Woolybutt Field Size Increased by Scalybutt-1 Well

Scalybutt Location
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Tap Oil reports that the Scalybutt-1 well was completed on July 21, 2004, being drilled 1.4 kilometers to the west of the Woollybutt-2ST production well location. Scallybutt-1 was designed to evaluate the possibility of hydrocarbons to the west of the Woollybutt Oil Field resulting from a prognosed seismic velocity gradient across the field.

The Scalybutt-1 well has proven that a significant velocity gradient extends across the Woollybutt Field, with preliminary seismic re-mapping indicating an increase in the size of the Woollybutt Oil Field structure.

The top of the Barrow sandstone in Scalybutt-1 was intersected 7 meters above the field wide oil/water contact. Core and log analysis has determined that the upper 2 meters is of reasonable reservoir quality and contains oil pay, however the reservoir quality of the lower 5 meters is still to be determined.

A computer simulation model for the field will be constructed on receipt of the final interpreted log and core data. Further, the structural mapping of the seismic data over both the northern and southern lobes will be revised and the depositional model for the sandstone reservoirs updated.

The above work will assist the Joint Venture in determining if the Scalybutt-1 well should be completed as an additional production well (and if so, in which direction) and whether to drill an appraisal well in the southern lobe, west of Woollybutt-3 where a 5 meter oil column was intersected.

Tap's analysis of production data from the field to date indicates that the field is on track to produce the reserves estimates reported by Tap (being accessed by Woollybutt-1ST2 and 2AST3) where the reservoir quality is excellent.

The results of the Scalybutt-1 well in respect of additional recoverable volumes of oil in the northern lobe and the forward plan will be dependent upon the updated geological model for the area which is expected to be available in around six weeks time.

The velocity gradient data acquired in Scalybutt-1 enhances the prospectivity of the southern lobe and the drilling of a step-out well is being considered.

WA-25-L Joint Venture Participants are ENI Australia as operator with 65%; Tap Oil holds 15% and Mobil Australia holds the other 20%.
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