Energy: Buru poised to top up Canning Basin oil production

Buru Energy (ASX:BRU) looks set to boost its oil production with the company completing a third lateral (horizontal) from its Ungani-7H production well in the Canning Basin, Western Australia.

Once this lateral is completed, the company will start clean-up flow operations on the well and move on to complete the Ungani-6H well.

Buru said Ungani-7H had flowed oil several times during drilling operations and that initial clean-up flows from the first two laterals indicated that the well produced oil at a rate of about 1400 barrels per day.

However, the company noted that this does not reflect the rate of production under long term stable flowing conditions and with a pump installed in the well.

“The operation of the underbalanced coil drilling system in the horizontal sections has exceeded our expectations, with excellent drilling times and concise directional control,” executive chairman Eric Streitberg said.

“The Ungani-7H well has performed in line with our predictions on clean-up flow from the initial two laterals and we look forward to finalising the third lateral and getting the well on longer term production.”

The Ungani oil field, which Buru has a 50 per cent operating interest in, produced about 86,000 barrels of oil during the September 2019 quarter.

In other ASX energy news today:

Otto Energy (ASX:OEL) has secured a $55m debt facility with Macquarie Bank to fund its current and future developments including the Green Canyon 21 project in the Gulf of Mexico and the producing Lightning field in Texas. Managing director Matthew Allen said the facility would help the company deliver on its goal of producing the equivalent of 5000 barrels of oil per day by the end of 2020.

Strike Energy (ASX:STX) has kicked off a 3D seismic survey to increase its understanding of the Walyering gas discovery in the Perth Basin, Western Australia. Walyering was discovered in 1971, with the well flowing 13.5 million cubic feet of gas per day during testing.

Meanwhile, testing of State Gas’ (ASX:GAS) Nyanda-4 well in the Reid’s Dome gas project has confirmed that the gas content within the target coals is within the range it had forecast. Nyanda-4 was the first well drilled in the permit to test the gas potential of the Reid’s Dome Beds coal measures and has established a new coal seam gas play in the Denison Trough.

State Gas strikes paydirt in first drilling; not sure what’s down there yet though