Senex Energy’s (ASX: SXY) unconventional gas exploration program in the Cooper Basin remains on track despite heavy rains and mechanical problems experienced at the Sasanof-1 well.
The company said 13 cores had been cut from the target Toolachee, Roseneath, Murteree and Patchawarra Formations in Sasanof-1 and that logging was being carried out.
Sasanof-1 in PEL 516 will then be cased and cemented for fracture stimulation early in the next quarter. The rig will then move to drill the second unconventional well Talaq-1.
The well was drilled to a depth of 3102 metres, just shy of the original target of 3200 metres due to a mechanical problem encountered during drilling.
However, this was judged to have no impact as it was still 125 metres deeper than the last core point.
Senex said PEL 516 ) displayed many favourable attributes for unconventional gas production with preliminary results from the earlier Vintage Crop-1 well suggesting a wet gas find containing liquids and heavy gasses with low carbon dioxide content.
The company is hoping to unlock a 100 trillion cubic feet of unconventional gas in place resource in the Cooper Basin.
Domestic demand is being fuelled by gas-fired power generation with prices trending upwards as the introduction of export liquefied natural gas in Eastern Australia provides additional demand and a shift towards oil-linked pricing.