Tap Oil Prepares to Continue Drilling at Zola-1 Prospect, Offshore Western Australia

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 285 metres of water. The well is expected to be drilled to a target depth of approximately 5,000 metres.

Progress

During the period from 06:00 hours WST on 23 February 2011 to 06:00 hours WST on 2 March 2011, the rig was secured and de-manned while the operation waited on weather due to a potential developing cyclone.

The cyclone did not develop and the rig has now been re-manned with preparation now underway to make the rig ready for drilling operations.

Forward Plan

Forward operations will include drilling out the top suspension plug and sidetrack coring of the top Mungaroo gas sand previously reported. Following the completion of coring operations the well will drill through the upper Mungaroo Formation (including the second target interval) and then on 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 in order to confirm the extent and thickness of the gas pay in the well.

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).

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Source:Tap Oil, March  2, 2011;