Perth, Oct 7, 2008 AEST (ABN Newswire) - Empire Oil & Gas (ASX:EGO)(PINK:EOLGF) announce an update on the drilling of the Lake MacLeod-1 well, Gascoyne Sub Basin, Carnarvon Basin, Western Australia.
The Company, upon installing the 340mm Conductor Pipe at 26 metres, drilled ahead during the period on 2 October to 1800 hours 6 October, 2008 to a depth of 151 metres. The rig was pulling out of the hole to run and cement 244mm casing when circulation was lost at 50 metres in unconsolidated sands coming into the wellbore from this 50 metre zone with the drill bit at 90 metres.
As of 1800 hours 6 October 2008 equipment is being fabricated to wash out the sand. Upon a recommencement of operations, the fabricating tool will be used to free the bottom hole assembly and recommence pulling out of the hole to run 244mm casing. The Company has taken the opportunity for the rig crew to go on fatigue break. Future Operations - Complete pulling out of hole and run surface 340mm casing and cement. Install blow out prevention equipment. Drill ahead to reservoir objectives.
LAKE MACLEOD-1 PETROLEUM EXPLORATION WELL EP 439/461, WESTERN AUSTRALIA
1. Well Name/Permit Lake MacLeod-1 - EP 439/461, Western Australia
2. This report is for the Period: The period 0600 hrs 2 October 2008 to 1800 hrs 6 October 2008
3. This ASX Release Time and Date: 10.00 hrs WST 7 October 2008
4. Report No: 1
5. Spud Date/Rig: 0600 hrs WST 2 October 2008
6. Days since Spud: 5
7. Location of Well: Latitude 240 35' 26.03"S Longitude 1130 32' 19.38"E 2kms north east of Shot Point 1500 seismic line CG83-01
8. Elevation: G.L. 2 metres RT. 3 metres RT to GL 5 metres
9. Proposed Total Depth: 1,000 metres
10. Targets: Gneudna Formation Carbonates, 535m to 1000 metres
11. Present Depth: At 1800 hrs 6 October 2008 - 151 metres
12. Geological Summary: At 1800 hrs 6 October 2008 at 151metres
13. Hydrocarbon Indications; None anticipated in this shallow section.
0 - 75 metres - Tertiary Limestones
75 - 151 metres - Cretaceous aged Limestones of Korojon Calcarenite
14. Operations since last Report: Drilled and cemented 340mm Conductor Pipe at 26 metres On 2 October (Spud) to 6 October - Drilled 311mm hole from 26m to 151 metres. Commenced pulling out of hole to run 244mm casing to 150 metres.
15. Current Operations: Lost circulation at 50 metres while pulling out of the hole at 90 metres when sands came into well bore causing the bottom hole assembly to be packed off. The sand came from the 50 metre lost circulation zone. Currently fabricating specific equipment to wash out these surface sands to free pipe. Company taking the opportunity for drilling crew break while fabrication of new tool. Drilling will commence when full crews are mobilised to site.
16. Future Operations: Continue pulling out of hole, run 244mm casing and cement. Install blow out prevention equipment. Install BOP's. Pressure test. Drill to reservoir objectives.
17. Prospect Description: Good oil-prone source rocks are present in organic-rich marine shales nearby the Late Devonian Gneudna Formation. The Devonian section in the Quobba-1 well is predominantly shale so sealing of the reservoir in Lake MacLeod-1 are interpreted to be present. There were also good oil and gas shows throughout the Gneudna Formation in Quobba-1 demonstrating there are porous and permeable reservoirs in dolomites of the Gneudna Formation. Structures drilled in the Gascoyne Sub Basin to date such as Quobba-1, Pendock-1D and Wandagee-1 were all formed during the Miocene which post dates primary hydrocarbon migration and are dry.
The Lake MacLeod structure is interpreted to have formed during the Devonian and pre date primary hydrocarbon migration from the Gneudna Formation source rocks which generated their hydrocarbons during the Late Carboniferous to Permian. It is important to note that none of these early aged structures have been drilled in the Gascoyne Sub basin, Carnarvon basin.
The large Lake MacLeod Prospect covers an area of 27,500 hectares (70,000 acres). Estimated potential recoverable reserves for the larger Lake MacLeod-1 Prospect if the structure is filled to its maximum spill point are in the order of 150 million barrels. Potential recoverable oil reserves within the Lake MacLeod structure in the EP 461 Permit are more conservatively calculated using a 5000 hectare closure at the Top Nannyarra Sandstone and are estimated to be in the order of 30 million barrels of oil.
18. Participants in the well:
Empire Oil & Gas N.L. (Rough Range Oil Pty Ltd - Operator)- 30.356%
Longreach Oil Limited - 9.352%
Indigo Oil Pty Ltd - 4.676%
Falcore Pty Ltd - 2.596%
Vigilant Oil Pty Ltd - 0.52%
Jurassica Oil & Gas Plc - 35%
Black Fire Energy Limited - earning 7.5% by Farmin from the J.V.
DVM International Limited - earning 10% by Farmin from the J.V.
Contact
Mr Craig Marshall
Managing Director
Phone: +61-8-6389-2687
Facsimile: +61-8-9386-6812
E-mail: cmarshall@empireoil.com.au
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