The JV said drilling of the Casino-2 well will assess the commerciality of the discovery, which has the potential to hold recoverable reserves of sales gas in the order of 300 billion cubic feet, which is similar in size to the nearby Minerva Gas field - currently under development by resource and petroleum giant BHP Billiton.
The JV said preliminary analysis of data acquired in the well bore has now confirmed a gas intersection of 47 metres in the Waarre Formation sandstone reservoir near the top of the structure at a depth of 1718m below sea level.
"Gas shows are indicated to continue below this intersection in non-reservoir sands, silts and shales to a depth of at least 2045 metres below sea level. Pressure data implies a continued down-dip gas column within the reservoir formation," the JV said.
The VIC/P44 Permit interests comprise a joint venture between Santos (operator) 50% and Strike Oil 50%.
