Innamincka Says Yarrow Field Reserves at 58 bcf

Innamincka Petroleum said its Yarrow gas discovery, located in the Cooper Basin in Australia, is now estimated to contain more than 58 bcf of recoverable natural gas reserves. Following the casing of Yarrow 1, wireline logs have been acquired and analysis of these data undertaken. A total of 17.6 meters of pay sandstone is interpreted within the 46-meter gas-saturated interval tested by the three drill stem tests conducted during the drilling of the well. The gas accumulation penetrated by and upstructure from Yarrow 1 is estimated at 51 BCF recoverable gas.

Pressure data from the drill stem tests indicates the gas column extends for at least a further 30 meters below the Yarrow intersection which equates to an incremental 7 BCF recoverable gas.

Downstructure appraisal drilling will be required to delineate the full extent of the field in excess of the established 58 BCF gas and associated gas liquids.

In addition, the Merrimelia Formation, dominated by low porosity sandstone, is not credited with pay under current criteria but may contribute additional hydrocarbon production with stimulation. It is also anticipated that increased section in the Patchawarra Formation will be present downstructure and this interval is prognosed to contain additional pay sandstones.

Laboratory analysis of all gas samples recovered by the drill stem tests shows the gas composition is similar to adjacent gasfields except that the gas liquids component at Yarrow is higher.

An independent field reserves study of this liquids-rich gasfield has been initiated as the first step in a range of development scenarios under consideration. Participants in the PEL 103 Block Joint Venture are Innamincka Petroleum as operator with 35% and Vernon E Faulconer Australia Inc with the remaining 65%.