HDR hardman resources limited

HDR - Energy Review Article

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    Jingemia results buoy partners

    Brendan Egan
    23 October 2002
    The partners in the Jingemia-1 well have been encouraged by the early initial flows from tests of the well, leading to some bullish projections for its future productivity. It also rewards two diehard Perth Basin explorers for years of privately funded exploration.

    The operator, Origin Energy, said the flow of 26.5 barrels was from an eight minute flow test, as opposed to the planned three hours. A well report said the test tool was blocked upon the commencement of the main three hour period.

    "Consequently, almost the entire oil recovery of 26.5 barrels announced yesterday is believed to have been produced during the initial 8 minute preflow. This suggests an initial flow rate from this reservoir in excess of 4000 barrels per day," said the report.

    Industry observers said the report indicated excellent reservoir properties but cautioned against long term production rates without full testing.

    Full results from the logging tests, with figures on net hydrocarbon columns are expected to be released tonight.

    It is now likely that the oil zone will be cased prior to drilling ahead to the secondary High Cliff Sandstone target in 6 inch hole.

    Origin Energy's General Manager Exploration Dr Rob Willink said "The joint venture is edging closer to understanding the commercial significance of this exciting new onshore oil discovery in the Perth Basin.

    The probable discovery will see a lot of smiles for some of the minor partners in the well. There are two private equity holders in EP 413 - one being Alan Burns (0.233%) of Hardman fame who certainly doesn't need the cash and the other being long time Perth Basin stalwart and Burns' former geologist, John Geary.

    Geary (0.142%), along with Burns, has held onto minor equity positions in the Perth Basin for decades with both men paying their share of exploration costs to date.

    Burns is the only principal from a number of entrepreneurs who drilled the landmark Perth Basin Woodada-1 well in the 1970's, based on tax effective exploration. Burns effectively handed some equity to Geary as a key employee.

    Woodada-1 was drilled on what was regarded as moose pasture at the time (WAPET leftovers) and the location for the well chosen because two old seismic shot lines intersected there and the crew would be able to easily drive to site. The well flowed 30 million cubic feet per day.

    The probable success of Jingemia is a great story for a couple of the industry's die hards.

    One late concern that has been raised by industry is whether Victoria Petroleum's 5.7% interest will mean "Dry Hole John " Kopcheff will not be able to continue to use the hard won nickname he has earned after drilling more than 80 unsuccessful wells.

    Partners are: Origin Energy Developments Pty Limited 49.189%; Hardman Oil and Gas Pty Ltd 22.376%; AWE (Perth Basin) Pty Ltd 15.245%; Victoria Petroleum NL 5.7685%; Voyager Energy Limited 5.7685%; Pancontinental Oil & Gas NL 1.278%; Alan Robert Burns 0.233%; John Kevin Geary 0.142%.

 
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