Buru Energy Ltd (ASX:BRU) has received a major boost in its evaluation program of its potentially world scale gas resource in Western Australia’s Canning Basin.
Independent reviewers have upgraded the gas and liquids resource from Prospective to Contingent with the next step leading to bankable reserves.
This upgrade is a major vote of confidence in the results of the recent Tight Gas Pilot Exploration Program (TGS) of the Laurel Formation tight gas accumulation which involved the frac and flow test of the Valhalla North and Asgard wells.
The Laurel Formation is a basin centred gas accumulation with potentially world-class resources of gas and hydrocarbon liquids, and the recent program and resource estimate covers just a small portion of this regional resource with Buru holding a basin wide position.
DeGolyer and MacNaughton (D&M), a specialist North American tight gas and unconventional resource assessment consulting group, have now confirmed Buru’s view that the Valhalla area contains a nationally significant multi TCF wet gas accumulation.
The assessment was carried out using the results of the recent TGS fracture stimulation program and was focused on the evaluation of the Contingent Resources and Prospective Resources around the two stimulated wells.
Eric Streitberg, executive chairman, commented:
“We are extremely pleased with the results of the D&M review which validates Buru Energy’s assessment of the very significant potential of the Valhalla accumulation and provides a very important step along the process from Prospective Resources to Contingent Resources and then to Petroleum Reserves.
"It is anticipated that the Contingent Resources can be systematically converted to Petroleum Reserves by the planned forward program.”
Importance of Contingent Resources to commercialisation
Defining initial Contingent Resources is a very important step forward in the route to commercialisation of the tight gas resources.
The size of the resource identified by just these two wells is large enough to support a major development program.
The Valhalla section of the overall accumulation is by itself one, if not the, largest undeveloped gas resource onshore Australia.
The TGS operations have been carried out with the full co-operation of the Traditional Owners of the area, the Yungngnora (Noonkanbah) people.
Up to 30 Yungngnora people have been directly involved in the operation, providing access control, camp assistance, and assisting the Condor frac crew with materials handling and pressure pumping operations on site.
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