Buru Energy’s (ASX: BRU) has received an independent assessment estimating the Valhalla area of the onshore Canning Basin holds prospective recoverable resources of up to 15 trillion cubic feet of gas and 432 million barrels of liquids.
North American tight gas and unconventional resource assessment specialists McDaniel & Associates Consultants also confirmed the primary target Laurel Formation has the characteristics of a basin centred gas accumulation.
These plays are potentially more productive and commercially attractive than traditional shale plays.
The assessement was made base on all the data acquired by Buru, which included digital well logs for eight wells in the Fitzroy Trough, core analysis, tight rock analysis, well test information, geochemical and pressure analysis and digital time and depth surfaces for the main seismic horizons.
Buru said that to convert the prospective resources to reserves will require additional data to be acquired, and drilling to be carried out, including vertical and horizontal wells, together with extended production tests to prove commercial flow rates.
It added that given the results of the Yulleroo-2 gas flows from the Laurel Formation hydraulic stimulation operation, and the natural gas flows encountered while drilling Valhalla-2, it is optimistc that commercial flow rates can be demonstrated.
The company plans to drill additional reservoir penetrations including the upcoming deepening of the Paradise-1 well and the drilling of Asgard-1. These wells will provide the data to develop a forward program for 2013, which may include trial reservoir stimulation activity.
At Paradise Deep, Buru will deepen the existing Paradise-1 well to test both conventional and unconventional targets as well as the potential for a western extension to the Valhalla unconventional wet gas find.