Buru Energy (ASX:BRU) has delivered positive results at the primary target of the Ungani Far West 1 well, located one kilometre off the Ungani access road in Western Australia’s Canning Basin.
The top of the Ungani Dolomite was encountered at 2341.4 metres and cores recovered from this point to the current drill depth have displayed well developed vugular porosity with strong mud gas shows and oil bleeding from cores.
This confirms that a new oil discovery has been made in the Ungani Dolomite, and that the previous Ungani discovery was not a one off.
The forward plan is to core ahead through the Ungani Dolomite reservoir section.
Regional prospectivity
The importance of the news for Buru, is that it confirms the regional prospectivity of the Ungani Dolomite.
Ungani Far West 1
The Ungani Far West 1 appraisal well was spudded in November 2015, and is located on an all-weather drilling pad one kilometre off the Ungani access road within Production License L 21.
This is around 100 kilometres east of Broome and around 3 kilometres southwest of the Ungani Oilfield.
The well has a programmed maximum total depth of 2,600 metres.
Buru has a 50% equity interest in the well and a contributing interest of nil as the well is being drilled under the terms of the Ungani Development Funding agreement with Diamond Resources (Fitzroy) Pty Ltd.
Analysis
The next drilling report will be highly anticipated and is expected to further outline the potential scale of the resource at the Ungani Far West 1 well.
Early indications is that this well is similar to the company’s flagship Ungani wells, which are strong oil producing wells with good quality oil from the similar Ungani Dolomite reservoir.
Currently drilling is just 14 metres into the reservoir, and further drilling will delineate the size of the discovery.
Following drilling will be a production test to identify a flow rate, and then in the dry season Buru will be able to hook the field up to Ungani, which will then form part of the production system.
The Ungani Far West 1 well could add considerably to Buru's oil reserves.
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