Australia's Senex Energy said Wednesday that a mechanical failure due to tool plugging has prevented it from obtaining a valid result from a drill stem test in the Shocking-1 well's first primary target, the McKinlay formation.
The drill steam test was carried out on July 2, 2012, Senex's partner Ambassador Oil and Gas said in a statement.
Both companies are expecting to strike oil as the onshore Shocking-1 well--the first of two wells to be drilled in the Cooper Basin, South Australia--encountered good oil shows.
"The well will now resume drilling to the second oil target in the basal Birkhead formation, expected to be intersected late this week. Tests on both the McKinlay and basal Birkhead formations will be run after the well reaches it planned total depth and wire line logs confirm the presence of moveable hydrocarbons," said Senex in a statement.
Shocking-1 is sited 1.3 miles (2 kilometers) north of operator Senex's producing Vintage Crop-1 well in permit PEL 516 Shocking Block. The rig used to spud the Shocking-1 well is Century Rig 3, which had targeted mean recoverable reserves of about 250,000 barrels of oil.
The Shocking-1 well, according to both companies, has an upside recoverable oil potential of more than 500,000 barrels from the Murta, McKinlay and Basal Birkhead/Hutton formations, all well known oil producing horizons in the cooper Basin.
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 project. The remaining 40 percent stake is held by Senex.
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