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Summary

Goyder 2

GOYDER 2

Santos Ltd as Operator for the Nappacoongee-Murteree Block announces the discovery of a new gas field in the South Australian section of the Cooper/Eromanga Basins with gas flows from two separate formations.

The Goyder 2 exploration well located on the south eastern flank of the Allunga Trough, has flowed gas at 154,300 cubic metres per day (5.45 million cubic feet per day) from reservoir sands in the Early Permian Epsilon Formation over the interval 1887m to 1904m. This gas flow was accompanied by 43 cubic metres of condensate per day (269 barrels per day).

A second drill stem test conducted in the Early Permian Patchawarra Formation over the interval 2018m to 2046m flowed gas at 159,400 cubic metres per day (5.63 million cubic feet per day) accompanied by 76 cubic metres per day of condensate (477 barrels per day).

Both tests were conducted through a 12.5 mm (1/2″) surface choke. Following completion of testing operations the well will drill ahead to a programmed total depth of 2207m.

The previous well, Goyder 1 drilled in 1986, was plugged and abandoned after flowing gas at non-commercial rates.

Goyder 2 is located 860 m south south west of Goyder 1 and 39 km south east of Moomba.

Commenting on the find, Mike Hannell, General Manager of the South Australian Business Unit, said:

“This well represents the fourth successful gas exploration well drilled in 1997 following on from Merindal 1, Koree South 1 and Tindilpie 2”.

“Goyder 2, which has a good flow rate, is also the second gas field discovery in the South Australian section of the Cooper/Eromanga Basins for 1997. Because of the high liquids content the company plans to fast track development of this field”.

“A number of nearby prospects have been upgraded as a result of this successful well”.

The participants in the Goyder 2 well are:

Santos Group 59.75%

Delhi Petroleum 20.21%

Boral Energy Resources Ltd 13.19%

Crusader Resources 4.75%

Basin Oil 2.10%