Energy Resources Ltd. has found the primary Kingia Sandstone target in its Lockyer-2 appraisal well onshore North Perth basin of Western Australia to be water saturated despite the reservoir being of high quality. The result considerably downgrades the resource potential of the Greater Lockyer structure.
The well, about 3.2 km northeast of the Lockyer Deep-1 gas discovery in permit EP368, reached a total depth of 4,574 m.
Low levels of background gas were noted in the reservoir, but analysis of wireline data and sampling indicated that the aquifer is at a much higher pressure than previously interpreted.
The anomalously high pressure indicates a much-reduced gas column with the free water line now interpreted to be at a depth of 4,007 m.
The Kingia target was intersected at 4,142 m depth in Lockyer-2 and the potential resource area (above the free water line) is now estimated by JV partner Norwest Energy to be around 11 sq km.
Norwest said the secondary targets within the Dongara, Wagina, and High Cliff formations were also found to be water saturated.
Forward plans are to obtain rotary sidewall cores and run a velocity survey via wireline techniques before suspending the well for potential future use. The will move to drill the group’s North Erregulla Deep-1 well.
Energy Resources, a subsidiary of Mineral Resources Ltd., is 80% interest holder and operator. Norwest holds the remaining 20%.
Mineral Resources launched a takeover bid for Norwest in 2022 and currently holds over 76% interest in its JV partner.
The disappointing exploration result coincided with news that Energy Resources’ executive general manager, Shelley Robertson, has resigned. She has previously served as managing director of Norwest Energy.