The Canning Basin could be the world's eighth largest oil and gas reserve.

Buru spuds new well at Canning Basin

Australia

PERTH, September 9, 2015 – Australian exploration and production company Buru Energy announced on Wednesday that it had spudded its Victory-1 well in Western Australia’s Canning Basin.
The well will be dug into the Victory prospect to about 2,600 metres, and it is expected to take 34 days.

Joint venture partners Buru Energy (37.5 percent), Japan’s Mitsubishi Corporation (37.5 percent) and local company Rey Resources (25 percent) began production in July in the Canning Basin’s Ungani oilfield.

The venture’s Praslin-1 well started producing at 1,250 barrels of oil per day, and the company hopes to up production to a total of 3,000 barrels of oil per day. The Victory-1 exploration well is 85 kilometres south of the Ungani oilfield, and targets the same Ungani trend. The company plans to spud two additional wells in the trend.

“Victory-1 is a very exciting follow-up to the recent success at Praslin-1 which provided strong encouragement for the prospectivity of the Ungani trend,” Buru Energy’s executive chairman Eri Streitberg said in a company press release. “Victory-1 has the potential to be large if it is successful, and we are very much looking forward to the results.”

Best company estimates put recoverable reserves in the Victory prospect at 40 million barrels of oil. The Canning Basin covers about 530,000 square kilometres. It remains mostly unexplored, with only 250 wells drilled into the onshore area, equivalent to about four wells for every 10,000 square kilometres of space.

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