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    Otway Energy Finds Gas in South Oz


The Nangwarry-1 well is a 50:50 joint venture between Otway Energy (operator) and Vintage Energy.

by: Shardul Sharma

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Otway Energy Finds Gas in South Oz

Otway Energy, a subsidiary of Lakes Oil, has discovered gas at the Nangwarry-1 well in Ottway basin in South Australia, its joint venture partner, Vintage Energy, said January 15 in a statement. The Nangwarry-1 well is a 50:50 joint venture between Otway (operator) and Vintage. 

The well, which is being cased for further evaluation and testing, was drilled to a total depth at a measured depth of 4,300 metres in the Pretty Hill Formation on December 31. This is the third successive discovery within this region over the past two years, Vintage said.

“A gross gas column of at least 65 metres has now been confirmed in the top of the Pretty Hill Sandstone by log analysis, pressure data and gas sampling,” the company said. “Because of challenging down-hole conditions, log data obtained beneath this zone is of insufficient quality to resolve the presence of hydrocarbons in the mid Pretty Hill Sandstone. Gas shows encountered during drilling of this section, however, have provided encouragement.”

The evaluation of this sandstone will take place after casing is in place, Vintage said. Preliminary analysis of gas samples overnight indicated the presence of CO2 in amounts up to around 45%. “However, ambiguity exists on the analysis at the rig site and the samples are being sent for rigorous laboratory testing,” the company said.

Vintage, however, noted that there have historically been successful commercial developments of fields with similar CO2 content, such as the Ladbroke Grove field in the Penola Trough.