Fairbridge-1 is being cased and suspended for future production testing, but last week Cooper said it was still uncertain if the well would produce commercial hydrocarbons.
Cooper and partners Sundance Energy and Enterprise Energy, told the ASX that interpretation of all available data – shows while drilling, openhole electric logs and sidewall cores – indicated the Birkhead Formation has enough potential to warrant casing the well for future production testing. But results from the Poolowanna Formation remained ambiguous.
Following the exercise of the option, Cooper will fund all of Enterprise Energy’s 20% interest in the Strickland Bay-1 well for 10% of the equity in PEL100. Cooper will then hold a 38.33% working interest in the permit, including Fairbridge-1.
Cooper will pay Enterprise A$250,000 for the 10% equity share and A$250,000 for Enterprise's 10% free-carry.
Strickland Bay-1 is due for spudding this Wednesday, after Fairbridge-1 has been cased and suspended, Cooper said.
The well is expected to take between 18 and 23 days to drill and evaluate.
The company estimates the Strickland Bay prospect contains mean undiscovered reserves of about 3.4 million barrels of oil. This includes P10 reserves of 5.6 million barrels, P50 reserves of 3.1 million barrels and P90 reserves of 2 million barrels.
The primary targets will be the Triassic age Tinchoo Sandstone and the Jurassic age Poolowanna Sandstone and Basal Birkhead/Hutton Sandstone.
Strickland Bay-1 is budgeted to cost A$2.24 million.
Well partners are: Cooper Energy (38.33%); Sundance Energy (46.67%); Enterprise Energy (10%); and Liberty Petroleum (5%).
