Lakes Oil's South Oz Well Encounters Two Gas Intervals

Sydney-listed Lakes Oil January 2 said that two gas intervals have been encountered in Nangwarry-1 exploration well in Ottway basin in South Australia.

The company said that logging of the primary target, the Pretty Hill Formation, where two potential gas-bearing intervals (each about 140 metres thick) were encountered, is now underway. The secondary target reservoir had been intersected but was not gas-bearing, the company said. Drilling of the Nangwarry-1 gas exploration well was completed on December 31.

“Subject to the logging results confirming the potential of the gas shows flow testing of the well will be carried out as soon as requisite approvals and equipment are in place,” Lakes Oil said.

The Nangwarry-1 well is a 50:50 joint venture between Otway Energy (a subsidiary of Lakes Oil) and Vintage Energy. The cost of the well is being partially funded through an A$4.95mn (US$3.46mn) grant under the South Australian government’s Petroleum Accelerated Exploration (Pace) programme.

“In accordance with Pace grant conditions, the PEL 155 joint venture will strive to commence supply of gas to South Australian gas user(s) by the end of 2020,” Lakes Oil said.