Designed to appraise the Kiana oil field, Kiana-2 was drilled with the Century Rig 3 to address a potential 520,000 barrels (mean) to 870,000bbl (1P) of recoverable oil.
But Great Artesian yesterday said the third drill stem test over the Patchawarra interval 1878-1892m in Kiana-2 only recovered 60bbl of muddy water and four bbl of mud, with no hydrocarbons.
It said based on the drill stem test and further wireline log evaluation, the joint venture has concluded that the Kiana oil field does not extend west of a fault lying between Kiana-1 and Kiana-2.
JV partners had hoped results from the well would provide more information on the physical extent of the Kiana oil field by testing a local structural high (sub-culmination) about 600m to the west-southwest of Kiana-1.
“The failure to find hydrocarbons at the Kiana-2 location doesn’t materially downgrade reserves known to be associated with Kiana-1 and future appraisal/development plans will now focus on the area east of the fault,” Great Artesian said.
Kiana-2 will now be plugged and abandoned and the rig moved immediately to Keeley-1, a gas/condensate exploration target located about 8km west-northwest, it said.
Great Artesian said Keeley-1 would test a combined Permian anticlinal and stratigraphic trap in the southern Patchawarra Trough of PEL 107.
The Keeley prospect, which coincides with a robust anticlinal closure, is considered prospective because of its similarities with the Raven gas field, 10km to the northwest.
Great Artesian said volumetric estimates put Keeley’s potential mean recoverable reserves at about 10 billion cubic feet of gas, with a maximum potential of about 29Bcf if stratigraphic trapping is also involved.
The primary reservoir objectives in Keeley-1 are sandstones of the Patchawarra Formation reservoirs.
Great Artesian said Keeley-1 is likely to take about 16 days to drill and is planned to have a total depth of about 3023m. Subject to current operations at Kiana-2, it is expected to spud early next week.
Beach Petroleum, Great Artesian and Magellan discovered the Kiana oil field last year, when the Kiana-1 discovery well flowed about 1100 barrels of oil per day (bopd) on drill stem test. The well was subsequently put on extended production testing and up until the end of July had produced more than 72,000bbl of oil from two Patchawarra Formation sandstone intervals.
Currently it is flowing about 400bopd on artificial lift from the uppermost of the two producing zones, with production from the second zone to restart shortly.
Beach holds a 40% working interest in Kiana, while Great Artesian and Magellan each own 30%.
