BRU could be sitting on a monster

Finally we see a comparison of OBL’s 50% 5,016 sqkm Derby Block with BRU’s 50% 3,675 sqkm EP 371!

"The independent assessment of the resources from DeGolyer and MacNaughton indicates there is no question that the Valhalla area contains a nationally significant multi-trillion cubic feet wet gas accumulation within EP 371, just one of the permits Buru owns with Mitsubishi.

The data from the stimulation of the Valhalla North-1 and Asgard-1 wells indicates a gross 2C unrisked contingent recoverable volume of 1.53Tcf of gas and 32 million barrels of condensate and LPG across both the wet gas and dry gas zones in the immediate area around the two wells.

DeGolyer and MacNaughton said the gross unrisked mean recoverable prospective resource in the Valhalla accumulation on EP 371 alone is 13.02Tcf of gas and 232MMbbl of liquids. BRU – 50% of these figures 6.01 Tcf & 116MMbbl

At either size, both developments would likely be commercial, assuming export infrastructure could be developed to link the remote wells to markets."

OBL's adjacent permit 50% EP 487 (Derby Block) has gross unrisked mean recoverable prospective resource 34.3 Tcf and 868MMbbl liquids determined by independent expert 3D-GEO and announced by OBL to ASX on 15 January 2016 (Derby Block tight gas is thicker and deeper and assessed down to 5000m) and any new infrastructure from nearby EP 371 will pass through the Derby Block. OBL's independently assessed net unrisked mean of 17.1 Tcf gas and 434MMbbl liquids compares favourbly with reported EP 371 figures for BRU. (The OBL permit is immediately to the west of the Valhalla Prospect which appears to extend into the Derby Block and the new common carrier pipeline to Valhalla/Asgard is expect to cross the Derby Block along the Great North Highway – see extract from OBL AGM Release 30 November 2015)

With OBL’s only 113.9m shares on issue – the OBL share price leverage when compared to BRU is now very large. OBL is a mini-me!




Buru could be sitting on a monster Tuesday, 19 April 2016
Haydn Black

BURU Energy has announced the first contingent reserves for its emerging Laurel Formation basin-centred gas play in the Valhalla area of the Canning Basin, based on last year’s fraccing program and testing, and it shows that the junior is probably sitting on a monster.
The independent assessment of the resources from DeGolyer and MacNaughton indicates there is no question that the Valhalla area contains a nationally significant multi-trillion cubic feet wet gas accumulation within EP 371, just one of the permits Buru owns with Mitsubishi.

The data from the stimulation of the Valhalla North-1 and Asgard-1 wells indicates a gross 2C unrisked contingent recoverable volume of 1.53Tcf of gas and 32 million barrels of condensate and LPG across both the wet gas and dry gas zones in the immediate area around the two wells. DeGolyer and MacNaughton said the unrisked mean recoverable prospective resource in the Valhalla accumulation on EP 371 alone is 13.02Tcf of gas and 232MMbbl of liquids.

At either size, both developments would likely be commercial, assuming export infrastructure could be developed to link the remote wells to markets.
DeGolyer and MacNaughton’s estimates are in line with Buru’s previous figures, and the oiler expects the contingent resources could see the addition of a further 3Tcf of contingent resources, depending on the outcome of further drilling and well testing.

The last review of the project in 2012 by McDaniel & Associates Consultants looked at all Buru’s 50%-owned permits on the prognosed Laurel Fairway and estimated the potential for billions of barrels of liquids and trillions of cubic feet of gas, and while the company has since relinquished two application areas on the edge of the fairway the potential remains significant.

The DeGolyer and MacNaughton results include last year’s frac and flow test data that, for the first time, provided definitive results in regard to the ability to fracture stimulate the reservoirs, and additional information regarding the composition of the gas, and the potential gas flow rates.

Buru suspended testing of the wells ahead of the wet season, and has yet to flow the wells at sustained commercial rates, but as soon as commercial rates can be established, Buru said the transition from contingent resources to reserves at Valhalla could be achieved relatively quickly.

The lack of drilling means the 1C contingent resources are restricted to the two flowed wells, while 2C reserves also take into account the Valhalla-1/Valhalla-2, which recovered hydrocarbons to surface without stimulation.

There are still uncertainties about the extent of the prospective intervals over large areas, and the necessary facilities and infrastructure in the area are insufficient to support the development plan associated with the contingent resources.

Further appraisal drilling and evaluation work to assess the potential for commercial recovery could include additional seismic data, a further well between the two stimulated wells and further flow tests and potentially stimulation of additional zones in the Valhalla North and Asgard wells.
Buru and its 50% partner Mitsubishi are still to decide on a final work plan for 2016.
“We are extremely pleased with the results of the D&M review which validates Buru’s assessment of the very significant potential of the Valhalla accumulation and provides a very important step along the process from prospective resources to contingent resources and then to petroleum reserves,” executive chairman Eric Streitberg said.

OF COURSE DYOR - Cudeco1 - management sell this to the marketplace as we now need to get to 20 plus cents to break even instead of 2 cents.