Perth-headquartered Energy Investments Ltd today announced a new field gas discovery, by operator Great Artesian Oil and Gas Ltd, in the Cooper Basin in South Australia.
Perth-headquartered Energy Investments Ltd today announced a new field gas discovery, by operator Great Artesian Oil and Gas Ltd, in the Cooper Basin in South Australia.
The Cadenza - 1 discovery has increased the company's confidence in its commitment to the Coper basin area.
Cadenza - 1 will now be cased and suspended as a potential future gas producer. It is located approximately 2.5 km north-northeast of the Paranta-1 new gas/condensate discovery.
Energy through its wholly owned subsidiary Everdue Pty Ltd has funded Cadenza-1 to earn a 50 per cent interest in any subsequent production license.
The new field gas discovery follows Energy's announcement yesterday that it has entered into agreements with Great Artesian to farm-in to the Paprika -1 well.
THE FULL ASX ANNOUNCEMENT APPEARS BELOW.
CADENZA -1: NEW FIELD DISCOVERY
Energy Investments Limited (ASX: EIV) has had its confidence in its
commitment to the PEL 106 permit in the Cooper Basin strengthened this
morning following the declaration of a New Field Gas Discovery by operator
Great Artesian Oil and Gas Limited (ASX: GOG).
Cadenza -1 will be cased and suspended as a potential future gas producer
following DST over two independent zones the first in the Patchawarra Formation
at interval 2,691-2,694m which is presently flowing gas at approximately
1.5mmcfd through a =" choke. The second zone will be tested on 3 June 2006.
Cadenza -1 is located approximately 2.5km north-northeast of the Paranta-1 new
gas/condensate discovery. Cadenza-1 has targeted an anticlinal feature which
has the potential to host a total of between 12 (P50) and 28 (P10) BCF of gas
within a number of levels of the Patchawarra Formation.
EIV through its wholly owned subsidiary Everdue Pty Ltd has funded Cadenza-1
to earn a 50% interest in any subsequent production license.
The New Field Gas Discovery follows EIV's announcement yesterday that it has
entered into agreements with Great Artesian to farm-in to the Paprika -1 Well
expected to spud within 10 days of completion of Cadenza-1. Paprika -1 will also
target Patchawarra Formation reserves, where seismic mapping has indicated
capacity to host between 9 BCF (P90) and 70 BCF (P10) with likely 30 BCF at
P50.
The EIV - Great Artesian farm-ins cover approximately 440 sqkm of the highly
productive PEL 106 in which EIV expects to have a participating interest in 8
wells.
Mr Sharif Oussa, EIV's Chief Investment Officer commented "Cadenza-1
represents the fourth discovery in the EIV portfolio, following Nutmeg, Paranta-1
and Rossco-1. We are pleased that the work put into selection of these projects
has shown such positive results. PEL106 is becoming increasingly recognised
as a significant gas/condensate province."
Mr Shane Doherty, EIV Managing Director concluded "The current results
continue to support our confidence in establishing early cash-flow and earnings
stream, consistent with EIV's strategic plan."
