Production Testing on Yolla-4 Almost Complete

Yolla_Field, Australia
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Australian Worldwide Exploration Limited reports that the Yolla-4 testing program is proceeding.

Four zones have been perforated and completed in Yolla-4, three intra-Eastern Valley Coal Measures ("EVCM") gas zones and the newly discovered intra EVCM oil zone. Each zone is being opened to flow through temporary test equipment aboard the Ensco-102 rig to provide productivity data, plus gas/condensate and oil samples for analysis and assay.

Production testing commenced on 30 July, when the Lower EVCM Gas Zone was opened to flow. On 31 July and 1 August, the Upper EVCM Gas Zone and the Intra EVCM Oil Zone were separately opened to flow. The Mid EVCM Gas Zone will be opened for its flow test later today.

The intervals tested so far, and the flow rates recorded, are as follows:

Zone Interval (mMD) Flow Test Results
Intra EVCM Oil Zone 2604.0 – 2610.0 Oil to surface in 66 minutes. Metered flow measurement not obtained.
Estimated approximate flow of 4,000 barrels per day of 32 degree API oil at 1500 psi on a 40/64” choke, accompanied by 3.4 million cubic feet (“mmcfgd”) of solution gas per day.
Upper EVCM Gas Zone
2902.5 – 2914.0 32.3 mmcfgd + 561 barrels of condensate per day (“bcpd”) at 2789 psi on a 52/64” choke.
Lower EVCM Gas Zone
3149.0 – 3157.5 27.2 mmcfgd + 297 bcpd at 2810 psi on a 44/64”choke.

  • Gas flow rates were controlled to remain within the constraints of the rig's test equipment and to provide suitable conditions for sampling, and do not reflect maximum zone deliverability.
  • Condensate rates reported above are from the separator which is operating at elevated temperature and pressure. Actual condensate content of the gas, and condensate yields during production, will be higher than these levels

  • Production testing is expected to completed later today. At the completion of the testing program, the well will be available for production and the Ensco 102 drilling rig will commence drilling activities for the Yolla-3 well.

    The Yolla field is located within the Tasmanian offshore production license, T/L1 approximately 95 kilometers southwest of Wilson's Promontory and 110 kilometers north of the Tasmanian coastline.

    Following completion of the development drilling phase, the Ensco 102 drilling rig will be mobilized to drill the Trefoil-1 exploration well, approximately 40 kilometers west of Yolla.

    Commenting on the testing program, AWE's managing director Mr. Bruce Phillips said:

    "The gas flow rates are in line with our pre-drill expectations and they mitigate one of the largest remaining risks on the BassGas project. The continuity of the producing sands appears to be good and the flow rates achieved indicate that the Yolla-4 well may be capable of delivering our initial contractual gas volumes.

    "The oil flow rate from the new Intra- EVCM is also an unexpected bonus that will hopefully deliver additional value for AWE's shareholders."

    Participants in T/L 1 are:

    AWE Petroleum Pty Ltd 30.0%
    Origin Energy Resources Limited (Operator) 32.5%
    CalEnergy (Australia) Limited 20.0%
    Wandoo Petroleum Pty Ltd 12.5%
    Origin Energy Northwest Limited 5.0%
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