Senex Energy (ASX: SXY) has flowed gas from its Paning-2 unconventional gas exploration well in the northern Cooper Basin, South Australia, as it plans to resume its oil exploration, appraisal and development program.
Two fracture stimulations were completed in each of the Epsilon and Patchawarra formations at Paning-2 and a single 3,000 pound proppant frac in the Toolachee Coal.
Testing of the Toolachee Coal successfully demonstrated the ability to mobilise gas to surface with a short term production test delivering peak flows of up to 90,000 standard cubic feet per day flared continuously over four days.
Results indicate that the gas, free from water, was sourced from a regionally extensive 28 metre thick Toolachee coal, with an estimated 2.1 trillion cubic feet of in-place gas across the 9,000 acre Paning structure.
Paning-2 is the first well to test the unconventional gas potential of this part of the South Australian Cooper Basin and the second well, after the Santos operated Moomba-77, to flow gas from deep coals.
The well remains suspended pending further analysis and estimation of contingent resources.
Senex added that exploration to date throughout the Patchawarra Trough indicates that the tight sands of the Epsilon and Patchawarra formations are likely to host structural oil and gas accumulations though future exploration will require 3D seismic data for target delineation.
The company is also planning to resume its Cooper Basin oil exploration, appraisal and development program with the return of Ensign Rig 48 in late June.
This follows an extensive review of its oil portfolio over the last six months that has identified more than 30 exploration, appraisal and development targets from existing seismic and technical data.
Further exploration targets are now being generated from the interpretation of the reprocessed Mollichuta 3D seismic survey and the new Cordillo and Lignum 3D seismic surveys.
More than 50% of the current targets are development wells located at existing fields. Success with these wells will result in rapid, low cost incremental production.
Senex is also planning to drill an appraisal of the conventional Hornet gas field in PEL 516 that contains up to 2.9Tcf of prospective resource in a conventional stratigraphic reservoir.
It has also entered into an agreement to sell its 15% interest in the Santos operated Cuisinier oil field and its interests in ATP 752 for $20 million.
This reflects its strategy of focusing on permits where it holds a majority equity position and operatorship, ensuring that it manages exploration and development plans and capital allocation decisions.
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