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Buru Energy Ltd

Buru Energy spuds Adoxa 1 exploration well in Canning Basin

The well is targeting oil in conventional sandstones of the Reeves Formation.

NGD 405 drill rig
The NGD 405 drill rig at the Adoxa 1 exploration well location

Buru Energy Limited (ASX:BRU) has started drilling the Adoxa 1 exploration well to test the greater Yakka Munga regional structure 20 kilometres northeast of the Ungani Production Facility in northwest WA.

The well, which was spudded on Wednesday evening, is being drilled by the NGD 405 rig as a vertical well to a planned total measured depth of 2,400 metres.

Adoxa 1 is within exploration permit EP 428, a 50:50 joint venture between Buru Energy and Roc Oil (Canning) Pty Ltd.

READ: Buru Energy starts intensive campaign aiming to increase production and drill high potential exploration wells

Buru’s executive chairman Eric Streitberg said: “The well is a relatively shallow vertical well that will provide a wealth of geological information and hopefully find significant volumes of oil which would supplement and enhance our existing reserves and production cashflow from our nearby Ungani Oilfield.”

The principal objective of this well is oil in conventional sandstones of the Reeves Formation, the top of which is expected to be encountered at around 1,100 metres measured depth.

Deeper secondary conventional oil targets below 1,800 metres are the clastic reservoirs of the Anderson Formation.

The closure being tested by Adoxa 1 has potential to hold “significant” resources of conventional oil in an emerging play type in the Canning Basin.

The Adoxa 1 well is northeast of the Ungani Production Facility.

“A new play type”

Streitberg said: “The Adoxa 1 well is the first exploration well in this year’s drilling program.

"This is a new play type for the Canning Basin and follows up the oil recovery from the Reeves Formation in the Ungani Far West 1 well.

"If the well is successful there are also a number of follow-up locations that would provide attractive targets.”

Multiple targets

Yakka Munga structure is a large regional high with multiple structural and geological targets.

The structure has been well imaged by good quality 3D seismic data and the Adoxa 1 well will target the crest of the most well defined of the Reeves Formation closures.

The Reeves section at Adoxa is interpreted to contain in excess of 500 metres of seismically defined section that has not yet been drilled anywhere else in the basin.

This provides the opportunity for multiple stacked reservoirs to be developed below a depth of around  1,100 metres.

READ: Buru Energy completes lifting of 73,780 barrels produced at Ungani Oilfield

The potential resources if hydrocarbons are present are interpreted to be substantial and there are a number of follow-up structures in the area that are also defined by the 3D seismic grid.

The greater Yakka Munga structure has a number of other potential subsidiary closures and a large deeper closure in a down flank position that is interpreted to have Ungani Dolomite as its potential reservoir section.

This will provide an attractive follow-up to a different reservoir target.

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Buru Energy in 'pretty good shape with strong balance sheet' says exec chairman

Buru Energy (ASX:BRU) is an Australian listed oil and gas exploration and production company. They’re focused primarily on the petroleum resources of the Canning Superbasin – in  Western Australia.

on 10/14/2016

3 min read