- Warrego Energy reports 6m of net pay while drilling through the Dongara and Upper Wagina sandstone on the West Erregulla 3 well.
- West Erregulla 3 well is currently drilling beyond 4,279m in the Carynginia Shale and will be drilled down~5000m.
- Strike Energy Limited (ASX:STX) operates the permit EP469, containing West Erregulla field in 50-50 joint venture with Warrego Energy.
The stock prices of Warrego Energy Limited (ASX:WGO) jumped by 7% yesterday on the news of significant pay zone discovery on permit EP469. The oil and gas explorer had shared an update on its West Erregulla prospect. The permit lies in the Perth Basin of Western Australia and is prospective for conventional gas.
(Image Source: Company Presentation, 25 November 2020)
West Erregulla has an estimated reserve of 1.6TCF of conventional gas. Warrego has farm-out the project to Strike Energy for A$11 million in lieu of 50% interest on the permit and operatorship. The farm-out raised capital required to commence the drilling campaign on the project, which saw its first well spud in May 2019.
50-50 Joint Venture (Image Source - © Kalkine Group 2020)
Operational Status of the Project
Strike Energy is drilling West Erregulla 3 well beyond the depth 4,279m as per the latest update. The Company encountered a 6m of net pay zone with an average porosity of 10.6%. The bit has drilled through the Dongara, Upper Wagina and Basal Wagina sandstones lying at a depth range of 3,887-4,176m.
Initial Logging While Drilling (LWD) Results
Logging While Drilling (LWD) provides an opportunity to measure formation parameters without interrupting the ongoing drilling operation. Probes are set in the bottom hole assembly (BHA) of the drill string, and data from the subsurface is relayed to the surface.
Initial LWD analysis has suggested a net pay zone or hydrocarbon containing sandstone formation of 6m net thickness. The formation has an average porosity of 10.6% which is in fair range for sandstones.
The gross pay thickness of the formation is discovered to be 150m with the presence of extensive natural fractures within the sands of Dongara and Upper Wagina sandstone.
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At present, the drill bit is drilling beyond 4,279m depth into the Carynginia Shale. The drilling was halted for a while on an encounter of a gas influx which was circulated out.
The current plan is to drill up to Kingia Sandstone and then pull out of the hole. The drilling team will make changes to the BHA and some more LWD tools. The drilling team would then go ahead and drill the primary Permian targets.
Near-Term Project Objectives
- Complete the well WE-3 to test the northern area of the field.
- Spud the well WE-4 during the H1 of 2021. Budget and work program already approved.
- Well WE-5 is also planned and to be drilled after WE-4. Both the wells- WE-4 and WE-5 will appraise the gas discovery made by WE-2 well.
- More 3-D seismic survey to be carried upon the permit to cover the rest of the permit.
Share Price Movement
The stocks of the Company were trading at A$0.225 at 10:45 AEDT with a market cap of A$207.45 million as on 24 December 2020.