Buru Energy Ltd (ASX:BRU) has updated well operations at Rafael 1 and Ungani 8H in the Canning Basin, onshore Western Australia.
The well testing program at Rafael 1 has been impacted by the hard border closures imposed by the Western Australia Government in response to the COVID-19 pandemic.
Border closure delays
A recent announcement that these will be extended past February 5 has meant that the specialised operators required to conduct the test have not yet been able to mobilise into Western Australia from their Queensland and South Australian operations bases.
Buru’s executive chairman Eric Streitberg said “The further delays to the Rafael 1 well test imposed by the continuation of the WA hard border closures are unfortunate and also have a knock-on effect to other operators who want to use the SGS testing package.
"We are working closely with the WA Government to ensure we are able to undertake this potentially regionally significant work as soon as practicable.”
Equipment required for the planned flow test of the Rafael 1 well was mobilised to site as planned prior to Christmas from the SGS storage yard in Dongara.
Buru is working with SGS to obtain the relevant approvals from the WA Government for the contractors to travel to the state as planned on February 5 and to then undertake the required 14 days quarantine.
The well test will, therefore, be undertaken as soon as practicable after February 5 but Buru said it was most likely to commence in the third week of February.
Ungani 8H drilling program
Meanwhile, at the Ungani 8H well the drill string became stuck in the upper part of the Laurel Shale as it was being retrieved prior to running the 9⅝ inch (244 mm) casing.
Despite extensive efforts to recover the drill string, it was unable to be freed and has been backed off at a depth of 2,206 metres measured depth and the remaining drill string retrieved.
Following analysis of the options for the forward program for the well, project partners Buru and Roc Oil (Canning) Pty Ltd (ROC) have agreed that ROC will undertake a side-track to complete the well as a sole risk operation.
Buru Energy will continue as operator of the well under the terms of the Ungani Joint Venture Agreement.
Ungani 8H well is being drilled by the Ensign 963 drilling rig. Buru Energy and ROC each have a 50% equity interest in the well and in the L20 Production Licence.
The Ungani 8H well surface location is on Production Licence L20 some 700 metres to the north-northwest of the Ungani 1 and 2 surface well locations and the Ungani Production Facility.
Prior to the drill string incident, operations included drilling the 12¼ inch (311 mm) hole to a total measured depth of 2,605 metres in the Ungani Dolomite at a hole angle of some 76 degrees, substantially as planned.
"The difficulties we have been having with the Ungani 8 well are very disappointing given the first part of the program was well executed with an intersection of the Ungani Dolomite substantially as planned,” Streitberg said.
“The sole risk operation going forward is an appropriate sharing of risk and costs that will hopefully provide a satisfactory outcome for both parties,” Streitberg added.