Buru Energy Limited has Commenced Drilling the Valhalla-2 Well

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.

Valhalla-1 was drilled by ARC Energy in 2007 and encountered numerous good oil and gas shows but was not tested due to mechanical problems.

Valhalla-2 has two conventional targets:

The Upper and Lower Laurel gas reservoirs with the potential to hold 60bcf of recoverable gas and 3mmbls of condensate on a P50 basis and the Anderson oil play – Valhalla-1 encountered an interpreted 5m oil column in the Anderson section which will be evaluated in Valhalla-2.

Valhalla-2 is also targeting the Lower Laurel unconventional gas reservoirs in the Valhalla closure that have the potential to hold 260bcf of recoverable gas and 7mmbls of condensate on a P50 basis

The well is being drilled by Ensign rig #32. It is expected to take 35 days to drill on a dry hole basis.

Source: Buru Energy