Project Profile
Value: US$2.5 million (for Moreys 1 well only)
Location: Onshore Otway Basin, Victoria
Lakes Oil and Armour Energy started drilling Moreys 1 (potential gas well) located in PEP 169, onshore Otway Basin, Victoria, commencing 18th April 2012. The conventionally drilled well is expected to reach target depth in approx in middle of May 2012. The Moreys Prospect is a small, tilted fault block that straddles the border with adjoining permit PEP 168. It is located along a known WNW trending hydrocarbon fairway with nearby gas fields located to the west and east and an existing gas pipeline within 1 km. Known gas fields in the vicinity of the Moreys Prospect have significant AVO and amplitude anomalies at the Waarre ’C’ level. Similar signatures can be seen over Moreys Prospect.
The AVO study completed over the prospect area from the re-processed 3D seismic data has resulted in significantly enhancing the prospectivity and decreasing the risk of the prospect. The prospective resource has been upgraded from one small tilted fault block that also has an upside out to the edge of the amplitude anomaly. A P50 Waarre ’C’ prospective recoverable resource for the structural closure in PEP 169 is estimated to be 7 - 9 BCF. In addition, based on seismic and AVO mapping of the entire feature located in PEP 169 only (Waarre ‘C’ plus Flaxmans), the P50 prospective recoverable resource is estimated to be 46 BCF. Preparation and planning for drilling started in April 2012.
Drill Stem Test 2 (DST#2) conducted over the interval 1985.5 - 1995.5 metres flowed gas to surface before fading out. In addition, upon reverse circulation, condensate was recovered and is currently being sent for analysis. In Moreys-1, multiple tight gas sands were encountered throughout the Eumeralla Formation, with the best zone being the interval between 1985.5-1995.5 metres. Moreys-1 is being funded by Armour Energy Ltd to a cost of US$2.5 million to earn a 51% interest in PEP169.
Operators:
Lakes Oil: Operator with 49% interest
Armour Energy: 51% interest