Buru Energy has released a weekly update on drilling operations at the Valhalla-2 well being drilled in Canning Basin permit EP 371.

The Valhalla-2 well is the first well in the Buru - Mitsubishi Corporation (MC) 2011 Joint Exploration Program. Buru and MC each have a 50% interest in this well and in EP 371, with MC contributing 80% of the cost of the well under the terms of its farm-in agreement with Buru.

Following completion of the on bottom drill stem test (DST) the well has been drilled ahead in 8½' hole from 2,200m to a measured depth of 2,789m (2,751m TVDRT). Continuous high levels of background gas have been observed across this section with good to excellent gas shows and intermittent poor to fair oil shows. While drilling through this section drilling was suspended three times to allow gas to flow to surface. During the last of these suspensions gas was allowed to flow for a continuous period of approximately six hours, following which drilling recommenced. No stabilised flow rate was established during this period and the significance of this flow, and the earlier flows, is currently being evaluated.

The well will now be drilled ahead to the next objective, the Lower Laurel gas sands and then on to a proposed total depth of 3,400m. A full suite of logs will then be run to evaluate the Lower Laurel gas sands and the section where the gas flows were observed. Depending on the evaluation of these logs a DST of the Lower Laurel gas sands may be undertaken. Valhalla-2 is being drilled by Ensign Rig #32.

Tags: Buru Energy