Australia: Tap Oil Provides Craigow-1 Well Drilling Update

Tap Oil Limited (“Tap”) provides the following update on the Craigow-1 exploration well, offshore Bass Basin between Victoria and Tasmania.

Location / Proposed Depth

The Craigow-1 well is located in permit T/47P in the offshore Bass Basin between Victoria and Tasmania. The well is being drilled in 75 metres of water and the primary near Top Aroo Formation target will be intersected at approximately 1,480 metres below sea level. The planned depth of the well is approximately 1,826 metres.

Progress

During the period from 03:00 hrs (EST) on 24 December 2010 to 06:00 hours (EST) on 29 December, 914mm (36”) hole was drilled to 159 metres and casing run and cemented. The well was then drilled in 445mm (17 ½”) hole to a depth of 745 metres and casing was run and cemented. At 06:00 hours (EST) the rig was preparing to drill ahead in 311mm (12 ¼”) hole.

Forward Plan

The well will be drilled to the planned target depth of approximately 1,826 metres in 311mm (12 ¼”) hole.

Craigow-1 is planned to take approximately 19 days in total. Upon completion of evaluation the well will be plugged and abandoned in the normal course of offshore operations.

Background

The Craigow prospect is an anticlinal trap defined on 3D seismic data, in a good location for both reservoir quality and oil charge. Craigow is estimated to contain mean recoverable oil volumes of 28 million barrels with upside potential for 50 million barrels. A number of follow up prospects (including the previously announced Tolpuddle and Glenbothy prospects) have also been defined on 3D seismic with total potential of over 100 million barrels of recoverable oil in the permit.

T/47P is a 2,886 km2 exploration permit located in the offshore Bass Basin between Victoria and Tasmania. The Bass Basin has historically had wells with oil and gas shows and in the last decade has started to yield commercial success.

In 2008 Tap acquired both 2D and 3D seismic over the permit and this data was interpreted in 2009. Further geological and geophysical work was done through 2010 to more fully characterize the three prospects, Craigow, Tolpuddle and Glenbothy. Craigow was selected as the first prospect to be tested due to its better risk profile.

Should Craigow be a discovery, it has good potential for commercial development due to the shallow water depth, the depth of the objective, and the close proximity to Shell’s refinery at Geelong.

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Source:  Tap Oil, December 29, 2010;  Image: Awexplore