ASX-listed Buru Energy has spudded the onshore Currajong 1 exploration oil well targeting 28 million barrels of conventional oil in the Canning Basin in the north of Western Australia. A second well, Rafael 1, targeting 69 million barrels of oil is set to follow with a seismic program to define new prospects for future drilling also on the horizon.
Buru is carried by its equal partner, Origin Energy, for $16 million of the cost of the two wells and a further $6m seismic program.
The Canning Basin is said to be the largest sedimentary basin in Western Australia covering some 530,000 square kilometres, with Buru’s tenure taking in a mammoth 22,000 sq. km.
Currajong 1 lies about 30km west of Buru’s Ungani production facility where together with 50-50 joint venture partner, Roc Oil, it generates between 900 and 950 barrels of oil per day from the Ungani oilfield.
The well is targeting a large structure defined by 3D seismic surveying at 2,300m depth and is expected to have similar reservoir and oil properties to the Ungani oilfield.
Buru’s Executive Chairman Eric Streitberg said: “We are delighted to be kicking off the most extensive drilling and seismic program in the Canning Basin for many years. With the oil price currently approximately A$100 a barrel, and our existing infrastructure and operating experience in the basin, we are well placed to monetise any discovery.”
Mr Streitberg said success at Currajong 1 would also “high grade the other similar prospects in that area” and Buru saw significant further potential along the trend. He described Rafael 1 as a large conventional oil prospect “that could be of national significance if it is a discovery”.
Drilling of Currajong 1 is due to conclude early next month.
The cutting-edge Ensign 963 drilling rig will then relocate about 50km east to test a large structure defined by a 2D seismic grid at Rafael 1.
The two wells are said to show geological similarities to the two existing Devonian-age oil fields in the Canning Basin, Buru’s 100 per cent-owned Blina oilfield and the Ungani oilfield.
A total of 97 million barrels of oil in gross prospective resources is being targeted from the wells.
Drilling of the two wells appears to come at an opportune time with the price of WTI crude surging from under US$40 per barrel late last year to about $75 per barrel currently.
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