Perth-based oil and gas outfit Buru Energy says an initial review of its Rafael 1 flow testing program has confirmed positive results scored in the field. The company says an ongoing data review suggests the area could hold significant gas accumulation housed in conventional reservoirs with “very valuable light oil and low CO2 content”. The company’s share price rose more than 36 per cent on the back of the news in intraday trading.
Buru Energy says an initial review of its Rafael 1 flow testing program has confirmed positive results scored in the field. The company says an ongoing data review suggests it could have its hands on a significant gas accumulation housed in conventional reservoirs with “very valuable light oil and low carbon dioxide content”.
The Perth-based outfit is now waiting on an independent resource report from energy consulting group ERCE; and says the results could assist with future appraisals and the economic delivery of what could be a very substantial resource.
Buru expects ERCE to deliver a contingent resource report early next month.
According to the company, its recent evaluation suggests Rafael 1 held an initial reservoir pressure of around 6200 psi, with no detected pressure reduction detected during the test flow program.
In addition, Buru says the work points to no indication of produced formation water and a lack of observed reservoir boundaries in the test flow.
Importantly, the oil and gas player says the tests have established Rafael 1’s reservoir pressures are considerably higher than regional hydrostatic gradients, suggesting it could hold a drastically bigger gas column than first observed at the site.
According to Buru, previous field measurements revealed there was a large amount of condensate in the gas, ranging from 38 to 40 barrels per million cubic feet of gas. The figure is comparable to what has been recorded elsewhere in the Canning Basin and the condensate levels could represent a significant commercial benefit windfall given condensate is considered a prized variation of light oil.
The company says there are a host of benefits in Rafael 1’s gas composition; characterised by its light oil and low carbon dioxidecontent.
The low level, in particular, implies no extra high-cost processing equipment is required to lower levels of carbon dioxide in the gas before sale or consumption and as a result, there will be no need for separate disposal.
According to Buru, the carbon dioxide level is exceptionally low when compared to comparable natural gas reserves in Western Australia and there will be significant emissions reduction advantages realised throughout the well’s production.
The company will now continue its analysis of the well’s oil and gas samples and review additional pressure data to help mould future programs.
The market responded well to the results with the company’s share price up more than 36 per cent to $0.245 in intraday trading.
Buru says it will also likely perform more clean-up and testing of the other hydrocarbon-bearing zones in the Rafael 1 well as soon as it can get hold of a suitable rig.
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