balmore update

140708 Blamore 1 Pedirka Basin Drilling Progress Report
Blamore 1 is the first well in a planned 7 well programme in 2008 targeting prospective recoverable resources at “high” estimate of 260 Mmbbls oil and 2.4 TCFG gas and up to 105 BCFG Helium in conventional reservoirs as well as representing the first phase of exploration for 34-70 TCFG in prospective recoverable Coal Bed Methane resources. Please refer to earlier announcements for details of the 2008 exploration programme
Blamore 1 Report from 0600 hrs 8 July to 0600 hrs 14th July 2008
Drilling : Drilling ahead 1,291m in ?lower Algebuckina very fine grained sandstones and siltstones
Geology : Encountered interpreted top of Algebuckina Formation at c.983m RKB, +97m (high) to prognosis estimate.
Oil Shows : Oil shows were observed in samples over the interval 996m to 1017m in the ? top Algebuckina Sandstone . The shows were not accompanied by elevated gas readings or visual natural fluorescence, or streaming cut fluorescence but had slow developing cut fluorescence in medium to coarse grained sandstones with pale to dark brown residual oil staining. Residual oil shows indicate that a oil column of c.15m was present in the past but has subsequently dissipated by water flushing and/or other migration processes. No drill stem testing was recommended but the zone will be examined again during electric logging.
Total Depth : Planned total depth is 2,500m.
Targets : Prognosed primary reservoir targets are the Poolowanna Formation and the Tirrawarra Sandstone. The top Algebuckina Sandstone was a secondary target. Other horizons may have potential. Blamore is a wildcat well based on seismic interpretation. Prognosed formation top depths are being revised using new seismic parameters based on preliminary field wellsite interpretation and subject to ongoing revision as more data becomes available, particularly final electric logging. It is encouraging that field picks for formation tops are coming in higher than the preliminary prognosis.