Australia: Tap Oil Provides Zola-1 Well Drilling Update

Tap Oil Limited provides the following update on the Zola-1 exploration well, offshore Carnarvon Basin, Western Australia.

Location / Proposed Depth

The Zola-1 well is located in permit WA-290-P, immediately south of the giant Gorgon gas field in the Carnarvon Basin, Western Australia. The well is being drilled in 285m of water. The well is expected to be drilled to a target depth of approximately 5,000m.

Progress

During the period from 06:00 hours WST on 2 March 2011 to 06:00 hours WST on 9 March 2011, the suspension plugs were drilled out to the previous well depth (4,374m MDRT) and 216m of new 216mm (81/2”) hole was drilled from 4,374m to the current depth of 4,593m. No cores were cut. Present operations are tripping in the hole to resume drilling.

Additional reservoir quality gas sands have been intersected based on interpretation of data gathered while drilling (mud log and logging while drilling (LWD)).

To date the well has intersected over 100m of gas bearing sandstone (true vertical thickness).

Forward Plan

Forward operations at this stage are to drill through the upper Mungaroo Formation (including the secondary target) to the final well depth as planned. A full suite of wireline logs is planned to be run when the well is at total depth.

Background

The Zola prospect is a very large Triassic tilted fault block on trend with the giant Gorgon gas field. One of the largest undrilled structural features in the Carnarvon Basin, Zola is covered by high quality newly reprocessed 3D seismic data and is considered a moderate risk prospect. Zola is estimated by Tap to contain mean recoverable gas volumes of 1.0 trillion cubic feet with upside potential for 2.0 trillion cubic feet. The well will test the gas potential of several top and intra Mungaroo Formation sands – the primary reservoir at Gorgon. In addition it is possible that some Jurassic reservoirs may be developed flanking the main Triassic structure.

Previous drilling in WA-290-P focused on the shallower Jurassic and Cretaceous interval, resulting in the Antiope gas discovery in 2000 and the minor Lauda oil discovery in 2005.

Located close to existing and developing gas infrastructure, Zola would have multiple potential development options should it be a discovery. Any development at Zola could also encompass the overlying Antiope gas discovery (estimated at ~120 Bcf).

[mappress]

Source: Tap Oil, March 9, 2011;