Significant Onshore Australia Gas Discovery Made

Significant Onshore Australia Gas Discovery Made
Mineral Resources Limited revealed that recent drilling activity led to a 'significant' gas discovery at the Lockyer Deep 1 project in the onshore Perth Basin, Australia.

Mineral Resources Limited (MRL) has revealed that recent drilling activity has led to a “significant” gas discovery at the Lockyer Deep 1 project in the onshore Perth Basin, Australia, within Exploration Permit EP368.

Drilling commenced at the Lockyer Deep 1 well location in late July and successful exploration to a depth of over 13,000 feet identified a significant gas find in the Kingia Sandstone, the primary objective of the well, MRL outlined. The company highlighted that the development represented a “positive step forward” in its efforts to locate and utilize natural gas to replace diesel fuel in powering its own and other Western Australian mining operations.

“As our business continues to grow, we remain committed to pursuing opportunities for natural gas to power our operations, alongside renewable energy sources such as solar and wind,” MRL Managing Director Chris Ellison said in a company statement.

“This is an exciting step forward in our gas exploration efforts. Now the final depth of over 4,000 meters [13,000 feet] has been achieved, a wireline logging program will be completed. Positive supporting data from the logging program will result in the well being cased for production testing. A seismic survey planned for later this year will assist in selecting future drilling locations on the Lockyer Deep prospect,” he added in the statement.

Iain Smith, the managing director for Norwest Energy, a joint venture partner in EP368 alongside MRL’s  wholly owned subsidiary Energy Resources Limited, said, “the board of Norwest Energy is delighted to report on this excellent outcome, which we expect to be truly transformational for the company”.

“The success of Lockyer Deep 1 has uncovered a significant conventional gas discovery. We eagerly anticipate the results of the wireline testing program and look forward to updating shareholders on the forward appraisal program once results are available,” he added.

“Our thanks go to operator Energy Resources Limited, Aztech Well Construction, the Ensign Drilling crew and other third party service providers for a 'textbook' operational performance, with the well having been drilled to total depth in under 30 days of operations,” Smith went on to say.

Energy Resources Limited is the operator of the EP368 Joint Venture between ERL (80 percent) and Norwest Energy NL (20 percent).

MRL’s website highlights that Energy Resources Limited is Western Australia’s largest holder of gas exploration permits in the Perth Basin. The company’s site also notes that, as MRL continues to grow, Energy Resources Limited is helping to guide its business transition to more sustainable fuel sources and supporting its goal to achieve net zero emissions by 2050.

MRL describes itself as an innovative and leading mining services company, with a growing world-class portfolio of mining operations across multiple commodities. The business was borne out of the amalgamation of three companies – Crushing Services International (now CSI Mining Services), PIHA and Process Minerals International (PMI).

Norwest Energy is an ASX listed Australian oil and gas exploration company focused on exploring and developing the petroleum resources of the Perth Basin, Western Australia, according to its website. Headquartered in Perth, the business holds interests in an extensive portfolio of exploration permits, both onshore and nearshore, its site highlights.

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