Buru Energy (ASX:BRU) is set to further refine oil resource volumes on its Ungani project in Western Australia as drilling at a key well advances into a dolomite reservoir.
Ungani oilfield contingent recoverable resources were last estimated at 3.9 million barrels (1C), 6.1 million barrels (2C) and 9.4 million barrels (3C).
Current drilling at the promising Ungani Far West 1 well has now reached a depth of 1,282 metres in a 8-1/2” (216mm) hole with wireline logging conducted and a 7” (178mm) casing now cemented to a depth of 1,279 metres.
Ungani Far West 1 has a programmed maximum total depth of 2,600 metres.
The well will now be drilled ahead to the top of the Ungani Dolomite reservoir below 2,100 metres where 5” (127mm) casing will be run and Atlas Rig 2 will then be released.
A specialist coring rig will then be rigged up and conduct coring operations through the Ungani Dolomite reservoir section.
The rig recently completed the coring operation at the Senagi 1 well over the dolomite section with a total of 285 metres of core cut with 99.7% core recovery.
The acquisition of a full core over the Ungani Dolomite reservoir section will provide further critical insights into the reservoir character of the highly productive Ungani Dolomite reservoir of the Ungani Oilfield.
Production progress
Commercial production at the Ungani site began in July, with cashflow being generated and excellent reservoir performance confirmed by an extended production test (EPT) and flow testing.
Production during the EPT was about 470,000 barrels gross.
Initial start-up production was at 1,250 barrels of oil per day, with targets of 2,500 and 3,000 barrels of oil per day planned to follow as the project advances.
Analysis
Progress of the Ungani Far West 1 well into the Ungani Dolomite reservoir is significant since the results may help improve Buru’s understanding of the project’s current oil inventory and help better define the potential to realise a significant expansion of its current oil production from Ungani.
Considering this substantial upside, such a discovery could set up Buru with long-term operational potential that could outlive the short-term rockiness in oil prices currently pressuring much of the sector.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.