Worth reading the following info, timely reminder of how...

Worth reading the following info, timely reminder of how important the blackwood drill will be which is not that far:

Australia: MEO confirms Blackwood wildcat is formally declared a discovery well - 11 Mar 2008
MEO Australia Limited spudded the Blackwood-1 well at 1830 hours (ACST) on February 1, 2008 in the Timor Sea exploration permit NT/P68, in Australia. The rig has now successfully completed a series of logging runs, including the recovery of hydrocarbons to surface by MDT (Modular Dynamics Testing) down-hole sampling. Additionally, a number of core samples through the column have been obtained. The gas, core samples and log data are currently being analysed by specialist petrophysical contractors. Initial gas analysis conducted on the rig has confirmed that the gas is relatively dry and contains CO2 levels in the 25% to 30% range (very similar to Evans Shoal gas), which is eminently suitable for methanol production. Given the recovery of hydrocarbons to surface and strong electric log evidence of a hydrocarbon column in the Plover sandstone formation of the Blackwood structure, formal declaration of a discovery pursuant to clause 34 of the Petroleum (Submerged Lands) Act 1967 has been made to the Designated Authority. The Blackwood-1 well was drilled by Seadrill's West Atlas jack-up rig and the Blackwood-1 wildcat is being 100% funded as a sole risk, exclusive operation by MEO. The participants in the Blackwood-1 well are: TSP Arafura Petroleum Pty Ltd (MEO subsidiary) 50% and Oz-Exoil Pty Ltd (MEO subsidiary) 50%. MEO is focused on developing gas-to-liquids (GTL) projects in the Timor Sea Australia, in an area of shallow water known as Tassie Shoal. It has secured Commonwealth Government environmental approvals for two large scale (1.8 Mtpa) methanol plants (50% interest) and a 3 Mtpa LNG plant (100% interest), which are adjacent to the Evans Shoal gas field. Source: MEO



Two gas discoveries – Heron & Blackwood - were made within the permit in early 2008. These discoveries may support the future gas supply demands of the Timor Sea LNG Project (Heron) and/or the Tassie Shoal Methanol Project (Blackwood), subject to successful appraisal drilling results.

Heron-2 was drilled by MEO into the Heron North structure in 2007/08. Operational difficulties caused drilling to cease prematurely, without encountering a gas water contact (GWC). This leaves the potential for the interpreted gas column to extend another 210m below the base of the Heron-2 well to the interpreted structural saddle that spills to the nearby Evans Shoal gas field. Most of the discovered gas fields in the region are filled to their structural spill points. Heron-2 flowed gas to surface during an open hole drill stem test (DST) during which the hole bridged off immediately below the uppermost sand interval being tested, precluding any contribution from deeper in the hole. The gas quality recovered during the DST was inconsistent with more liquids rich gas observed
in the mud returns while drilling the lower section of the hole.


Blackwood-1 was drilled in early 2008 targeting Elang/Plover formation sands. Pre-drill expectations were for 1,461-2,572 Bcf of in-place gas resources expected to contain moderate to high levels of CO2, suitable for methanol production.A 49m gross gas column was interpreted from wireline logging data and MDT formation pressures. Dry gas with 25-30% CO2 similar to Evans Shoal gas was recovered to surface. The recovery of hydrocarbons to surface enabled MEO to declare a gas discovery at Blackwood. Immediately following the discovery, MEO acquired approximately 384 km of 3D seismic data over part of the structure. Further appraisal drilling is required to ascertain the areal extent of this accumulation and the distribution and variability of reservoir quality. Contingent upon successful
appraisal drilling results, Blackwood may contain sufficient gas to underpin the first of the approved methanol plants.

Source:

http://www.energy-pedia.com/news/australia/meo-confirms-blackwood-wildcat-is-formally-declared-a-discovery-well

http://www.meoaustralia.com.au/content/Document/Exploration%20Permit%20NTP68(1).pdf