the future,, page-25

Back to the future!
Just pausing for a moment on Helium which I agree is exciting but what ever is found santos has a huge slice of it.
Then on the other hand back to the Amadeus and happened to dig up a little goss from Patto's on the old Johnstone west debacle 7.10.10 which has been recently described as a ontender for fraccing and horizontal drilling so all that money to drill it may not be in vain.
I still am amazed at the forsight of JH and a couple of mates who went out there in 1999 when oil was less than $30 a barrel ...like what a visionary, a contrarian and just a really gutsy effortas all told him there is nothing there and oil just dont cut the mustard anymore! Very dissapointing in a way for him as I imagine he aches over the santos deal at $5 an acre (so do I) and more so of the coal for $1.8 mill but then even JH knows we are now on the way and for that pain I guess he would tip his lid to RC
Interesting the oil there at Johnstone West comes from upstream and Surprise is just one spot on the river by what I understand.

Anyway here tis! 7.10.10
In their report, Patersons Securities said that Central Petroleum has advised that the flow test of the Johnstone West-1 well has failed to produce oil to the surface.

CTP had previously reported that the logging interpretation at JW-1 had confirmed a continuous hydrocarbon column from 1387m to 1525m (128m), a continuous gross oil column from 1387m to 1485m (98m) in the Stairway Sandstone and a 14.1m net potential oil column at the base of this sandstone.

Logging identified a net average porosity of 11% and permeability in excess of 33 millidarcies, which provided encouragement that a flow test would produce a flow to surface.

The Johnstone West-1 was the second well in the 2010 program, testing a high estimate of up to 400mmbbls of UOIIP (P10 basis) in multiple target zones and additional shale zones of interest.

Despite the encouraging logging interpretation, the subsequent flow test did not produce oil to the surface.

Impact

The results of the logging and flow test are under review and the well has been suspended for further evaluation. Despite the disappointing flow test, the presence of a net 14m oil column is significant. Given what appears to be a tight and low permeability reservoir, flow may be achieved via the use of horizontal drilling.

The properties of the reservoir are reportedly very similar to the nearby Mereenie Oil field in which some wells also had challenges flowing surface.

The rig has been released and will relocate to drill the Surprise-1 exploration well, located 8km south-southwest of JW-1. Any oil migration from the oil kitchen to the greater Johnstone structure would need to have passed through S-1, hence the recent oil discovery provides encouragement for successful result. Oil in place (mean case) is estimated at 6mmbbls.

The intersection of oil in the JW-1 well provides encouragement for further success in the company’s large exploration portfolio across the Western Amadeus basin, with a commercial success to provide considerable value.