Buru Energy (ASX: BRU) continues to uncover evidence of the presence of a basin centred gas accumulation in the onshore Canning Basin after its Paradise-1 deepening operations encountered an overpressured section in the Laurel Formation.
This section, which was intersected at a depth of 2786 metres, was interpreted as the top of the regional section with an immediate increase in drilled gas to more than 600 units and circulation gas to more than 3000 units.
These gas influxes are also consistent with the intersections in the Valhalla wells, which when combined with the gas wetness rations, further indicate that the Paradise well has intersected the same basin centred gas accumulation that was identified by the Valhalla wells.
This is likely to increase the potential hydrocarbon volumes associated with the Valhalla accumulation and reduce the risks ascribed to their presence.
However, Buru said it was unable to deepen the well to its planned total depth of 3200 metres as the well configuration from the previous drilling operation made it unsuitable to deal with the high pressures encountered.
Logging will now be completed and the well will be plugged and abandoned as planned.
Paradise-1 in EP 428 was drilled in late 2010 by Buru and Mitsubishi Corporation to a depth of 1700 metres but was suspended before or just after intersecting the top of the Laurel Formation due to operational issues and the onset of the wet season.
The well had encountered a 9 metre oil zone in the Andreson Formation at a measured depth of about 900 metres though testing was inconclusive at that time and had started to detect increasing levels of background gas as it reached its total depth.
The present deepening operations by the Century Rig 7 were originally meant to take the well to a prognosed total depth of 3200 metres in the Lower Laurel Formation.
Buru had previously received an independent assessment from McDaniel & Associates Consultants, estimating the Valhalla area held risked recoverable volumes of 6.5 trillion cubic feet of gas and 187 million barrels of liquids.
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