KEY Energy has finilised the drilling of its Cyrene-1 well by a...

KEY Energy has finilised the drilling of its Cyrene-1 well by a report today. No conv. target success was a achieved but there is some hope for 135m thick Goldwyer section. Hence the sp of KEY is down from 3c two weeks ago to 1.5c today. (Buru also down to $2.16 about 5.5%)

From KEY's anns today:
"Whilst we are disappointed that we didn’t see the quality reservoir development that we expected at the Cyrene-1 location, a full suite of data from the Goldwyer Formation was obtained to understand the full potential of this Goldwyer Formation play"

The secondary target was an anticline in the Willara formation (under Goldwyer) as you can see on the seismic section graphic below. There was about 5m barrel of oil trap expectation in that section. But nothing was found.

The Goldwyer section was 135m thick and has given live oil indications (up to C5) however the TOC (total organic carbon) levels are not good enough (frequently averaging 1.5-2%). They will look for the opportunities to extract this oil from the Goldwyer shales. But I think it should be the first priority to understand if the live oil is generated in this section of Goldwyer or it was migrated long distances from the deep kitchen of Canning Basin (Kidson Sub Basin) which is the theory I believe.

You can see more details on my old post (Source: “bru vs nse geology”)