Buru Energy (ASX: BRU) will exit a trading halt on the open of trade today after announcing some very interesting news to the market.
Located in the Canning Superbasin of Western Australia, the Ungani-1ST1 well is an oil discovery that has flowed strongly on test.
The well was swabbed initially after which natural flow was quickly established, with the well flowing light oil (API gravity of ~37 degrees), with no significant gas, together with varying minor amounts of completion fluid, filtrate and lost circulation material (LCM) from the around 3,000 barrels of mud and LCM that were lost to the formation during the drilling of the zone.
Buru added that the well was flowed for a total of 8 hours at varying choke sizes with a peak rate of 1,647 bpd on a ½ inch choke with a flowing well head pressure of 18 psi.
The well has now been shut-in and the well head pressure is stable at 430 psi, and will be suspended, and subject to regulatory approvals, the rig will be skidded to drill an immediate appraisal well of the discovery from the same drilling pad, to a bottom hole location some 500 metres to the northeast of Ungani-1.