THE Otway Basin continues to be a hive of resource activity, with a joint venture between Vintage Energy and Lakes Oil planned for the South East.
Conventional gas stores will be targeted at the Nangwarry-1 site, which is expected to break ground as early as October.
The joint venture will bring the Easternwell Rig 106 to the region year once it has completed operation in the Perth Basin.
The 1500 horse-power fit for purpose rig is fully automated and capable of drilling to a depth of 5000 metres.
The project will be partially funded by a $4.95m State Government grant.
Preparation works for the Otway Basin Joint Venture well advanced and expected to be completed over the coming month.
The joint venture received a South Australian Government PACE gas grant of $4.95m which will be used to partly fund the drilling Nangwarry-1.
The prospect is a three-way dip fault dependent trap in the Pretty Hill and Sawpit formations, defined on three dimensional seismic.
The Pretty Hill target is considered analogous to the nearby Beach owned Katnook, Haselgrove and Ladbroke Grove fields which have produced substantial quantities of gas since discovery.
The well is anticipated to take approximately 45 days to drill and, if successful, will be tested for gas flow shortly after completion.
Any gas produced from Nangwarry-1 can be expedited to market due to its close proximity to infrastructure and industry.
Nearby infrastructure includes the Katnook gas processing plant located approximately 10km to the southeast and a substantial network of pre-existing pipelines that connect to local industry and the eastern states gas supply network.
Vintage managing director Neil Gibbins said Vintage was pleased to secure the rig to drill Nangwarry-1.
“Should the well be successful, it would extend the proven Pretty Hill Sandstone play province as well as the new Sawpit Sandstone play province,” he said.
“A positive result would have the potential to supply much needed gas to local industry in the South East as well as the South Australian market more generally.”
Lakes Oil chairman Chris Tonkin said drilling of the Nangwarry-1 well was an important step towards the company becoming a commercial producer of gas.
“In addition to targeting the historically productive Pretty Hill sandstone the well will test the Sawpit Sandstone which flowed gas at a tubing-constrained rate of 25m cubic feet per day,” he said.
“The Nangwarry prospect contaivwns a best estimate gross prospective gas resource of 57 Bcf and Lakes Oil looks forward to developing a new source of gas supply for the benefit of South Australian gas users.”
