Real Energy Corporation spuds Queenscliff-1 to confirm presence of basin centred gas – Proactiveinvestors AU

Real Energy Corporation ASX:RLE has spudded the Queenscliff-1 in the Cooper Basin, Queensland, to confirm the presence of gas in the Toolachee and Patchawarra formations downdip from Tamarama-1.The company’s shares are expected to trade higher.Tamarama-1 had intersected 87 metres of strong net gas pay in the two formations, supporting the theory that a basin centred gas play is present in its acreage.Success at Queenscliff, the company’s second exploration well in the Cooper Basin, will confirm the presence of basin centred gas and determine reservoir productivity.A secondary objective is to obtain samples from the Toolebuc Shale to further knowledge of this potential shale oil play.Both wells are located in ATP 927P, which is surrounded by proven and producing gas and oil fields operated by Santos, and gas production is being used to feed growing demand for east coast gas.An Independent Geologist’s report had estimated the Permian section in ATP927P and ATP917P contains a mean gross estimated petroleum initially-in-place of 10.2 trillion cubic feet of gas.Queenscliff-1Queenscliff-1 is located 12.85 kilometres west of Tamarama-1 and 17 kilometres east-northeast of the Whanto-1 gas field. It will test for the presence of gas saturated Permian Toolachee and Patchawarra formations in an area located significantly downdip from the successful Tamarama-1 well.This would advance Real Energy’s theory on the presence of basin centred gas within ATP927P.The well is expected to take about two and a half weeks to drill and complete from spud date.Basin-Centred GasBasin-centred gas plays consist of gas trapped outside the limits of conventional structural traps, potentially forming an extensive accumulation in the deeper parts of the basin.The reservoir sandstones holding this gas are typically of lower reservoir quality, referred to as tight gas sands.While conventional evaluation of tight gas intervals intersected in wells previously drilled in and adjacent to ATP 917P and ATP 927P had resulted in these wells being considered non-commercial, recent advances in the development of tight gas reservoirs have led to commercialisation of these resources. Highlighting its potential, Beach Energy has attracted supermajor Chevron NYSE:CVX to jointly explore and potentially develop both basin-centred and shale gas in the Nappamerri Trough of the Cooper Basin, South Australia.Santos and its partners in the SACBJV have also gotten into the act with drilling to assess the Toolachee Formation.ATP 927PATP 927P comprises four separate blocks with a total area of approximately 1,718 square kilometres that are located 100 kilometres northwest of Eromanga in southwest Queensland.While no wells were drilled until Real Energy’s Tamarama-1 well, the permit is located close to a number of oil and gas fields and discoveries.The existing seismic grid includes 435 kilometres of multi-vintage 2D regional seismic data.The target Toolachee and Patchawarra Formations are present across the entirety of the permit.This is reflected in elevated gas readings that are reported from wells in the area that were drilled as off-sets on local palaeo-highs, and reported elevated gas readings over the entire interval.Besides the potential for basin-centred gas, ATP 927P also has shale oil and gas potential in the Toolebuc Shale as well as conventional oil and gas targets.ATP 927P and the nearby ATP917P contain Mean Gross Estimated Petroleum Initially-in-Place of 10.2 trillion cubic feet of gas in the Toolachee and Patchawarra formations.AnalysisProactive Investors believes that in the event of a success, Queenscliff-1 will prove the presence of basin centred gas at Real Energy’s acreage in the Cooper Basin, Queensland.This has the potential to be an extremely large resource given that the Toolachee and Patchawarra formations in its acreage has been independently estimated to host 10.2Tcf of gas.Real will then consider its options including whether to seek a farm-in partner.

via Real Energy Corporation spuds Queenscliff-1 to confirm presence of basin centred gas – Proactiveinvestors AU.