Drilling Continues at Ungani 3 Well in EP 391 in Western Australia

Australia's oil and gas exploration and production company Buru Energy Limited provided Thursday an update on drilling operations at the Ungani 3 well in exploration permit (EP) 391 in Western Australia as at 06:00hrs, Feb. 20 (AWST).

Since the last report wireline logging has been undertaken on the well. Preliminary interpretation of the logs has identified that the Ungani Dolomite section in Ungani 3 contains zones that may warrant further testing. The forward plan for the well is to drill ahead to the deeper Nullara Formation zones that have had oil and gas shows in previous wells and then undertake a more thorough testing program.

The Nullara Formation (which is oil productive elsewhere in the Canning Basin) contained excellent oil and gas shows and interpreted reservoir zones in the Ungani North 1 well, and also had excellent oil and gas shows in the Ungani 1 well, but for operational reasons has not been tested in either well.

The Nullara Formation represents an attractive deeper target in Ungani 3 where the top of the Nullara Formation was encountered some 524 feet (160 meters) higher than in Ungani 2 prior to drilling being suspended for the current logging operation. The equivalent reservoir zones in Ungani 3 are expected to be encountered some 328 to 656 feet (100 to 200 meters) deeper than the current well depth and drilling to the revised total depth of approximately 8,441 feet (2,573 meters) is expected to take some three and a half days. The well will then be evaluated for testing of the Ungani Dolomite section and any potential reservoir zones encountered in the Nullara Formation.

Further updates will be provided as further information is obtained.


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