Buru Makes Significant Progress at Valhalla-2

Buru Energy which has been drilling the in Canning Basin as part of a first joint exploration programme with Mitsubishi Corporation, has announced the Valhalla-2 well reached a total depth of  3,390m (3,333m TVDRT) from 2,789m in 8½” hole.

As per Buru's last progress report,the Lower Laurel gas sands were penetrated as prognosed and the continuous high levels of background gas observed in the previous section have continued throughout  this section with good to excellent gas shows.

Gas influxes were flared during the drilling of this section, and on reaching total depth, with gas being flared on an intermittent basis for periods of up to two hours.

The well is now being conditioned for logging, including increasing the mud weight to over 10ppg to allow a full suite of logs to be run. These logs will assist in the identification of the source and significance of the gas influxes and help a full evaluation of the tight gas and shale gas potential of the Laurel section in the well.

The evaluations will later be used to determine the forward program for the well, but it is expected that 7” completion casing will be run and the well suspended for evaluation as both a candidate for hydraulic stimulation and conventional production at a future date.

Buru and Mitsubishi Corporation each hold a 50% interest in this well and in EP 371, with Mitsubishi Corporation contributing 80% of the cost of the well under the terms of its farm-in agreement with Buru.