Map of Buru licences in WA
Buru’s licences are within the 2% of WA land that will be able to be fracced

Buru Energy Ltd (ASX:BRU) has large land holdings in Western Australia’s Canning Basin where it has defined a major accumulation of tight gas and condensate.

As part of its appraisal of this resource, it has undertaken fraccing activity in three wells with no impact on the environment.

Buru’s further appraisal and development of this major resource has been on hold since the Western Australian government put in place a fraccing moratorium and inquiry process as part of its election commitment.

On receipt of the independent inquiry report, the Western Australian Government has now said it will lift the moratorium on all existing permits including Buru’s permits in the Canning Basin.

Restarting exploration and appraisal activity

The next step for Buru, once the proposed regulatory changes are implemented, is to continue with exploration and appraisal activity to build on its already extensive knowledge of the gas resources and the environment and the social framework.

Buru’s executive chairman Eric Streitberg commented that this result was in line with the extensive scientific inquiries carried out in Australia, including those undertaken by the Traditional Owners in the Kimberley, that fraccing can be safely conducted with no risk to water supplies or the environment.

Independent science welcomed

He welcomed the independent science and urged that this be accepted rather than the alarmist and misleading claims of activists.

The unconventional gas resources in the Canning basin are extensive but activity has been concentrated in the east at Valhalla and Asgard and in the west at the Yulleroo Gasfield.

At Buru’s 100%-owned Yulleroo Gasfield, a 2C Contingent Resource net to Buru has been determined of some 714 petajoules of recoverable gas with 24.9 million barrels of associated condensate and natural gas liquids.

Four wells have been drilled at Yulleroo to define the resource and Buru undertook a frac of three zones in the vertical Yulleroo 2 well in 2010 which produced flow rates that demonstrated a path to commercial development of the resource.

The wells have also defined the potential for a substantial resource of conventional gas which Buru will also be further evaluating.

Quick facts: Buru Energy Ltd

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Market: ASX
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