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ASX RELEASE 20 JUNE 2007
Eureka Energy Limited (ASX:EKA, “Eureka”
or “Company”)
SUGARLOAF 1 WELL PROJECT UPDATE
Since our last report on the 24 April 2007, about 15,000 feet of the high
pressure liner used to test the deep target, in the Sugarloaf-1 well has been
successfully recovered and the well has been plugged back above 14,000
feet.
Cased hole wire line logging of the possible gas pay zones discovered
during drilling in Cretaceous carbonates, indicates that the cement behind
the casing is of poor quality and does not provide enough seal to isolate the
gas zones for testing. Remedial cementation, involving serial perforation of
the casing and squeeze cementing, has commenced and is expected to take
up to three weeks to complete.
Fracture stimulation and flow testing of each of the three zones of possible
gas pay will then be undertaken.
Eureka has a 12.5% working interest in the Sugarloaf-1 well through its
wholly-owned US subsidiary Hosston Oil & Gas LP.
Further details of the Sugarloaf Prospect and associated farm-in terms are
summarised on our website at www.eurekaenergy.com.au which also
includes a brief review of the US gas market and fiscal terms.