Real Energy Corporation Limited is pleased to advise that drilling has commenced on its maiden well, Tamarama-1.
The Tamarama-1 well is Real Energy’s maiden exploration well in the Cooper Basin, aimed at confirming the presence of gas in the Toolachee and Patchawarra formations and determining reservoir productivity. A secondary objective of this well is to obtain samples from the Toolebuc Shale to further our knowledge of this potential shale oil play. The well is expected to take approximately two and a half weeks to drill and complete from spud date. ATP 927P is surrounded by proven and producing gas and oil fields operated by Santos, with gas production being used to feed growing demand for east coast gas.
Results from the initial drilling program will underpin Real Energy’s forward work plan, with successful wells to be cased and suspended for flow testing in early 2015. Real Energy's acreage is prospective for basin centred gas (BCG), conventional oil and shale oil and gas. This upcoming drilling program will test the presence of BCG within ATP927P. An Independent Geologist’s report prepared for Real Energy (which was including in Real Energy’s prospectus) estimated that the Permian section in ATP927P and ATP917P contains a mean gross estimated petroleum initially-in-place of 10.2 TCF of gas.
The program has been structured so that if Tamarama-1 disproves the existence of BCG, the program can be paused. Any success or failure in this drilling program does not have implications for the presence of other forms of hydrocarbons, and management looks forward to testing the other prospective conventional oil and shale oil and gas plays within Real Energy's acreage in future drilling programs.