Energy reports that the electric logging of Cheal-A4 has now been completed. These logs, together
with good pressure gradient data, are interpreted by Company personnel to
identify oil pay in both the Mt Messenger and Urenui Formations of similar
type to that successfully flow-tested previously in the Cheal-A3X and Cheal-1
wells. Cheal-A4 intersected the Mt Messenger sands very close to prognosis,
and the depth of the base of the oil column appears identical to that
predicted from the previous wells. This implies continuity of the oil
reservoir over a substantial area enclosing the wells, which is a positive
factor in estimating potential field size.
Cheal-A4 well is now being cased in preparation for flow-testing of both
intervals; which is scheduled to commence next week. Production testing at
Cheal-A3X will also be recommenced in the near future.
The Cardiff-2 well (Austral 25.1% carried, operator) is drilling ahead
in 16" hole below 1367m (4485 feet) and is expected to reach its next casing
point later this week.
The Hihi-1 well (Austral 25%) is presently setting wellhead prior to
drilling out of surface casing.