Further to the earlier ASX Release dated 14 August, 2012, Oil Basins Limited (ASX:OBL) wishes to make the following ASX Announcement, so as to keep the market fully informed.
The Company, as designated Operator on behalf of the Backreef Area Joint Venture (OBL net 80% and Green Rock Energy Limited (ASX:GRK) net 20% beneficial interests respectively) has now significantly advanced its preparations for the proposed 2012 Canning Basin drilling operations, whereby it has completed the following:
- On 30 August 2012, a Joint Venture Meeting finalised preferred rig selection and approved an indicative budget for the proposed drilling of East Blina-1 (Figure 1).
- Earlier in mid-August, OBL lodged a draft bridging Environment Management Plan and from subsequent discussions and advice from DMP Environment, OBL's contractors on 5 September 2012 re-inspected the proposed site and conducted a survey of selected vegetation and pegged both the site and proposed short roadway area for East Blina-1 (as this location is located in a potentially environmentally sensitive area within the Backreef Area of Production Licence L6, Canning Basin).
- Once the proposed cleared area was found to be acceptable by the second site reconnaissance, a Preliminary Drilling Program using Dynamic Drilling Rig#17 was lodged with the Department of Mines and Petroleum (DMP) on 7 September 2012.
On 17 September 2012, OBL executed a contract agreement with Dynamic Drilling for the provision of its Petroleum Drilling Rig#17 for the drilling of East Blina-1 (Figure 2).
- OBL now anticipates the DMP Environment clearances to be finalised by circa 30 September 2012 and the DMP approved Drilling Program shortly thereafter, after which all stakeholders will be advised and earthmoving contractors will be engaged to prepare the site.
OBL will advise the market at the end of September on the stakeholders approvals progress and timing of rig arrival and once all service contractors have been settled, the final estimated dry hole costs (which are presently below 2.5 million).
Exploration Well:
(Figure 1, see link below)
East Blina-1
Total Depth 1210m
Longitude: 124 DEG 31' 38.51" East
Latitude: 17 DEG 36' 56.14" South
Seismic Line: BV 93-17 S 522
Refer to Figures 3 to 5 for Company information of location and prospect size (refer also to Figure 6 for recent GRK mapped assessment.
Primary Objective: highly permeable basal Yellow Drum dolomite reservoir (Famennian 3B) which OBL has recently re-interpreted and prognosed at 27m thick at East Blina-1.
Drilling Rationale:
The primary target in East Blina-1 comprises dolomitic carbonate reservoirs in the Late Devonian-aged (Famennian) Yellow Drum Formation. The main basal Yellow Drum dolomitic reservoir is associated with a structural relief of some 27m seen on Seismic Line BV 93-17 (PSDM processed). Excellent porosity and permeability (average porosity = 17%, K = 500 mD on test) was encountered in a basal Yellow Drum dolomite reservoir (the Yellow Drum reservoir was formerly referred to as part of the Gumhole Formation as tested at Backreef-1 by DST-1) sequence at Backreef-1 some 4 km to the east-northeast. This reservoir flowed fresh water at a calculated rate of 1,000 bbl per day on test at Backreef-1 and oil samples were collected at the surface. Porosity and permeability together with oil saturation was also encountered in the same unit at Blina-1 2.7 km to the west-southwest (although the reservoir properties were not so well developed here as at Backreef-1). At Blina-1 DST-2 flowed 36.7 deg API oil at a calculated rate of 37.74 bopd.
Although porosities in excess of 20% were encountered in an overlying Yellow Drum dolomitic carbonate (Famennian 4) unit, the results of DST-2 at Backreef-1 indicated poor permeability development (K = 0.1 - 10 mD) in this interval. Nonetheless, the recovery of significantly more saline water than encountered in the basal Yellow Drum dolomite provides evidence that effective intra-formational seals are present within the Yellow Drum reservoir.
Commencement:
East Blina-1 is the second well that OBL has drilled as operator and the third rig that the Company has deployed in the Canning since September 2010. It is expected that East Blina-1 will spud in early October 2012 and be completed in approximately 10 days and ahead of the deadline for completion of the second and final Backreef Area farmin commitment well by 31 October 2012.
To view the full Oil Basins announcement including Figures, please click the link below:
http://media.abnnewswire.net/media/en/docs/ASX-OBL-379083.pdf
