Anticipation builds for REY as drilling draws near

Published at Sep 1, 2015, in Energy

Drilling at Rey Resources’ (ASX:REY) Victory-1 well in EP457 could be as little as a week away, and is being drilled just after the on-trend Praslin-1 well which has just hit a 23m oil column.

Canning Basin darling Buru has just completed drilling the Praslin-1 well nearby in joint venture with Mitsubishi, the last well on the slate before it moves onto two Rey wells at EP457 which are also being drilled on the Ungani trend.

Buru has just announced that it hit a 23m oil column at Praslin-1, and while the well still needs to be flow tested, the discovery augurs well for REY, which has a 25% stake in the next two wells in Buru’s program.

Victory-1 will be drilled right into the Victory prospect, which is a large regional high on a depositional centre margin in a similar setting to Ungani, the company-making discovery which is now fuelling production for Buru.

Buru officially opened the Ungani oil production facility at the end of July, making it the first company to produce oil at a commercial in the Canning Basin in 30 years.

At the time, Buru executive chairman Eric Streitberg announced his intention to invest in exploration to find more oil for production, despite a floundering oil price.

This is good news for juniors such as REY, with Buru intending to fully develop any discoveries made.

In addition to being an Ungani lookalike, Victory-1 will also go through the Laurel carbonate to test deeper potential gas targets which means REY will be hoping the well hits both oil and gas, with target depths of 1,750m to 2,400m.

After Victory-1, Buru as operator will move onto Sengai-1 in neighbouring EP458.

The well will be drilled to a shallower target of less than 1000m, and is being drilled as a more straight-forward oil play. Targets are once again oil in dolomites, Ungani-style.

Previously, in the 1980s, the Camelgooda-1 well had been drilled down dip in the area – but was not looking for oil but minerals. When it found 6m of oil, the company moved on.

Buru has also identified a potential gas-laden follow-up target in the Rafael prospect, on the northern boundary of EP457, which is due to be drilled next year.

tags

OIL

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X