Buru Energy Ltd (ASX:BRU) has provided an operations update for its Ungani 8H development well in Western Australia’s Canning Basin.
Since the oil and gas explorer’s last report, the 20-inch (or 508-millimetre) surface conductor has been successfully set at 49.5 metres measured depth, and the well has been drilled ahead to section depth, at 991 metres measured depth in a 17.5-inch (or 445-millimetre) hole.
The 13⅜ inch (or 340-millimetre) casing has now been installed to a measured depth of 988 metres and successfully pressure tested.
The current operation — as of 6:00 am on December 29 — is drilling ahead at 1,050 metres in a 12¼-inch (or 311-millimetre) hole to the 9⅝-inch (or 244-millimetre) casing setting depth at roughly 2,565 metres measured depth at the top of the Ungani Dolomite reservoir section.
The horizontal reservoir section will then be drilled in 8.5-inch (or 216-millimetre) hole.
Operations to date have proceeded as planned with no incidents.
Today's news saw Buru's share price hit a new two-year high, trading 6.98% in the green at 23 cents per share in afternoon trade.
Ungani 8H Location Map.
Exploring the Canning Basin
Buru Energy’s permits lie in the Canning Basin, a geological unit in the southwest Kimberley region some 2,300 kilometres north of Perth.
The Canning Basin is the largest sedimentary basin in Western Australia and one of the few remaining areas in onshore Australia that is under-explored for petroleum.
Buru holds the dominant acreage position in the basin, comprising the conventional Ungani Oilfield, the tight wet gas formation of the Laurel Formation and a highly prospective exploration portfolio made up of oil and gas prospects.
The ASX-listed explorer has a 50% operating interest in the conventional Ungani Oilfield (comprising production licences L20 and L21), while Roc Oil Company Limited holds the remaining 50%.
Buru is drilling an additional production well on the field — known as Ungani 8 — to take advantage of the current strong oil price environment and provide valuable information on the remaining production potential of the field.