Lakes Oil finds gas column in Otway basin well

Lakes Oil NL, Melbourne, confirmed the presence of a minimum 65 m thick gross gas column in its Nanggarry-1 wildcat in the onshore Otway basin of South Australia.

The company reported that the gas is at the top of the Pretty Hill formation and has been confirmed by wireline logging comprising petrophysical logs, formation pressure data, and gas sampling.

The lower Pretty Hill gas interval identified during earlier drilling operations has not been definitively logged because of difficult down-hole conditions. The interval will be evaluated once the hole has been cased and suspended.

The well was drilled to a total depth of 4,300 m. A full flow-testing program is expected as soon as the requisite approvals are obtained, and the test equipment is in place.

The program will provide the basis for a development decision. The gas samples obtained have already been sent for analysis.

Nangarry-1, in permit PEL 155, is operated by Lakes with 50% interest. Vintage Energy Ltd., Adelaide, holds the other 50%.

The cost of the well was partially funded through a $4.95 million (Aus.) grant under the South Australian Government’s Petroleum Accelerated Exploration (PACE) program. The JV hopes to supply gas to the South Australian market by the end of this year.