Since last report on Thursday October 11th, drill pipe...

Since last report on Thursday October 11th, drill pipe conveyed
logging has been conducted. Drillpipe conveyed logs rather than
wireline logs have been run to TD due the angle of the well and
hole condition.
Preliminary interpretation of these logs indicates:
a) The Anderson Sands have some zones with potential oil
saturations. The commercial significance of those zones
will require formation testing to evaluate. Testing of the
Anderson zones would follow operations to evaluate the
deeper Nullara Formation. A joint venture decision on
testing of the Anderson awaits availability of the test
program and any relevant information to be derived from
testing the Nullara Fm.
b) The top of Nullara Formation has been interpreted at
2722m MD. Below 2732m MD, the log quality is severely
degraded by interpreted large scale vugular porosity such
that quantitative interpretation is not possible.
In addition to earlier reported drilling fluid (mud) losses into the
Nullara section there have been continued losses while
conditioning the well for logging and preparing to case the hole.
Because of the losses and subsequent lack of mud and cuttings
returns, there is no indication of fluid content in the Nullara
porous section. As of 0600 today the wellbore is now properly
stabilised and the forward plan is to run 178mm (7”) casing prior
to testing the Nullara Formation.
While the loss of mud to the Nullara Fm has created operational
difficulties that have now been overcome, we are encouraged by
the presence of both porosity and significant permeability in the
Nullara reef section. Development of vugular porosity in this
section is a well recognised play, having previously been the
target of exploration in the Basin, and we note that it is host to oil
production at Blina some 100km to the SE.
The planned test of the Nullara Formation will determine fluid
type and flow characteristics of the reservoir. The Stokes Bay
intersection of the Nullara Fm is 80m up dip of the Pt Torment 1
intersection which did not have the vugular porosity developed,
but nevertheless tested gas at low rates.