Tap Oil Abandons Montgomery-1 Well

Tap Oil reports that the Montgomery-1 well had drilled to a depth of 2,964.5 meters measured depth within the Lower Barrow Group by the jackup Ensco 56. However, after encountering high formation pressures, further drilling was terminated due to engineering limitation resulting from the high pressures. The well is currently being plugged and abandoned.

A hydrocarbon column was encountered at the top of the Barrow Group at a depth of 2,584 meters MD. Preliminary logging including formation pressure measurements and fluid sampling indicate up to a possible 21-meter gross hydrocarbon column. A gas sample has confirmed the upper 2 meters of the column to be gas. At this stage the nature and extent of the hydrocarbons beneath this gas leg are uncertain, until all data are reviewed.

Significant gas shows were recorded over a further 175 meters gross interval within several sandstone units within the Lower Barrow Group. High formation pressures were encountered within the lower part of this interval which precluded drilling ahead and a cement plug was set to seal this from the well bore. Wireline logging including formation pressure measurements and fluid sampling has been undertaken over the uppermost of these sandstones. These are currently being examined, however, initial results indicate that these reservoirs are most likely gas bearing and have low permeability.

As a result of the high pressures encountered and the decision to terminate drilling, the deeper Dupuy Sandstone target was not reached.

Further analysis of the data and logs is required to determine the significance of the hydrocarbons encountered.

Montgomery-1 intersected the top of the Barrow Group 165 meters high to prognosis resulting from the lack of previous drill data within the area. The Montgomery-1 well was in fact the first to penetrate the prospective Barrow Group reservoirs within the permit. The presence of hydrocarbons within both the upper Barrow and lower Barrow Group sandstones in Montgomery?1 confirms the high prospectivity of the WA?149-P permit. The well is located offshore Australia in WA-149-P 15 kilometers west of the Wonnich Gas Field.

Joint Venture participants are: Apache as operator with 48.815%; Tap Oil with 22.474% and Santos with 18.711%.

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