Comet Ridge Declares Galilee Basin Drilling Progress at Albany 2 Well

THE BOWSER: Comet Ridge (ASX: COI) updated the market on the progress of drilling operations at the Albany 2 well in the Galilee Basin.

The well is being drilled as part of the Galilee Deeps Joint Venture (GDJV) 2019 drilling program with Vintage Energy (ASX: VEN).

Comet Ridge has taken further core (Cores #2 & #3) from the Lake Galilee Sandstone (LGS) and is now drilling ahead towards the base of the formation.

The company indicated that a large part of the formation has been penetrated and most of the section drilled has been sandstone, which is extremely encouraging.

In its ASX announcement Comet Ridge managing director Tor McCaul said he was excited to see such a significant section of sandstone reservoir in this well, such a long distance from Albany 1, confirming the lateral extent of these sandstones.

“There have been good gas shows through the section, and it was particularly pleasing to see one 10 metre section of sandstone in the core that drilled very quickly, at 17 metres/hr, indicating that it should be high quality reservoir,” McCaul said.

“This particular section of core also showed good mud filter cake (when brought to surface) over part of that length, also an indication of permeable reservoir sandstone.”

McCaul went on to say that he was pleased the JV had obtained such a large section of reservoir core to be analysed, which will enable better stimulation design, later this year.

“I look forward to the well soon reaching total depth so that downhole electric line logs can be run to provide further important reservoir data, including reservoir pressure measurements,” he said.

McCaul further noted that the combination of the core analysis and the log analysis will be critical to enable the GDJV to select which sections of the reservoir are of the highest quality for stimulation and ultimately development and production purposes.

All cores have left the wellsite for Brisbane and will be prepared for a variety of laboratory analyses which will run over the coming weeks, leading to stimulation in 4Q this year.

Comet Ridge also advised that the GDJV has reached the pre-determined Stage 2 funding point of $10 million (gross).

As a result, Vintage has earned a further 15 per cent equity interest in the GDJV, bringing its total interest to 30 per cent.

Vintage was contributing to Stage 2 costs on a 50:50 basis, with the funding contribution for the joint venture to now be incurred in line with the GDJV interests (70:30).