The Cardiff-2A electric logs are of generally good quality, and confirm the presence of all reservoir units previously intersected in Cardiff-2, which penetrated the Kapuni Formation approximately 175m (600 feet) offset from Cardiff-2A. Similar indications of hydrocarbons in reservoir are observed in both wells. While a number of likely pay sands of varying thicknesses are present in the well, the initial production testing program will concentrate on three main zones, all of which are established gas or oil producers in offsetting fields. The first test zone covers an interval of approximately 60m (200 feet) near 4,800m (16,000 feet). The second and third test zones extend approximately 20m (70 feet) and 15m (50 feet) respectively, near 4100m (13,500 feet) depth.
Commencement of the testing program is dependant on the timing of release of testing and fraccing equipment in use by another operator at a nearby field; presently scheduled for next month. Austral will be free carried through the initial approximately US$2.5 million of testing expenditures, which are to be paid for by Genesis Energy under the terms of their farm-in agreement.
Austral CEO Dave Bennett commented on the Cardiff achievements: "Having had to abandon Cardiff-2 and then side-track the Cardiff 2A well has certainly increased our costs for this project; but the silver lining is that we now know we have continuity over the key expected pay zones for at least 175 meters; and indeed further when the older logs from Cardiff-1 are included. This valuable information could only have otherwise been obtained by drilling an entirely separate well. We are looking forward to the upcoming testing program, which will flow, pressure fracture ('fracc') and then flow again, each test zone sequentially. Fraccing can greatly enhance flow rates and recoveries."
Austral Pacific updates other material events as follows:
Cheal Field (Austral 36.5%, operator)
Kahili-1A/B well (Austral 45%, operator)
Douglas Drilling Project in Papua New Guinea (Austral 35% carried)
A field inspection of the Douglas site has recently been made by members of the Douglas Project Team, together with engineering contractors; drilling rig options are being assessed and site preparation is scheduled to start next month. Douglas-1 is scheduled for mid year, and will test a structure mapped on seismic as extending over an area of more than 60 sq km (16,000 acres). In the event of success, a nearby major navigable river will provide an oil export route.
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