Leading resources company, Mineral Resources (ASX:MIN) has provided an update on the Lockyer-5 conventional gas development well (L-5) in the Perth Basin, Western Australia.
A sidetrack drilled to a depth of 4,574 metres measured depth relative to the rotary table (MDRT) intersected the Kingia Sandstone at 4,424 metres MDRT.
An analysis of Lockyer-5 Sidetrack-1, wireline logs revealed 27 metres of net gas pay with 18% average porosity, marking the highest quality reservoir discovered in the onshore Perth Basin – according to the company.
But the market didn’t think so – shares were down nearly around 11.30am AEDT.
By the end of lunchtime trades, MinRes had sunk -2.34% to $68.07.
Further preparations are underway for a well test scheduled in early April 2024 to assess gas flow rates and composition.
Located 1.8 kilometres northwest of North Erregulla Deep-1 (NED-1), L-5 is the fourth of 10 planned wells for MinRes’ Lockyer Conventional Gas Project.
Following completion, the rig moved to North Erregulla-2 (NE-2) to appraise the 47 metres net oil pay in Dongara-Wagina Sandstone encountered in NED-1. Initial analysis showed high-quality oil with a 13% average porosity.
The NE-2 pay zone will be fully cored, followed by a comprehensive suite of wireline testing and a flow test to further discover and exploit the full oil potential in the region.
So far today shareholders have not responded favourably to the news
MIN shares were down 2.2%, last traded at $68.07, at 12:50am AEDT.