7th Jan 2010 07:00
7 January 2010
Timor Sea Drilling Update - Lolotoe-1 Well
Oilex Ltd advises that the Lolotoe-1 well was at a depth of 2,552 metres at 16:00 (WST) on 6 January and was drilling ahead in the sidetrack hole. The section from 2,491 metres to approximately 3,750 metres is being re-drilled following extensive caving of the original borehole. On reaching the casing point, 95/8" casing will be run before drilling the primary objective Elang/Plover Formation sandstones.
The Lolotoe-1 well is the second well of a 2 well program in the Timor Sea contract area JPDA 06-103.
Time of report: 16.00 (WST) on 6 January 2010 Status: Sidetrack well prior to setting 9 5/8" casing Operations: * Well spudded 02:30 on 17 December 2009 (WST) * 133/8" casing run to 2,491 metres * 121/4" hole drilled and logged to 3,785 metres * Plug back and sidetrack 121/4" hole section Objectives Elang/Plover Formation sandstone (primary) Flamingo Formation sandstone (secondary) Planned total depth Approximately 3,985 metres (TD): Days from spud to TD: 30 days on a future trouble free basis
All depths refer to depth below rig rotary table
The Lolotoe prospect is a robust 3 way dip faulted anticline having about 300 metres of vertical relief. The well is targeting a mean prospective oil resource of 90 million barrels (100% basis) in the primary objective Elang/ Plover formations. The geological horizons have been encountered as predicted, or slightly higher than predicted. No information on the primary objective Elang/Plover Formation has been obtained to date.
The Elang/Plover Formation primary objective will be evaluated by a full suite of data including, as appropriate, mud log, real time drilling data and wire line logs after the well reaches total depth to determine presence of hydrocarbons.
Since the last report further delays were experienced with cementing and sidetrack operations and the anticipated time from spud to total depth is now about 30 days.
The Joint Venture participating interests in JPDA 06-103 are:
Joint Venture Party Participating Interest Oilex (JPDA 06-103) Ltd (Operator) 10% Videocon JPDA 06-103 Limited 25%(1) GSPC (JPDA) Ltd 25%(1) Bharat PetroResources JPDA Limited 25%(1) Japan Energy E&P JPDA Pty Ltd 15%
(1) Pan Pacific Petroleum (JPDA 06-103) Pty Ltd has recently signed conditional farmin deals with Videocon JPDA 06-103 Limited, Bharat PetroResources JPDA Ltd and GSPC (JPDA) Ltd to acquire a 15% participating interest in JPDA 06-103.
B. H. McCarthy
Managing Director
For further information, please contact:
Ray Barnes Technical Director, Oilex Ltd Tel. +61 8 9485 3200 (Western Australia)
Archie Berens Director Pelham Public Relations Tel. +44 20 7337 1509 (United Kingdom)
The information in this report has been compiled by the Managing Director of Oilex Ltd, Bruce McCarthy B.Sc. (Hons) PhD (Geology) who has over 29 years experience in petroleum geology. The estimates of hydrocarbons in place were reviewed by Ray Barnes B.Sc. (Hons), the Technical Director of Oilex Ltd who has over 35 years experience in petroleum geology and is a member of the AAPG. Mr Barnes reviewed this announcement and consents to the inclusion of the estimated hydrocarbons in place in the form and context in which they appear. The resource estimates contained in this report are in accordance with the standard definitions set out by the Society of Petroleum Engineers, Petroleum Resources Management System, 2007. Further information is available at www.spe.org.
Oilex's nominated advisor in relation to the AIM market is RFC Corporate Finance Ltd, contact: Stuart Laing, [email protected]
ABN 50 078 652 632
Level 2, 50 Kings Park Road West Perth WA 6005 Australia, PO Box 588 West Perth
WA 6872 Australia Telephone: (+61 8) 9485 3200 Facsimile: (+61 8) 9485 3290 Email: [email protected] Web: www.oilex.com.au
vendorRelated Shares:
OEX.L