The joint venture with Central Petroleum and partners has returned positive gas flow results, increasing confidence that extensive sections of the stairway could be productive.
Central Petroleum has spudded the WM28 well as part of ongoing developments in the Northern Territory.
Today, the company announced that WM28, the second development well in the Mereenie Development Program, was completed.
WM28 was successfully drilled to a dept of 1,332 m as a selective dual zone gas producer, accessing both the upper reservoir (Pacoota-1) and the lower reservoir (Pacoota-3).
The Pacoota-1 was air-drilled, cased and perforated while the Pacoota-3 was air-drilled and left open hole to maximise flow rates.
Based on rig flow tests, the combined gas flow rate of the reservoirs is expected to be higher than initially anticipated.
Central Petroleum also reported that virgin reservoir pressure and sustained flow rates were observed from a 34 m vertical intersection of the upper stairway sandstone during drilling.
A flow test of the upper stairway maintained a production rate of 0.6 mmscfd over a period of 50 minutes with minimal decline observed.
The successful flow test in the upper stairway provides a good indication of the presence of open natural fractures at WM28.
Works are underway to connect WM28 to the gathering network, with the well expected online by mid-September.
Central Petroleum said that based on results to date, Mereenie is easily meeting economic hurdles for the investment.
For more information visit the Central Petroleum website.