Senex Energy (ASX: SXY) is embarking on an aggressive, fully self-funded 30 well campaign over the next 12 months targeting oil in the northern and southern Cooper Basin, South Australia.
Exploration, development and appraisal wells will be drilled as part of campaign, which is itself intended to be first phase of a broader, multi-year oil exploitation program across the company’s permits, which cover 13,000 square kilometres.
The wells will be fully self-funded from the company’s oil production.
Over the last six months, Senex has carried out a comprehensive review of its assets after receiving the initial interpretation volumes from the Cordillo 3D seismic survey and has now identified more than 50 oil prospects across its permits.
Drilling will initially focus on prospects in the southern oil province with well sites located at, or near, existing oil fields.
Work on the campaign will commence this weekend, with the Worrior-8 development well to be drilled at Worrior oil field.
Worrior-8 will assess the oil potential of the Murta Formation, which previously flowed oil during a drill stem test and provide an additional drainage point for the McKinlay, Birkhead and Hutton oil reservoirs.
It will also intersect the Patchawarra Formation, which flowed gas in Worrior-1 on DST at a rate of about 7.4 million cubic feet per day with associated liquids.
If this gas resource is confirmed, it could replace the crude oil consumed as fuel at the Worrior field each day.
The aim of these initial wells is to add reserves, increase oil production and reduce costs in a number of mature fields with existing infrastructure, and to evaluate near-field exploration opportunities.
The prospects are generally located at, or close to, existing facilities where surface infrastructure costs have already been recovered.
In addition, new exploration prospects will be drilled on the western flank of the South Australian Cooper Basin generated from the latest 3D seismic surveys.
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