Orca Energy (ASX:OGY) and joint venture partner Senex Energy (ASX:SXY) have committed to fast track the Burruna-3 discovery well for completion in the Cooper Basin, South Australia.
Surface facilities are planned for installation in February, and the well will be completed as a dual zone,
selectable, free flow producer where the lower and upper Birkhead sandstones are expected to be productive.
In November the well encountered 3 metres of interpreted net pay in two zones in the lower Birkhead, as well as good quality oil and gas shows in the Murta Formation, which is productive in the adjacent Fury and Mirage fields.
Initial production rates are predicted to be in excess of 500 barrels of oil per day, with increasing water cut.
Orca has a 20% interest, with Senex the remaining 80%.
Once the formation has been proven to flow commercially, the internal contingent resource estimates will be reclassified to reserves and released to the market.
The previously discovered Burruna-2 production well, on the same joint venture terms, is currently producing free flow oil from the Namur formation at a rate of around 430 barrels of oil per day, with 75% water cut.
A proposed workover in March will involve the installation of an electric submersible pump and surface facilities, which should double gross fluid rates and increase the volume of oil being produced.
Production and sales for the previous quarter were in excess of 40,000 barrels of oil.
At under $10 million cap and with a material interest in multiple producing wells, Orca is somewhat of a rare breed amongst Australian microcap energy stocks.
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