Hi BooroooThe only figure ever mentioned was during initial...

Hi Boorooo

The only figure ever mentioned was during initial clean up where the well flow at 300,000 ft per day, but was still producing drilling fluid. They were not able to obtain a stabilized flow rate and later conducted a nitrogen lift in June Quarter 2011. Here's what they said in the June Quarterly:

"Yulleroo-2 Well Test
During the quarter the Yulleroo-2 testing program continued. To assist with achieving a stabilised clean up flow a 2 3/8 inch tubing string was successfully installed during the quarter using the Company’s Fairway Rig. This tubing size provides increased lift efficiency in the well, assisting in the ongoing clean-up process. As part of the clean-up process and subsequent to the end of the quarter, a nitrogen lifting operation was undertaken to assist with removing stimulation fluid from the well.

The well has continued to flow back stimulation fluid together with gas and condensate. However, a stabilised flow rate was not established during the quarter and has not since been established. Further analysis of the Yulleroo-2 reservoir stimulation operation and the subsequent well performance by both RISC and the other parties involved in the project has indicated that the results are what could be expected from the existing well completion and stimulation program. RISC have also indicated that in their opinion the results from Yulleroo-2 to date have removed a number of the uncertainties regarding the quantification of the resources in the field and that further flow testing and fluid recovery is not a critical part of the ongoing development of the field.

During the quarter RISC, who performed the independent resource classification of the Yulleroo wet gas field, were engaged to prepare an appraisal and conceptual development program for the field. Further details of the proposed appraisal and development program will be made available once they are finalised."

My read on this is that Buru are satisfied that they will be able to achieve the requisite flow rates to attain commercial production. Subsequent events indicate that the focus shifted to determining the scale of the resource prior to letting the world in on just how deliverable the Laurel formation could be. I've said this before, but presumably they have chosen this tactic in order to stave off a potential bid for the company at a level which does not fully recognize the potential for this massive resource.

With between 1000 and 1600+ metres of gas-charged reservoir in the Laurel formation, I have a difficulty imagining they will not achieve an initial high rate of gas flow with a full fracc job over a wide interval. And in at least some cases there will conventional porosity encountered which will assist the flow rate and also provide a significant reduction in the decline curve.

WARNING, MY OPINION ONLY:Another big plus is that it may be possible to develop this resource using multiple deviated wells from the same platform if stimulation of vertical wells produces the desired flow rates and decline curves. Such wells may be cheaper than the horizontal wells commonly used in thinner reservoirs. Of course it may turn out that the gas flows better with horizontal wells because of the geology. There is only one way to find out and I know a lot of people are looking forward to the day.

Presumably once the drilling program has been finalized with MC we will learn of the anticipated time frame for testing too. I imagine Buru and MC are working hard to finalize the program within the next 2-3 weeks to allow sufficient time for approvals. Though, with a State Agreement in place, any testing program should get a quick run through the red tape.

Buru have a lot on their plate at the moment. The next year will require a big effort from all. I've no doubt they will do us proud.