RLE hits saturated gas with maiden well in Cooper Basin, Queensland

Published at Sep 30, 2014, in Energy

Real Energy Ltd (ASX:RLE)’s maiden exploration well has been cased and suspended for future testing following strong gas readings in Queensland’s Cooper Basin.

RLE says this positive result appears to confirm its understanding of a potential Basin Centred Gas (BCG) play in the area, and the company is now planning to drill another exploration well nearby to further confirm that.

Tamarama-1 well hits gas in two shale formations

The Tamarama-1 well was drilled to a depth of 2,574m at RLE’s ATP 927P tenement and intersected the Patchawarra and Toolachee shale gas formations.

These significant gas zones have been shown through geological surveys to run through all of RLE’s tenements, which cover a combined 2 million acres in Queensland’s oil and gas rich Cooper Basin.

Tamarama-1 was spudded on the 8th of September by contractor Ensign, and encountered 21m of net sandstone gas pay (from gross 44 metres) in the Toolachee formation and 66m of net sandstone gas pay (from net 44m) in the Patchawarra formation.

RLE says these readings confirm that gas saturated Toolachee and Patchawarra formations are present in RLE acreage.

The well will now be cased and suspended for future flow testing.

RLE Managing Director Scott Brown praised the result saying it goes a long way to proving that a BCG does exist in the company’s Cooper Basin tenements. ‘If our geological model of a Basin Centred Gas play proves to be correct, then the gas accumulation is likely to be extremely large,’ he said.

‘AWT International, the independent geologist that was engaged as part of our ASX listing process and provided a report in the company’s prospectus, estimated the gross mean petroleum in place for the Toolachee and Patchawarra was 10.2 Tcf of gas in our acreage.’

Based on the encouraging result at Tamarama-1, RLE says it will now prepare to drill a follow up exploration well, Queenscliff-1.

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