Exploration success for Senex

THE BOURSE WHISPERER: Senex Energy, as operator of the PEL 111 joint venture, advised the Australian Securities Exchange today that the Mustang-1 oil exploration well has discovered a new oil field on the western flank of the Cooper Basin, South Australia.

According to Senex’s ASX release, the new oil field is an excellent quality reservoir with highly permeable oil filled sands.

The Mustang-1 oil exploration well was spudded on 4 July 2012 and reached a total depth of 2,123 metres on 12 July 2012.

Wire line logs confirmed the presence of a 4.5 metre gross oil column in the oil-bearing sands of the mid-Birkhead Formation over the interval 1,787.0 to 1,791.5 metres with an interpreted net oil pay of 4.0 metres.

A Drill Stem Test was conducted between 1,784.8 and 1,791.5 metres with the well flowing oil to surface after 23 minutes.

Continued flow at surface recovered 34.5 barrels of 45.4 degree API oil with no water from a 20 minute flow, equivalent to a rate of 2,484 barrels of oil per day.

The well will be cased and suspended as a future oil producer.

Location of Mustang-1. Source: Company announcement.

“The exploration success at Mustang-1 has significantly exceeded our expectations.”

“To achieve a free flow production rate of almost 2,500 barrels of oil per day is an outstanding result, and is analogous to the excellent results seen at the highly productive Growler oil field,” said Senex managing director, Ian Davies.

Senex holds a 60 per cent interest in PEL 111 and is the operator of the joint venture.

The remaining 40 per cent interest is held by Beach Energy.