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Lakes Oil hits gas in South Australia
PROJECTS & COMPANIES
AUSTRALIAN junior Lakes Oil has revealed that while its Nangwarry-1 exploration well in South Australia had intersected natural gas intervals at its primary target, it had come up empty at the secondary objective.
The well, which was spudded on December 2, reached a measured depth of 4,300 metres, Lakes Oil said on January 2. Nangwarry-1 is located in PEL 155, which lies in the South Australian Otway Basin.
Two potential gas-bearing intervals, each of which were about 140 metres thick, were encountered in the Pretty Hill Formation, which is now undergoing logging. The com- pany said the logging involved running a selection of different tolls through the well measure parameters, such as porosity and permeability, and also obtaining gas samples.
Once logging has been finished, it added, the goal is to formulate a strategy for testing and completing the well.
“Subject to the logging results confirming the potential of the gas shows, flow-testing of the well will be carried out as soon as requi- site approvals and equipment are in place,” the company said in a statement.
Lakes Oil operates PEL 155 with a 50% stake, while Vintage Energy owns the remain- ing 50%.
The well is located about 10km south-east of Beach Energy’s Katnook gas-processing plant, which was mothballed in 2013. Beach began building a 10 terajoule (260,485 cubic metre) per day replacement processing facility last year and aims to process first gas in the middle of financial year 2020-2021.
The South Australian government has pro- vided a AUD4.94mn ($3.43mn) grant to par- tially cover the cost of the well, in return for the joint venture partners agreeing to try to deliver first gas to local gas consumers by the end of 2020.
While success was achieved at Pretty Hill, the lack of gas intervals at Sawpit is a disap- pointment for the partners, given early pro- spective resource estimates for PEL 155. Vintage had said previously that the licence had a best estimate prospective resource of 57bn cubic feet (1.61bn cubic metres) of gas, of which 35.2 bcf (996.86mn cubic metres) was located in Pretty Hill and 21.8 bcf (617.38 mcm) was believed to be in Sawpit.™
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