25 January 2013
The Manager
Australian Securities Exchange Company Announcements Office Level 4/20 Bridge Street
SYDNEY NSW 2000
Dear Sir
RE: DAILY DRILLING REPORT FOR CYRENE-1 IN EP 438, CANNING BASIN, WESTERN AUSTRALIA FOR THE PERIOD 0600 HOURS 24 JANURY 2013 TO 0600 HOURS 25 JANUARY 2013
Please find details of the drilling activities of Cyrene-1 attached.
Update as of 0600 hrs 25 January 2013:
At 0600 hrs 25 January 2013 drilling had reached a depth of 680 metres RT with background gas increasing to 0.1 units. Drilling is currently continuing through the Grant Formation in 8 ½" hole.
EP438 Participants after drilling of Cyrene-1:
Buru Energy Limited 37.5% Mitsubishi Corporation (Diamond Resources (Canning) Pty Ltd) 37.5% Key Petroleum Ltd (Gulliver Productions Pty Ltd) 20.0% Indigo Oil Pty Ltd 5.0%
Regards
KANE MARSHALL
Managing Director
KEY PETROLEUM LIMITED
ASX AND MEDIA ANNOUNCEMENT
25 January 2013
CYRENE-1 PETROLEUM EXPLORATION WELL EP 438 - WESTERN AUSTRALIA
1. | Well Name/Permit: | Cyrene-1 EP438 - Western Australia | |||
2. | The Report is for the Period: | 0600 - 24 January 2013 to 0600 - 25 January 2013 | |||
3. | This ASX Release Time and Date: | 1000 - 25 January 2012 | |||
4. | Report No: | Five | |||
5. | Spud Date/DCA Rig #7: | 21 January 2013 | |||
6. | Days since Spud: | Four | |||
7. | Locations of the Well: | Latitude: 18° 16' 34.5"S | Longitude: 122° 24' 05.1"E | ||
8. | Elevation: | GL | 47m | ||
RT from GL (MSL) | 3.1m | ||||
RT to GL | 50.1m | ||||
9. | Proposed Total Depth: | 1060 metres TVD | |||
10. | Targets: | Primary: Goldwyer Formation | |||
Secondary: Willara Formation | |||||
11. | Present Depth: | 680metres RT as of 0600 hours 23 January 2013 | |||
12. | Geological Summary: | Formation Tops (m RT): | |||
Prognosed | Actual | Difference | |||
Wallal Sandstone | 295m | 295m | - | ||
Grant Formation | 490m | 490m | - | ||
Goldwyer Formation | 900m | ||||
Willara Formation | 1035m |
Key Petroleum Ltd
Ground Floor, 39 Stirling Highway, Nedlands WA 6009
T: +61 (0) 8 6389 0322 F: +61 (0) 8 6389 0697 E: info@keypetroleum.com.au W: www.keypetroleum.com.au
ABN 50 120 580 618
13. | Hydrocarbon Indications: | Background gas has increased to 0.1 units. | |
14. | Operations since last Report: | Drilled 62 metres to depth of 680 metres RT | |
15. | Current Operations: | Drilling ahead through the Grant Formation in 8 ½" hole. | |
16. | Future Operations: | Drill ahead in 8 1/2" hole to coring point in Goldwyer | |
17. | Prospect Description: | The first reservoir target of the Cyrene 1 well is the Goldwyer unit, an argillaceous unit of some 135m thickness. This is regarded as an 'unconventional' reservoir with potential to establish prospectivity over a very large area of the Broome Platform and beyond. The qualities of the Goldwyer which support this concept, apart from thickness and broad distribution, include organic contents frequently averaging 1.5-2% but ranging up to 4% or more, and a high calcareous content which implies favourable fracture characteristics. The second reservoir target of the well, the 'cavernous' limestones of the Willara Formation, was confirmed by the substantial lost circulation zones encountered in Hedonia 1. | |
18. | Participants in the Well: | Key Petroleum Ltd (Gulliver Productions Pty Ltd) (Operator) | 20.0% |
Buru Energy Limited | 37.5% | ||
Mitsubishi Corporation (Diamond Resources (Canning) Pty Ltd) | 37.5% | ||
Indigo Oil Pty Ltd | 5.0% |
Key Petroleum Ltd
Ground Floor, 39 Stirling Highway, Nedlands WA 6009
T: +61 (0) 8 6389 0322 F: +61 (0) 8 6389 0697 E: info@keypetroleum.com.au W: www.keypetroleum.com.au
ABN 50 120 580 618
0
200
400
600
800
Cyrene-1 Time v Depth (Budget) Well Spud to Rig ReleaseTime (Days)
0 4 8 12 16 20 24 28 32 36 40 44
Mobilise Rig, Rig Up for spud Drill 17 ½" Hole, Run 13 3/8" Conductor & cement
Drill 12 1/4" Hole
Run 9 5/8" Casing & Cement
Drill 8 ½" Hole
Coring Run
1000
1200
WL Logging and Run 7" Casing
Predicted Actual
Drill 6" Hole
DST, P&A, Rig Down
Key Petroleum Ltd
Ground Floor, 39 Stirling Highway, Nedlands WA 6009
T: +61 (0) 8 6389 0322 F: +61 (0) 8 6389 0697 E: info@keypetroleum.com.au W: www.keypetroleum.com.au
ABN 50 120 580 618
DCA rig personnel preparing to drill
Key Petroleum Ltd
Ground Floor, 39 Stirling Highway, Nedlands WA 6009
T: +61(0} 8 6389 0322 F: +61(0} 8 6389 0697 E: info@keypetroleumcomau W www.keypetroleum.com.au
ABN 50 120 580 618
Cyrene-1(orange prospect) ìs located lOOkm south of Broome in the northern part of EP 438 (yellow blocks)
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Key Petroleum Ltd
Ground Floor, 39 Stirling Highway, Nedlands WA 6009
T: +61(0} 8 6389 0322 F: +61(0} 8 6389 0697 E: info@keypetroleumcomau W www.keypetroleum.com.au
ABN 50 120 580 618
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