Real Energy moves closer to drilling at its Cooper Basin gas project
Real Energy (ASX: RLE) is a step closer to drilling at its shale gas project in Queensland’s Cooper Basin after it selected three well locations based on analysis of seismic data.
RLE has 100% ownership of three permits in the Cooper Basin covering over 2M square acres of land within this proven hydrocarbon area. Its goal is to develop confirmed oil and gas resources within the Cooper Basin and move into production. The blocks are surrounded by proven or producing resources created by major energy companies such as Santos and Beach Energy to feed Queensland’s growing demand for LNG.
Three well targets at ATP927P
RLE’s forthcoming drilling programme in the Cooper Basin will focus on a block known as ATP927P where three target well locations have been selected – Flynnes-1, Avalon-1 and Tamarama-1. RLE has also selected several alternate well locations as a contingency.
All three well sites were chosen after RLE conducted a seismic reprocessing of data from the ATP927P and ATP917P blocks. The objective of the process was to establish a consistent data set to finalise drill target selection and identify more prospects for future exploration work.
The three wells will be drilled to test the viability of the Permian basin-centered gas play in the area with emphasis on two local formations – Toolachee and Patchawarra. Log analysis undertaken by RLE shows indications of gas saturated sections within these formations with no water saturated sands within the play area. RLE says extensive gassy coals inside the formations provide a local gas source.
Land transfers approved
The transfer of both the ATP927P and ATP917P blocks was recently approved by the Queensland Department of Natural Resources and Mines.
RLE’s Managing Director, Scott Brown, said this is another crucial move forward for the company. “We are very pleased that the transfers have been approved. This was an important step as we continue to progress our exploration programme.”
Negotiations underway with landholders
With three well targets now in hand, RLE is concentrating on securing access agreements from landholders in the area to allow the drilling programme to begin.
RLE says it expects to finalise the permitting and rig negotiations during the current financial quarter to pave the way for drilling to start later this year.
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