Join our daily newsletter At The Bell to receive exclusive market insights
- Buru Energy (BRU) notes presence of wet gas to light oil mudgas shows at the Rafael 1 well in the Canning Basin of Western Australia
- While drilling ahead, BRU says the well penetrated the top of the seismically interpreted main objective carbonate section
- Although the company is encouraged by the shows, it says wirelogs are needed to determine the significance
- Moving forward BRU plans to drill a remaining section which is believed to have further reservoir potential
- Shares have been trading 11.5 per cent higher at 14.5 cents as of 1:55 pm AEDT
Buru Energy (BRU) is making progress at the Rafael 1 well in the Canning Basin of Western Australia.
The well is operated through a 50 per cent joint venture partnership with Origin Energy (ORG).
According to BRU, the operation has been drilled ahead in an 8.5 inch (216 millimetres) hole from the 9⅝ inch (244 millimetre) casing setting depth of 3500 metres to the current depth of 3872 metres.
While drilling, the top of the seismically interpreted main objective carbonate section was penetrated, encountering interpreted Laurel Formation carbonates and shales overlying a section believed to be the Ungani Dolomite.
Additionally, a number of zones with hydrocarbon indications were intersected which BRU interpreted from calculated gas wetness ratios to be light oil to wet gas in nature.
While the company said it is encouraged by these initial shows, it acknowledges wireline logs — plus flow testing, pending joint venture approval — are required to determine the significance.
Today’s results follow the company’s announcement on October 25 that it detected hydrocarbon shows with additional indications of background helium and hydrogen content in the sandstones above the expected main reservoir section.
Before continuing with work, BRU said the current operation is pulling out of the hole for a bit change and a scheduled blowout preventer test.
Moving forward, around 250 metres of potential objective section remains to be drilled below the current depth of the well, which BRU plans to evaluate once current operations are complete.
In particular, the company is focusing on identifying further reservoir potential within the mapped Rafael closure.
Shares in Buru Energy were trading 11.5 per cent higher at 14.5 cents as of 1:55 pm AEDT.
