Ann: Approval Granted for TP15 Xanadu Seismic Survey, page-63

Results

The reservoir of interest is the top section of the Irwin River Coal Measures (IRCM).  The Dongara Sandstone was not encountered at this well location, with the IRCM found directly below the base of the Kockatea Shale at 854mTVDSS.  Reservoir quality sand intervals were encountered throughout the IRCM with porosities generally ranging from 15% to 16%.

Three discrete sand intervals (“A”, “B” and “C”) at the top of the IRCM have log-derived hydrocarbon saturations in excess of 40%.  Fluorescence in rock cuttings observed while drilling and log-derived hydrocarbon saturations persist for 120m in sands below these upper zones but the lower intervals are water-bearing.  MDT pressure sampling has established a high confidence water gradient and water was flowed and sampled via a wireline tool from the “B” sand despite the high oil saturation. 

	Reservoir Unit	Gross True Vertical Thickness (m)	Net Sand True Vertical Thickness (m)	Oil Saturation	Porosity	Net Pay  (m)
1	“A”	7.7	4.6	66%	15%	4.6
2	“B”	6.0	2.8	46%	16%	–
3	“C”	4.3	2.7	41%	17%	–

Oil was pumped through from the “A” sand utilising the Schlumberger Saturn pressure and fluid sampling tool and three downhole samples collected.  Based on the wireline log data, pressure points and recovered fluid samples a lowest known oil depth of 871.8mTVDSS and a highest known water depth of 880.2mTVDSS have been established for the Xanadu Field.

Seismic data indicate that it is possible to drill an up-dip location which could allow the higher quality sand units deeper in the section to be penetrated above the inferred oil-water contact.  Erosion of the upper, poorer quality, sands on a structural high similar to observed at the Cliff Head Oil Field would further increase the chance of intersecting the oil column in better quality reservoir.

Excellent reservoir quality was also encountered in the High Cliff and Kingia Sandstone sections, although oil shows were not encountered in this interval.  This does provide future exploration upside, with evidence that oil has passed through this system.  These are the same reservoir units that host the Waitsia Gas Field operated by AWE Limited.

Results at Xanadu-1 indicate that the assumption of the producing Cliff Head Oil Field being the primary analogue are correct.  Cliff Head Oil Field has now produced over 15MMbbls.  Analysis of the oil samples obtained from Xanadu-1 is expected to substantiate this with oil assay results expected by the end of the week.