BG Webb-1 drilled a further 95 metres of the deeper “K” sand gas target which consists of shales with intervals of sands.
Joint venture partner Victoria Petroleum described the shows as “very encouraging”.
“They have the potential to add more gas reserves to those already drilled and seen on the wire line logs,” managing director John Kopcheff said.
“Wire line logs to be run in about 5 days time will evaluate the full potential of these new gas sands.”
A gas show and associated rapid increase in drilling rate of penetration was recorded from 3,554 metres to 3,565 metres with peak total gas of 1.7% at 3,557 metres and 5.5% after a hole deviation survey at 3,565 metres. Before the gas show, background gas was in the range 0.3% to 0.4% total gas.
This gas show occurred in a sand over a 20 metre interval from 3,545 metres to 3,565 metres. Another sand was intersected from 3,589 metres to report depth of 3,620 metres with background gas increasing to 0.9%.
Although encouraging, the significance of the gas show will not be known until wire line logs are run after the well reaches total depth.
The final six-inch diameter section of the well is now drilling through the deeper “K” sands targets to the proposed total depth of 3,810 metres. If further gas sands are encountered, further casing will be run prior to an extensive testing program.
“We are very pleased that the drilling results and wire line logs from the BG Webb-1 well to date are meeting our pre-drill recoverable gas reserve estimates with between 75 to 100 billion cubic feet of deeper gas potential proved by this well so far,” Kopcheff said.
“Additional reserves may be anticipated should the “K” sands yet to be drilled be gas bearing. We are looking forward to drilling another 500 metres through the “K” sand target zone to possibly prove more “K” sand gas reserves in this well now that we have started drilling again.
“As a bonus, there is a strong chance of a further potential 100 billion cubic feet of gas being present on the northern flank of the field.”
The joint venture’s expectation of proving 160 BCF of deeper recoverable gas reserves in the western half of the Flour Bluff gas field underlying the current shallow gas reserves of 92.5 BCF was well on track and could be exceeded, according to Kopcheff.
“We are very excited about the impact a successful BG Webb-1 well will make first up on the Flour Bluff gas development project,” he said.
“Success here will prove the concept that major gas reserves of up to 227 billion cubic feet are sitting under this western part of the currently producing shallow gas field.
“Total potential gas reserves of up to 300 billion cubic feet of gas in all categories are considered possible for the whole field based on the operator’s mapping. This is a very significant amount of gas to prove up in a hungry energy market like the US that is paying gas producers four times the price of what gas producers receive in Australia.”
The Flour Bluff partners include various US private interests, as well as ASX-listed companies Victoria Petroleum, Sun Resources and Tony Barlow Australia (soon to be renamed Aurora OIl & Gas). The Australian partners each have a 12.5% stake in the project.
