Australia's Senex Energy said Friday that it has mobilized a rig to drill the first of two wells in the Cooper Basin, a sedimentary geological basin in the northeast of South Australia.
Senex is partnering Australia's Ambassador Oil and Gas in this exploration project. This project marks Ambassador's first foray into drilling.
The rig, known as Century Rig 3, is expected to spud the Shocking-1 well, which will target mean recoverable reserves of about 250,000 barrels of oil.
Shocking-1 is the first of two conventional oil wells to be drilled. The well targets the Murta, McKinlay, Mid-Namur, Basal Birkhead and Hutton formations, all well-known oil producing horizons in the Cooper Basin. The well is sited 1.3 miles (two kilometers) north of operator Senex's producing Vintage Crop-1 well, allowing it to be quickly commercialized in the event of a success.
"The Shocking structure is mapped as having an upside recoverable oil potential in excess of 500,000 barrels," Ambassador said.
Under the terms of an earlier farm-in agreement signed between the two companies, Ambassador will fully fund drilling costs to earn a 60 percent stake in each successful prospect.
After drilling Shocking-1, the rig will be moved to the Kruger-1 well, which will target 380,000 barrels of oil.
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