Perth, Oct 1, 2008 AEST (ABN Newswire) - Empire Oil & Gas (ASX:EGO)(PINK:EOLGF) is pleased to announce that the drilling of the Lake MacLeod-1 surface hole section commenced on 30 September, 2008.
The Company will drill the 380mm hole and cement the 340mm (13 3/8") conductor pipe to a depth of approximately 26 metres prior to drilling the 311mm (121/4") hole and running and cementing the 244mm (9B") casing at approximately 150 metres.
The installation of blow-out prevention equipment will be undertaken this week. Full 24 hour operations will take place upon all service company personnel being on site to conduct pressure testing of all blowout prevention equipment prior to drilling ahead with 216mm (81/2") hole to the reservoir objectives.
This main drilling operation is planned to commence on about 11 October 2008.
Lake MacLeod-1 is a seismically defined structure with good oil-prone source rocks present in organicrich marine shales of the Late Devonian Gneudna Formation. The Devonian section in the Quobba-1 well is predominantly shale providing a sealing mechanism of the reservoirs in Lake MacLeod-1. There were good oil and gas shows throughout the Gneudna Formation in Quobba-1 located 33 kilometres to the NW, demonstrating there are porous and permeable reservoirs in dolomites of the Gneudna Formation. Quobba-1 is a Miocene aged structure which post dates oil generation and migration and consequently was a dry hole.
The Lake MacLeod structure is an early structure interpreted to have formed during the Devonian and pre dates primary hydrocarbon migration from the Gneudna Formation source rocks which generated their hydrocarbons during the geological time of the Late Carboniferous to Permian.
It is important to note that none of these early aged structures have been drilled in the Gascoyne Sub basin, Carnarvon Basin. Lake MacLeod-1 is an exciting test of this large early structure.
The large Lake MacLeod prospect covers an area of 27,500 hectares (70,000 acres). Estimated potential recoverable reserves for the larger Lake MacLeod-1 prospect in the EP 439 and EP 461 Permits 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 EP461 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.
The participants in the Lake MacLeod-1 well are:
Empire Oil & Gas NL (Rough Range Oil Pty Ltd - Operator) - 30.356%
Longreach Oil Limited - 9.352%
Indigo Oil Pty Ltd - 4.676%
Falcore Pty Ltd - 2.596%
Vigilant Oil Pty Ltd - 0.52%
Jurassica Oil & Gas Plc - 35%
Black Fire Energy Limited - earning 7.5% by Farmin from the J.V.
DVM International Limited - earning 10% by Farmin from the J.V.
Contact
Mr Craig Marshall
Managing Director
Phone: +61-8-6389-2687
Facsimile: +61-8-9386-6812
E-mail: cmarshall@empireoil.com.au
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