MD Eric Streitberg The first well we drilled was Valentine 1, which was targeting a relatively high risk / high reward stratigraphic prospect which unfortunately was tight, although we saw very encouraging shows in the shallow part of the section. We drilled this well first because of the cost savings and operational synergies with the subsequent Stokes Bay well. Stokes Bay had very well developed porous and permeable reservoir at the Nullara Carbonate reefal level, and very encouraging oil and gas shows at the shallower levels. We then moved the rig to Valhalla 1, and again saw excellent encouragement there at several different levels. corporatefile.com.au You have described Stokes Bay 1 as very interesting, can you provide more details? MD Eric Streitberg Stokes Bay 1 has two well defined zones of interest. The first zone of interest is in the Anderson Formation sandstones where there is a probable five metres net oil reservoir. Although this interval appears to be relatively poor quality reservoir, it needs to be tested because it has the potential to be a significant oil reserve. The second zone of interest is the Nullara Formation reefal interval. In contrast to the Anderson, where the issue is reservoir quality, this zone is an excellent reservoir where we lost over 10,000 barrels of drilling mud while we were drilling the well. Although we had no drilling fluid returns and hence don’t know what is in the reservoir, pressure data indicates potential for a significant hydrocarbon column. We plan to test this reservoir again in the dry season when the weather allows us to return to the site. corporatefile.com.au Given the potential significance of this result, how do you plan to get a definitive test of the Stokes Bay prospect? MD Eric Streitberg Stokes Bay was the first well in the Basin to demonstrate high quality permeability and porosity in the Devonian reef section. This has been the “Holy Grail” of reef exploration in the Basin and has opened up a whole new exploration play in the Basin. We therefore have 3 to ensure that we get a definitive test on the play and will be returning to resume the production test as soon as the weather allows. It is possible that the best way of evaluating the Nullara is by redrilling this interval under-balanced using a coiled tubing unit like we did for Beharra 4 with spectacular results. This would get around the problems of the massive losses in such a porous and permeable interval and give us a definitive result.
con't....
ARQ Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
