The program, to include at least seven wells, coincides with Enterprise’s expectation it will become a gas producer in the first quarter of next year.
“We are beginning 2006 with our largest drilling program since listing on the ASX last year, for both discovery and development,” Enterprise Energy managing director Warren Leslie said.
“Not only have we a significant and virtually non-stop drilling program ahead of us for the next six months, but we will also be bringing to account our first revenue streams from the Smegsy gas discovery.”
The Rossco-1 oil exploration well, in which Essential holds a 12.5%, is expected to reach a total depth of 3,000 metres in the Patchawarra Formation in about 21 days, the company said.
This is the first of a new four well program with Great Artesian Oil and Gas Limited to be conducted on structures near the Smegsy gas field.
Two of the three remaining wells will target oil while the third will target gas. The second well, Udacha-1, an oil target, will be drilled immediately after Rossco-1. The other two wells are scheduled over the next few months, it said.
On or about December 31, Enterprise Energy will join Cooper Energy in drilling the Fairbridge-1 wildcat targeting oil in PEL 100. Enterprise holds a 10% stake in the well.
This would be immediately followed by the Strickland Bay-1 oil target well in the same block, it said.
A third well with Cooper Energy, the PEL 88 Geordie-1 oil target, is likely to be spudded during the first half of 2006, Enterprise said.
This intensive drilling program has been funded by the company’s recent A$2.5 million capital raising, according to Leslie.
Under an agreement with Great Artesian, Enterprise Energy is funding 25% of the cost of each of the four wells in PEL-106 to earn 12.5% of any hydrocarbons discovered.
Enterprise recently signed a gas sales agreement with the South Australian Cooper Basin Producers, covering output from Smegsy-1, five kilometres south of the Rossco structure being drilled today.
Construction of the 4km tie-in pipeline from Smegsy-1 to the main Moomba grid is due for completion and connection early in the new-year, it said.
Enterprise Energy has participated in the drilling of five wildcat exploration wells since its May 2004 ASX listing.
Currently, the company produces small quantities of oil from the Yellowbank Creek-4 well in its Queensland interests in the Surat Basin. Three other fields, Thomby Creek, Louise and Narrows, in areas where the company can earn interest, remain shut-in, it said.
