Buru Energy (ASX: BRU) has updated the market on the Ungani-1ST1 well, which is strategically located in the Canning Superbasin of Western Australia.
Logging while drilling operations (LWD) have been carried out and a preliminary interpretation of the real time LWD data has now been completed.
What is so significant for the Buru is that the company said interpretation indicates that there is a potential hydrocarbon column (most likely oil) in the Upper Laurel dolomite section, with a gross thickness of some 57 metres.
Some fractures are evident on logs and there is a most likely net pay thickness of 11.7 metres, but until further logs are downloaded and interpreted, it is not possible to be definitive as to the amount of net pay in the section.
The next step is to case the well with a slotted liner over the reservoir section and to conduct an immediate cased hole test to determine the flow potential of the reservoir and the composition of the reservoir fluids, which is forecast to take around a week.
Buru said that the results so far are very encouraging, recognising that there are several steps to go to see if the company have a commercial discovery.
"We have to prove we can produce hydrocarbons from the reservoir, and if we can, that we can do so at commercial rates."