Octanex Provides Update on Gawain-1 Drilling (Australia)

Octanex N.L.  has been advised by Eni Australia Limited, the Operator of the Gawain-1 well located in the outer Exmouth Plateau permit, WA-362-P, that at 07:00 hours WST (Western Standard Time) on  Wednesday, 9 March 2011, the well was at a depth of 2,590m MDRT and preparing to drill ahead in the 12%° hole.

Since the last progress report of 2 March 2011, the Marine Riser and Blow-out-Preventer (BOP) have been run, installed and pressure tested and the well then deepened to the current depth. The hole is being conditioned prior to continuing in the 12%” hole to approximately 3,500m MDRT.

The 12Vi” hole is planned to intersect the Triassic reservoir in the top of the Mungaroo Formation at approximately 2,599m MDRT. The Mungaroo Formation is the target formation for the well, with mapped closures at the top of the Formation and at 3,832m MDRT. A positive outcome at the 3,832m MDRT target may lead to deepening the well.

The Gawain-1 well is being drilled by the Saipem 10000 drillship and is the first well in a two well programme. It will be immediately followed by the Galahad-1 well in WA-363-P. Depending upon the progress of the well, the next ASX release is planned for Wednesday, 16 March.

The participants in the WA-362-P and WA-363-P Joint Ventures are:

Eni Australia Limited 40%

OMV Australia Pty Ltd 40%

Octanex Group 20%

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Source: Octanex , March 10, 2011; Image: Laohamutuk