Re: FAR - First Australian Resources
An annoucement made today, SP up today which is good.
FAR PRODUCTION & REVENUES SET TO LEAP
SUMMARY
• A rig is presently on location and has commenced completion of the 5500’ Sand in
the #6 well Lake Long Well in South Louisiana (FAR >31%)
• The Operator estimates this zone is capable of producing around 1.5 million cubic
feet of gas per day, approximately $US500,000 per month
• Subject to testing, the well should commence sales from the 5500’ Sand next week
• In September a further well is to be drilled at Lake Long (FAR >31%). The S.L. 328
#28 ST well will test 5 sands between 6700’ and 8500’ that have produced elsewhere
in the field
• North East Waller, Texas Gulf Coast (FAR 34%) drilling programme likely to
commence in August
S.L. 328 #6 well, Lake Long, South Louisiana (FAR 31.375%) - Rig on location
A rig is presently on location and has commenced a completion of the 5500 Sand in the #6
well. The 5500 Sand has been perforated with gas recorded at surface. The well will now be
gravel packed prior to testing and then turned to existing sales facilities. Subject to testing the
well is expected to commence sales from the 5500’ Sand within a few days.
The Operator, Kriti Exploration Inc, estimates this zone to be capable of 1-2 million cubic
feet of gas per day (US$335,100-US$670,200 per month at $11.17 per thousand cubic feet
gas pricing). The total cost of the plug back and recompletion is estimated at US$210,000.
The #6 well was successfully drilled by Kriti and FAR in 1997 and has been progressively
produced from multiple pay zones lower in the wellbore.
S.L. 328 #28 ST well, Lake Long Field, South Louisiana (FAR 31.375% (14 Sand) and
1.375% (Shallow sands)
Plans are being advanced for the drilling of a further well at Lake Long. The S.L. 328 #28 ST
well is to be sidetracked out of the #28 original well bore and directionally drilled to test four
sands between 6700’ and 7500’ that have produced in down dip wells in the field and the
deeper 14 Sand at 8500’.
ASX Release 24 July 08 Page 2
Based on 3D seismic and subsurface data the upper target zones will be at the crest of the
structure. The deeper zone (14 Sand) will be directionally drilled to a total depth of 8,500
feet. This zone is interpreted to be productive by logs and sidewall cores in the nearby #6 well
which indicate that the reservoir has a gas cap with an oil rim. The productivity of the 14
Sand is also supported by an energy absorption anomaly and increased amplitude on the crest
of the structure.
The original #28 well has been shut in for a period of 2 years after recoverable reserves in that
well had been depleted. The old wellbore will now be used to re-enter and sidetrack over to
an adjacent underexploited block thereby saving on drilling costs.
ASX Release 24 July 08 Page 3
On a dry hole basis the total cost of the #28ST well is estimated to be US$1.8 million. There
is low risk of a dry hole due to the multiple objectives. Timing is scheduled for September
2008. The Operator estimates the 14 Sand to be capable of producing 1.5 million cubic feet of
gas and 50 barrels of condensate per day.
All working interests at Lake Long are subject to State and other minor royalties. The Lake
Long Field is operated by Kriti Exploration Inc.
An annoucement made today, SP up today which is good.
FAR PRODUCTION & REVENUES SET TO LEAP
SUMMARY
• A rig is presently on location and has commenced completion of the 5500’ Sand in
the #6 well Lake Long Well in South Louisiana (FAR >31%)
• The Operator estimates this zone is capable of producing around 1.5 million cubic
feet of gas per day, approximately $US500,000 per month
• Subject to testing, the well should commence sales from the 5500’ Sand next week
• In September a further well is to be drilled at Lake Long (FAR >31%). The S.L. 328
#28 ST well will test 5 sands between 6700’ and 8500’ that have produced elsewhere
in the field
• North East Waller, Texas Gulf Coast (FAR 34%) drilling programme likely to
commence in August
S.L. 328 #6 well, Lake Long, South Louisiana (FAR 31.375%) - Rig on location
A rig is presently on location and has commenced a completion of the 5500 Sand in the #6
well. The 5500 Sand has been perforated with gas recorded at surface. The well will now be
gravel packed prior to testing and then turned to existing sales facilities. Subject to testing the
well is expected to commence sales from the 5500’ Sand within a few days.
The Operator, Kriti Exploration Inc, estimates this zone to be capable of 1-2 million cubic
feet of gas per day (US$335,100-US$670,200 per month at $11.17 per thousand cubic feet
gas pricing). The total cost of the plug back and recompletion is estimated at US$210,000.
The #6 well was successfully drilled by Kriti and FAR in 1997 and has been progressively
produced from multiple pay zones lower in the wellbore.
S.L. 328 #28 ST well, Lake Long Field, South Louisiana (FAR 31.375% (14 Sand) and
1.375% (Shallow sands)
Plans are being advanced for the drilling of a further well at Lake Long. The S.L. 328 #28 ST
well is to be sidetracked out of the #28 original well bore and directionally drilled to test four
sands between 6700’ and 7500’ that have produced in down dip wells in the field and the
deeper 14 Sand at 8500’.
ASX Release 24 July 08 Page 2
Based on 3D seismic and subsurface data the upper target zones will be at the crest of the
structure. The deeper zone (14 Sand) will be directionally drilled to a total depth of 8,500
feet. This zone is interpreted to be productive by logs and sidewall cores in the nearby #6 well
which indicate that the reservoir has a gas cap with an oil rim. The productivity of the 14
Sand is also supported by an energy absorption anomaly and increased amplitude on the crest
of the structure.
The original #28 well has been shut in for a period of 2 years after recoverable reserves in that
well had been depleted. The old wellbore will now be used to re-enter and sidetrack over to
an adjacent underexploited block thereby saving on drilling costs.
ASX Release 24 July 08 Page 3
On a dry hole basis the total cost of the #28ST well is estimated to be US$1.8 million. There
is low risk of a dry hole due to the multiple objectives. Timing is scheduled for September
2008. The Operator estimates the 14 Sand to be capable of producing 1.5 million cubic feet of
gas and 50 barrels of condensate per day.
All working interests at Lake Long are subject to State and other minor royalties. The Lake
Long Field is operated by Kriti Exploration Inc.