Senex Energy Limited announces drilling begins on the Paning-2 unconventional gas exploration well in the northern Cooper Basin

Wednesday, Dec 19, 2012

Paning-2 – Targeting unconventional gas in the northern Cooper Basin On 15 December, Senex commenced its 12 well unconventional gas exploration program with the spudding of the Paning-2 well in northern Cooper Basin permit PEL 90 (100% Senex). Weatherford Rig 826 has currently reached a depth of 751 metres and is running 13 3/8" casing. The targeted total depth of the well is 3,175 metres.

Paning-2 is located 1.2 kilometres southwest of Paning-1, which was drilled in 1980 by Delhi Petroleum as a conventional gas exploration well.

The Paning-2 well is the first unconventional gas exploration well to be drilled in the region and is designed to provide valuable information about the potential for gas production from the tight sands and deep coal seams of this new region.

Tight sands

Paning-2 will test the domal structure up-dip of Paning-1 at the top of the Patchawarra Formation; the structure covers an area of more than 36 square kilometres (9,000 acres). The primary targets are the tight sandstones in the Toolachee, Epsilon and Patchawarra Formations, and thick coal seams in the Toolachee Formation. The Tirrawarra Sandstone, which underlies the Patchawarra Formation also has potential as a tight sand play.

The Paning-2 well is the first exploration well to test the potential of the Permian tight sand sequence that exists within the entire Patchawarra Trough. Deep coal seams – Estimated potential gas in place of 2.1 Tcf

Paning-2 will test massive Permian coals known to exist throughout the Patchawarra Trough where Senex holds an extensive acreage position.

The coals in Paning-1 are up to 30 metres thick with a total coal thickness in the well of 57 metres. Similar thicknesses are expected in Paning-2. Data from the desorption of Permian coals cored in previous Senex wells indicates gas contents of at least 600 standard cubic feet per tonne (equivalent to approximately 17 cubic metres per tonne). The productivity of the Permian coals was proven by Santos at the Moomba-77 well, where Patchawarra Formation coals flowed at 100,000 cubic feet per day. The unconventional gas target located in deep coal seams within this 9,000 acre structure is estimated to contain potential gas in place of 2.1 Tcf.

Source: Senex Energy Limited

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