Oil and Gas News

Lockyer Deep-1 operation delays

The Lockyer Deep-1 well is located in the Perth basin

Perth Basin oil and gas exploration company Norwest Energy has reported delays to Lockyer Deep-1 well completion following complications during milling operations.

The company reported that the 5-1/2” production casing was run from surface to the total depth. 

During casing cementing operations the cement was not displaced into the annulus due to a suspected wiper plug held up in the casing hanger. 

This has resulted in the cement remaining within the 5-1/2” production casing, with only minimal cement in the production annulus. 

The cement wiper plugs and cement are currently being milled out to attain well access and re-cement the production casing for future completion and production testing.

The Ensign 970 rig will remain on location to progress the mining operations while additional mining equipment is being sourced. 

The resulting delay to well completion is not anticipated to materially affect the timing of production testing on the King Sandstone reservoir, for which the necessary test equipment is being procured and mobilised. 

This follows the company’s announcement on September 22 that the Lockyer Deep-1 well had exceeded pre-drill expectations. 

Managing director Ian Smith said he was frustrated but not disheartened by the delays. 

“While this operational event is a frustration, we do not anticipate a material delay to the production testing program,” said Smith. 

“As such, we remain on track to test the exceptional quality King reservoir during Q4 CY 2021, whereupon we expect to confirm that the Lockyer Deep-1 discovery is one of the highest deliverability onshore gas reservoirs in Australian history.” 

Up to this pint, costs associated with drilling at Lockyer Deep-1 have remained within the joint venture (JV) Approval for Expenditure of around $14.5 million. 

The necessary additional time and equipment for completion will result in incremental costs to the JV that are not expected to exceed an additional $5 million. 

Norwest Energy advised it will provide further announcements at key milestone during the next stage of operations. 

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