Australia: Octanex Announces Galahad-1 Drilling Update

Octanex N.L. has been advised by Eni Australia Limited, the Operator of the Galahad-1 well located in the outer Exmouth Plateau permit, WA-363-P, that at 07:00 hours WST (Western Standard Time) on Wednesday, 4 May 2011, the well was at a depth of 2380m MDRT (measured depth below rotary table) and currently installing the marine riser and Blow-out-Preventer (BOP).

Since the last progress report of 27 April 2011, the 17 1/2″ hole has been drilled to the current depth, the 13 3/8″ intermediate casing string run and cemented in and the riser and BOP installation procedures commenced. Planned operations over the next week are to complete the installation and pressure testing procedures for the riser and BOP prior to drilling the 12 1/4″ hole. The Mungaroo Formation is the target formation for the well, with mapped closure at the Top Mungaroo (predicted at approximately 2489m MDRT) and a series of intra Mungaroo fluvial channel sand targets that possess AVO anomalies. The intra Mungaroo targets range over the interval from approximately 2698m to 3344m MDRT. The Galahad-1 well is being drilled by the Saipem 10000 drillship.

The participants in the WA-363-P Joint Venture are:

Eni Australia Limited 40%

OMV Australia Pty Ltd 40%

Octanex Group 20%

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Source:Octanex , May 6, 2011; Image:SHI