2012 Appraisal and Exploration Program
Appraisal Program
Buru's 2012 Appraisal Program is designed to confirm the extent of the oil discovery at Ungani and the wet gas accumulations at the Yulleroo Field and in the Valhalla area. The details of this program are currently being finalised, however it is expected to include the following:
- Valhalla Accumulation - two appraisal wells designed to identify the extent of the wet gas accumulation and to provide further details of the nature and characteristics of the reservoir. The Paradise-1 well will also be deepened as part of the appraisal of the Valhalla accumulation which, if successful, will confirm a very significant extension of the Valhalla accumulation.
- Yulleroo Field - two appraisal wells drilled on locations identified by the Yulleroo 3D seismic acquired in 2011 to further delineate the size of the Yulleroo structure and form the basis of an independent reserves classification for the field.
- Ungani Field - a 3D seismic survey to delineate the size and shape of the structure to be followed by further appraisal and production wells that will form the basis for an independent reserves classification and the full development of the field, FID for which is currently expected in early 2013.
Depending on the results of the Yulleroo and Valhalla appraisal wells, a program of hydraulic fracture stimulation ("fraccing") may be undertaken at some or all of the Yulleroo and Valhalla appraisal wells to further evaluate the reservoir properties of those accumulations. Any fraccing activities will be undertaken in accordance with industry best practice and the Western Australian Onshore Gas Code of Practice for Hydraulic Fracturing. You can view the Code and read about Buru's approach to the environment here.
Buru is also considering a further well to appraise the hydrocarbon accumulation identified at the Pictor East-1 well.
Exploration Program
In addition to its 2012 Appraisal Program, Buru will be drilling two exploration wells in the Acacia Province in the southern part of its permits. The final prospects to be drilled are yet to be confirmed, however all prospects under consideration for drilling in 2012 are targeting conventional structures with the potential to hold in the order of 50mmbbls of oil, if hydrocarbons are present. These wells will also provide valuable data about the Goldwyer shale play, which is believed to be prospective for oil in this area.
Buru is also considering additional exploration wells in 2012 to test follow ups to the Ungani discovery and new plays identified as part of Buru's ongoing geotechnical evaluation of the Canning Superbasin.
2012 Appraisal and Exploration Program Locations
Geological and Geophysical Program
In addition to its Exploration and Appraisal drilling program, the Company will be undertaking an extensive geological and geophysical program including:
- processing and interpretation of the 467 kilometres of new 2D seismic acquired during 2011;
- conducting a 3D seismic survey to delineate the size and shape of the Ungani structure;
- the acquisition of approximately 700 kilometres of new 2D seismic across the most prospective areas of the Canning Superbasin; and
- further evaluation of the very significant unconventional resource potential of the Canning Superbasin identified during 2010 and 2011.
Note: All of Buru's operations and activities are subject to joint venture, regulatory and other approvals and their timing and order may also be affected by weather, availability of equipment and materials and land access arrangements, including native title arrangements.