- Buru Energy (BRU) spikes this morning after saying it is gearing up for production testing at its Rafael 1 well in the Canning Basin of WA
- After acquiring wireline logs over the six-inch hole section in the well, below the seven-inch casing shoe, the company is now preparing for well testing
- Executive Chairman Eric Streitberg said, based on the information gathered about the well so far, Rafael has the potential to be a “very material” wet gas play
- Buru plans to move the drill rig to the nearby Ungani 8 operation as soon as the Rafael 1 prep work is complete
- Shares in Buru Energy were up 21.43 per cent at 17 cents each at midday AEDT
Shares in Buru Energy (BRU) have spiked this morning after the company said it was gearing up for production testing at its Rafael 1 well in the Canning Basin of WA.
The company this morning said it had acquired wireline logs over the six-inch hole section in the well, below the seven-inch casing shoe — as was initially flagged by Buru in an announcement to the ASX last week.
In light of the wireline logs, Buru said it was now preparing Rafael 1 for well testing with a 60-millimetre tubing string as a “barefoot completion” to be set inside the seven-inch casing.
The company said it planned to move the drill rig to the nearby Ungani 8 operation as soon as the Rafael 1 prep work was complete.
At the same time, the company will mobilise production testing equipment at the Rafael 1 well with plans to complete the production test before the end of the year, subject to December weather conditions.
Executive Chairman Eric Streitberg said the Rafael discovery had the potential to be a “very material” wet gas play in a conventional high-quality dolomite reservoir, with “very low” carbon dioxide content in the gas.
“We are taking a methodical and considered approach to the evaluation of the discovery and intend to waste no time in commercialising the resource if its potential is realised,” Mr Streitberg said.
He said Buru had been operating the Canning Basin for many years and had a “deep understanding” of the environment and how a resource in the area might be monetised.
“The commercial value of a gas resource is considerably enhanced if the field is large and contains a conventional high flow rate reservoir with high pressure and significant liquids content, as we hope Rafael is confirmed to be.”
He added the company still had several critical steps to take to truly understand what it had encountered at Rafael, but indications so far were promising.
Wireline logging at Rafael
Buru Energy said petrophysical interpretation and wireline image logs at Rafael 1 suggest that the net reservoir section in the well is similar to the “highly productive conventional dolomite reservoir” at the Ungani Oilfield.
However, the company said several factors imply the actual gas column could be greater than what has been seen at the well so far.
These include an estimated reservoir pressure of over 6000 pounds per square inch (psi), the presence of a thick “Laurel Shale” top seal, and a large structural closure.
The upcoming production test will help the company gather information on reservoir deliverability, fluids, pressures and potential boundaries, which are required to define the potential of the well.
Shares in Buru Energy were up 21.43 per cent at 17 cents each at midday AEDT. The company has a $91.5 million market cap.