announcment

Level 21
500 Collins Street
Melbourne Victoria 3000 Australia
Tel: +61 (0)3 8610 4702
Fax: +61 (0)3 8610 4799
Email: [email protected]
Website: www.octanex.com.au
RELEASE
CORNEA-3 WA-342-P, BROWSE BASIN
OFFSHORE FROM WESTERN AUSTRALIA
PROGRESS REPORT NO. 6 (FINAL)
Octanex N.L. (ASX Code: OXX) advises that drilling operations at Cornea-3 have now concluded.
Late on 24 December 2009 the well penetrated the targeted Middle Albian and Lower Jamieson
Formation B and C sand reservoir interval, 2.2 metres deeper than predicted, but, as planned, just
below the predicted gas oil contact. The well was then deepened to penetrate exploration targets in
the Early Albian and Aptian of the Lower Heywood Formation before terminating at a total depth of
910.6 metres (measured depth below rotary table or MDRT). The data obtained while drilling
indicated the intersection of a hydrocarbon bearing column in the Middle Albian, Lower Jamieson
Formation. The exploration targets in the Lower Heywood Formation did not contain hydrocarbons.
The objectives of the Cornea-3 well were to define the location of hydrocarbon contacts and to obtain
data relating to the potential reservoir qualities of the Middle Albian and Lower Jamieson Formation.
Following the conclusion of drilling, a series of logs were run, including a Magnetic Resonance log, as
conventional logging tools are unable to resolve the reservoir properties due to the glauconitic nature
of the rocks. In addition a wireline formation tester was run to assess the pressure within the reservoir
and to take fluid samples.
The results of drilling and logging can be summarised as follows.
1. An oil column of 20.4m metres was intersected between the gas oil contact at 785.6m MDRT
and the free water level (as defined by pressure data) at 806m MDRT. The logging has
established a clear oil and water gradient a significant improvement on the position known
before the well was drilled. This will better enable the assessment of the aggregate quantity of
hydrocarbons across the greater Cornea feature.
2. Extensive efforts were made to sample the oil, but the unconsolidated nature of the reservoir
meant, that on every attempt, the test tools became blocked with sand preventing fluid
sampling. The failure to recover fluid samples was somewhat disappointing but oil samples
had been obtained by the previous operator.
3. A considerable number of pressure testing results were obtained which enabled the
establishment of oil and water gradients and hydrocarbon contacts.
4. The condition of the hole through the hydrocarbon bearing section was excellent and enabled
the recovery of high quality log data from the Magnetic Resonance tool. These data are now
being analysed to deduce reservoir porosity, permeability, water saturation and oil viscosity.
Overall, the results of Cornea-3 have clearly defined for the first time the location of an oil column. As
noted above, the condition of the hole through the reservoir section was excellent. A great deal has
been learned about how future wells can be drilled in the greater Cornea feature. This has given the
Cornea Joint Venture confidence about the ability to drill subsequent horizontal wells through the
reservoir section.
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Looking forward, the data obtained from Cornea-3 will enable the Cornea Joint Venture to formulate a
future exploration, appraisal and development strategy now that an oil column has been proved and
that good data relating to the potential reservoir performance has been obtained.
Cornea-3 has now been plugged and abandoned as planned. The Songa Venus rig is now being
towed to the Braveheart-1 location in WA-333-P.
The participants in the Cornea-3 well and the Cornea Joint Venture are:
Moby Oil & Gas Limited (ASX Code: MOG) 22.375%
Cornea Resources Pty Ltd 16.750%
(subsidiary of Exoil Limited) (NSX Code: EXX)
Cornea Oil & Gas Pty Ltd 17.000%
(subsidiary of Australian Oil & Gas Corporation)
Octanex N.L. (ASX Code: OXX) 8.000%
Cornea Energy Pty Ltd 8.500%
(subsidiary of Goldsborough Limited)
Auralandia N.L. 5.000%
Private Interests 22.375%
The Operator of the Cornea Joint Venture is Hawkestone Oil Pty Ltd, a wholly-owned subsidiary of
Exoil Limited.
By Order of the Board