Empire Oil & Gas NL, Perth, has confirmed a light oil play in its Red Gully North-1 gas discovery in the onshore north Perth basin of Western Australia.
Data analysis of hydrocarbons from a well-test program completed in January included what the company calls a volatile light oil extracted from the ‘C’ sand within the reservoir. Some 1,050 bbl of oil were recovered during the test.
A log analysis has been completed that suggests a 5-m oil pay with greater than 9% porosity. The overall size of this oil resource will be assessed after completion of a reservoir fluid study early next month.
Empire is then planning to begin a 3-6 month extended production test during the third quarter of this year that the company hopes will enable it to book oil reserves for the Red Gully North field.
Assuming adequate reserves are established, the company will begin commercial production from the well either as a stand-alone operation or a tie-back to the company’s existing Red Gully production facility.
Excited by the discovery, Empire has initiated a review of historical data over the ‘C’ sand in previously drilled wells to determine if there is overlooked potential within the company’s existing acreage portfolio, particularly the northern part of permit EP 389. The results of this study will be known within the next few months.