Origin Energy Says Redback 1 Non-Commercial

Origin Energy reports that the gas exploration well Redback 1 located in the onshore Perth Basin Production License L11 is non-commerical.

Wireline logs and pressure measurements recorded over the past few days have indicated that the elevated gas readings and faster drill rates noted while drilling in the primary objective Wagina Formation are related to a fractured zone. Analysis of the data indicates that this zone is unlikely to be capable of sustainable commercial flow rates. Due to the high temperature and pressure in the zone of interest, open hole drill stem testing of the well is not possible and the well would have to be cased prior to testing. The wireline log results are not considered sufficiently encouraging to justify this additional cost.

It is therefore intended that Redback 1 will be plugged and suspended in a manner that will allow the well to be re-entered and sidetracked to an alternative bottom hole location if future studies warrant further investigation of this area of the permit.

Participants in L11 and Redback 1 are Origin Energy as operator with 67% and ARC Energy with the remaining 33%.