Buru Suspends Ungani North 1 Well in WA's Canning Basin

Australia's Buru Energy Ltd. provided Thursday the following update on the test results of the Ungani North 1 well in the Canning Basin, Western Australia.

Since the last report the nitrogen lift operations have been undertaken and these have established fluid influx into the well at relatively low rates. The fluid recovered to date is indicative of drilling fluid filtrate from the original drilling operations and is therefore not diagnostic as to potential reservoir recovery. These results needs to be fully evaluated before further testing. Consequently the well will be temporarily suspended while these results are evaluated and a forward program agreed with the Joint Venture.

The Ungani North 1 well is located some miles (6 kilometers) north of the Ungani Production Facility. Buru Energy and Mitsubishi Corp. (MC) each have a 50 percent interest in this well and in EPC391, with MC and Buru Energy each contributing 50 percent of the cost of the test.

Separately, Buru gives an update Thursday on operations at the Commodore 1 well as at 06:00 hours, Nov. 27.

Since the last progress report, the well has been drilled ahead in 8.5 inch (216 millimeter) hole to the first casing point at 1,564 feet (477 meters). As at 06:00 hours today, operations on the well were preparing to run and cement 7 inch (178 millimeter) casing.

Commodore 1 is the first well to be drilled as part of the Apache Onshore Holdings Pty Ltd. (Apache) farm out announced in November 2013. The cost of the well will be fully funded by Apache under the terms of the farmout which includes a commitment by Apache to fund a $25 million exploration program on EP 390, 438, 471 and 473.

The Commodore 1 well is located in exploration permit EP 390. Buru Energy and Mitsubishi Corp. both have a 25 percent equity interest in the well and in EP 390, with Apache having the remaining 50 percent equity interest. The well is located some 87 miles (140 kilometers) to the south of Broome and some 62 miles (100 kilometers) inland from the Great Northern Highway.


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