Now just to sit back and watch the announcements over the coming days/weeks/months to see what cash CM can get for our non-core assets. Once the divestments are complete it will probably be time for another capital raising and then open for business with seismic in EP448, drilling EP437, free carried drilling of EP438 followed by re-testing and/or workover of Stokes Bay #1, Point Torment #1 & West Kora #1.
Stokes Bay looks like it could be good. Double the amount of gas that Kiliwani North has however KEY has a 14.8% interest in it compared to only 5% interest in Kiliwani North.
From KEY website:
EP 104/R1 (Stokes Bay 1) Canning Basin, WA
Gulliver Productions Pty Ltd - 14.8% (Subsidiary of Key Petroleum Limited) Buru Energy Limited - 38.95% (Operator)
A test programme for the sands of the Anderson Formation that are gas bearing are on the agenda for the EP 104/R1 Joint Venture in 2012.
The Stokes Bay-1 well drilled in 2007 encountered gas bearing sands within the Lower Anderson Formation over the intervals 2,455 to 2,470m and 2,510 to 2,535m also with minor oil shows which were not tested. Key’s evaluation of the data set is that the Anderson Formation, the primary objective in the well and the structure, remains an exciting testing objective. A further re-evaluation of these Carboniferous aged gas bearing sands of the Anderson Formation intersected in the Stokes Bay-1 well will be undertaken prior to designing a test programme to select the perforation intervals for a cased hole test programme. The prospectivity of the Anderson Formation to provide economic flow rates and contain economic recoverable gas is demonstrated from the Point Torment-1 well (also in EP 104/R1) which flowed gas on a test at a rate of 4.3 million cubic feet of gas per day.
Key considers there is potential for the Anderson Formation to have potential recoverable gas of up to 100 Billion Cubic Feet within the structure.
I'm also interested to see the results of this workover:
L 15 (West Kora) Canning Basin, WA
Gulliver Productions Pty Ltd – 49% (a wholly-owned subsidiary of Key Petroleum Limited)
The Joint Venture in the Production Licence L 15 will determine the workover programme to be conducted at West Kora-1. Emerald Oil & Gas NL and Buru Energy Limited have the right to elect to earn further equity in L 15 from Gulliver Productions Pty Ltd by contributing some costs towards the West Kora workover. To date there has been no election.
Key looks forward to advising the timetable of this programme. It is likely to be conducted following the testing of the Anderson Formation in the Stokes Bay well during 2012.
KEY Price at posting:
3.0¢ Sentiment: Hold Disclosure: Held
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