The company plans to re-enter Trifon-2 in PEP157 using non-invasive drilling mud, which was successfully used on Wombat-2. A full study of Trifon-1, 50m away, has already revealed eleven zones which Lakes believe will react positively to fracture stimulation.

Fracturing of the reservoir will require a fluid, probably a mixture of diesel and crude oil being forced into the formation at enormous pressure thus causing the reservoir rock to fracture. At the time these fractures are held open by fluid pressure, a “proppant” of tiny ceramic beads will be injected to stop the fractures from closing, after the pressure is released.

The next well, North Seaspray-3, was originally drilled in May 2000 and flowed gas to surface at 125,000 cubic feet per day. In May it was re-entered and returned a significant gas show. The North Seaspray-3 program will now be restarted in the fourth quarter of 2004 after completion of the Wombat and Trifon programs. At that time a coiled tubing unit will be brought on site and the well will be extended up to 300 metres horizontally.

The drilling will be carried out “under-balanced” to avoid damaging the reservoir and to maximise gas flow into the well bore. The principle of horizontal drilling is to expose a greater surface area containing gas to the well bore. In many cases several metres are replaced with hundreds of metres which can obviously have a substantial effect on gas recovery rates.

A work-over rig is due on site at Wombat-2 in the first week of July 2004 to address the zone between 1375 - 1395 metres which is currently open. Cement will be squeezed into the open perforations. When previously tested the zone selected flowed gas at a rate of 470,000 cubic feet per day.

After Wombat-2 has been completed the work-over rig will move to the Wombat-1 site. A total of 90 metres of the previously drilled well is currently open; this is made up of three producing zones. Initially Lakes will try to isolate the top reservoir of these zones from the other two, in an effort to eliminate the minor water influx which is observed in the production tests.

On opening, this well has continued to flow gas plus oil/condensate and is capable of a sustained gas rate of 200,000 cubic feet per day, which is below an economic threshold.