Austral advises that following evaluation of electric logs, the joint venture parties have decided to plug and abandon the Oru-1 well. The well was essentially in accord with pre-drill prognosis, but although there were some hydrocarbon shows during drilling there was no reservoir development at the target objective.
Future Shallow Drilling
The rig will shortly be released from the Oru site to another operator. Following that well Austral will receive the rig back during December. The Heaphy-1 well-site (Austral 66.7%, operator) is presently being constructed. However, as an alternative, the rig may be taken to the Supplejack site to drill the Supplejack South-1 well ( Austral 36.67%), with Heaphy -1 to be drilled when the rig again becomes available in Second Quarter 2006. Supplejack South-1 is a follow-on to the Supplejack-1 well, which flowed gas and condensate on test in August this year. It would be deviated in a southerly direction from the Supplejack site to a location identified on the 3D seismic as being likely to have a larger reservoir intersection than that encountered in Supplejack-1. In the event of success at Supplejack South-1, both wells can be linked in to a joint development which could either transport gas to an existing collector gas line two km (1.5 miles) to east, or be used for on-site electricity generation with electricity exported into the local grid, as is now in operation at the Cheal-A site.
Cheal Oil Field
The Cheal-A4 well is again in production from the main oil pay, and has resumed production at very similar rates (~300 barrels of oil per day) to those prior to commissioning of the on-site electricity generation facility. During the coming week, Cheal-1 will also be linked in to the generation facility, so that its gas can be used to supplement Cheal-A4 in order to achieve sustained maximum electricity output.