Octanex Provides Update on Gawain Prospect Drilling, Offshore Australia

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 06:00 hours WST (Western Standard Time) on Monday. 21 March 2011, the well was at a depth of 3.653m MDRT and running the 9/4″ liner.

The well programme is to run and cement in the 9%” liner before drilling the 8Y2″ hole to the well’s total depth of 4,025m MDRT. The next target for the well is a seismic amplitude anomaly within mapped closure at 3,832m MDRT. A positive outcome at the 3,832m MDRT target may lead to deepening the well.

Since the last progress report of 13 March 2011, the 12Vf hole was deepened from 3,208m MDRT to the current depth. A decision was made by the Operator to not run wireline logs in the 12VA open hole section, as it was concluded that sufficient quality had been obtained from the Logged While Drilling (LWD) data. This approach was supported by the lack of evidence from LWD data, cuttings and the absence of significant gas shows for the presence of commercial hydrocarbons in the Upper Triassic Mungaroo Formation penetrated to 3,653m MDRT.

Further analysis of the LWD data and cuttings is required on the hydrocarbon fluorescence previously reported from three thin sandstones within the Upper Triassic Mungaroo Formation before conclusions can be drawn on the presence of these shows. However, they provide some potential to support the presence of a working hydrocarbon system in the drainage area of the Gawain-1 well.

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 21, 2011;