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FAR busy in south Louisiana

FIRST Australian Resources says it has made a new oil discovery and encountered multiple hydrocarbon shows at separate projects in south Louisiana.

At Vermillion Parish, the Perth-based company said the Marceaux-1 exploration well on the Kicker Prospect has flow-tested at up to 1056 barrels of oil per day from an interval at a depth of 12,977-12,988 feet (3955.4-3958.7m).

Before the well is connected to production facilities, this zone in the Alliance 3 Sand will be fracture stimulated and flow-tested again.

“Test flows in the 1000 barrel per day range from the Kicker discovery well are certainly at the high-end of our expectations,” FAR chairman Michael Evans said.

“Whilst we are pleased with these flow rates, caution should prevail until we have fracture treated the Alliance 3 Sand and produced the well for a sustained duration.”

Marceaux-1, which was drilled during the March quarter, is located on a 1017 acre (411.6 hectare) lease block close to existing infrastructure.

FAR holds a 5% stake in the block, which will reduce to 3.75% if the well is successful.

Elsewhere in Louisiana, FAR said drilling was continuing at its SL 328-9 exploration well at the Lake Long Project, where it is partners with Amadeus Energy and Sun Resources.

The well, which was yesterday at a depth of 10,926ft, has encountered up to 14 distinct hydrocarbon shows between a depth of 7000-10,500f.

But FAR speculated that the shows were unlikely to be commercial.

“Electric logging prior to the casing run will evaluate the productive potential of these zones, which are likely to be residual in nature having been depleted by historical production in nearby wells at these higher intervals in the field,” it said.

The well is still drilling toward its three primary objectives below 11,800ft in the Hollywood Formation, which operator Kriti Exploration estimates contains 21.7 billion cubic feet of gas and 760,000bbl of oil if all targets work.

Additional potential is thought to exist in offset fault blocks of 28.7Bcf and 1 million barrels.

The prospect is supported by a combination of 3D seismic and subsurface well control tied into FAR's successful SL 328-1 well, which was drilled in 2004 and came online at 5.6 million cubic feet of gas per day and 301bopd.

The well is still producing at a daily rate of 3.6MMcf of gas and 60bbl of oil.

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