Adelaide Energy Limited (ASX:ADE) Otway Petroleum Project Weekly Drilling Report And Regular Project Update
Adelaide, April 14, 2010 AEST (ABN Newswire) - The Otway Petroleum Project is Adelaide Energy Limited's (
ASX:ADE) 100% owned suite of integrated production, development and exploration oil and gas assets, which are located in the South Australian section of the onshore Otway Basin.
This report provides a weekly drilling report and project update on activities in the Otway Petroleum Project.
The Otway Petroleum Project (100% ADE) comprises:
a. PEL 255: contains the Jacaranda Ridge 2 discovery + 5 extra targets
b. The Katnook Gas Assets consisting of:
- The Katnook Gas Processing Plant and associated infrastructure
- The Ladbroke Grove Gas Processing Plant and associated infrastructure
- Petroleum Retention Licences 1 (Wynn) & 2 (Limestone Ridge)
- Petroleum Production Licences 62, 168 & 202
- Existing gas pipelines to the Gas Plants from wells in the PPL's
- 13 Producing/shut in gas/gas liquids wells
c. PEL's 494 and 496 - 2 exploration licences awarded to ADE on 24 March 2009
WEEKLY DRILLING REPORT---------------------------------------------------------------------ITEM DETAIL---------------------------------------------------------------------Well name - Hollick-1Permit - PEL 255Participants - ADE - 100%Primary targets - Jacaranda Ridge/Sawpit sandstoneMeasured Depth (MD) - current - 2959 metres (m)MD @ end of previous week - 2959 mMetres drilled during week - 0 mTop of Jacaranda Ridge Sandstone (MD) - 2666 mTop of Sawpit Sandstone (MD) - 2770 mActivities during week - 41/2"production casing ran & cemented @2900 m - Casing not run on bottom 59m due to remnants of fish in hole - however, no reduction in expected producible pay.Current activities - Rig released at midnight last night - preparing to move to Patrick-1 (~40m - same pad - deviated well to different target)Safety issues - NoneEnvironmental issues - None---------------------------------------------------------------------PROJECT UPDATE-------------------------------------------------------------------------PROJECT AREA PROGRESS REPORT-------------------------------------------------------------------------Drilling - Hollick-1 - see weekly drilling report - ADE has determined that the rig will next drill Patrick-1 rather than Brand-1 due to: - - The highly promising early results of Hollick-1 have confirmed much of the seismic analysis carried out on PEL 255 by ADE - and accordingly de-risked Patrick - - Patrick-1 has a larger resource target than Brand-1 and at a structural level is a lower risk well. - - A successful well will provide ADE with higher gas & liquids reserves - gas can be used to underwrite a number of different gas marketing opportunities the company is actively pursuing. - ADE expects to spud Patrick-1 within the next few days.-------------------------------------------------------------------------Well testing - Preparations for testing Hollick-1 are underway-------------------------------------------------------------------------Production facilities - Intermittent gas production is now occurring through the Katnook Gas plant as part of the commissioning of the Limestone Ridge pipeline. - During this commissioning phase a daily flow rate of around 7 TJ of gas and 110 bbls of condensate (~1,300 boepd) was achieved. - Production has been intermittent over the last few days as various and typical engineering start-up issues are being rectified. - Steady production is expected to resume in the next week.-------------------------------------------------------------------------
Contact
Carl Dorsch
Managing Director
Adelaide Energy Limited
Mob:+61-0400-508-088
Email: c.dorsch@adelaideenergy.com.au
Neil Young
Chief Commercial Officer
Adelaide Energy Limited
Mob: +61-0417-850-245
Email: neil.young@adelaideenergy.com.au
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