Perth, Oct 27, 2008 AEST (ABN Newswire) - Empire Oil & Gas NL (ASX:EGO)(PINK:EOLGF) is pleased to announce that the current operation at 0600 hrs 27 October 2008 is drilling ahead in 8 1/2" (216mm) hole in the Toolonga Calcilutite at 315 metres.
The future operations: Drill ahead with 8 1/2" hole to the reservoir objectives.
LAKE MACLEOD-1 PETROLEUM EXPLORATION WELL
EP 439/461, WESTERN AUSTRALIA
1. Well Name/Permit Lake MacLeod-1 - EP 439/461, Western Australia
2. This report is for the Period: The period 1800 hrs 23 October 2008 to 2400 hrs 26 October 2008
3. This ASX Release Time and Date: 1000 hrs WST 27 October 2008
4. Report No: 7
5. Spud Date/Rig: 30 September 2008
6. Days since Spud: 17 (Including 9 days crew break from 7 to 15 October 2008)
7. Location of Well: Latitude 240 35' 26.03"S Longitude 1130 32' 19.38"E 2kms north east of Shot Point 1500 seismic line CG83-01
8. Elevation:
G.L. 2 metres
RT. 3 metres
RT to GL 5 metres
9. Proposed Total Depth: 1,000 metres
10. Targets: Gneudna Formation Carbonates, 535m to 1000 metres
11. Present Depth: At 2400 hrs 26 October 2008 - 256m.
12. Geological Summary: 160-183m Korojon Calcarenite - Cream-orange limestone with calcareous fragments, micro fossilisation, micritic, calcareous. 183-260m Toolonga Calcilutite - Grey-white and pale brown, green grey limestone, massive, hard, coral fragments, minor shell fragments, trace green claystone.
Formation Tops
Trealla 15
Cardabia 35
Korojon 70
Toolonga 183
Early prognosis 5-15m high to prediction
13. Hydrocarbon Indications: None anticipated in this shallow section.
14. Operations since last Report: As of 2400 hrs 26 October 2008, completed pressure testing - ok. Completed installing mud logging unit and calibration and complete crew including Wellsite Geologist on site. Completed Formation Integrity test beneath shoe - OK.
Commenced 24- hour drilling operations 26 Oct. Drilled 8 1/2" (216mm) hole from 181-227m. Ran deviation survey 0.75" (straight hole). Drill 8 1/2" hole 227- 256m at 2400 hrs 26 Oct.
15. Current Operations: Drilling ahead at 315m in Toolonga Calcilutite at 0600 hrs, 27 October 2008
16. Future Operations: Continue drilling ahead. 8 1/2" hole to the reservoir objectives.
17. Prospect Description: Good oil-prone source rocks are present in organic-rich marine shales nearby 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 are interpreted to be present. 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.
Structures drilled in the Gascoyne Sub Basin to date such as Quobba-1, Pendock-1D and Wandagee-1 were all formed during the Miocene which post dates primary hydrocarbon migration and are dry.
The Lake MacLeod structure is interpreted to have 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 early aged structures have been drilled in the Gascoyne Sub basin, Carnarvon basin.
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 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.
18. Participants in the well:
Empire Oil & Gas N.L. (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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