Buru Energy to kick off drilling at Canning Basin oil fields

Buru Energy (ASX: BRU) expects to commence drilling the first well in its 2010 Canning Basin exploration drilling campaign in the week commencing 10 May 2010.
Canning Basin lies in the Kimberley region of central northern Western Australia some 2,300 kilometres north of Perth.
The company has engaged Terrex Seismic to conduct the Yulleroo South and Pijalinga 2D seismic surveys in the second half of 2010.

The first three wells of the company’s six well 2010 drilling campaign have now been confirmed after extensive technical review.

The first two wells, Leander-1 and Fairwell-1 are located in the area covered by the 2009 Bunda 3D seismic survey. The third well, Paradise-1 has been confirmed by the 2009 Paradise 2D seismic survey.

Leander-1 and Fairwell-1 are targeting similar prospects to the producing fields in the Sundown/Blina oil field area.

Paradise-1 is targeting a large structure with the potential to hold significant volumes of oil, gas and condensate. Paradise-1 will also provide significant information on the emerging shale and tight gas plays in the Canning Basin.

The first well to be drilled in the 2010 drilling campaign will be either Leander-1 or Fairwell-1, depending on the timing of construction of access roads and drill sites.

The company said a final decision on the order of the first two wells will be made in the coming weeks.

Paradise-1 will be the third well drilled in this initial stage of the 2010 drilling campaign.

Commenting on the 2010 exploration program, Eric Streitberg, the company’s Executive Director said “each of the three committed wells is testing a technically robust prospect with the potential to provide material upside to the company."

"Although the Leander-1 and Fairwell-1 prospects are targeting comparatively modest hydrocarbon accumulations, their proximity to the existing Blina/Sundown oilfield infrastructure means a discovery can be quickly, and very profitably, brought into production and will provide scope for numerous follow-up wells."

"The Paradise-1 well is targeting a very large structure which, if successful, will have a transformational effect on the company and the Canning Basin as a hydrocarbon province," he added.

Buru Energy shares rose 8% to 26 cents in trading today.

http://www.proactiveinvestors.com.au/companies/news/6405/buru-energy-to-kick-off-drilling-at-canning-basin-oil-fields-6405.html