Buru Energy reports exploration update at Western Australia’s Canning basin

Buru Energy has reported an update on deepening operations at its Paradise-1 well in Western Australia’s Canning basin.

Since the last progress report, which encountered the upper Laurel Clastics at 1,968m and the lower Laurel Clastics at 2,731m, the well has been drilled ahead in 6in hole to a depth of 2,798m.

Gas shows have continued to be encountered during drilling of the upper and lower Laurel Clastics.

The interpreted top of the regional overpressured section was encountered at a depth of 2,786m, with an immediate increase in drilled gas to in excess of 600 units and circulation gas in excess of 3,000 units.

It has been calculated, however, that drilling to the original planned depth cannot be undertaken due to the configuration from previous drilling being unsuitable to deal to high pressures encountered in the well.

Logging will now be completed and the well will be plugged and abandoned as planned.

Buru Energy executive director Eric Streitberg said, "Although we have not been able to drill the well as deep as we had hoped due to the well construction limitations and the pressures encountered, the result is consistent with the Valhalla basin centred gas accumulation extending to this location, some 21km to the west of the Valhalla wells. This provides further confirmation of our view of the substantial size of the Valhalla accumulation.

"We will continue to work on defining this upside by now stepping out some 30km to the east of the Valhalla wells to the Asgard location. We are currently planning to drill Asgard after the completion of Yulleroo-3, once we have all of our approvals in place."

The well is located in exploration permit EP 428 adjacent to EP 371, about 200km south-east of Derby.

It is the second joint exploration programme undertaken by Buru and Mitsubishi Corporation, who each hold a 50% stake in this well.