Senex Confirms 'Excellent' Production Potential at Mustang Well



Senex Energy Limited advised that initial production testing at the Mustang-1 oil exploration well in South Australian Cooper Basin permit PEL 111 has confirmed excellent oil production potential.

KEY POINTS

  • Mustang-1 free flowed at a rate of 6,700 barrels of oil per day (bopd) during clean up.
  • Despite being choke constrained, the well produced at a controlled rate of ~800 bopd during a 10 day production test with minimal pressure depletion.
  • The well exhibited excellent reservoir quality with highly permeable, oil filled sands.
  • Planning is underway to expedite longer term production testing at Mustang-1, targeting 2,000 bopd.

In July 2012, the Mustang-1 oil exploration well intersected an interpreted net oil pay of 13 feet (4 meters) in the oil-bearing sands of the mid-Birkhead Formation over the interval 5,863 to 5,878 feet (1,787 to 1,791.5 meters). During a drill stem test, oil flowed to surface after 23 minutes and continued to flow at a rate equivalent to approximately 2,500 bopd. The well was then cased and suspended as a future oil producer.

The well continued to demonstrate excellent reservoir quality during initial production testing. Mustang-1 was completed as a free-flowing oil producer in early September 2012 and produced the equivalent of 6,700 bopd through a ¾ inch choke during a 15 minute clean up flow. During a subsequent 10 day production test, the well produced at a controlled rate of ~800 bopd through an 18/64 inch choke with minimal pressure depletion.

Senex Managing Director Ian Davies said planning was underway to place Mustang-1 on extended production test within this quarter.

"Mustang-1 is a perfect example of Senex's capacity to accelerate oil field developments. It is also an excellent example of the significant upside within our Cooper Basin acreage," he said.

Senex holds a 60 percent interest in PEL 111 and is the Operator of the joint venture. The remaining 40 percent interest is held by Beach Energy Limited.