Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Buru Energy (BRU) and its JV partner, Origin Energy (ORG), are preparing for another testing program at the Rafael-1 well in WA’s Canning Basin
  • Buru says the program, targeted for the third quarter, would be optimised with the use of a coil tubing unit instead of a workover rig
  • The program will clean and test the lower barefoot zone at the project as well as individually flow test additional zones which may “materially increase” flow rates
  • Additionally, Buru this week signed a farm-out deal with Energy Resources for the L20-1 block in the Carnarvon Basin, with two wells planned for early next year
  • Buru shares are trading flat at 17 cents at 1:15 pm AEST

Buru Energy (BRU) is continuing preparations for its proposed Rafael-1 well test program within the Canning Basin of Western Australia.

Shared in an equally-split joint venture (JV) with Origin Energy (ORG), the Rafael-1 discovery will be subject to testing, resource evaluation, a 3D seismic program, condensate analysis, and a review of commercialisation options.

Buru Energy is the operator of Rafael-1 and has recommended to its JV partner that the program should be undertaken using a coil tubing unit rather than a workover rig as a coil tubing unit is more cost-effective.

It also means the workover can be undertaken without needing to introduce heavy brines into the well for well control which could potentially cause reduced flow capacity. Using a coil tubing unit will also allow the partners to more accurately place treatment fluid across the zones of interest.

Three coil tubing units and ancillary equipment will be available in the third quarter for when the test program is targeted, and the Buru said JV partners were in advanced discussions to select a contractor.

As part of the program, Buru will clean and test the lower barefoot zone previously tested earlier this year, then perforate, clean up and individually flow-test additional zones.

The company said based on the well data and its experience in the Canning Basin, the clean-up operation and testing of the additional zones had the potential to “materially increase” the flow rates compared to the initial gas flow test in March.

The clean-up operation and testing program are expected to take 25 days.

Once this has wrapped up, ERCE Australia will review the results with the aim of increasing confidence in the recovery factor and reservoir as well as reclassifying resources from the ‘prospective’ to ‘contingent’ category.

Buru Executive Chairman Eric Streitberg said he was pleased to be undertaking additional testing for Rafael and to be doing so in a lower-cost and more efficient way.

“Given the zonal treatment and perforation program we are proposing, we believe that we should be able to materially increase the flow rates, based on our experience with similar reservoirs in our other wells with dolomitic reservoirs in the Canning Basin,” Mr Streitberg said.

Additionally, the JV partners said plans for a 3D seismic program to help define the locations of its planned appraisal wells were well advanced.

The Energy Resources farm-out deal

Outside of the Canning Basin, Buru entered a farm-out agreement with Energy Resources earlier this week over the L20-1 block in the Carnarvon Basin. Buru said the deal would provide it with a “full financial carry” for its near-term exploration and Carbon Capture and Storage (CCS) study programs.

Energy Resources will own a 75 per cent stake and be the operator while Buru will own a minor 25 per cent interest in the block.

Two wells are planned to be drilled on the L20-1 area in the second quarter of 2023. The wells will reportedly be drilled on “well-defined” prospects that have similarities to Buru’s existing discoveries in the Canning Basin.

“The next few months are going to be very exciting as the Rafael testing program gets underway and our commercialisation and CCS activity ramps up,” Mr Streitberg said.

Buru shares were trading flat at 17 cents at 1:15 pm AEST.

BRU by the numbers
More From The Market Herald
Critical Resources (ASX:CRR) - Managing Director, Alex Biggs

" Critical Resources (ASX:CRR) completes 5000m Mavis Lake drill program

Critical Resources (ASX:CRR) has completed the inaugural 5000-metre drilling program at its Mavis Lake lithium project…

" Chalice Mining (ASX:CHN) intersects new zone at Dampier, Julimar

Chalice Mining (ASX:CHN) intersects a new nickel-copper-platinum group elements (PGE) sulphide zone in initial drilling at…
The Market Herald Video

" Genmin (ASX:GEN) strikes royalty deal with Anglo American over Baniaka project, Gabon

Genmin (ASX:GEN) has struck a royalty agreement with Anglo American's subsidiary, Anglo American Marketing, over the…
The Market Herald Video

" Great Boulder Resources (ASX:GBR) hits “spectacular” intercept at Mulga Bill

Great Boulder Resources (ASX:GBR) has received assays from the final two diamond holes drilled at the…