Strong Gas Flow Encountered at Primero-1

Victoria Petroleum N.L. (Vicpet) has been advised by the operator, White Sands Petroleum Limited, that the WSP Primero-1 well on the Reids Dome Anticline in Queensland’s Bowen Basin has encountered a strong flow of gas in excess of 2.8 million cubic feet per day while drilling with air at 135-142 meters depth.

The formation containing the gas has been identified in earlier drilling including AOE- 1 drilled in 1954. This gas flow is from the shallow formation known as the Reid’s Dome Production Sands. Air drilling will continue to the next casing point at 300 meters to place the above gas zone behind 9 5/8-inch casing. Air drilling of the underlying section will then continue to test the sands contained within the Permian basal Cattle Creek and the Reids Dome Beds down to the planned total depth of 2,700 meters.

These rock units are considered to be prospective for gas and contained oil and gas shows when last penetrated in AOE-1 drilled in 1954 near the site of WSP Primero-1. The target Reids Dome Beds have been interpreted to have the potential to contain up to 300 billion cubic feet of gas, if gas is present.

“This initial strong gas flow is encouraging and we look forward to the drilling results from the underlying target sands,” said John Kopcheff, Vicpet’s managing director. “Vicpet believes the Reids Dome Anticline has the potential to contain a significant gas resource, subject to further drilling results. Vicpet is pleased to be a participant in the drilling on the Reids Dome with Primero- 1, where Vicpet has a 40% free carried interest.”

Vicpet owns 40% interest in Primero-1 and PL 231 while White Sands and Dome Petroleum have 20% and 40%, respectively.