Essential Petroleum Suspends Work at Port Fairy Well

Essential Petroleum Resources Limited advises that the work-over operations at Port Fairy No 1 well have been suspended following disappointing test results. The Port Fairy No. 1 well is located onshore in the Otway Basin in Victoria. Flow testing of the reservoir zone in the Flaxman Formation achieved a flow of gas at a rate too small to measure. The results indicate either a very low permeability reservoir or a reservoir that has been severely damaged during drilling operations.

Samples of gas, condensate and light oil were collected for analysis. The results of the flow testing will be used to assist in determining the future exploration strategy of the Flaxman and Waarre Formations over the Port Fairy structure and in PEP 152.

Partners in PEP 152 are Essential Petroleum with 33.9%; Origin Energy with 50.51% and Lakes Oil with 15.59%.