Next Investors logo grey

REY Goes for Victory as Canning Well Spuds

|

Published 09-SEP-2015 11:45 A.M.

|

2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

Rey Resources (ASX:REY) is talking up the chances of Victory-1 in the Canning Basin being a “high impact” well after the well was officially spud today by Buru Energy (ASX:BRU).

Buru spud the well in today with the Atlas 2 rig scheduled to take 42 days to reach total depth of 2600m.

The well is targeting the Victory prospect, which is being talked up as having similar features to BRU’s company-making Ungani oil discovery.

The Ungani prospect, along trend from Victory, is currently producing at 1500 barrels of oil per day, although it has the potential to flow more.

BRU has put the unrisked estimates for the prospect at between 7 million barrels of oil in the low case and 98MMbbls in the high case, with a best estimate of 40MMbbls.

Next Investors Image

The well will also go through Laurel carbonate, which means REY will be hoping to hit both oil and gas by drilling down to a target depth of 1,750m to 2,400m.

The well is the first of two REY wells to be drilled in the current BRU program, with Sengai-1 to come immediately after Victory-1.

REY managing director Kevin Wilson said both wells were being considered as having potential to be “high-impact”.

“Both are potentially high impact wells,” Wilson said. “Recent successes generated elsewhere on the Ungani Trend by the Buru/MC (Mitsubishi Corporation) at Ungani and Praslin-1 evidence strong encouragement for Victory which has the potential to be large if successful.”

REY has a 25% equity stake in the well, and is on the hook for 16.7% of well cost.

Praslin-1

REY and BRU’s chances at Victory-1 were recently given a shot in the arm by success at the on-trend Praslin-1 well.

BRU announced at the back-end of August that it had hit a 23m oil column at Praslin-1 at the top of the prolific Ungani Dolomite.

The well has now been plugged for further testing, and the well has yet to be flow tested.

However, the success is a further indicator that the Ungani Dolomite is one of the most, if not the most productive geological settings for oil in the Canning Basin.

tags

OIL


General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (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 and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.