Buru Energy Ltd. reported Friday that its extensive 2015 exploration drilling program has commenced with the spud of the Olympic 1 conventional oil well located southeast of Broome in Western Australia.
The well, which is being drilled with DDH1 Rig 31, has a programmed total depth of 4,757 feet (1,450 meters) and is expected to take some 30 days to drill.
Olympic 1 is the second 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 $19.8 million (AUD 25 million) exploration program on EP 390, 438, 471 and 473.
The Olympic 1 well is located in exploration permit EP 473 and the drilling of the well will satisfy the Year 4 work commitment on that permit.
Buru Energy and Mitsubishi Corporation (Mitsubishi) both have a 25 percent equity interest in the well and in EP 473 with Apache having the remaining 50 percent equity interest. The well is located approximately 37.3 miles (60 kilometers) to the southeast of Broome and some 13.7 miles (22 kilometers) inland from the Great Northern Highway.
The primary objective of the Olympic 1 well is conventional oil reservoirs in the Willara Formation with secondary objectives in the underlying Nambeet Formation.
Buru Energy’s Executive Chairman, Eric Streitberg said:
“We are delighted to be starting our 2015 exploration campaign with the Olympic 1 well using a rig which has already been proven to substantially reduce our exploration costs. This is the second well in the Coastal Permits farmout funded by Apache and will test a well defined prospect on the Broome Shelf. This style of prospect has seen few valid tests and will provide very valuable data on the further prospectivity of the area. The second well in the exploration program for this year will be drilled by Atlas Rig 2 and will test a prospect on the Ungani trend. This second well is planned to be spud at about the same time as the Olympic 1 well is completed. The Olympic 1 well is the first of a continuous drilling program for the remainder of the 2015 dry season and we are very excited to be back in the field with such a great program in front of us.”
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