Buru Energy (ASX:BRU) has used the recent suspension at the Asgard 1 gas well to measure flow rates using an advanced Schlumberger VX multi-phase flow meter.
Asgard 1 is located onshore in the Canning Basin of Western Australia.
The meter allowed precise measurements of fluid flow rates that hadn’t been available during the earlier flow tests and importantly, the well was continually flowing gas and returning stimulation fluid, demonstrating the potential for long term deliverability.
The test also allowed Buru to identify the zones with the highest potential and the company is now planning for a horizontal well in these zones.
As well as further testing operations at Asgard 1, a submission of the Discovery Assessment Report for the Asgard/Valhalla accumulation has been accepted by the Department of Mines and Petroleum (DMP).
This is a necessary next step to obtaining further title after the recent signing of the land use agreements with the traditional land owners. The traditional land owners also provided support and logistics to the company during the Asgard test.
The company has also covered off the southern extent of the Laurel gas accumulation in EP 371 by applying for a Special Prospecting Authority over the gas accumulation to the south of the EP 371 permit.
These systematic steps are continuing to add value and certainty to the project.
Oil program update
Ungani
At the company’s Ungani oilfield, preparation for a potential oil production restart is proceeding well, with preliminary engineering work completed for a “future proofed” restart and good progress being made on evaluation of potential lower cost export solutions.
The mapping of the 3D seismic along the Ungani trend has identified a very good selection of conventional oil prospects, and heritage clearances are planned for a number of these locations with field work to commence early in the New Year.
Expressions of interest have also been called for the supply of a drilling rig for the oil exploration program.
There is also work underway to see if prospects can be identified in the Ungani Dolomite oil trend on the other side of the basin along the Buru 100% owned Lennard Shelf permits.
Background
Buru is a Western Australian oil and gas exploration and production company with petroleum assets and tenements located onshore in the Canning Basin in the southwest Kimberley region of Western Australia.
Its flagship high quality conventional Ungani Oilfield project is owned in 50/50 joint venture with Diamond Resources (Fitzroy) Pty Ltd (Mitsubishi).
As well as Ungani, the company’s portfolio includes world class tight gas resources in the Laurel Formation, with extensive 2C gas resources identified at Yulleroo and in EP 371 in the recently fracced Asgard and Valhalla North wells.