Buru Strikes Hydrocarbons at Ungani-1
Buru Energy has struck hydrocarbons while drilling the Ungani-1 well in EP 391 in the onshore Canning basin, Western Australia.
Oil shows had been revealed over an interval between 945 metres and 970 metres in the Grant sandstones, in addition to further oil shows and associated mud gas readings in interpreted Anderson formation sandstones over an interval from 1500 metres to 1530 metres, the company said in a statement on Thursday.
“The significance of mudlog shows of this nature in the Grant and Anderson formations is difficult to determine in other areas of Canning superbasin, and wireline logs and fluid samples and sidewall cores are necessary to evaluate if moveable hydrocarbons are present,” the statement given to the Australian Securities Exchange said.
Increasing gas shows were found in the top of the Laurel formation prior to reaching the section total depth. The company has previously estimated the conventional Laurel formation structure in Ungani-1 to contain a potential of more than 200 billion cubic feet of recoverable gas on a proven and probable basis.
In a separate announcement, the company said presence of “significant hydrocarbon column” was confirmed by wireline logs and pressure data in the Nita formation in the Pictor East-1 well in EP 431. The net porous section in the hydrocarbon column appeared to be about seven metres. However the composition of the column could not be determined pending analysis of the pressurised fluid sample bottles in the laboratory.
Hydrocarbon shows were also confirmed in the Acacia formation sandstones but they proved to be tight, it said.
Buru intends to analyse the data from Pictor East-1 and plans to drill a horizontal well into the reservoir during its 2012 drilling program.
Buru holds 50% interest in both EP 391 and EP 431 with Japan’s Mitsubishi funding 80% of the cost of well as per the terms of a farm-in agreement it signed last year to earn a 50% stake in the majority of Buru's exploration blocks in the frontier Canning Superbasin.