Senex Energy (ASX: SXY) has made an unconventional gas discovery in the Cooper Basin that it says confirms the presence of a basin centred gas accumulation.
Skipton-1, the third unconventional gas well the company has drilled this year, intersected more than 75 metres of net gas pay in the Patchawarra Formation and 164 metres of gas charged Roseneath and Murteree shales.
More than 380 metres of core have been collected from the target intervals.
Basin centred gas accumulations produce at higher rates than traditional shale plays while being less expensive to bring into production.
Regional mapping indicates the previously unexplored trough surrounding Skipton-1 covers an area greater than 200 square kilometres or more than 49,000 acres. This is equivalent to a gas field development of over 600 wells, spaced at 80 acres.
Senex said the result reinforced its view that the Cooper Basin hosts massive quantities of liquids rich gas.
It plans to drill its fourth unconventional gas well, Kingston Rule-1, in the coming week and is planning a hydraulic fracture stimulation campaign for the Talaq-1, Skipton-1 and Kingston Rule-1 wells from December 2012.
Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.