Key Petroleum Limited (Key) announced Monday that since its last report the hole at Dunnart-2 well in EP437, Perth Basin, Western Australia, was circulated clean and an open hole drill stem test (DST) was conducted over a 42.6 foot (13 meter) section. The DST tool encountered a mechanical failure so the decision was made to drill to total depth (TD) and log the well. On retrieving the DST tools to the surface the tool was found to contain some good quality Bookara Sandstone that fluoresced under UV light, indicative of live oil. A mechanical failure means that the test was invalid and was not related to any issues with the reservoir or interval drilled to date. Since retrieving the test tools the well has been drilled to a TD of 2,198 feet (670 meters) rotary table (RT). Further oil shows, including a lower reservoir quality interval above the basement had oil shows and will be evaluated from wireline logs.
Drilling cuttings from the 36 feet (11 meters) interval drilled prior to the open hole DST indicated that there was another 6.5 feet (2 meters) of live oil at 2,050 feet (625 meters) RT similar to that of the interval previously drilled (refer photograph). Bright yellow fluorescence under a fluoroscope (UV light) is interpreted to be indicative of live, and not residual oil. Similar oil shows in smaller intervals were also observed within the Bookara Formation.
The current plan is to log the well with wireline logs from Crocker Group with the inclusion of the Formation Evaluation Tool (FET) depending on the results and preliminary interpretations of the first suite of logs. The standard set of wireline logs will determine reservoir quality and net pay.
The FET tool is a wireline formation test tool that can obtain pressure data and quantitative information about reservoir quality and formation samples including any oil or water samples. Data from this logging tool will assist in determining the intervals at which production testing will be carried out at a later date if warranted through 7 inch casing. The Joint Venture has sourced 7 inch casing equipment, in addition to the 7 inch production casing at site, and a production wellhead which will be mobilised to site in the next day.
Daily drilling reports to the ASX will continue until all drilling and formation evaluation of Dunnart-2 has been completed.
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