Key Petroleum Limited revealed Monday that since the last report, dated Aug. 11, the company advises that 662 feet (202 meters) of 8.5 inch hole have been drilled at Dunnart-2 well in permit EP437 in Perth Basin, Western Australia and an encouraging hydrocarbon show was encountered at 1,509 feet (460 meters) rotary table (RT) in the coaly unit of the Cattamarra Coal Measures. The show was associated with 8.6 units of wet gas, several times higher than that of Dunnart-1 in the same unit over the depth interval 1,509-1,558 feet (460-475 meters) RT. Elevated readings of ethane of 151 ppm were encountered in this interval and details are contained in the attached drilling report.
The current depth at 0600 this morning was 1,627 feet (496 meters) RT drilling ahead in 8.5 inch hole within the Woodada Formation. Background gas of 0.5 units has been established and is increasing with depth. The Newmarracarra Limestone and Cattamarra Coal Measures formations were intersected as prognosed.
In the past week the nippling-up and pressure testing of the Blow Out Preventer (BOP) and associated equipment has been completed. Additional operational personnel have been mobilized to site and the mud logging unit is rigged up to DCA Rig 7.
The Company advises that a formation integrity test of the 9.625 inch casing shoe was completed and crew are now working on a 24 hour work schedule while drilling ahead in 8.5 inch hole.
The forward plan is to drill ahead to the Bookara sandstones at approximately 2,024 feet (617 meters) RT and conduct a Drill Stem Test (DST) of the same interval encountered at Dunnart-1. DST personnel are being mobilized to site today and testing is anticipated to be sometime shortly thereafter.
Daily drilling reports to ASX will continue until all drilling and formation evaluation of Dunnart-2 has been completed.
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