Ann: Monthly Drilling Report - January 2014 , page-2

Key points
? 17 of 19 oil wells drilled in FY14 to date cased and suspended for future production and testing, representing a success rate of more than 89%
? Acrasia-8 appraisal well in PPL 203 cased and suspended after intersecting 29.8 metres of net oil pay across multiple horizons
[yep that is nearly 30 metres net]
? Spitfire-4 appraisal well in PEL 104 cased and suspended after intersecting net oil pay of 13.8 metres in the Birkhead Formation
? Growler-12 appraisal well in PPL 242 cased and suspended by Senex for production testing after intersecting an oil-saturated interval in the Birkhead Formation
? Mirage-5 appraisal well in PPL 213 cased and suspended as a future oil producer, intersecting 12.1 metres of net oil pay in the Murta Formation
? Rigs drilling ahead on Snatcher-11 on the western flank and Mirage-6 in the south

OIL EXPLORATION, APPRAISAL AND DEVELOPMENT
Senex Energy Limited (Senex, ASX: SXY) continued its successful FY14 oil drilling campaign in January, with all four wells drilled during the month to be cased and suspended for further testing. Since 1 July 2013, Senex and its joint venture partners have drilled 19 oil wells and 17 have been cased and suspended for future production and testing.

Acrasia-8 appraisal well (PPL 203: Senex 100%)
The Acrasia-8 appraisal well was cased and suspended in January 2014 after intersecting 29.8 metres of stacked oil pay (Figure 1). Interpretation of wireline logs indicates more than 5.1 metres of net pay Birkhead Formation sandstones, 13.6 metres of net pay in the Hutton Sandstone, 10.7 metres in sandstones of the Poolowanna Formation and 0.4 metres in Tinchoo Formation sandstones.
Senex began drilling the Acrasia-8 appraisal well on 30 December 2013 as a follow-up well to the successful Acrasia-6 appraisal well. The well, which is co-located on the Acrasia-6 well pad, was drilled as a directional well and reached total measured depth of 2,525 metres on 22 January 2014.
Acrasia-8 was primarily designed to drain un-swept oil in the Poolowanna oil pool and provide an additional drainage point to accelerate oil production from the Hutton Sandstone. The secondary objectives were to access the Birkhead Formation and test the extent of the upper Tinchoo sandstone oil accumulation intersected by Acrasia-6.

Spitfire-4 appraisal well (PEL 104: Senex 60% and Operator)
Ensign Rig 48 commenced drilling the Spitfire-4 appraisal well on 9 January 2014 to appraise the intra-Birkhead sandstone which is the productive reservoir at the nearby Spitfire-2. The well is located approximately 500 metres north west of Spitfire-2, which was drilled in 2012 and intersected an interpreted net pay of 6.5 metres.
Ensign Rig 48 reached total depth of 1,808 metres on 14 January 2014. Interpretation of wireline logs indicates Spitfire-4 intersected a 20.8 metre gross sand interval within the Birkhead Formation, with 13.8 metres of net pay, five metres higher than in Spitfire-2. The well will be completed for production in the Birkhead Formation.
The Spitfire oil accumulation now extends for more than one kilometre from Spitfire-4 to Spitfire-1. Subject to joint venture approval, development drilling will be undertaken to optimise recovery from the field.

Growler-12 appraisal well (PPL 242: Senex 60% and operator)
Growler-12 is located 1,400 metres northwest of Growler-3 and was designed to appraise the extent of intra-Birkhead reservoir north of the main Growler field.
Growler-12 spudded on 17 January 2014 and reached a total depth of 1,877 metres on 24 January 2014. The well intersected approximately 6 metres of porous and permeable rock in the Birkhead Formation with good oil shows above the field oil-water contact. However, petrophysical interpretation of the wireline logs could not confirm net pay and it is expected that the section contains poor to moderate quality reservoir.
Senex has cased and suspended the well for production testing at its sole risk. This is consistent with the stated objective of increasing reserves by investigating opportunities to produce from non-traditional reservoir types.
Senex will use Growler-12 to trial the latest in drilling and production enhancement techniques that may be applicable to other nearby wells, which contain oil in the Birkhead Formation.
Mirage-5 appraisal well (PPL 213: Senex 100%)
The Mirage-5 appraisal well was cased and suspended as a future oil producer in January 2014 after intersecting 12.1 metres of net oil pay in sandstones of the Murta Formation.
EDA Rig 3 began drilling well on 4 January 2014 and reached total depth of 1,670 metres on 25 January. The well was designed to evaluate the southern extent of the Mirage oil field, which produces from the Murta Formation.
Mirage-6 appraisal well (PPL 213: Senex 100%)
EDA Rig 3 is drilling ahead on the Mirage-6 appraisal well, which is designed to test the south-eastern extent of the Murta Formation in the Mirage oilfield. The well spudded on 1 February 2014 and is targeting total depth of 1,456 metres.
Snatcher-11 appraisal well (PPL 240: Senex 60% and operator)
Ensign Rig 48 spudded the Snatcher-11 appraisal well on 31 January 2014. The well is designed to appraise the northerly extent of the Birkhead Formation channel approximately 430 metres to the north of Snatcher-9, which intersected 11.2 metres of net pay. The well is targeting total depth of 1,869 metres.