SHG Working Interest 50% (Samson 50% and Operator)
Due to recent heavy rain in the area of the proposed Overston 2 well, the clearing of the site has been delayed and will commence as soon as the ground dries out enough to move in the heavy equipment.
The Century drilling rig is currently in Roma and mobilisation to Overston 2 is waiting on the site to be cleared. At this point in time Sunshine Gas is anticipating the spud of Overston 2 to occur in the latter half of February although this is still dependant on the weather.
The location of Overston 2 has been selected approximately 1 kilometre to the south of Overston 1 using the recently acquired 3D seismic data.
Overston 2 will appraise two principal zones of interest. These comprise the Showgrounds Sandstone and the Tinowon Sandstone both of which were gas charged in Overston 1. The Tinowon is proposed to be drilled with air/nitrogen. Overston 1 reached a Total Depth (TD) of 2,987 metres. The well intersected several gas shows from ~1,200 metres to TD. In particular, significant gas shows were recorded in the Walloon Coal Measures, the Showgrounds Sandstone, the Blackwater Group and the Tinowon Sandstone.
SHG carried out a quantitative wireline log interpretation for Overston 1. Gross log pay intervals for the Showgrounds and Tinowon sections of 25.5m and 12.9m and net log pay intervals of 24.2 m and 8m were calculated respectively.
After drilling Overston 1, SHG commissioned an Independent Expert Report on the potential of the Overston feature. This report calculated a mean gasin - place of 137 billion cubic feet.
SHG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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