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EMERALD RESOURCES NL — Capital/Financing Update 2007
Aug 12, 2007
64849_rns_2007-08-12_b0faf554-e5b4-4e27-ad38-f028deb8b113.pdf
Capital/Financing Update
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ASX RELEASE
Release Date: 13 August 2007 To: Australian Stock Exchange Ltd No of Pages: 5 From: Eric Streitberg Re: ARC’s Canning Basin Exploration Program Commences
Please find attached a release on the commencement of ARC Energy’s Canning Basin exploration program, with the spudding of the Valentine 1 exploration well.
The attached release will also be available on the Company’s website at; www.arcenergy.com.au.
For enquiries please contact:
For inquiries please contact: Eric Streitberg, Managing Director Telephone +61 8 9480 1300 Freecall 1800 337 330 Email [email protected]
About ARC Energy Limited
ARC Energy is one of Australia’s pre-eminent energy companies, owning and operating oil and gas interests in the Perth, Canning and Bass basins, and internationally. Listed on the Australian Stock Exchange with a market capitalisation of approximately A$500 million, ARC has an aggressive onshore and offshore exploration and development drilling program. It continues to drive increased shareholder value by the early adoption of innovative technical and commercial practices.
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Level 4, 679 Murray Street, West Perth, Perth Western Australia 6005 Freecall: 1800 337 330 Tel: 61 8 9480 1300 Fax: 61 8 9480 1388 Website: www.arcenergy.com.au, Email: [email protected] , ASX Code: ARQ
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ASX ANNOUNCEMENT Monday, 13 August 2007
VALENTINE 1 EXPLORATION WELL SPUDS
ARC Energy Limited advises that operations at the Valentine 1 exploration well, operated by ARC Energy and located in the onshore Canning Basin Permit R1, commenced at 1230 hours WST on 12 August 2007, using the Century 18 drilling rig. Current operations at the well are drilling ahead at 115mMD in a 444mm diameter hole.
Valentine 1 is located approximately 20 kilometres north of the township of Derby in northwest Western Australia’s Kimberley region. The primary reservoir objective is the Late Devonian aged Virgin Hills Formation. Valentine 1 is designed to intersect the interpreted Virgin Hills sandstones and carbonates near the structural crest of the prospect. The well will be drilled deviated to the 244mm (9 5/8”) casing point at approximately 800 metres measured depth, building to a maximum hole angle of 20[O] . The Valentine 1 well will then be drilled to return to vertical at the top of the main objective section at approximately 3,220 metres measured depth. The deviation at 800m will accommodate the planned subsequent sidetracking operations required to drill the Stokes Bay 1 well, which will be drilled immediately after Valentine 1.
The Valentine prospect is a large lowside fault closure that is mapped in both the EP104 and R1 permits and extends over an area of some 66 square kilometres along the Pinnacle fault system. The Valentine reservoir objective is interpreted to be a slope fan / marine sand body which has a very distinctive seismic signature. The principal risk on the prospect is interpreted to be the stratigraphic updip seal mechanism, but the distinctive seismic signature of the objective section and the proven good petroleum source potential of the underlying Gogo Formation shales, together with the large potential hydrocarbon volumes, make it an attractive target.
The Stokes Bay 1 well is planned to be drilled by sidetracking from the Valentine 1 wellbore after the completion of drilling operations at Valentine 1. Stokes Bay 1 is planned as a test of the extent and reservoir development of the gas accumulation intersected by the Point Torment 1 well and will be drilled as a deviated well with a total depth of approximately 2,500 metres. Point Torment 1 was drilled in 1992 and subsequently flowed gas at a rate of up to 4.3 million cubic feet of gas per day from the Carboniferous aged Anderson Formation sandstones. Subsequent tests of these sands produced ambiguous information on potential volumes and reservoir quality and the Stokes Bay 1 well is designed to provide a definitive test of the reservoir quality and extent of the accumulation.
Technical details of the well are contained in the attached well summary sheet.
Final interests in R1 and EP104 post the Valentine 1 well farmin earning program are:
| ARC Energy Limited (Operator) | 38.95% |
|---|---|
| Empire Oil and Gas NL | 14.8% |
| Emerald Oil & Gas NL | 12.75% |
| Pancontinental Oil & Gas NL | 10% |
| Phoenix Resources PLC | 10% |
| First Australian Resources Limited | 8% |
| Indigo Oil Pty Ltd | 5.5% |
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VALENTINE DRILLING REPORT CANNING BASIN, WESTERN AUSTRALIA
| Date: | 13 August 2007 | |
|---|---|---|
| Permit: | R1 | |
| Lat : 17o08’ 23.46”S | ||
| Well Location: | Long : 123o42’ 32.40”E | |
| Directional offset totarget: | 0 metres | |
| Ground Level is 12.1mAMSL | ||
| Elevation: | Rotary Table is 17.8mAMSL | |
| Prognosed Depths | Top primary objectiveTotal depth | |
| (measured KB): | 3,222 metres3,407 metres | |
| Prognosed drilling time: | 25 days | |
| Spud Date: | 1230 hrs, WST 12 August 2007 | |
| Present Depth: | 115 mMD | |
| Time of Reporting: | 0600 hrs, WST 13 August 2007 | |
| Operations Since LastReport: | N/A | |
| Current Operations: | Drilling ahead. | |
| Hydrocarbon indications: | N/A | |
| ARC Energy Limited - 38.95% (Operator) | ||
| Empire Oil and Gas NL - 14.8% | ||
| Participants in the well | Emerald Oil & Gas NL - 12.75% | |
| Pancontinental Oil & Gas NL - 10.0% | ||
| (post earning): | Phoenix Resources PLC - 10.0% | |
| First Australian Resources Limited - 8.0% | ||
| Indigo Oil PtyLtd - 5.5% | ||
| Comment: | N/A |
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Regional Location map
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Valentine 1 Well Location
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Century Rig 18 on location at Valentine 1
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