Buru Energy has identified and appraised a large tight wet gas resource in the Laurel Formation of the Canning Basin that potentially offers long term energy security to Western Australia, significant contribution to Australia’s GDP and socio-economic opportunity and employment for people and businesses in the local and regional community.
The Laurel Formation is an “unconventional resource” or what is more properly known as a “continuous oil and gas accumulation” and occupies an extensive geographical area in the basin.
The Laurel Formation occurs at depths from 2,000m up to 5,000m or more below the surface, is very thick (+2,000m) and consists of sandstone, siltstones, limestones and some shales and is extensively gas charged. The rocks generally have low porosity and permeability which means that extraction of the gas from these tight rocks will require hydraulic stimulation or fraccing to achieve commercial flow rates.
In August and September 2015, the Valhalla North 1 and Asgard 1 wells located on the eastern side of the basin were hydraulically fracture stimulated (or fracced) to determine the potential for commercial gas flows. Flowback of the wells to determine gas flows and appraise the resource is ongoing but has shown very positive results to date. The fracs of the Valhalla North and Asgard wells follow extensive community consultation and independent specialist review processes that demonstrated that fraccing could occur with minimal risks to the environment and country. Continuous environmental, water and microseismic monitoring during the fraccing program show no effects of the operation on the environment.
The fracs of the Valhalla North and Asgard wells follow the successful frac of the Yulleroo 2 well in 2010 which demonstrated the potential of the Laurel Formation as a major unconventional wet gas resource. Long term monitoring of this well has shown that there have been no adverse environmental effects on the aquifers or any other part of the environment as a result of this operation.
If, in the long term, the resource proves to be commercially viable, gas from the Canning Superbasin would supply clean, efficient fuel to Western Australian domestic and industrial markets. Under a State Agreement, which includes its Joint Venture partner Mitsubishi, Buru Energy is targeting the initial delivery of 1,500 petajoules of gas into the WA domestic market, enough to supply Perth residential customers for over 80 years.
Hydraulic fracturing, also known as “fraccing”, is a process used to determine the commercially viable extraction of tight gas from reservoirs. A number of international reviews have concluded that the potential risks to human health and the environment associated with hydraulic fracturing are low if the operations are properly regulated and implemented. This method of gas extraction has been routinely used for several decades elsewhere in Australia and internationally in the petroleum and geothermal industries. The technology is used on a large scale in the United States, where it has enabled significant economic prosperity and provided livelihoods to large numbers of local and regional communities. Read more…