Drillsearch Starts Western Cooper Basin Drilling Program, Australia

Drillsearch Energy announced that it has commenced a three well exploration drilling program in its 100% owned and operated portion of the Western Cooper Wet Gas Project in PEL 106A.

Primary Target: Conventional Liquids-Rich Gas

The primary focus of the exploration program is conventional wet gas accumulations in high quality sands in the Patchawarra Formation. This program will drill three prospects: Wamberal-1, Moruya-1 and Narrabeen-1.

On an aggregate basis the program is targeting up to 61 BCF of recoverable raw gas and 2.4 mmboe of condensate and LPGs on an aggregate best estimate basis. Conventional gas accumulations in the Western Cooper Wet Gas Project Area typically contain gas with significant associated quantities of condensate and LPGs ranging from anywhere between 30 to 180 BOE per 1 mmscf of recoverable raw gas.

This program will commence with Wamberal-1 which is expected to spud on Monday, 25 March 2013. The drilling rig used will be the Weatherford 826 drilling rig which is one of the most technologically advanced land-based drilling units currently operating in Australia.

Secondary Targets: Unconventional Resources in Tight Sands and Shales

In addition to primarily targeting conventional sands of the Patchawarra Formation, the program’s secondary target is the identification of oil and gas resources in tight sands of the Patchawarra, Tirrawarra, Epsilon and Toolachee Formations as well as the shale gas potential within the Roseneath and Murteree Shale. As part of the drilling of Moruya-1, Drillsearch will cut two 30m cores targeting conventional and unconventional reservoir sequences in the Patchawarra Formation.

Exploration Success to Accelerate Additional Wet Gas Project Development

The initial three exploration wells are in close proximity to a number of the existing wet gas discoveries in PEL 106A; namely the Paprika, Smegsy, Nutmeg, Cadenza, Rossco and Paranta wet gas discoveries. Drillsearch currently carries independently audited recoverable 2C contingent resources of 61 BCF raw gas plus associated liquids of 698,000 bbls of condensate and 164,000 kTonnes of LPGs.

Further exploration success from this wet gas drilling program may provide sufficient critical mass to accelerate the development of the new discoveries. This would be through the aggregation of any new discoveries with the nearby existing discoveries, in a similar fashion to the wet gas development in PEL 106B which was completed in January 2012. The 106B project is currently undergoing an expansion through the connection of the Canunda wet gas discovery and the installation of compression.

Following the completion of this wet gas exploration program, Drillsearch will move the Weatherford 826 drilling rig into ATP 940 to commence a six to nine month, two to four well shale and tight basin centred gas drilling program in the Nappamerri Trough Shale Gas Fairway in its Joint Venture with QGC, a BG Group Company.

Further details on the current wet gas drilling program will be provided in the monthly Drilling and Operations Report, and releases relating to any material results from this drilling program.

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LNG World News Staff, March 27, 2013; Image: Drillsearch Energy