Buru Energy Limited (ASX:BRU) has commenced testing at the Ungani Far West 1 well, which has the potential to become part of the company's production system.
Early indications on the well has drawn similarities to the company’s flagship Ungani wells, which are strong producing wells with good quality oil from the similar Ungani Dolomite reservoir.
Therefore success at Ungani Far West 1 could deliver a significant financial benefit to the company, in the form of increased oil reserves and production.
Today Buru has outlined that Ungani Far West 1 has been configured to allow testing of three zones.
These include the uppermost zone which is interpreted from logs to be oil saturated with significant vugular porosity development, a middle zone which has calculated oil saturations from wireline logs, and the lower zone which has well developed vugular porosity in cores but ambiguous calculated oil saturations.
Further detailed inspection of the cores from the Ungani Dolomite has also identified numerous zones of very well developed vugular porosity which were not evident from logs
Timeline for testing
Buru said that the test over the upper zone has commenced with the well being swabbed to establish flow, with immediate fluid influx indicating very good permeability.
The well is now starting to flow back with 40 to 50% oil with the remainder being drilling fluid lost to the formation.
This is typical behaviour for wells with vugular porosity which have had significant drilling fluid losses as were encountered in Ungani Far West 1.
The forward operation is to continue flowing and swabbing the well as necessary as it cleans up.
It is expected the testing program will continue for at least another week and further information will be made available as it comes to hand.
Analysis
The importance of the Ungani Far West 1 well for Buru, is that it has the potential to confirm the regional prospectivity of the Ungani Dolomite.
Results of the next tests therefore will be highly anticipated.
The well is located on an all-weather drilling pad one kilometre off the Ungani access road within Production License L21.
This is positioned 97 kilometres east of Broome and 3.3 kilometres southwest of Buru’s Ungani Oilfield in the Canning Basin of northwestern Australia.
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.
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.