Drillsearch Provides a Drilling Update on its Australian Assets

Drillsearch Energy Ltd. provided Wednesday the drilling report for the company's Australian upstream oil and gas assets in December 2015.

Oil Business

The Ex-PEL 91 joint venture (Drillsearch 60 percent, Beach 40 percent and Operator) commenced the two-well Bauer appraisal program during December, with both Bauer-24 and Bauer-25 cased and suspended as future production wells.

Bauer‐24 is the southern‐most well drilled on the Bauer Field, located approximately 3,117 feet (950 meters) south of Bauer-13 and 2,789 feet (850 meters) northeast of Chiton-3. The well was drilled to appraise a structural high between the Bauer and Chiton fields as a possible extension of Bauer. Primary targets were the McKinlay Member and Namur Sandstone reservoirs, with the Birkhead Formation providing a secondary target. Bauer-24 was cased and suspended as a future producer following intersection of a 9.8-foot (3-meter) net oil column in the Namur Sandstone and an 11.5 foot (3.5-meter) gross oil-bearing interval in the overlaying McKinlay Member.

Bauer‐25 was spud Dec. 28, 2015. Drilling operations at the well were briefly suspended in early January due to heavy rain, before restarting Jan. 8. Bauer-25 is the northern‐most well drilled on the Bauer field, located approximately 1,312 feet (400 meters) north of Bauer-15 and 4,429 feet (1,350 meters) southwest of Bauer North-1. The well successfully tested the northern extension of Bauer and was cased and suspended as a future producer following intersection of a 6.6 foot (2-meter) net oil column in the Namur Sandstone and a 11.5 foot (3.5-meter) gross oil bearing interval in the overlaying McKinlay Member.

Wet Gas Business

The two-well exploration drilling and testing campaign in PRLs 173 and 174 began Dec. 17, 2015 with the spudding of the first well, Willow-1. Willow-1 was drilled to a total depth of 11,161 feet (3,402 meters) with good gas shows observed across the sandstones and coals of the Toolachee, Epsilon and Patchawarra Formations from 9,865 to 10,935 feet (3,007 to 3,333 meters).

Drillsearch’s preliminary interpretation of wireline logs calculated a total of approximately 26 feet (8 meters) of net conventional pay consisting of 4.9 feet (1.5 meters) and 13.1 feet (4.0 meters) in the Toolachee and Epsilon Formations respectively and 8.2 feet (2.5 meters) in the Patchawarra Formation within a gross interval of 1,070 feet (326 meters). Stacked reservoirs were identified, and in addition to the conventional pay, several zones with potential for unconventional pay were also observed.

Willow-1 has been cased and suspended and an Extended Production Test is currently planned for the June 2016 quarter in order to establish a stabilized flow rate.


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