Perth, June 3, 2008 AEST (ABN Newswire) - Empire Oil & Gas (ASX:EGO)(PINK:EOLGF) Announce the Star Finch-1 well is scheduled to be drilled in EP 460 in June 2008 followed by the Lake MacLeod-1 well in EP 461/EP 439 in July 2008 with Government and other approvals to also drill an Appraisal well, Star Finch-2, on a Star Finch-1 discovery.
Please find details attached.
The participants in the wells are:
--------------------------------------------------Company Lake MacLeod-1 Star Finch-1 EP 439 and EP 461 EP 460--------------------------------------------------Empire Oil & Gas N.L. 30.356% 22.856%(Rough Range Oil Pty Ltd)Longreach Oil Limited 9.352% 9.352%Indigo Oil Pty Ltd 4.676% 4.676%Falcore Pty Ltd 2.596% 2.596%Vigilant Oil Pty Ltd 0.52% 0.52%Jurassica Oil & Gas Plc 35.00% 40.00%Black Fire Energy Limited 7.50% 0.00%DVM International Limited 10.00% 20.00%--------------------------------------------------
Schedule:
- Star Finch-1 to commence June 2008
- Lake MacLeod-1 to commence July 2008
- Drilling Programmes for Star Finch-1 and Star Finch-2 in EP 460 and Lake MacLeod-1 in EP 461/439 approved by the Western Australian State Government
- The EP 460 Joint Venture can elect to drill an Appraisal well, Star Finch-2, to commence August 2008 on a Star Finch-1 discovery
- Empire Oil & Gas N.L. and its subsidiary, Rough Range Oil Pty Ltd, have completed all the necessary aboriginal heritage surveys over three drilling locations in EP 460 Star Finch-1 and Star Finch-2 and EP 461/EP 439 Lake MacLeod
- Approval to enter onto Boolathana Station by the Pastoralist.
Star Finch-1 and Star Finch-2
Star Finch-1 is located to intersect the reservoir objective Cretaceous aged Birdrong Sandstone which consists of the primary reservoir objectives in this well at a depth of 450 metres. As mapped from the 2D seismic data the crestal position, the crestal high is also encouragingly coincident to a topographic high. The Star Finch-1 Prospect demonstrates bright seismic anomalies over the mapped closure. These amplitudes die out at the mapped spill point of the structure which are encouraging for the trap integrity. In addition to the Birdrong Sandstone, bright seismic amplitude anomalies can also be seen in the overlying Windalia Radiolarite and Lower Gearle Siltstone which also die out away from the crest of the structure at mapped closure. Bright amplitude anomalies have been a successful indicator in many cases for natural gas entrapment in the Carnarvon Basin. Two good examples are the Tubridgi and Rivoli Gasfields in the Carnarvon Basin.
Assuming the Star Finch-1 well is full to its spill point with natural gas, the estimated potential recoverable gas reserves are of the order of 50 billion cubic feet. The main gas market would be the town of Carnarvon with additional gas transported along the gas spur line into the main Dampier to Bunbury Gas Pipeline.
Assuming the Star Finch structure is gas bearing with a 5 metre oil leg, estimated potential recoverable oil reserves are of the order of 25 million barrels. The Star Finch structure covers an area of 3,000 hectares with a vertical relief of 40 metres.
The Company also has approval to drill a Star Finch-2 appraisal well located 1.6 kilometres from Star Finch-1 in the event of a discovery.
With all approvals now in place, Empire plans to commence drilling in June 2008. The Lake MacLeod-1 well will follow. The EP 460 Joint Venture is in a position to elect to follow on and drill an Appraisal Well, Star Finch-2, on a Star Finch-1 discovery.
Lake MacLeod-1
The Lake MacLeod structure exhibits the necessary pre-requisites of structural timing for oil generation and entrapment.
Good oil-prone source rocks are present in organic-rich marine shales of the Late Devonian Gneudna Formation. The Devonian section in the Quobba-1 well is predominantly shale so sealing of the reservoir in Lake MacLeod-1 is not considered a problem. There were also good oil and gas shows throughout the Gneudna Formation in Quobba-1 demonstrating there are porous and permeable reservoirs in dolomites of the Gneudna Formation.
The main structures drilled in the Gascoyne Sub Basin such as Quobba-1, Pendock-1D and Wandagee-1 formed during the Miocene which post dates primary hydrocarbon migration and are dry.
Structures such as Lake MacLeod however were formed during the Devonian and pre date primary hydrocarbon migration from the Gneudna Formation source rocks which generated their hydrocarbons during the Late Carboniferous to Permian. It is important to note that none of these aged structures have been drilled in the Gascoyne Sub basin, Carnarvon basin.
The larger Lake MacLeod Prospect covers an area of 27,500 hectares (70,000 acres). Estimated potential recoverable reserves for the larger Lake MacLeod-1 Prospect if the structure is filled to its maximum spill point are in the order of 150 million barrels. Potential recoverable oil reserves within the Lake MacLeod structure in the EP 461 Permit are more conservatively calculated using a 5000 hectare closure at the Top Nannyarra Sandstone and are estimated to be in the order of 30 million barrels of oil.
Empire plans to commence drilling in July/August 2008. A discovery Lake MacLeod-1 well will result in a testing programme, prior to determining the appropriate drilling locations for any appraisal wells on the large Lake MacLeod Structure.
Drilling Rig - DCA Rig 7
The Company has contracted Drilling Contractors of Australia's Rig 7 to drill these "back to back" wells.
Contact
Mr Craig Marshall
BSc (Hons), F.Aus. IMM, CPGeo
Managing Director
Phone: +61 8 6389 26 87
Facsimile: +61 8 9386 68 12
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