The Palm Valley 12 well in OL3 has officially reached a total depth of 2278 m in the P4 unit of the Pacoota Formation.
Underbalanced drilling has also commenced in the 8 ½-inch hole and flow tests have also been conducted within the lower P2 and P3 sections along with mandatory scheduled testing for the blow-out-preventor and other surface equipment.
A total of 220 m of drilling progress was also made recently.
Gas shows were recorded through the P1 to P3 sections of the well, approximately 1778 to 2278 m. Minor gas flows to surface were recorded following air drilling through the P3 formation, indicating that no significant fractures were intersected by the vertical well in this lower section.
The joint venture (JV) will consider the opportunity to appraise the P3 formation for gas charged vertical fractures through a horizontal lateral.
The PV12 well has two alternate objectives. The primary deep gas exploration target is the Arumbera Sandstone at an anticipated depth of 3560 m. Alternatively, if the deep exploration target is not successful, a shallower gas appraisal lateral will be drilled in the currently producing P1 formation with the potential to become a production well.
The PV12 well is the first of a two-well drilling program that also includes the Dingo-5 exploration and production well. Both wells are being drilled under joint ventures between Central, New Zealand Oil & Gas and Cue Energy.
Leon Devaney, managing director and CEO of central said PV12 drilling has been difficult to date. Subsequently, the project is behind schedules and behind the original budget.
“On a positive note, the fracturing we have seen in the upper Pacoota formation is a positive technical sign for appraisal through horizontal drilling, and once we drill through P4, we will be exploring formations that have never been penetrated at Palm Valley.”
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