Buru Energy (ASX:BRU) - Executive Chairman, Eric Streitberg
Executive Chairman, Eric Streitberg
Source: The Market Herald
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  • Buru Energy (BRU) spuds the Rafael 1 well in WA’s Canning Basin
  • The well is being drilled on a large regional structure that reportedly resembles significant oil-producing structures in Western Canada
  • After Currajong 1, Rafael is the second well to be spudded in BRU’s exploration program under farm-in deals penned back in December
  • Meanwhile testing of interpreted oil zones at Currajong 1 is expected to begin in the coming weeks once equipment has arrived onsite
  • Shares are sitting steady at 13.5 cents at 2:17 pm AEST

Buru Energy (BRU) has spudded the Rafael 1 well in Western Australia’s Canning Basin.

The conventional oil well is on exploration permit 428 and lies some 50 kilometres east of the Ungani Oilfield and roughly 150 kilometres east of Broome.

Following Currajong 1, Rafael is the second well to be spudded as part of BRU’s exploration program under the terms of farm-in agreements signed in December last year.

These deals will see Buru carried for $16 million in costs associated with drilling of the wells, in addition to a further seismic program to be carried out across several of its operated permits.

Accordingly, the company said Rafael 1 was being drilled on a large structure defined by a modern 2D seismic grid.

This regional structure has more than 450 metres of mapped closure and is interpreted to have similarities to Devonian aged carbonate structures in Western Canada, which Buru considers to be large oil producers.

Additionally, the mean prospective resource for EP 428 — of which BRU holds a 50 per cent stake — is measured at 69 million barrels of recoverable oil, with Rafael 1 expected to reach a total depth of 3865 metres.

The company’s executive chairman, Eric Streitberg, said Buru was excited to begin drilling.

“The Rafael prospect has a large, geologically highly prospective target that could be transformational for Buru and for Western Australia’s oil sufficiency,” he said.

Meanwhile, testing of various interpreted oil zones at Currajong 1 is expected to begin in the coming weeks once required equipment has arrived onsite.

“We are very much looking forward to the commencement of the Currajong 1 test program, which is aimed at validating our interpretation of the well data and confirming we have encountered a significant accumulation,” Mr Streitberg said.

Buru Energy shares were sitting steady at 13.5 cents at 2:17 pm AEST.

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