Lockyer

From Empire's website:

Subject to securing a suitable farm in partner, Empire is anticipating the Lockyer Deep-1 prospect could be drilled in the last half of 2016.

This large prospect is located on a trend which was proved oil bearing by the vintage North Erregulla-1 and Lockyer-1wells at the Dongara Sandstone level. The deeper stratigraphic levels were not drilled down to and remain untested. Adjacent to the west of EP 368, a major gas find was announced at the Waitsia Field by operator AWE, in the Permnian age Kingia/High Cliff sandstone. AWE also reported the presence of conventional reservoir, quality sandstone as far east as the Irwin-1, very close to the western boundary of EP 368. AWE has reported publically that the Waistia discovery not only opens a new play in the Perth Basin but represents the most significant gas discovery in the Basin since the large Dongara gas field was discovered in the 1960’s.

The new Kingia/High Cliff play has not yet been tested further east and into EP 368 or EP 426 operated by Empire. Lockyer Deep-1 will be drilled to test the deeper Kingia/High Cliff sandstone not drilled to by Lockyer-1, to determine if the play is present in Empire’s acreage. The oil potential of the previously discovered Dongara sandstone oil pool will also be investigated by acquiring core.

They note in the September 2015 Good Oil Conference presentation that Lockyer Deep:

* Targets 25-134, mid/best case 58 Bcf
* Medium risk high impact well
* Drilling mid 2016 subject to funding
* Contingent rig slot secured.

I think we will learn more about Lockyer towards month end in the Quarterly Report.   Value is not really discussed in the Hartley's report (of 15th January 2016), and is lumped into "other" ($10m risked value).  I suspect that spuddig of Lockyer will add more than the 8.93 cents per share that Hartley's have accounted for.

Watch this space.


Regards