Energy: Deep Yellow shines with uranium resource upgrade

Deep Yellow’s (ASX:DYL) exploration work in Namibia has paid off in spades.

The company cranked up resources at the Tumas 1 East deposit by 34 per cent, to 24.8 million pounds at 319 parts per million (ppm) uranium.

This has also increased the company’s overall resource at the Reptile project up to 110.5 million pounds at 290ppm uranium, placing it within reach of its target resource of between 100 million to 150 million pounds at a grade range of 300ppm to 500ppm uranium.

The resource upgrade is due to successful extension drilling.

Deep Yellow added that about 60 per cent of the known palaeochannel system at Reptile has been drilled to date, leaving another 60km to be tested.

“Results to date strongly justify our increased effort both in exploration to further increase the resource base and in evaluating the economic potential of this project,,” managing director John Borshoff said.

Borshoff added that the scoping study is expected to be completed by December. “We fully expect this to progress to commencement of a pre-feasibility study in late January 2020”

Shares in DYL were up 3.6 per cent this morning to 28.5 cents.

Over on the hydrocarbon front, Buru Energy (ASX:BRU) has increased production from its Ungani oil field in the Canning Basin, WA, up to 1700 barrels of oil per day after bringing its Ungani-7H well on line.

This is an 80 per cent increase over the average rate of 940 barrels per day that the field achieved in the September 2019 quarter.

However, it was not all sunshine for Buru with the company pushing back completion of the Ungani-6 well due to mechanical issues with the coiled tubing drilling unit.

“Ungani field production has been substantially increased with the completion of the Ungani 7H well and we are looking forward to getting Ungani 6H completed and tied in and further increasing production,” executive chairman Eric Streitberg said.

“We will continue working with our crude offtake partner and trucking contractor to get the right match with ship loadings to ensure maximum production from the field in the new year.”

In other ASX energy news today:

Calima Energy (ASX:CE1) has received the thumbs up for the construction and operation of a multi-well production facility at its Montney project in British Columbia, Canada.

Earlier this year, production testing of the first two horizontal wells at the project compared favourably to the condensate and gas output of wells operated by its neighbour, Saguaro Resources.

ADX Energy (ASX:ADX) has also secured approvals, this time for its acquisition of the producing Zisterdorf and Gaiselberg oil and gas fields in Austria from the vendor, RAG Exploration & Production (RAG).

RAG and ADX will now complete binding agreements for the two fields along with agreements for exploration data and access to RAG’s production infrastructure.