OIL SHOWS IN WIRRAWAY-1, PEL 104, SOUTH AUSTRALIAN COOPER BASIN
Victoria Petroleum N.L. as Operator for the PEL 104 Joint Venture drilling Wirraway-1 in PEL
104 on the western margin of the South Australian Cooper Basin advises that at 0600 hrs
Central Standard Time today, the operation was conditioning the hole at a depth of 1,732.8
metres prior to pulling out of the hole to run open hole Drill Stem Test No. 1 to test good oil
shows observed in the target sands of the Birkhead Formation from 1,725 – 1,732.8 metres.
Commenting on the drilling at Wirraway-1, Victoria Petroleum NL’s (Vicpet) Managing Director John Kopcheff said:
“Victoria Petroleum is encouraged by the oil shows seen on our initial penetration of the target Birkhead sands. The full significance of the oil shows we are seeing will be subject to the results of the open hole drill stem to be carried out in the next 24 hours and wire line log evaluation at the end of the well.”
“Exploration success at Wirraway-1 would further confirm our belief that a new oil production province in the western part of PEL 104 and our adjoining PEL111 permit could be present.”
“Also in PEL 104 we have three prospects in the vicinity of the Wirraway Prospect, such as the Beaver and Warhawk prospects and a further nine similar prospects including Ascender and Liberator in the immediately adjacent permit to the north, PEL 111.”
“Wirraway-1 is also an important well for Vicpet as it is the first well in the 2007 eleven well exploration drilling program to take place over the next six months in Vicpet’s South Australian and Queensland Cooper Basin Permits”.
“Given the current industry exploration success rate of 45% in the Cooper Basin, Vicpet would expect to enjoy some degree of exploration success in Wirraway-1 as part of this eleven well drilling program.”
Just had a look at the news looks like it has got potential in the medium term.
Chart wise looking very positive. MACD is heading for the 0 mark. And the Bollinger band tighten.
I am keeping my eye on this one.
Hypnotic
Due to this success they now drill a further 3 wells starting in mid May and due to finish in July. Heres what Sun Resources had to say on that;Results of Initial Wells Shallow Drilling Program
The initial 3 wells in the program El Viejito, Dos Dedos and Milagro prospects have been drilled, completed and tested with all wells encountering and flowing hydrocarbons. El Viejito #1 and Dos Dedos #1 were gas discoveries and Milagro #1 is interpreted as a high gas content oil discovery.
Well testing was prolonged due to the large number of potentially productive zones tested (up to 4 per well), unconsolidated sands flowing into the well bore which required removal prior to conducting tests of other zones and inclement weather preventing access to the well locations.
Dos Dedos #1 is currently being prepared to be connected to a gas sales line, this should be completed within a few days. It is proposed that the uppermost gas bearing sand in the well will commence production at 150,000 scfd. Probable reserves pertaining to this sand are of the order of 0.35 bcf gross gas. Further production and pressure data is required to more accurately predict potential reserves.
Milagro #1 was connected to a gas sales line on April 3, 2007 and has been producing at rates up to 384,000 scfd, averaging around 375,000 scfd. The well is currently producing at 348,000 scfd with 1.67 bbls/d of oil. The prognosis from log analysis and sidewall cores is that the interval is oil bearing with a high gas oil ratio. This is based on a nearby analogue that produced 213,000 barrels of oil and 0.3 bcf of gas. Initial flow from the analogue was almost entirely gas before oil flowed.
At this time further production and pressure data is required to more accurately predict potential reserves. Prior to commencement of production, reservoir engineering analysis calculated potential reserves within the feature at approx. gross 150,000 bbls oil, it would likely take two wells to recover these volumes.
VPE own a 20% working interest in the shallow gas program.Final Wells Shallow Drilling Program
As previously advised, under the terms of the farmout agreement with Empyrean a commercial success in the initial 3 well shallow drilling program triggers the drilling of a further 3 shallow wells under the same terms. Empyrean will now contribute to the funding of the next three wells, Agavero #1, Dona Carlota #1 & Climaco #1 in the shallow drilling program. The terms and conditions of the farmout are the same as the initial 3 well program, these terms and conditions were detailed in Sun Resources’ ASX Release dated December 5, 2006. The next 3 shallow prospects to be drilled are analogues of Frio and Vicksburg sand production in the area at depths less than 2,000 meters. The drilling program is expected to commence around mid May 2007 and run until the end of July 2007.
And this ann (from Lakes Oil) I found really interesting. This could be a good little side earner for VicPet (VPE):OIL RECOVERY ON OPEN HOLE DRILL STEM TEST AT WIRRAWAY-1, PEL 104, SOUTH AUSTRALIAN COOPER BASINVictoria Petroleum N.L. as Operator for the PEL 104 Joint Venture drilling Wirraway-1 in PEL 104 on the western margin of the South Australian Cooper Basin advises that at 0600 hrs Central Standard Time today, the operation was conditioning the hole prior to the commencement of running 7 inch production casing after completing open hole Drill Stem Test #2 over the oil bearing Birkhead sandstone interval from 1,719 to 1,742 metres.
During the open hole straddle drill stem test, 7 barrels of 47.5 degree API oil were recovered during a 2 hour flow period with a stabilised flow rate of 67 barrels of oil per day, with no formation water.
Wirraway-1 will now be completed as a Birkhead sand oil producer by the drilling rig with short term production testing to follow upon installation of the surface testing equipment.
Following the completion of Wirraway-1, the drilling rig will then move immediately to start the drilling of Growler-2, 4.7 kilometres to the southeast of Wirraway-1 and 705 metres north and up dip of the Growler-1 oil discovery well.
Commenting on the testing results at Wirraway-1, Victoria Petroleum NL’s (Vicpet) Managing Director John Kopcheff said:
“Victoria Petroleum is pleased to have recovered oil on the open hole drill stem test of the 17 metre gross oil column in the target Birkhead sands in Wirraway-1.”
“Exploration success at Wirraway-1 maintains our 100% exploration success rate in PEL 104 and further confirms our belief that a new oil production province in the western part of PEL 104 and our adjoining PEL111 permit is present.”
“Also in PEL 104 we have three prospects in the vicinity of the Wirraway Prospect, such as the Beaver and Warhawk prospects and a further nine similar prospects including Ascender and Liberator in the immediately adjacent permit to the north, PEL 111.”
It dosnt say how much VPE owns however I would say they own 70% in Greenearth Energy as Lakes owns 30%, Vicpet and Lakes formed Greenearth Energy.GEOTHERMAL EXPLORATION PERMITS AWARDED TOLakes Oil N.L. (ASX Listing Code “LKO”) advises its 30% owned associated company Greenearth Energy Limited has today been awarded two geothermal exploration permits in the Victorian Government Geothermal Acreage Release 2006. Greenearth Energy Limited is a company which has been formed by Lakes Oil N.L. and Victoria Petroleum N.L. to look for geothermal “wet systems” in Victoria and the Pacific Rim. It is envisaged that the Company will raise capital later this year with entitlements to both Lakes Oil N.L. and Victoria Petroleum N.L. shareholders.
GREENEARTH ENERGY LIMITED
Lakes Oil N.L. through its active program in the onshore Gippsland Basin has long been aware of geothermal activity in the region. Greenearth will now be in a position to capitalise on this knowledge and to build on it.
When Lakes Oil N.L. drilled the Trifon-2 well in 2004 hot saline water was encountered at 2,200 metres which flowed to surface at approximately 90 ° C (photo attached). Greenearth is investigating technology which by using a “binary plant” could generate power at temperatures not far in excess of this level. Further testing will be required to see if adequate volumes would be accomplished.
The Victoria Government should be congratulated in this exciting initiative particularly the previous Minister, The Honourable Theo Theophanous who guided the legislation through Parliament.
The locations of Geothermal Energy Exploration Permits GEP 12 and GEP 13 which have been awarded to Greenearth Energy are significant in that the area encompasses the entire Latrobe Valley which is currently producing a very large percentage of Victoria’s electricity from brown coal. Any advances made by Greenearth Energy will be beneficial for Victoria.
This is a big opportunity for Greenearth Energy Limited which we welcome.
Commenting on the awarding of the Geothermal licences to Greenearth Energy and Victoria Petroleum N.L.’s investment in Greenearth Energy, Victoria Petroleum N. L. managing director John Kopcheff said;
“Victoria Petroleum N.L. is pleased to be a seed capital investor in Greenearth Energy, an opportunity brought to us by Lakes Oil N.L.”
“With the bright future for geothermal energy as a renewable energy source, we see this investment as a positive one for Vicpet shareholders”
“The awarding of the Geothermal Licences to Greenearth Energy is the first step for Greenearth Energy in building a significant presence in the growing Australian and Pacific geothermal industry”
“The steam flowing from Trifon-2 as per the attached photo is particularly significant from a geothermal potential point of view”
Shareholders interests in Greenearth Energy Limited are:
Lakes Oil N.L 33 1/3%
Victoria Petroleum N.L. 33 1/3%
Private investors 33 1/3%
Based on the figures above, Vicpet has the potential to earn 43 billion cubic feet of gas and 2.25 million barrels of oil (thats with a interest of 37.5%) or 23 billion cubic feet of gas and 1.2 million barrels of oil (with the minimum 20% interest) if oil and gas are present and based on their recent 100% success on the Margarita Project, I wouldn't be supprised if they came up trumps again. If they do sell of 17.5% of their share in the project this will be good as it will generate cashflow to buy into more. The above are big numbers for a small company.EARLY DRILLING PROPOSED FOR NEW REDBACK GAS EXPLORATION PROJECT,Following the successful outcome of the start of the initial ongoing drilling program on the Margarita Project area, onshore Gulf Coast, South Texas, USA, Victoria Petroleum NL (“Vicpet”) has further increased its exploration activities in this prolific oil and gas bearing area through a further joint venture with Wandoo Energy LLC (“Wandoo”).
ONSHORE GULF COAST, SOUTH TEXAS, USA
The new joint venture, called “Redback”, is on a 393 square kilometre 3D seismic data base covering a portion of a highly productive onshore Gulf Coast oil and gas trend in South Texas. This regional trend to date has produced some 1.2 billion barrels of oil and 6 trillion cubic feet of gas from near surface to 10,000 feet depth.
The objective of the Redback joint venture is to target the under explored prospective section below 10,000 feet depth covered by the Redback 3D seismic and well data base.
A pilot geophysical interpretation program on the Redback 3D seismic data, has already recognised at least 7 good prospects in the 12,000 to 15,000 feet depth range with accompanying seismic attributes thought to reflect the presence of significant hydrocarbons.
A number of these prospects have multiple targets with high upside potential for both gas and oil as accompanying condensate.
One such prospect has the potential to contain recoverable reserves of up to 116 billion cubic feet of gas with 6 million barrels of oil (i.e. up to 152 billion cubic feet of gas equivalent), if oil and gas are present.
On trend with the Redback area prospects are “look a like” gas filled structures producing from similar target sections to those identified in the Redback prospects. Individual wells from these analogue gas filled structures have produced up to 10 billion cubic feet of gas plus 250,000 barrels of oil at high initial well production rates of up to 10 million cubic feet of gas per day with 300 barrels of oil per day.
The terms of the joint venture with Wandoo are Vicpet and Sun Resources will fund a six month evaluation of the seismic data at an all up total cost of US$360,000 for a first right of refusal on in any individual prospects generated within the Redback area to earn a combined 75% Working Interest by drilling a well on individual prospects on a non promoted “ground floor” basis.
With respect to the completion costs of successful wells, Vicpet and Sun Resources will for the first well only, contribute to 10%of Wandoo’s 25% Working Interest (i.e. a 10% Working Interest) in the first well on any prospect to completion. Vicpet and Sun Resources share of production from any wells completed for production will each be 37.5%.
The joint venture aims to fast track exploration in the Redback Project area resulting in the drilling of the first prospect in December 2007. The Redback Joint Venture will expose Vicpet to a choice of quality prospects of various risked size potential on a ground floor basis.
Vicpet will reduce its drilling risk cost by farming out a portion of its current 37.5% Working Interest in individual prospects so as to retain a minimum 20.0% Working Interest in the prospect being farmed out.
Commenting on the new joint venture project with Wandoo Energy, Victoria
Petroleum NL’s (Vicpet) Managing Director John Kopcheff said:
“Victoria Petroleum is pleased to be entering into another onshore Gulf Coast Joint
Venture with the very experienced Gulf Coast exploration team at Wandoo Energy.”
“Particularly so ,as this follows on from our early success with Wandoo Energy in
the ongoing Margarita Gas Exploration Project where we had 100% exploration
success for the first three wells, with two wells now connected to the local sales
pipeline system and flowing gas at 0.6 million cubic feet per day.”
“Vicpet’s participation in the Redback Gas Exploration Project is part of Vicpet’s
continuing strategy to build on its current interests in the Margarita Gas Exploration
and Production Project and the Flour Bluff Gas Field in the highly prospective
onshore Texas Gulf Coast area”
“Vicpet is also spending share holders gas exploration risk dollars in a highly
prospective area where the well head gas sales price is US$7.30 per thousand cubic
feet, some three times the Australian well head gas price of US$$2.30 per thousand
cubic feet”
The participants in the Redback Joint Venture and their respective interests through their wholly owned US subsidiaries are as follows:
Victoria Petroleum NL 37.5%
Sun Resources N.L. 37.5%
Wandoo Energy LLC (Operator) 25.0%
VPE seems to be busy today alot more than it usally is.... this is a good sine of things to come I hope....
Eagle was scheduled to be drilled (per VPE's own drilling program) during the first half of this year and we're yet to hear a thing. I've spoken to one of the JV partners and they're yet to agree to a drilling program - which means they've certainly not arranged a rig yet. Infact there's still talk of someone else farming in as operator.
Eagle is a lucrative target but one cursed with poor luck. Do you know any more about the project?
True but for the current share holders that got in at around todays prices this could be a good thing. If VPE keep going like this the market will take notice and it will be time to hang on.Wow 99 dusters in a row!!! no wonder the market is skeptical of VPE!!
I haven't looked at the 100 pager yet, but it seems it may be having a positive effect. daily chart is looking good for a run.
good volume increase last two days, close at 21c today, positive cross on RSI, macd also looking good... bout time something happened, heres hoping
Tony.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?