PANCONTINENTAL OIL & GAS NL 2002-05-24 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++ PEP 38330, EAST COAST BASIN PANCONTINENTAL: 33.22%
The operator has advised that at 06.00hrs today Waingaromia 2 was at a depth of 369.5m in HQ (96mm) diameter hole and stabilising the hole after encountering a second zone with high gas readings.
Core from the zone which flowed gas to the surface yesterday has been recovered. The interval 347.5m to 348.3m consists of a brecciated or fractured micritic limestone with open fractures and voids.
On stabilising the hole, coring will continue towards the deeper main objectives of the well. The gas flows and earlier oil shows have been positive indications for the prospectivity of this well.
The balance of section to 369m is (lower Mid Miocene age) mudstones with minor tight siltstones and tuffaceous sandstones.
Waingaromia 2 will be continuously cored to a minimum depth of 500 metres. The 1880's Waingaromia 1 well reached a total depth of 402m. Below that depth, additional sandstone reservoirs are predicted based on the local stratigraphy.
Continuous cores will provide detailed geological and reservoir parameter data to assist in any production and development decisions. These core data will be of immeasurably higher quality than that obtained in the 1880's Waingaromia 1 well, drilled using the percussion drilling technique.
Potential, most likely, recoverable oil reserves of the Waingaromia prospect, based on the trap size determined by the seismic survey conducted in 2000, an estimated at 10 million barrels for the sands intersected by the Waingaromia 1 well.
Pancontinental Oil & Gas NL and Indo-Pacific Energy Ltd have farmed out a 10% interest in PEP 38330 to Sun Resources NL. Sun is contributing 20% of the dry hole drilling costs of Waingaromia 2 to earn 5% from each of Pancontinental and Indo-Pacific.
Operation since last report: Controlled gas kick at 347.5m, circulated heavier mud, stabilised hole, cored ahead. High gas at 369.5m, circulating hole.
Drilling Rig: Century Drilling: - Rig 45.
Proposed minimum total depth: 500 metres.
Primary Objectives: Sandstones, limestones and conglomerates of Lower Miocene age from 143m to TD.
Hydrocarbon indications Gas kick at 347.5m, flow diverted since last to surface flare line, flare flame report: measured at 5.0m. High gas readings at 369.5m.
Note: All reported depths are referred to the rig rotary table (mAHBRT).
(*ASX listed) Participants in the PEP 38330 Equity % Joint Venture are:
*Pancontinental Oil & Gas NL (through subsidiary Euro Pacific Pty Ltd) 33.22%
Indo-Pacific Energy (NZ) Ltd (Operator) 34.28%
*Origin Energy Resources NZ Ltd 22.50%
*Sun Resources NL (1) 10.00%
(1) Subject to completion of farmout obligations and Government approvals.
PEP 38716, TARANAKI BASIN PANCONTINENTAL: 6.6%
Pancontinental Oil & Gas NL has been advised by the operator that at 0600 hrs, 24 May 2002, Huinga-1B was pulling out of the hole for a new bit at a depth of 3936 metres.
Mud gas shows, several multiples above background, with readings up to C5 (pentane), continue to be recorded down to the present depth, with weak fluorescence and cut again noted in several zones down to the current depth. Although these shows may not represent specific hydrocarbon accumulations, they are positive indications for the prospectivity of the well.
The well is being drilled to intersect the Tariki sandstone objectives at a depth of approximately 3900 metres, and has a planned total depth of 4250 metres. The well has been deviated to intersect the Tariki and Kapuni formations some 500 metres to the west of the surface well collar. Drilling of Huinga 1B is expected to take 45 days from spud.
The operator has estimated that the potential mean recoverable reserves for the Tariki Sandstone reservoirs in the Huinga prospect are 46 million barrels oil and 161 billion cubic feet gas. A discovery of this magnitude would add significant value to the Company.
PEP 38716 hosts all or part of three structures related to the eastern bounding fault of the Taranaki Basin, all being similar to that of the major Rimu/Kaurioil and gas discovery 18 kilometres south which is currently under development. The structures are named Huinga and Huinga South, both entirely within the Permit, and Makino, which is partly within the Permit but mostly within PEP38728, which adjoins to the south. The primary producing zone of the Rimu/Kauri fields are units of the Tariki Formation.
Of further encouragement was the presence of a 30 metre gross/6 metre net, hydrocarbon column in Kapuni Formation sands immediately below the basement thrust, in the recently drilled Makino 1 well. The Huinga well is expected to intersect the Tariki reservoir section considerably "up-dip" (at a shallower structural depth) to the Makino 1 well. Four kilometres immediately to the west of Huinga are the Tariki and Ahuroa oil and gas fields which produce from the Tariki formation.
Operation since last report: Drilled ahead in 216mm hole from 3776m to 3936m.
Drilling Rig: Parker Rig - 188.
Proposed Total Depth: 4,250 metres.
Primary Objectives: Sandstone units of the Tariki Formation at 3900m.
Secondary Objectives: Sandstones units of the Kapuni Group at 4080m.
Hydrocarbon indications Mud gas shows up to C5 in numerous since last intervals down to 3936m, with weak report: fluor & cut in some shallower intervals.
Note: All reported depths are referred to the rig rotary table (mAHBRT).
(ASX* listed) Participants in the PEP 38716 Equity % Joint Venture are:
*Pancontinental Oil & Gas NL (through subsidiary Euro Pacific Pty Ltd) 6.6%
(20min delay)
