Entek to Re-enter Warragon-1

Warragon-1 was drilled in July 2007, but hole conditions prevented testing at the time. As previously announced, Warragon-1 is located approximately 18km northeast of Eromanga in SW Queensland. It was the final well in a three-well exploration drilling program.

The Warragon-1 well was drilled to a total depth of 1,996 mRT. Attempts to flow test the oil shows in the Toolachee Formation were unsuccessful due to technical problems. The well was cased awaiting further testing. The well is now being re-entered to test for commercial hydrocarbons using a workover rig to run tubing into the well with Tubing Conveyed Perforating equipment.

This will enable flow testing of the well to establish inflow performance, followed by flowtest analysis and an assessment of the potential for production. In the previous quarter, Entek increased the value of its SW Queensland holdings with production startup at Byrock-2 and progress at Marcoola-1 well in preparation for production. The Coolum-1 well continued to produce oil at the rate of approximately 14 BOPD.