Perth, Sep 3, 2008 AEST (ABN Newswire) - Empire Oil & Gas (ASX:EGO)(PINK:EOLGF) and its wholly owned subsidiary, Gulliver Productions Pty Ltd, is pleased to announce that the Parties to the Retention Lease R1 and the EP 104 Permit have unanimously agreed to undertake further testing of the Stokes Bay-1 well that was drilled by the Joint Venture in 2007. This testing programme is planned to commence in late September 2008.
The testing will attempt to provide a positive test of the reservoir fluid and character and flow capacity of the cavernous reef system in the Nullara Formation encountered by the Stokes Bay 1 well. With large mud losses in the Stokes Bay - 1 well, the reservoir potential and fluid character was not positively defined during the 2007 drilling program.
The test will consist of a number of incremental steps commencing with the circulation of fresh water with surfactant (foaming detergent) to remove the heavy muds in the tubing and reduce the pressure on the formation and attempt to induce flow. Once the results of this first operation have been obtained and reviewed, the next steps in the programme will be confirmed.
Interpretation of the pressure data obtained during and after the drilling of the Stokes Bay 1 well, indicated a reservoir pressure of up to 140psi above the regional water gradient which could be indicative of a hydrocarbon column, although other interpretations are possible. This anomalous pressure is from a zone over 80 metres higher than a 0.134 mmcfd gas flow with some minor oil shows in Point Torment-1, 4.5 kms to the south east. This trend could also extend up to 3kms to the north west of the well where the Pinnacle Fault curves to the west.
For the trap to be effective, the Nullara trend must also be stratigraphically trapped updip to the north east by either tight limestones or lagoonal shales. If there is closure of the cavernous trend around the well it is possibly in order of some 7km2,based on current seismic mapping, but being a stratigraphic feature, it could extend over a much larger area.
There is drilled to date a 40 to 45 metre intersection of the Nullara limestone in Stokes Bay-1.
Empire interprets this areal closure has the potential to be up to 17 km2.
The participants to the Joint Venture in the EP 104 Permit and the R1 Retention Lease are:
Empire Oil & Gas N.L/Gulliver Productions Pty Ltd 14.8%
Indigo Oil Pty Ltd 5.5%
ARC Energy Ltd (held on behalf of Buru Energy Ltd) 38.95%
First Australian Resources Limited 8.0%
Pancontinental Oil & Gas NL 10%
Phoenix PLC 0%
Emerald Oil & Gas NL 12.75%
Contact
Mr Craig Marshall
Managing Director
Phone: +61-8-6389-2687
Facsimile: +61-8-9386-6812
E-mail: cmarshall@empireoil.com.au
| ||
|
