The fossil fuel company Buru Energy that wants to frack the Kimberley is saying the project is now in limbo because of the appeals against the EPA decision not to assess it. Have a look at the story from GWN here:
A controversial plan to mine gas in the Kimberley has hit a road block.
Conservationists and local residents are lobbying for an environmental assessment of the project.
Buru energy had hoped the hydraulic fracturing of gas reserves would begin in just eight weeks.
Now, everything is on hold.
See video: http://au.gwn7.yahoo.com/w1/news/a/-/local/21838234/fracking-on-hold-video/
Photo Damian Kelly
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Buru Energy Completes Drilling at Ungani 3 Well in EP 391 in WA
ReplyDeleteby Buru Energy Ltd.
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Press Release
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Thursday, March 06, 2014
Buru Energy Limited provided Tuesday the following update on completion of drilling operations at the Ungani 3 well in exploration permit (EP) 391 in Western Australia.
Since the last report a wireline testing and coring program has been carried out over the Ungani Dolomite and the well is being completed with 7 inch (178 millimeter) production tubing configured to allow flexibility in future operations.
The wireline cores recovered contained evidence of live oil over a similar interval in the Ungani Dolomite to that encountered in the previous wells. The well is interpreted from the evidence of oil shows and pressure data to be part of the same petroleum system as the central part of the Ungani Field. The wireline testing program confirmed that, as per the preliminary logging data, the reservoir is generally tight but contains at least one zone with reservoir potential, that will require further testing. The deeper Nullara section did not contain any potential hydrocarbon bearing intervals.
The results of the well will now be integrated into the mapping of the field and the reservoir modelling, and the results of this work will be made available when completed.
Attention: ASX Company Announcements Platform
ReplyDeleteLodgement of 'Company Interview'
Buru Energy Limited
Date of lodgement: 5 March 2014
TITLE: "Company Interview. Updates Ungani Appraisal, forward drilling program and tight gas stimulation program."
Record of interview:
Company Interview question:
Buru Energy Limited (ASX code: BRU; market capitalisation ~$415 million), has just completed the
Ungani 3 appraisal well, can you provide an update on the results of the well?
Managing Director, Keiran Wulff
Ungani 3 was designed to test what was interpreted from the 3D seismic data as an eastern structural lobe of the field. It was a fairly long stepout given the size and nature of the field, but we wanted to look at the upside. The well came in close to where we had estimated on the structure, and is interpreted to have an oil column similar to the existing wells, but unfortunately the reservoir doesn't seem to have the same well developed vugular porosity we saw in the first two wells, and consequently this particular well is unlikely to be a significant producer. We are not sure why the reservoir isn't as well developed at this location, but we gathered lots of logging data, and took a lot of cores to try and understand that, and we will be working on that data over the coming weeks.
Company Interview question:
1
How does this well result impact on your view of the field?
Managing Director, Keiran Wulff
I can say from long experience that it's often necessary to drill a number of wells to understand how oil and gas fields produce and Ungani is no exception. We are confident from what we have seen at the two existing wells and from their production behaviour to date, that we have a significant oil field, but it is likely that this well has reduced the potential upside of the field. The other thing that has been going on in the background is that we have had a specialist onshore seismic data processing house in the US looking at the Ungani 3D. They have produced a startling improvement in data quality in their first attempt. Whilst the new data wouldn't have led us to drill Ungani 3 in a different location, it certainly gives greater definition to the mapping of the dolomite and it may help us to predict where the good reservoir quality is developed.
Company Interview question:
What difference will this make in terms of reserves estimates and production plans for the Ungani
Field?
Managing Director, Keiran Wulff
In the short term this makes no difference to our development and production plans. As you know we have shipped and sold our first cargo of oil from the Port of Wyndham, and the next one will be due soon. As expected and planned, we have had some periods of shutin at Ungani during the wet season due to road closures, but these will get fewer as we move into the dry season. Our development plan for the field is on track with negotiations for access to Broome Port progressing well. In accordance with our current development plans, once we are confident on the timing of that port access we will drill a horizontal well that will allow us to lift production to around 3,000 bopd. We are also looking to increase production incrementally as we get the Ungani 1 well back producing.
The effect on reserves is going to take a little time to quantify, partly because an integral part of any reserves estimate is the pressure and flow data from the wells, and we are gathering that as we go along. But there is no doubt that the upside that we had estimated from the data we had at the time needed Ungani 3 to be at least as good as the two existing wells, so that is now unlikely. The median case of around 9 million barrels will also be affected by this result, but we don't know yet by how much. The important thing for us now is to make sure we get our production rates up and our costs down to generate as much cash as we can.
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ReplyDeleteThe West on above deleted interview
ReplyDelete???
Buru confident despite drill failure
The West Australian
Peter Klinger The West Australian
March 6, 2014,
Buru Energy managing director Keiran Wulff has moved to ease investor concern about Buru's flagship project, the Ungani oilfield, declaring that development and production plans remained unchanged despite an unsuccessful drilling exercise.
Buru yesterday lodged a company interview with Dr Wulff, signalling the first expansive commentary by the company on the Ungani-3 well, which was drilled to further assess the Ungani field reservoir. Although analysis from Ungani-3 interpreted an oil column similar to the previous Ungani wells, Ungani-3 suffered poor porosity.
"Consequently this particular well is unlikely to be a significant producer," Dr Wulff said.
"We are not sure why the reservoir isn't as well developed at this location. We are confident from what we have seen at the two existing wells and from their production behaviour to date that we have a significant oilfield but it is likely this well (Ungani-3) has reduced the potential upside."
Buru had been telling investors Ungani had a gross potential resource of 10 million barrels, with upside to 20 million barrels.
Dr Wulff said Ungani-3's impact on reserves was unclear.
"There is no doubt the upside we had estimated needed Ungani-3 to be at least as good as the two existing wells, so that is now unlikely," he said. "The important thing for us is to make sure we get our production rates up and our costs down to generate as much cash as we can."
Buru is targeting year-end production of 5000 barrels a day.
Buru shares added 0.5¢ to $1.385. They fell from $1.97 when Buru announced Ungani-3's failure two weeks ago.
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I think that what I consider to be just more insight and information is something else to Redhand..............
???
Anyway I am away travelling for some time so good luck with your battles,
"The green reader"
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