Spudded in EP 391 on Tuesday afternoon, the Yulleroo-2 exploration well is the third major play-type to be tested by Arc in the Canning Basin and is a follow-up to the original wet gas discovery made 2.5km east in 1967.
With a planned total vertical depth of 3500m, Yulleroo-2 is targeting 474-928 billion cubic feet of gas.
The well’s primary aim is to provide a definitive evaluation of the Yulleroo-1 gas flows to enable a better estimate of potential gas reserves and commerciality of the Yulleroo structure.
According to Arc, mapping of the pre-existing seismic data over the Yulleroo structure, including recently reprocessed data, shows a large faulted four-way dip closed structural trap, with the Yulleroo-2 location mapped as being updip from the Yulleroo-1 gas discovery.
Managing director Eric Streitberg described the Yulleroo area as “very prospective”, with wet gas recoveries from the Yulleroo-1 well, albeit at low flow rates, and multiple follow-up opportunities.
“Seismic processing and preliminary mapping of the recent Yulleroo 2D seismic survey has delineated leads nearby at Ungani, Big Red Roo, Jackeroo and Desperado,” he said.
“These leads are large, and potential reservoir volumes could be substantial, and justify the construction of Arc’s planned Great Northern Gas Pipeline designed to deliver gas to Alcoa in the southwest of Western Australia.”
Streitberg added that Yulleroo-2, as the final well in this season’s program, showed Arc was able to operate in the basin at a time of year when heavy rainfall usually restricts operations in the region.
“The previous wells in the program at Valentine-Stokes Bay and Valhalla have been extremely encouraging,” he said.
Arc Energy’s plans to merge with Anzon Australia came to an abrupt end yesterday, when Nexus Energy emerged in the bidding war with a superior offer that valued the Basker-Manta operator at $1.75 per share, compared with Arc’s $1.175.
Arc conceded defeat not long after the announcement was made, reporting that it does not intend to raise its offer.
