Australia-listed Lakes Oil and Armour Energy disclosed Wednesday that they are drilling ahead with their Yallourn Power-1 well onshore the Gippsland Basin.
Yallourn Power-1, sited around one mile to the north of the township of Morwell in the Latrobe Valley in PEP 166, is being drilled to further the extent of the carbonaceous source rock sequence expected to exist across much of the prolific Gippsland Basin, Lakes Oil noted in its disclosure.
The well, which was spud Dec. 19, has a planned depth of 3,937 feet (1,200 meters) and is expected to take 40 days to drill. It is currently at a depth of 545 feet (166 meters).
Yallourn Power-1 is targeting for shale oil in the Gippsland Basin, the company's Chairman Robert J. Annells confirmed with Rigzone Wednesday. Lakes Oil contract rig is a mineral rig, as coring works to the well's basement is required for this project, Annells added.
Lakes Oil secured the well during the holiday period in December last year. The company resumed drilling operations Jan. 7.
Lakes Oil has a 75 percent interest in the well, while Armour Energy holds the remaining 25 percent stake.
Roughly two-thirds of the Gippsland Basin is in the mainly shallow waters of the Bass Strait, with the remainder extending onshore in southeast Victoria. Australia's remaining oil resources, estimated at 1,431 million barrels, are located mostly in the Carnarvon and Gippsland basins.
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