Santos Completes The Patchawarra Formation Phase 1 Appraisal Program In Cooper Basin

Santos Limited (ASX: STO) announced on 9th April 2019 that the company successfully completed the Moomba South Patchawarra Formation phase 1 appraisal program in the Cooper Basin.

As per the Managing Director and Chief Executive Officer, Kevin Gallagher, to find more gas for the east coast domestic market, the company is investing in the Cooper Basin and Mr. Gallagher showed its satisfaction over the completion of the Moomba South Phase 1 appraisal program, which confirmed a significant gas resource and resulted in seven new wells.

Mr. Gallagher also mentioned that the appraisal program undertaken by the company successfully targeted two existing new plays in the Granite Wash and Fractured Granite in the Cooper Basin. The initial testing of both the plays resulted in stable gas flows to the surface, and as per the CEO, both the plays have the potential to add significant new resources.

As per the company, the program is the first of large-scale project appraisal phases in the Cooper Basin, which is focused on the maturation of a contingent resource. The Patchawarra reservoir, present on the deeper flanks of the Moomba South field, hosts significant gas potential in thick, well-developed, gas-charged tight sandstone reservoirs.

The current program targeted the maturation of a significant 2C category contingent gas resource within the Lower and Middle Patchawarra Formation, and as per the company, these reservoir targets are proven productive intervals in the adjacent Big Lake and Moomba North fields.

During the program, the company drilled eight appraisal wells to a total depth ranging from 3,034 to 3,303 metres, and all eight wells intersected gas pay in the targeted Patchawarra Formation.

Primary sampling and analysis of the gas indicates a higher natural gas liquids content and lower carbon dioxide content as compared to an overlying production area in Moomba Field. The additional sample analysis is in progress to confirm the gas composition and associated gas liquids volumes.

Out of 8 appraisal wells, the company tested and brought online seven wells and established an 8.7mmscf/d single-well gas flow and plugged and abandoned one well.

Apart from the Patchawarra, the company encountered near-virgin pressure in various wells in Toolachee, Daralingie, and Epsilon along with better than expected porosity and permeability.

As Mr. Gallagher mentioned, the company also targeted two emerging exploration opportunities with significant resource potential, i.e., the Granite Wash play and the Fractured Granite play. Out of the two-exploration targets, the Granite Wash demonstrated to be a proven producing horizon on the flanks of the Moomba North field. The vast number of wells in the Moomba South penetrated this interval, which improved the overall understanding of this play.

The results of the programme will provide inputs for field development planning for the Moomba South Project, and the company further plans to undertake a drilling program towards the end of 2019 on the site. The company will estimate Reserve and Resources for the site and present it in 2019 Reserve Statement.

Recently, the company refinanced its debt by Bond issue, which got oversubscribed by five times.

The stock of the company closed at A$7.020 (as on 9th April), up by 2.93% as compared to its previous close.

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