Buru Energy (ASX: BRU) has spudded its third well in its 2012 onshore Canning Basin exploration program with Mitsubishi Corporation that will further appraise the Yulleroo wet gas find.
Yulleroo-3 will be drilled to a total depth of 3600 metres to test the lateral extent, reservoir development, and hydrocarbon column of the field, which was discovered in 1967.
Success could lead to a considerable upside to current estimated recoverable resources of 352 petajoules of gas and 13.4 million barrels of hydrocarbon liquids that were identified by a previous independent review.
Yulleroo-3 and the Yulleroo-4 well location were defined by 3D seismic shot by Buru over the area, which also confirmed the structural configuration of the field.
Buru added the well had the potential to identify an accumulation similar to the very large basin centred gas accumulation in the Laurel Formation that its recent drilling at Valhalla had identified.
If hydrocarbons are encountered as prognosed in the Laurel Formation, the potential hydrocarbon volumes associated with the Yulleroo accumulation are expected to be confirmed, and potentially increased.
Buru has a 50% stake in the well while Mitsubishi, which is funding 80% of the costs of drilling, holds the remaining interest.
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