(MENAFN - ProactiveInvestors - Australia) Senex Energy (ASX: SXY) will kick off a 12 well unconventional gas exploration program in the Cooper Basin with the spudding of the Paning-2 in the coming week.
The drilling program will build on the successes that Senex has enjoyed with the four unconventional exploration wells it has drilled to date.
Paning-2 is located about 1.3 kilometres southwest of the Paning-1 gas exploration well that was drilled by Delhi Petroleum in 1980.
This had exhibited numerous gas shows during drilling in the Toolachee, Epsilon, Patchawarra and Tirrawarra formations.
Paning is a very large structural and stratigraphic target in a proven hydrocarbon province. Paning-2 will assess the unconventional gas potential of the tight sands and coals of the Toolachee, Epsilon, Patchawarra and Tirrawarra formations, targeting a total depth of 3,175 metres.
Senex had recently cased and suspended its Kingston Rule-1 well in PEL 115 ahead of fracture stimulation and production testing.
Kingston Rule-1 had intersected 53 metres of net gas pay in the sands of the Epsilon and Patchawarra formations, 150 metres of shale in the Roseneath and Murteree shales as well as almost 20 metres of coal in the Patchawarra Formation.
It is also continuing its completion program for successful appraisal and development wells at Snatcher, Growler and Spitfire oil fields to bring on additional production in early 2013.
This includes the recent Spitfire-2 exploration well in PEL 104 operated by Beach Energy (ASX: BPT), which was cased and suspended after intersecting an interpreted net oil pay of 6.5 metres.
The joint venture has also placed the Mustang-1 oil discovery in PEL 111 on extended production test.
Mustang-1 had flowed at an initial rate of 2,400 barrels of oil per day before it was constrained to a rate of about 800bpd.
Senex has also started shooting 311 square kilometre of 3D seismic survey within PEL 104 and PEL 111, adjacent to the successful Growler and Snatcher oil fields.
The purpose of the survey is to cover areas that have not previously been surveyed and to further define areas covered in 2009 as part of the Mollichuta 3D seismic survey.
Senex has a 80% interest in PEL 115 and 60% in PEL 104 and PEL 111.