Buru Energy Limited’s (ASX:BRU) (OTCMKTS:BRNGF) (FRA:BUD) shares are trading about 3.33% higher intra-day after spudding the Currajong 1 exploration well at 10:00 hours on Thursday, July 1 2021.
Currajong 1 well is in Exploration Permit 391 in the Canning Basin of northwest Western Australia and is about 30 kilometres to the west of the Ungani Oilfield.
The well is being drilled on a large structure that is well defined by 3D seismic. The structure has a vertical closure of over 200 metres and is fault bounded with two-way dip closure.
Importantly, it is expected to have similar good quality reservoir and oil properties to the Ungani Oilfield and is at similar depths.
“Well placed to monetise any discovery”
Buru executive chairman Eric Streitberg said: “We are delighted to be kicking off the most extensive drilling and seismic program in the Canning Basin for many years.
“We are very pleased to be using a modern high capacity rig and we have worked diligently with the rig owners, Ensign Drilling, to ensure it is fully fit for purpose for the program before our final acceptance of the rig and the spud of the well.
“With the oil price currently approximately A$100 a barrel, and our existing infrastructure and operating experience in the basin, we are well placed to monetise any discovery.”
Significant further potential along trend
The Currajong 1 well is being drilled by the Ensign 963 rig as a vertical well to a planned total measured depth of 2,300 metres and is expected to be completed by late July or early August.
Buru and Origin Energy Ltd (ASX:ORG) each have a 50% equity interest in the Currajong 1 well and in EP 391.
Streitberg added: “A success at Currajong would also high grade the other similar prospects in that area with significant further potential along the trend.
“We are also very much looking forward to the next well in the program, Rafael 1 which is a large conventional oil prospect that could be of national significance if it is a discovery.”
Program location map
In light of the current general COVID-19 situation in Australia, Buru and its contractors have put in place appropriate protocols and controls to manage the situation and comply with all Government directions.
Under current restrictions there is not expected to be any material disruption to the program, but the situation is being closely monitored.
Program background
Currajong 1 is the first well in the exploration program under the terms of the farm-in agreements executed in December last year, under which Buru will be carried for $16 million of the cost of the drilling of the two exploration wells in the program (Currajong 1 and Rafael 1), in addition to a further significant seismic program carry across several Buru operated permits.