Buru Energy Ltd (ASX:BRU, OTC:BRNGF) is making marked progress in its exploration efforts within Exploration Permit EP 428 in Western Australia with the identification of a low-cost, 3D-defined, potentially large-scale Rafael Shallow prospect.
Recent interpretation of the Rafael 3D seismic dataset has highlighted a promising shallow prospect, partly overlaying the Rafael 1 gas and condensate accumulation.
Drilling plans underway
The new prospect encompasses the Poole Sandstones and Grant Formation at depths less than 1,200 metres and spans a considerable 18 square kilometres.
Planning is underway to drill this prospect during the 2024 operating season, with internal assessments suggesting prospective resource volumes ranging from 3.2 million barrels (MMstb) to as high as 79 MMstb, with a best estimate of 19 MMstb of recoverable liquids.
Rafael 3D seismic insights
“The acquisition of the Rafael 3D seismic survey has provided valuable insights into both the Rafael gas and condensate accumulation, that was the survey’s main target, as well as the prospectivity of the broader Rafael region,” said CEO Thomas Nador.
“These prospectivity insights include a high potential shallow clastic reservoir prospect, as well as an enhancement of the prospectivity of the Ungani Dolomite in separate structures adjacent to Rafael 1. This has the potential to confirm high-volume gas and condensate targets as follow-ups to the Rafael discovery.
“We are currently interpreting in-house the insights from the 3D seismic survey on the Rafael accumulation, and specialised consultants are also conducting additional work on reservoir quality, genesis, and the internal geometry and stratigraphy of the reservoir.
“Based on feedback from parties involved in the partner selection process, we have decided to temporarily suspend the partner selection process until the technical work is completed. This will allow interested parties to conduct additional due diligence on the enhanced data.
“Due to the additional technical work, the subsequent due diligence period and commercial negotiations, the conclusion of the process will be delayed from the original proposed timetable. As a result, on-ground appraisal-related activities will be deferred until the 2025 Canning Basin field season.
“However, with the potential to drill the Rafael Shallow prospect later this year with a smaller rig than would be needed for a Rafael deep appraisal well, and the added potential of being able to cost-effectively drill the Mars well, we are planning to keep our appraisal and exploration momentum going.
Rafael gas and condensate development
Buru Energy has also completed the pre-front end engineering design (pre-FEED) work for the Rafael Phase 1 development on budget and schedule, as part of the company’s efforts to commercialise its 100% owned conventional gas and condensate discovery made in 2022.
This development aims to establish a small footprint, low capital cost development project to meet the forecast energy needs of the Kimberley, with plans to enter FEED in 2025.
In parallel, engagement continues with several third parties concerning the forward plan for the Ungani oilfield, including potential drilling of the shallow Ungani North Reeves sandstone formation well (Mars) within the same operational framework as the Rafael Shallow exploration well.
Cost and time reductions
“We are also actively working to reduce capital costs and time frames for the initial Rafael development with additional options to the Phase 1 program being developed. The timeline to first sales for this further optimised development concept would not be affected by the delay in the Rafael deep gas appraisal program," Nador continued.
“Overall, we have been highly engaged in all aspects of the business and are excited about the opportunity to create near-term value through a cost-effective and potentially high-impact shallow drilling program.”