First Carter Well A SuccessSydney - Monday - August 20: (RWE...

First Carter Well A Success

Sydney - Monday - August 20: (RWE Australian Business News) - Westralian Gas & Power Ltd (ASX:WGP) wholly-owned subsidiary Sunset
Energy LLC has completed the first of its wells on the Carter Lease.

The Carter-24 well reached a total depth of 377 feet (115m) and intersected oil at 347 feet (106m) and 367 feet (113m).

The well will be treated and put on pump by the end of the week.

The producing horizon is the Granville Sand and was delineated using results from the seismic survey recorded late last year.

The Granville Sand is known to produce oil in the range of 5 to 10 barrels per day over many years.

Several wells in the lease are still producing after 30 years of production, although only at one barrel a day.

Shallow Granville wells cost in the vicinity of $US12,000 to drill and complete and with a US oil price of $70+ the company will recover its initial drilling costs within two months of the start of production.

The rig has now moved to the Carter-26 well site and will start drilling on Monday morning, US time.

Carter-26 is located 800m northwest of Carter-24.

Two further wells are planned for this lease before the rig is moved back to the Riddle lease to drill Riddle-13 and 14.

Riddle-11 continues to produce oil under pump around 40 barrels a day and work is continuing on the wells drilled recently to bring those, which have had good shows of oil, into production.

The existing production wells on both Stockton and Carter continue to contribute small volumes of oil to the inventory.