Titan Energy Limited reported Thursday that AWE Limited as Operator of Exploration Permit EP455 in the Perth Basin, Western Australia made the following appraisal of the Drover-1 well in their June Quarterly Activities Report released on July 30.
“In exploration permit EP455 (AWE 81.5 percent, Operator), the Drover-1 vertical exploration well reached its planned total depth of 7,729 feet (2,356 meters) and 5.5 inch production casing was set before the well was suspended in July. The target formations intersected were the Kockatea Shale, 2,582 feet (787 meters), the Carynginia Shale, 843 feet (257 meters), the Irwin River Coal Measures, 948 feet (289 meters), and the High Cliff Sandstone, 47 feet (14.5 meters).
Two cores were cut providing 70 feet (21.5 meters) of sample from the Kockatea Shale and sidewall cores were taken in the most prospective intervals. Significant gas readings were observed during drilling of the Kockatea Shale and Carynginia Shale and log and core data from these intervals will be fully analyzed and evaluated before deciding on the next phase of exploration activity. Gross drilling costs are estimated at $7.46 million (AUD 8 million).”
AWE has farmed in for an 81.5 percent equity share in EP455 under a Sale and Purchase Agreement (SPA). Under the SPA, AWE agreed to carry Titan Energy through a gross permit expenditure of up to $7 million (AUD 7.5 million) after which AWE will pay 81.5 percent and Titan Energy 18.5 percent of approved work programs and budget expenditure.
Research & Development Refund
On July 30, Titan received a net research and development refund totaling approximately $596,000 (AUD 639,000) for expenses incurred during the year ended June 30.
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