MAKING a strong start on its Canning superbasin exploration program, Buru Energy spudded the second well in the Ungani oilfield 2015 program, the Victory 1 well in early September.
In a late-September announcement, Buru said operations at Victory 1 had been progressing well and the company expects to encounter the primary reservoir in early October.
Drilled with the Atlas rig 2, the well was spudded on 9 September and has a planned maximum depth of 2,600 metres.
Victory 1 is targeting a structure on the Ungani trend with prospective lower carboniferous and upper Devonian reservoirs.
Buru expects drilling to take 34 days to complete.
Rey Resources, which holds a 25 per cent interest in Victory 1, said the well is one of a series of structures along the structural terraces to the east of Ungani, which is currently producing about 1,250 barrels of oil per day.
Rey also holds a 25% interest in another one of these structures, Senagi in EP458, which is planned to be drilled in October.
Road construction for the Senagi site is close to completion and the DDH1 rig 31 is being mobilised from south of Broome, Buru said in an announcement.
Once it has completed drilling the Senagi 1 well, the DDH rig 31 is planned to drill Ophir 1, provided regulatory and joint venture approval is received.
Testing has also started at the site of the Praslin 1 well, also located in the Ungani field, with Buru saying it expected that it will take several more days to recover the drilling fluid and obtain a sample of reservoir fluid.
However, production at the Ungani field has been temporarily shut-in while a recent truck rollover incident on the Great Northern Highway is investigated by the trucking contractor responsible for the transport of crude oil from the field to Wyndham Port.
In addition, Buru’s oil charter vessel requires drydock repairs which may take up to 28 days to complete, as a result the field will remain shut-in for a period of weeks.
The company said the Ungani field staff are being deployed to its other operations during the shut-in.
Since production recommenced on 16 July the Ungani field has been producing at an average rate of 1,250 barrels of oil per day and two cargoes of a total of about 61,000 barrels of oil have been agreed for sale into Asian markets and since delivered.
Buru announced the Terrex seismic crew is being mobilised to undertake the acquisition of the 200 square kilometres Yakka Munga 3D seismic survey, which will be followed by planned 2D surveys.
Buru chairman Eric Streitberg said the first Ungani trend exploration well looks like an oil discovery, Buru has not spudded the second Ungani trend exploration well, and Buru is on its way to drill three more wells in the program.
“We are in a very busy period with the upcoming gas and oil flow testing, two drilling rigs operating, the seismic crew in the field and Ungani production ongoing,” Mr Streitberg said.
Rey managing director Kevin Wilson encouraged by recent successes on the Ungani trend said Victory has the potential to be large if successful.
Buru holds a 37.5% interest in Victory 1, with Mitsubishi Corporation holding 37.5% and Rey 25%.