Buru Energy (ASX:BRU) has continued positive progress at its Ungani Far West 1 well in Western Australia's Canning Basin with the latest advance in drilling having confirmed the presence of an oil column of at least 14 metres of which, some 5 metres is net pay in the Anderson Formation.
The company’s preliminary field measurements of the samples recovered from the surface indicate the oil has a gravity of 30.5 deg API.
This highly encouraging confirmation on the back of completed logging and sampling work at the well has coincided with ongoing drilling at the well to the interpreted top of the Ungani Dolomite reservoir.
5” (127mm) casing has been run and cemented to 2,327m in the well, and the Atlas Rig 2 has now been rigged down and released.
Specialist coring rig DDH1 Rig 31 is currently rigging up and will conduct coring operations through the Ungani Dolomite reservoir section.
These developments follow immediately on the recovery of an oil sample from a sandstone zone with the potential for good flows about 1,560 metres deep at the top of the region's Anderson Formation.
The well has a programmed maximum total depth of 2,600 metres.
It is being drilled under the terms of an agreement with Diamond Resources, whereby equity interest is shared on a 50:50 basis with Buru.
Analysis
With previous interpretation of a 14-metre oil column now confirmed, Buru is steadily building confidence in the production potential of Ungani Far West 1, as the well is systematically advanced.
This adds significant weight to last week's oil recovery, which effectively opened up a new play with numerous shallow leads and prospects.
Importantly, the main target of the project - the Ungani Dolomite - remains to be encountered, offering substantial potential for future price catalysts.
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