Preliminary evaluation of logs suggests that five zones in this Cretaceous Section were likely to be productive, the Perth-based company said.

Using the Precision Rig 645, the Kakwa 6-18-63-4 well is currently drilling ahead at a depth of 3460m in the Debolt formation. With a planned total depth of 3950m, the well will primarily test the deep-pressured Wabamun fractured carbonate reservoir, estimated to contain a potential 17 billion cubic feet of recoverable reserves.

“The location is immediately adjacent to a highway and to a pipeline offering good logistics for early production in the event of success,” FAR executive director Michael Evans said.

“Whilst technical analysis suggests an excellent chance of encountering the seismically defined Wabamun reservoir, the play is supported by additional secondary targets in the Cretaceous (estimated 2.5Bcf potential) at shallower depths.”

Evans added that initial production rates of 15 million cubic feet per day were considered likely for the Wabamun reservoir.

Participation in this initial test well has also allowed FAR to participate in a much larger, 50Bcf and seismically-defined Wabamun prospect north-east of the initial test site on a lease comprising 800 acres.

Several low-risk, lower potential Cretaceous targets have also been identified on both blocks with up to four locations in each section, FAR said.

FAR holds a 15% interest in the Kakwa project, while Calgary-based operator Choice Resources owns 40%. Other partners are Texas-based companies Reeder Energy (15%) and MBOE (10%); and British Columbia-based companies Running Fox Resources and Bolthouse Capital (10% each).