Senex Starts Fracture Stimulation Program Onshore Cooper Basin

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Senex Energy disclosed Thursday that it has started on a large scale fracture stimulation program on its unconventional gas exploration wells in the onshore Cooper Basin, beginning with Skipton-1 in PEL 516.

The five well program aims to delineate unconventional gas resources in several Senex permits in the southern and northern South Australian Cooper Basin.

Senex has successfully drilled three new dedicated unconventional gas exploration wells in its southern permits: Skipton-1, Kingston Rule-1, and Talaq-1. A fourth well, Paning-2 in the northern Cooper Basin, has successfully been drilled and is currently being cased. Senex observed significant zones of net gas pay within all of these wells.

This program involves fracture stimulation and flow testing of these wells, along with the existing Hornet-1 well which flowed gas to surface during drilling in 2004. Senex expects this program will provide information on post-fracture production rates and detailed information to allow the refinement of fracture stimulation design within tight gas sands, shales and deep coals in the Cooper Basin.

In particular, the program seeks to determine the fracture complexity and orientation within both the primary target Patchawarra Formation sands and the secondary targets Roseneath, Epsilon and Murteree shale and tight sand package and the Toolachee and Patchawarra coals.

Senex's Managing Director Ian Davies, noted that the fracture stimulation program would provide valuable information for the appraisal and testing of its unconventional gas assets in the Cooper Basin.

"For Senex, this is another major step forward in the appraisal of our highly prospective unconventional gas assets," Davies said in a statement.

Senex expects the current program will result in the certification of material contingent resources. Measurement of gas flows from these wells will influence the design and location of pilot programs required for longer term production testing and reserves certification.

Upon completion of the Skipton-1 program, Senex will fracture stimulate Kingston Rule-1, Talaq-1, Hornet-1 and Paning-2. The fracture stimulation program will be completed over a two month period, with flow testing to continue into June this year.

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