Buru Energy encouraged by signs that Yulleroo is part of a...

Buru Energy encouraged by signs that Yulleroo is part of a larger basin centred gas accumulation
Thursday, July 19, 2012 by Bevis Yeo Buru Energy (ASX: BRU) has uncovered evidence that its Yulleroo gas accumulation in the onshore Canning Basin is part of a basin centred gas accumulation in the area.

This was indicated from gas wetness ratios and inferred pressure data from the Yulleroo-3 appraisal, which also added about 1110 metres of gas charged section in the Laurel Formation gas sands above the previously interpreted top of the gas sands in Yulleroo-1 discovery well.

The gas bearing section Yulleroo-3 also shows good stratigraphic correlation with the section in Yulleroo-1, which is about 2 kilometres away.

However, Yulleroo-3 also intersected two additional sand packages that add to the interpreted gas charged reservoir section in the well.

The encouraging results have led Buru and its partner Mitsubishi Corporation to deepen the well to 3800 metres from the original 3600 metres subject to maintaining stable hole conditions.

Buru noted the potential for the Yulleroo structure to be part of a much larger basin centred gas accumulation is encouraging not just for the Yulleroo structure but also for the Canning Basin generally.

Buru has a 50% stake in the well while Mitsubishi, which is funding 80% of the costs of drilling, holds the remaining interest.

Canning Basin

The new findings will no doubt be welcome to other players in the Basin, where activity is starting to build up.

Key Petroleum (ASX: KEY) is poised to participate in the Cyrene-1 well in the Canning Basin with Buru that targets five million barrels of recoverable oil and can be rapidly brought into commercial production thanks to its proximity to the NW Highway to Port of Broome.

Meanwhile, New Standard Energy (ASX: NSE) is due to start its 3 well drilling campaign targeting the Goldwyer Shale with supermajor ConocoPhillips.