Buru Energy advises that drilling
operations on the
Yulleroo 4 well commenced at 12:00hrs on
19 January 2013 (AWST) using Ensign Rig#32. As at 06:00hrs on 21
January 2013 (AWST) the well was drilling ahead at 30 metres.
Yulleroo
4 is the first well in the
Buru – Mitsubishi Corporation ('MC') 2013
drilling program. The Yulleroo 4 well is located in exploration permit
EP
436. Buru and MC each have a 50%
interest in this well and in EP 436. The well is located some 80 kms to the
east of Broome. The well location is some eight kilometres from the Great
Northern Highway along the all weather Yulleroo access road. The well has
a programmed total depth of 3,800 metres and is expected to take some
52 days to drill and suspend.
The
Yulleroo wet gas accumulation was identified by the
Yulleroo
1 well that was drilled in 1967 and tested gas at low rates from a very
substantial gas column in a thick sequence of shales and sands in the Laurel
Formation. The
Yulleroo 2 well was drilled in 2008 by
ARC
Energy to appraise the Yulleroo 1 discovery, and recorded strong gas
shows at the same stratigraphic level as Yulleroo 1. Buru conducted a
successful reservoir stimulation operation at Yulleroo 2 in 2010, demonstrating
that the reservoir was capable of flowing gas of good quality with significant
hydrocarbon liquid content.
The
Yulleroo 3 well was drilled by Buru and MC in 2012 and had
strong gas shows over an interval of over 1,500 metres. This intersection added
over a thousand metres of gas charged section above the previously interpreted
top of the gas sands in Yulleroo 1, together with a number of additional sand
packages. Significantly, a thin sand at around 3,200 metres is interpreted to
have conventional reservoir properties. This sand has the potential to
materially improve the flow rates from this well without requiring any
reservoir stimulation. If this sand is developed over a larger area with
similar reservoir properties it is expected to add significantly to the commercial
potential of the field.
In a broader context, the gas wetness ratios and inferred pressure data in the
Yulleroo 3 well are indicative of the
Yulleroo accumulation being part of
a basin centred gas system similar to that seen in the
Valhalla
area. The Yulleroo 4 well is therefore being deliberately drilled
at the limits of structural closure of the Yulleroo structure, as interpreted
from the 3D seismic data acquired over the field in 2011. The well will test
the extent of the gas column in this part of the accumulation and is expected
to confirm Buru’s interpretation that the Yulleroo field is part of a
geographically
extensive basin centred gas accumulation extending beyond the mapped structural
closure. If this is proved to be the case, the Yulleroo area has the potential
to hold multi TCF’s of gas. The well will also help define the extent and
potential recoverable volumes of gas from the conventional 3,200m sand
identified in Yulleroo 3.