NEW STANDARD ENERGY 
By
New Standard Energy Ltd (New Standard) advises that planning was finalised and operations commenced over the weekend to side track the Gibb Maitland #1 well from a depth of approximately
900m after efforts to free the stuck drill pipe and bottom hole assembly were unsuccessful last week.
Cement plugs have been set in the wellbore in preparation for side tracking the Gibb Maitland #1 well and routine pressure testing has been successfully completed on the BOPs. Current operations are focused on assessing the nature of recurring electrical issues with the MB Century Rig #14's SCR unit (power controller) and working with drilling contractor MB Century to address these issues to facilitate ongoing operations. The rig is currently on "zero rate" whist the SCR unit is being repaired.
The primary objective of the Phase One drilling campaign, including the Gibb Maitland #1 well, is to gather a comprehensive modern data set over the Goldwyer Formation via a detailed evaluation program consisting of mud logging, logging-while-drilling, coring and wireline logging. This data will be used to assess the resource potential of "unconventional" hydrocarbons in shale reservoirs within the Kidson sub-Basin, where New Standard and ConocoPhillips have a dominant acreage position.
Gibb Maitland #1 is strategically located in a central position on the northern slope of the Kidson sub- Basin and will test a different and more favourable geological setting to the first well in the programme (Nicolay #1). The Gibb Maitland #1 region is interpreted as the source area of the migrated oil and gas shows seen in wells to the north of EP 450, and the well is targeting hydrocarbons in-situ within the mature source-rock shales of the Goldwyer Formation.
Based on very preliminary estimates the drilling of the Gibb Maitland #1 side track well may extend to late March 2013 should drilling resume shortly. The well is being funded under the terms of the farm-in agreement with ConocoPhillips pursuant to which ConocoPhillips are funding the first US$13m per well. No horizontal drilling or hydraulic fracturing will be involved in this phase of the program and no testing or flow of hydrocarbons to surface is planned.
During the course of drilling operations weekly drilling updates will be provided to the ASX each Wednesday, or otherwise as required upon the occurrence of any material event. The Company expects to issue the next drilling progress report on Wednesday 6th February 2013, or earlier should any material events occur in the meantime.
For further information, please contact:
Sam Willis Cameron Morse Managing Director FTI Consulting Ph: + 61 8 9481 7477 Ph: + 61 8 9485 8888email: swillis@newstandard.com.au email: cameron.morse@fticonsulting.com
New Standard Energy Ltd. | ACN 119 323 385
Level 2, 7 Ventnor Avenue, West Perth WA 6005 | PO Box 1542. West Perth WA 6872 T: + 61 8 9481 7477 | F: +61 8 9486 7670 | www.newstandard.com.auAbout New Standard: New Standard Energy is an emerging hydrocarbon explorer with a mandate to explore for oil and gas.
Its exploration and drilling program is active, well funded and extensive. The company's exploration program is underpinned and complemented by targeted corporate activity to take advantage of opportunities and to build an extensive pipeline of exploration projects. New Standard's board has extensive technical and commercial experience in the oil and gas sector.
New Standard currently has significant cash resources with this cash position to be further supplemented by income being generated from the Colorado County Project in Texas and cash calls under the ConocoPhillips farm-in agreement. The Company is primarily focused on aggressively progressing its oil and gas exploration portfolio focused on the onshore Canning and
Carnarvon Basins in W estern Australia. The portfolio includes:
100% (diluting to 25%) operated interest in EP's 443, 450, 451, 456 in W estern Australia's Canning Basin
100% (diluting to 25%) operated interest in application areas 1/09-0, 2/09-0 and 5/09-0 in the Canning Basin
65% (diluting to 50%) operated interest in EP417 in the Canning Basin
60% operated interest in the Seven Lakes SPA area in the Canning Basin
100% operated interest in the Merlinleigh project, onshore Carnarvon Basin W estern Australia
32.5% working interest in the Colorado County Project, onshore Texas USA 36% working interest in the W harton County Project, onshore Texas USA
32.5% interest in a license for 1,000 square miles of 3D seismic data
In addition to the above portfolio, New Standard has a 13.7% equity interest in ASX listed Elixir Petroleum Ltd (ASX: EXR). New
Standard is also continuing to actively assess other opportunities to complement and expand its exploration portfolio.
New Standard Energy Ltd. | ACN 119 323 385
Level 2, 7 Ventnor Avenue, West Perth WA 6005 | PO Box 1542. West Perth WA 6872 T: + 61 8 9481 7477 | F: +61 8 9486 7670 | www.newstandard.com.au Weekly Drilling Report - Gibb Maitland #1 SidetrackProject | Goldwyer Project, Canning Basin |
Well Details | Gibb Maitland #1 is located in exploration permit EP 450 in the Great Sandy Desert, east of Port Hedland. A location map is provided below |
Well Location | Latitude: 20°59'44.1"S Longitude: 124°38'26.6"E Datum: GDA 94 |
Equity Interests | New Standard 25% (Operator) ConocoPhillips 75% |
Date of progress report | 29th January 2013 (activity as at 12 noon, 28th January 2013) |
Proposed total depth | 3,900 metres (approximately) |
Side track starting depth | 900 metres (approximately) |
Side track commencement | 26th January 2013 |
Days since commencement | 2 days |
Current target formation | Primary target is the Goldwyer Formation shales, underlying the Nita and Bongabinni formation |
Operations since last progress report | Planning was finalised and operations commenced over the weekend to side track the Gibb Maitland #1 well from a depth of approximately 900m after efforts to free the stuck drill pipe and bottom hole assembly were unsuccessful last week. Cement plugs have been set in the wellbore in preparation for side tracking the Gibb Maitland #1 well and routine pressure testing undertaken on the BOPs. |
Hydrocarbon indications | None - none anticipated at this depth |
Forward operations | Current operations are focused on assessing the nature of recurring electrical issues with the rig's SCR unit (power controller) and working with MB Century to address these issues to facilitate ongoing operations. The rig is currently on "zero rate" whilst the SCR unit is being repaired. |
Location Map
Above: The Gibb Maitland #1 location on EP450, the second well in the Phase One program
New Standard Energy Ltd. | ACN 119 323 385
Level 2, 7 Ventnor Avenue, West Perth WA 6005 | PO Box 1542. West Perth WA 6872 T: + 61 8 9481 7477 | F: +61 8 9486 7670 | www.newstandard.com.au|
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