Since the last report the well was drilled to the total depth of 3,219 metres in the economic basement. Electric logs have been recorded and preliminary wireline log interpretation in integration with mudlog gas readings and drill cuttings have indicated the presence of gas saturated Permian Toolachee and Patchawarra formations section at the Queenscliff-1 location. The petrophysical evaluation, using standard 5% porosity cutoff for pay calculation of the basin centred gas play, indicates the well has encountered 32.5 metres of net sandstone gas pay (from gross 66.5 metres) in the Toolachee Formation and 34.8 metres of net sandstone gas pay (from gross 87.5 metres) in the Patchawarra Formation. In addition, the well also encountered 10 metres of net sandstone gas pay (from gross 30 metres) in the Triassic Paning Member of the Nappamerri Formation.
Queenscliff-1 is located approximately 668 metres downdip from Tamarama-1 and outside any seismically mapped structural closure. It is also 31 metres downdip from Whanto 1 to the west. Queenscliff-1 will be cased and suspended for future flow testing.
Managing Director of Real Energy Mr Scott Brown commented "This is an absolutely fantastic result. We have drilled 2 wells and received 2 great results. It appears that we have proven up Basin Centred Gas in our acreage. The Queenscliff-1 and Tamarama-1 wells were drilled to prove up the concept that Basin Centred Gas exists in the Toolachee and Patchawarra formations in our acreage. We listed our Company on the ASX and raised funds to prove up this concept and designed our exploration program accordingly. Real Energy is the first oil and gas player to drill in this area outside structural closure, attempting to prove up basin centred gas play in this area.
We are very excited by the results received to date from Tamarama-1 and Queenscliff-1, which appears to confirm our hypothesis on the presence of the Basin Centred Gas in this area. Queenscliff-1 was drilled in the structurally low area of the Windorah Trough without any seismically mapped structural closure. Tamarama-1 and Queenscliff-1 successes have significantly advanced the play, and proved the continuous gas saturated Permian Toolachee and Patchawarra formations section is present in our acreage outside any structural closure. This is in the form of the continuous Basin Centred Gas play. The presence of gas saturated sandstone units in the basal part of the Nappamerri Formation and gas charged siltstone unit immediately overlying the Toolachee Formation at Queenscliff-1 location where there is no mappable structural closure at the Nappamerri level, also provides affirmative evidence on the presence of the Basin Centred Gas play similar to many basin centred gas areas in other sedimentary basins. It appears we have a very large gas accumulation in our acreage".
Given the successful results in Tamarama-1 and Queenscliff-1 to date, Real Energy has decided to postpone the drilling of West Flynnes-1 to the next year when we will embark on a much larger drilling campaign and avoid any potential operational risks during the wet weather period. We will arrange for production testing of Tamarama-1 and Queenscliff-1 in the first half of next year.
The drilling program this year was about proof of concept. Next year we will design our drilling program to significantly increase the resource delineation. Details of the 2015 calendar year drilling program will be released to the market in due course.
