In partnership with Sunshine Gas, Santos has been targeting the regionally extensive Walloon Coal Measure sequence in the Roma area.
The Pleasant Hills 21 well, as part of a four-well re-completion project, has been connected into the gathering system, with the gas being sold into existing contracts. Junior partner Sunshine said de-watering operations were continuing at Pleasant Hills 1A and 3.
“The initial drilling campaign is now complete with the successful evaluation of three core holes - Rowallon 3, 13 and 14,” Sunshine said.
“Full-hole cores were taken for coal desorption testing, which is now under way and should be complete within a couple of months.”
Santos holds an 85% interest in the project, which it also operates. Sunshine Gas has a 15% stake.
Meanwhile, Santos has entered a seismic option with Drillsearch to potentially earn a 60% interest in Chandos Block permit ATP-783P, southwest Queensland.
Santos will become operator and undertake a new 200 sq.km high resolution 3D seismic survey. It will then have an option to drill one or two exploration wells to Permian basement.
The Chandos Block, currently 100% held by Drillsearch, covers 1610 sq.km of the Cooper/Eromanga Basin. It is northeast of the township of Eromanga and about 50km northeast of the Tintaburra Block, where Drillsearch and Santos are about to undertake an oil development drilling program.
Drillsearch says the Chandos Block is prospective for oil. The 1966 Chandos-1 well recovered 3.9 barrels of 53 o API oil from a drill stem test in a good quality reservoir.
“Chandos-1 was drilled off-structure and recent studies have provided encouragement that there is additional oil at Chandos and possibly in other untested structures in the area,” Drillsearchsaid.
“Santos has leading-edge geoscience skills and is leading the way in an exciting new Cooper/Eromanga Basin oil drilling phase by emphasising 3D seismic to achieve better targeted wells and lowering drilling costs with new automated rigs."
Drillsearch said 3D seismic and detailed reservoir analysis had led to high rates of drilling success in the nearby Tintaburra Block.
If Santos exercises both of its drilling options the participating interests in the Block will be: Santos Limited (operator and 60%) and Drillsearch Energy Limited (40%).
