Australia: Octanex Provides Update on Gawain-1 Prospect Drilling

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 24:00 hours WST (Western Standard Time) on Sunday, 13 March 2011, the well was at a depth of 3,208m MDRT and drilling ahead in the 121/4″ hole.

Since the last progress report of 9 March 2011, the hole was conditioned prior to continuing in the 12%” hole to the current depth.

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 results to date from drilling the 12%” section have been as follows:

• The well intersected the top sandstone in the Triassic Mungaroo Formation at approximately  2,693m MDRT; being 94 metres deep to prognosis;

• The top Triassic Mungaroo Formation sandstone was intersected without gas or hydrocarbon shows;

• Hydrocarbon fluorescence has been observed in three thin sandstones, but without any significant gas being recorded.

Until a complete suite of wireline logs has been run over the 12%” section, the significance of the hydrocarbon fluorescence cannot be determined. The well programme is to continue drilling the 12%” hole to approximately 3,500m MDRT before running the logging suite. The 9%” casing will then be run and cemented in before drilling the 8’/2n hole to the well’s total depth of 4,025m MDRT.

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. 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 14, 2011;