(MENAFN- ProactiveInvestors - Australia) MEO Australia (ASX: MEO) and operator Eni have spudded the highly anticipated Heron South-1 well in the Timor Sea offshore Northern Territory that will appraise the Heron-2 gas discovery.
The well is being drilled to determine the productivity of the Elang-Plover reservoir and the gas composition.
The Greater Heron structure in NT/P68 has best estimate prospective resources of 4.96 trillion cubic feet of gas if filled to spill point though this does not take into account non-hydrocarbon gas content.
This is assumed to range from 13.6% to 28% based on the non-hydrocarbon gas content observed in the primary reservoir at Evans Shoal-2 in the neighbouring NT/P48.
The MEO volumes reported in this table have NOT been reduced for non-hydrocarbon gas (CO2, N2) content. Assumed range is 13.6% to 28%. MEO has limited the non-hydrocarbon gas (CO2, N2) content to that observed in the primary reservoir at Evans Shoal-2.
"Since Heron-2 discovered gas in early 2008, MEO has been working towards appraisal of this discovery. Heron is potentially a very significant gas resource. We are very pleased to be partnering with Eni and look forward to a safe and successful drilling program," managing director Jürgen Hendrich said.
Drilling of Heron South-1 by the Ensco 109 jack up drilling rig is expected to take about 60 days.
Heron gas field
MEO discovered the Heron field in early 2008 with the Heron-2 well, which intersected more than 200 metres of gross gas pay in the Plover Sands in the Heron North structure and flowed gas to surface during a drill stem test.
However, drilling had to be halted prematurely due to operational difficulties.
No gas water contact was made and MEO suggested there was potential for the gas column to extend another 210 metres into the interpreted structural saddle that spills to Evans Shoal.
Eni has 60 days after Heron South-1 is drilled to commit to either drilling another well on the field or withdrawing from participation.
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