ASX-listed Buru Energy says wireline logging at its Currajong 1 exploration oil well in the Canning Basin in the north of WA has revealed porous zones with interpreted oil saturations in one section of the well and a second section that has potential oil-bearing zones. Natural hydrogen gas has also been detected in the well that is targeting 28 million barrels of conventional oil.
Currajong 1 has been designed to test a large structure defined by 3D seismic surveying at about 2,300m depth. It is targeting porous dolomite reservoirs similar to the two existing Devonian aged oil fields in the Canning Basin which make up Buru’s 100 per cent owned Blina oilfield and its 50 per cent owned Ungani oilfield.
Buru and equal joint venture partner, Roc Oil, churn out between 900 and 950 barrels of oil per day from the Ungani oilfield about 30km from the Currajong 1 drill site.
Management reports that Currajong 1 has now been drilled to 2,340m and wireline logs have been acquired over the open hole section.
It says that the wireline logs indicate the presence of porous zones with interpreted oil saturations at the top of the Ungani dolomite equivalent section. Potential oil-bearing zones are also present in a lower dolomite section.
Flow testing of the interpreted reservoir sections is now on the cards as the company looks to validate the wireline log interpretation.
Buru also says that a specialised hydrogen mud-gas detection unit has revealed a 6m zone of up to 6 per cent hydrogen in mud-gas from 2,014 metres. The company sees the result as a positive step in confirming the presence of natural hydrogen in the Canning Basin.
Buru Energy Executive Chairman, Eric Streitberg said:“The results so far at Currajong 1 are very encouraging, and we look forward to the production test to confirm the interpretation of the well results to date.
The detection of natural hydrogen in the well also validates our view that this could represent a valuable future resource.The next well in the exploration program, Rafael 1, is targeting a geologically distinct formation to Currajong 1 with significantly larger potential resources and we are very much looking forward to drilling that prospect.”
Buru is drilling two wells as part of its 2021 oil exploration program in the Canning Basin, with a seismic survey set to define new targets also planned.
The company is free carried for $16 million of the cost of the two wells and a further $6m for the cost of the seismic program by its 50-50 partner, Origin Energy.
Drilling at Currajong 1 is nearing completion with the rig expected to be released in the coming days before relocating some 50 km east to Rafael 1 where another 69 million barrels of oil is being targeted.
Mobilisation of the rig at Rafael 1 is anticipated to take about two weeks.
The timing of Buru’s oil search appears to be on the mark too with the price of the sought after commodity continuing to trade at stellar levels at about $US70 per barrel, up from below $US40 per barrel at the tail end of last year.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
