Located in PEL 106 only four kilometres from an existing pipeline, Smegsy-1 has returned significant rates of flow from the Patchawarra formation reservoirs during current production testing.

Initial clean-up flow from the lower zones – 2783.5 to 2795m and 2796.5 to 2806.3m – flowed gas to surface through a 40/64 choke initially at a rate of 7.6 million cubic feet per day reducing to 4.9 million cubic feet per day with condensate and water.

But no separator was on site at the time of this initial flow and further testing will be undertaken later this week to determine stabilised flow rates and the composition of the flow.

A 12-hour flow test of the upper zone – 2734-2741m – conducted over the weekend produced gas-to-surface at a stabilised rate of 8.3 million cubic feet per day through a ¾-inch choke with a surface pressure of 950psi and associated condensate and water each of about 60 barrels per day. This zone has been shut in for 36 hours for further pressure build-up tests.

This is Enterprise Energy’s first cooper basin well since it listed on the ASX earlier this year, according to managing director Warren Leslie.

“This is an important outcome for such a young exploration company and subject to further testing we are now confident of gas revenues within 12 months,” Leslie said.

Meanwhile Great Artesian Oil & Gas Ltd has shifted its business office to new premises. The new office is at: Level 2, Walker House, 161 Walker Street, North Sydney, NSW 2060. Contact details: (Tel) 02 9929 3383, (Fax) 02 9929 3883.

For more details visit: http://www.greatoil.com.au/. For general enquiries contact admin@greatoil.com.au. For technical enquiries e-mail rayshaw@greatoil.com.au or normzillman@greatoil.com.au