Boundary SE-1 is up-dip from the Boundary-1 well, which has produced 115,000 barrels of oil. The well was drilled to a depth of 1710m before the decision to abandon it was made.
Operator Golden Dynasty Resources said it plans to move the rig 6 to the Scrubby-1 location which will be drilled to a depth of 1250m. This prospect is a stratigraphic trap formed by the Winifred Shale draping over a sandstone erosional high of the Betty Formation.
As part of European Gas’ divestment program in the Canning Basin, Golden Dynasty has the right to earn up to an 80% equity in Terratek Drilling Tools.
Terratek is currently a wholly owned subsidiary of European Gas and the holder of exploration permit 129, Production Licenses L6 and L8 covering 1470 square kilometres, and also holds the rights to the Kolascai Oil Solidification Process, an environmentally friendly process relating to the prevention, control and remediation of oil spills.
European Gas is diluting its holdings in Terratek to 20%.
In addition to its equity interest in Terratek, European Gas will retain a 2% well head royalty in the permit and licenses, and a 5% gross royalty in the technology.
Golden Dynasty is the operator for the drilling program and is required to spend a total of $3.5 million in exploration expenditure and research.
European Gas also owns 28,700sq.km of leases in the Canning Basin that are in the process of being sold to Arc Energy.
