(MENAFN - ProactiveInvestors - Australia) Key Petroleum (ASX: KEY) managing director Kane Marshall believes the oil shows observed in the Cyrene-1 well supports the interpretation that the Goldwyer Shale is oil generative in this part of the Canning Basin.
"As in Hedonia-1 located only 160 metres away from the Cyrene-1 well, oil shows were encountered at the same depth," he said.
"The Joint Venture is optimistic as we begin coring the 54 metre section in the Goldwyer and then proceeding to the conventional targets at total depth of 1060 metres.
"The venture considers that we will now be coring the Goldwyer where there is the best total organic content (TOC) and hopefully the reservoir characteristics will be comparable to other unconventional shale resources."
Cyrene-1 had intersected oil shows over a 43 metre interval in the lower Grant and Goldwyer Formations from a depth of 915 metres.
The top Goldwyer Formation was intersected at 918 metres, the same depth as encountered at the historic Hedonia-1 well.
The oil shows were associated with increases in background gas and readings on the chromatograph up to C5 (condensate).
Cyrene-1 is being drilled through a 135 metre section within Goldwyer Formation Shales to assess its potential as for unconventional hydrocarbons before drilling through the conventional Willara Formation that is estimated to host 5 million barrels of oil.
The well has a planned total depth of 1,060 metres.