“Currently we are evaluating the logs to prepare a test program, which will fully evaluate the multiple gas zones encountered in Wombat-3,” said Lakes Oil chairman Robert Annells.
“Lakes Oil continues to be encouraged by the results onshore Gippsland which has been ignored for so long by the exploration industry,” Annells said.
Lakes Oil has 100% interest in four onshore Gippsland permits (PEP 155, PEP 156, PEP 157 – where it is currently drilling Wombat-3) and PEP 158. It also has 50% interest in PEP 166 with operator AusAm Resources. Lakes Oil now holds the majority of the onshore Gippsland Basin petroleum exploration acreage, extending from Moe to Orbost.
At Wombat-3, the gas zone near the top of the Strzelecki Formation flowed gas at an estimated 3 to 4 million cubic feet per day before dropping to 65,000 cubic feet per day and looks to be an excellent prospect for fracture stimulation, according to Lakes.
“However our first focus will be on the zone between 2,097 metres and 2,112 metres which produced both an oil and gas show while drilling,” Annells said.
“This zone was investigated with a wireline repeat formation tester which can examine permeability in a qualitative manner. Results from this test indicate that the oil and gas show is associated with permeability that would be considered exceptional, compared to that which is normally expected in the Strzelecki reservoir. It is likely that this is due to fracturing.”
Preliminary analysis of this test and the logging suite indicates that this zone should be tested and Lakes’ intends to conduct the test in early November.
Wombat-3 has been completed differently to the two previous Wombat wells, according to Lakes.
“This time we have run a 4.1/2 inch (114 mm) ‘mono bore’ casing from surface to TD 2,178 metres,” Annells said.
“In the previous wells we used conventional completion techniques of 7-inch casing with a 2 7/8 inch production string and requiring the use of a drilling rig at significant cost. Lakes has learned from US-based operators that the use of a ‘mono bore’ allows more flexibility in testing multi level gas fields with considerable cost savings.”
The company intends to begin at the bottom of the hole and work up to higher zones. This will be done using wire line conveyed perforating guns and plugs, giving the ability to move equipment up and down the hole without the use of an expensive rig.
Wombat-3 is located midway between Wombat-1 and 2, about 1 kilometre from each well. The Wombat Block is located in PEP 157. An overriding royalty of 5% of the wellhead value of any hydrocarbon production is payable to Roma Petroleum N.L. a former holder of the permit.
