The well did not reach the planned target depths. In the Company’s view it is unlikely that the AVO anomaly has been tested. While an LWD tool was used, electric line logs could not be run due to the deteriorating hole conditions.
The well data is being reviewed in the context of successful Hollywood Sand AVO discoveries made in this area. A resolution should be reached within a month to sidetrack the well or to plug and abandon. A provision for well costs to date of US$1.8 million will be made, pending that decision. Future drilling of the remaining prospects in the Terrebonne Parish Project is suspended, pending the completion of this review.
Petsec Energy Ltd is an independent oil and gas exploration and production company listed on the Australian Stock Exchange. It has operations in the shallow waters of the Gulf of Mexico, the onshore Louisiana Gulf Coast region of the USA, and oil in the shallow waters of the Beibu Gulf off the south coast of China.
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