AWE Announces Results of Yolla-3 Testing Program

Australian Worldwide Exploration reports that the development well Yolla-3, located in production license T/L1 in the Bass Basin, reached a total depth of 3,497 meters MD (measured depth).

Well results to date

Preliminary interpretation of wireline logs, core and pressure data indicates that Yolla-3 encountered three main gas zones in the Intra Eastern View Coal Measures (I-EVCM), as prognosed, as well as the oil and gas saturated sand in the Upper EVCM (U-EVCM), as follows:

Interval (meters MD)
Net Gas Sand
2,218 – 2,231.5
7m gas, 6.5m oil
(See note below)
3,180 – 3,196
3,236 – 3,258
3,404 – 3,423
Note: U-EVCM interval and pay interpretation based on preliminary core data only at this stage.

Wireline pressure data and fluid samples taken in a fourth, minor EVCM unit at 3,149.5 meters, previously interpreted as containing gas at Yolla-1, indicates that this unit is in fact water saturated as observed at Yolla-4.

One 18 meter core was cut over the interval 2,216 to 2,234 meters in the U-EVCM sand. This core confirms that reservoir quality in this unit is good, and is better than observed in the nearby Yolla-1 well. The core also indicated the presence of a gas-oil contact also inferred in Yolla-1. The Joint Venture has agreed to design the well in order to provide an opportunity to production test this zone.

Proposed forward program

The well has been cased and perforated in preparation for production testing. The 3 main gas zones as well as the U-EVCM gas/oil zone will be included in the testing program as follows:

Interval perforated (meters MD)
U-EVCM Gas / Oil zone
2210.2 – 2225.2
Upper I-EVCM Gas Zone
3180.0 – 3186.0
3190.0 – 3196.0
Mid I-EVCM Gas Zone
3236.5 – 3242.5
3246.5 – 3248.5
Lower I-EVCM Gas Zone
3404.0 – 3407.0

Results of these production tests will be disclosed to the market at the end of the test sequence.

Following completion of the development drilling phase, the rig will be mobilized to drill the Trefoil-1 exploration well, approximately 40 kilometers west of the Yolla "A" platform.

Participants in T/L 1 are Origin Energy as operator with 32.5%; AWE Petroleum with 30%; CalEnergy with 20%; Wandoo Petroleum with 12.5%; Origin Energy Northwest with 5%.