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EMERALD RESOURCES NL — Capital/Financing Update 2008
Sep 2, 2008
64849_rns_2008-09-02_c9ec2d32-dcc7-43aa-874f-298808a233ca.pdf
Capital/Financing Update
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PANCONTINENTAL OIL & GAS NL
ASX Release 3 September 2008
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MARKET DATA
TESTING THE STOKES BAY-1 WELL, R1, CANNING BASIN, WESTERN AUSTRALIA
ASX: PCL
12 month high: $0.07 12 month low: $0.02 Market cap: $ 15m Issued shares: 444m
PROJECTS
� Australia Onshore Canning Basin Offshore Carnarvon Basin
� Kenya Offshore Lamu Basin
� Malta Offshore Pelagian Shelf
� Namibia Offshore Walvis Basin
DIRECTORS & MANAGEMENT
David Kennedy Chairman
Peter Munachen Finance Director
Barry Rushworth New Ventures Director
Ian Cornelius Non-executive Director
CONTACT DETAILS
Pancontinental Oil & Gas Ground Flr 288 Stirling St Perth Western Australia T: +61 8 9227 3220 F: +61 8 9227 3211 E: [email protected]
Pancontinental (ASX:PCL) is pleased to announce that the Parties to the Retention Lease R1 and the EP 104 Permit have unanimously agreed to undertake further testing of the Stokes Bay-1 well that was drilled by the Joint Venture in 2007. This testing programme is planned to commence in late September 2008.
The testing will attempt to provide a positive test of the reservoir fluid and character and flow capacity of the cavernous reef system in the Nullara Formation encountered by the Stokes Bay 1 well. With large mud losses in the Stokes Bay – 1 well, the reservoir potential and fluid character was not positively defined during the 2007 drilling program.
The testing will attempt to provide a positive test of the reservoir fluid and character and flow capacity of the cavernous reef system in the Nullara Formation encountered by the Stokes Bay 1 well. With large mud losses in the Stokes Bay – 1 well, the reservoir potential and fluid character was not positively defined during the 2007 drilling program.
The test will consist of a number of incremental steps commencing with the circulation of fresh water with surfactant (foaming detergent) to remove the heavy muds in the tubing and reduce the pressure on the formation and attempt to induce flow. Once the results of this first operation have been obtained and reviewed, the next steps in the programme will be confirmed.
Interpretation of the pressure data obtained during and after the drilling of the Stokes Bay 1 well, indicated a reservoir pressure of up to 140psi above the regional water gradient which could be indicative of a hydrocarbon column, although other interpretations are possible. This anomalous pressure is from a zone over 80 metres higher than a 0.134 mmcfd gas flow with some minor oil shows in Point Torment-1, 4.5 kms to the south east. This trend could also extend up to 3kms to the north west of the well where the Pinnacle Fault curves to the west. For the trap to be effective, the Nullara trend must also be stratigraphically trapped updip to the north east by either tight limestones or lagoonal shales. If there is closure of the cavernous trend around the well it is possibly in order of some 7km2, based on current seismic mapping, but being a stratigraphic feature, it could extend over a much larger area.
There is drilled to date a 40 to 45 metre intersection of the Nullara limestone in Stokes Bay-1. Buru (the Operator) interprets this areal 2 closure has the potential to be up to 17 km .
The participants to the Joint Venture in the EP 104 Permit and the R1 Retention Lease are:
| Empire Oil & Gas N.L/Gulliver Productions Pty Ltd 14.80% | Empire Oil & Gas N.L/Gulliver Productions Pty Ltd 14.80% |
|---|---|
| Indigo Oil Pty Ltd | 5.50% |
| ARC Energy Ltd | 38.95% |
| First Australian Resources Limited | 8.00% |
| Pancontinental Oil & Gas NL | 10.00% |
| Phoenix PLC | 10.00% |
| Emerald Oil & Gas NL | 12.75% |
Enquiries: Barry Rushworth Director, Pancontinental Oil & Gas NL Tel: +61 (0)8 9227 3220 Fax: +61 (0)8 9227 3211 Email: [email protected]
The summary report on the oil and gas projects is based on information compiled by Mr R B Rushworth, BSc, MAAPG, MPESGB, New Ventures Director of Pancontinental Oil & Gas NL. Mr Rushworth has the relevant degree in geology and has been practising petroleum geology for more than 25 years. Mr Rushworth is a Director of Pancontinental Oil & Gas NL and has consented in writing to the inclusion of the information stated in the form and context in which it appears.