RLE says 3C gas resource over 1 Tcf present at Cooper Basin wells
Real Energy Ltd (ASX: RLE) says strong gas pays at its two drilled wells in the Cooper Basin indicate 3C Contingent Resource in excess of 1Tcf of recoverable gas.
RLE recently completed drilling of its second well in the Cooper, Queenscliff-1, which hit strong gas pays in two gas-saturated formations – Toolachee and Patchawarra – that were also encountered by its maiden well Tamarama-1.
Strong gas pays lead to resource revision
Independent geological studies indicate that a Basin Centred Gas (BCG) play of potentially 10.2Tcf of gas runs through RLE’s 100% owned 2 million acre land bank in the Cooper Basin, one of Australia’s prime oil and gas producing regions.
Tamarama-1 and Queenscliff-1 were designed to test for that BCG and were initially estimated by RLE to hold 300Bcf of 3C.
But Managing Director Scott Brown says the strong results at both wells have led to a sharp upward revision. “We thought it was important to inform the market of the size of our project so far,” he says.
“While it is early days we have made some very important steps on the way to achieving Real Energy’s medium term objective of developing a World Class Tier 1 gas project. To have a 3C contingent resource estimate at this stage in excess of 1Tcf is fantastic for our company.”
Gas saturated Queenscliff-1 results
The company’s maiden well, Tamarama-1 well hit gas pays in two gas-saturated formations – Toolachee and Patchawarra – at its ATP 927P tenement.
It hit 21m of net sandstone gas pay (from gross 44m) in the Toolachee formation and 66m of net sandstone gas pay (from gross 121m) in the Patchawarra formation.
The follow up well, Queenscliff-1, was designed to test the extent of these formations and was drilled 668m down dip of Tamarama-1. It was spudded on October 8th and drilled to a Total Measured Depth of 3,219m.
It encountered gas-saturated readings, measuring 32.5m of net sandstone gas pay (from gross 66.5m) in the Toolachee Formation and 34.8m of net sandstone gas pay (from gross 87.5m) in the Patchawarra Formation.
In addition, Queenscliff-1 also encountered 10m of net sandstone gas pay (from gross 30m) in the Triassic Paning Member of the Nappamerri Formation.
Next steps for RLE
The discovery of strong gas pays at both Tamarama-1 and Queenscliff-1 strengthens RLE’s case for a BCG within its Cooper Basin tenements.
RLE says the positive results of its two wells have paved the way for an even larger drilling programme in 2015, and it’s now working up targets and schedules.
Production testing for both Tamarama-1 and Queescliff-1 is also being planned and should take place in 2015.
Following this testing, RLE says it will engage an independent petroleum engineering firm to prepare a report on its gas resources.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.