DRILLING

No oil but onshore Otway well delivers gas, condensate

ADELAIDE Energy has reported strong gas and condensate flows from its Jacaranda Ridge-2 appraisal well in South Australian onshore Otway Basin permit PEL 255.

No oil but onshore Otway well delivers gas, condensate

The recently-listed explorer told the market yesterday the well flowed strongly for three hours over the clean-up phase on Saturday.

Once opened up again, the well was recorded as having a shut-in tubing pressure of 2616psi and zero psi casing pressure.

"The well appeared to stabilise after four to five hours, with a strong gas flow at a flowing tubing pressure of 720psi through a half inch choke," the company said.

"The well is also producing a strong and clean condensate flow with decreasing water cut estimated at 5 percent to 10 percent at the end of the flow period."

But Adelaide said the flow was too high to measure the condensate rate, and so it will mobilise a test separator and larger storage tank to the site as soon as possible.

Managing director Carl Dorsch said the results had strengthened the company's belief in the area's prospectivity and testing has confirmed the presence of hydrocarbons.

"The find further enhances the potential of PEL 255 and indicates that the southern extension, to be drilled next year, remains a viable and exciting opportunity for the company," he said.

The well marks the first onshore oil search in eight years in the South Australian part of the Otway Basin.

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