STX has announced an update on West Erregulla 4 well, encountering gas sands throughout the Wagina.
The well is currently at 4,248m and has encountered a gross gas column of about 206m with a net pay of 35-40m. This is thicker than what we were expecting verses WE2 and WE3 results with net pays of 10.2m and 6m respectively. Average porosities for 2 & 3 were slightly higher but WE-4 actual porosities will be confirmed by the additional wire logging which is now taking place.
The Wagina was encountered approximately 35m deeper than WE-2, which in our view could result in a thicker sandstone in the Kingia and High Cliff given the basin formation gets deeper to the south west.
If this is the case as indicated from the thicker sandstone sequence through the Wagina, the WE-4 well could result in the largest intersection of the Kingia to date. Remember the Wagina is only a SECONDARY target and has a Prospective Resource of 273 Bcf, which we would expect to convert to 2C post the WE 4 & WE 5 drilling campaign.
Positive news flow expected going forward
West Erregulla 4 - Results
30-40m net reservoir Yet to be tested Yet to be tested
206m gross gas column
Average porosity 6%
West Erregulla 2 - Results
Average porosity 10.2%
West Erregulla 3 - Results
6m net reservoir Yet to be tested Yet to be tested
150m gross gas column
Average porosity 10.6%
