Buru Energy (ASX:BRU) has increased its confidence that the Laurel accumulation has commercial potential over a large part of the Canning Superbasin.
The Tight Gas Pilot Exploration Program (TGS) is a proof of concept fracture stimulation of the Laurel Formation tight gas accumulation in two vertical wells, Asgard 1 and Valhalla North 1.
Buru said that the Laurel Formation is interpreted to contain a basin centered gas accumulation with potentially world class resources of gas and hydrocarbon liquids.
The running of production tubing has been completed in the Asgard and Valhalla North wells.
The wells are now on flowback of stimulation fluid with accompanying gas and condensate, with the fluid flowback expected to take several more weeks before gas rates and condensate content can be confirmed.
The gas composition has low inerts and high condensate content, with strong shut-in pressure which the company said confirms the predicted formation deliverability.
Buru added that the gas flows support the vertical extent of the Laurel Formation tight gas accumulation of in excess of 1,500 metres, with the potential for a significant resource upgrade over a large area between and surrounding the fracced wells.
Eric Streitberg, executive chairman, commented:
“We are delighted with what we have seen from these wells to date.
"They are behaving as we predicted and providing confidence we have a major gas and condensate resource in the Valhalla area.
"It also provides confidence that the Laurel accumulation has commercial potential over a large part of the Canning Superbasin as we had expected.
"It also will give us fresh insights into the results from the 2010 Yulleroo 2 fracs which also flowed gas and condensate at significant rates.
"We will continue with the flowback program as planned and keep shareholders informed as results come to hand.”
Forward program
The current flowback will be continued to allow the wells to recover a sufficient amount of injection fluid to allow definitive gas rates, subsequent decline rates and gas and condensate compositions to be obtained.
The results to date are being provided to an independent resource certifier to commence a review of prospective and contingent resources with a view to having a report available early in 2016.
TGS program
The TGS program has the following stages.
1. Design of the program and selection of contractors.
2. Approvals processes.
3. Refinement and optimisation of the program.
4. Location and well preparation including undertaking formation integrity tests.
5. Undertaking the stimulations and running the flowback completion strings.
6. Initial flowback operations.
7. Longer term Flowtest operations to confirm deliverability and decline rates.
Buru said the current phase of operations is the Initial Flowback with recovery of the injected fluid from the wells.
This phase can take anywhere from weeks to months depending on the well configuration and the amount of water injected.
The amount of fluid recovered can typically range from 40% to 80% of the injected water. As the fluid flows back it is accompanied by gas and condensate which is flared during this test phase.
As the amount of fluid being recovered decreases the gas flow increases and the flow can be directed through a separator to separate the water, gas and condensate.
The company added that it is not possible to make estimates of flow rates that are indicative of longer term performance until the wells are flowing stable rates of gas through the separator uninhibited by fluid.
This phase of the flowback is anticipated to take at least several more weeks.
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