Rodinia Preps Drilling Ops at Mulyawara 1 Well

Rodinia Oil is preparing to run the second intermediate casing string prior to drilling ahead into prospective formations at Mulyawara 1, in the Officer Basin of South Australia.

Rodinia began drilling Mulyawara 1 on the morning of Thursday June 9, 2011 (Australian Central Standard Time) and reached the first intermediate casing point of 1,525 meters on August 1, 2011. The casing shoe is being set above the projected depth of the first series of evaporite (salt) seals.

To date drilling has been slower than anticipated due to mechanical issues on the rig, drilling in harder rock than predicted and extremely high rate water inflows from upper zones, which forced drilling operations to switch from the faster air hammer drilling to the slower underbalanced water rotary drilling.

Mulyawara 1 has confirmed the existence of excellent reservoir quality rocks in the Neoproterozoic with the Eidacaran Age Murnaroo Formation having an average log porosity of 18% (commonly up to 23%) and flowing water at rates between 600 and 900 Bbl per hour during air drilling operations. The well has also encountered small gas peaks and traces of hydrocarbon fluorescence exhibiting blooming cut over discrete intervals within the undifferentiated Upper Cryogenian.

Although these findings are encouraging and reduce the risks associated with source, migration and reservoir, this exploration well is still a high-risk venture and yet to be proven. The primary objectives of the well are yet to be intersected and lie below the prospective regional salt seals.

Rodinia has an 80% working interest in this well and prospect and is the operator.

Mulyawara 1 is located in the northwest corner of PEL 253 in the Officer Basin, South Australia on a structure of approximately 36.3 square kilometers (per horizon) in size as identified on seven separate 2-D seismic lines.

As Mulyawara-1 is entering the prospective target formations, management of Rodinia will continue to impose an operational trading blackout on all officers, employees, directors and consultants until the results of the exploration well are made public.

Rodinia expects to issue the next drilling update report once Mulyawara-1 has reached total depth, unless a material event occurs in the interim.

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