REY RESOURCES LIMITED Ground Floor
39 Stirling Highway
Nedlands WA 6009
T: + 61 (08) 6389 0322
F: + 61 (08) 6389 0697
28 July 2014
The Manager
The Australian Securities Exchange
The Announcements Officer Level 4/20 Bridge Street SYDNEY NSW 2000
Dear Sir
We attach herewith ASX Announcement for Investors regarding the drilling activities at Dunnart-2, EP437, Onshore Perth Basin.
Joint Venture participants in EP437 are:
Key Petroleum Limited (Key Petroleum (Australia) Pty Ltd) (Operator) 43.47% Rey Resources Limited (Rey Oil and Gas Perth Pty Ltd) 43.47% Caracal Exploration Pty Limited 13.06%
Regards
IAN GREGORYCompany Secretary
KEY PETROLEUM LIMITEDGround Floor
39 Stirling Highway
Nedlands WA 6009
T: + 61 (08) 6389 0322
F: + 61 (08) 6389 0697
ASX RELEASE DRILLING REPORT NO.2 FOR DUNNART-2 IN EP437, PERTH BASIN, WESTERN AUSTRALIA FOR THE PERIOD 0600 HOURS 21 JULY 2014 TO 0600 HOURS 28 JULY 2014
Since Drilling Report No. 1 dated 21 July 2014, DCA Rig 7 has drilled out the 17 ½" conductor shoe then drilled
12 ¼" hole through the Yaragadee Formation and to the casing point at 294m RT within the Cadda Formation. The
Cadda Formation has been interpreted within one metre of prognosis.
Shortly after completion of the 12 ¼" hole section, a short wiper trip was conducted to ensure the hole was in good condition prior to running 9 5/8"casing. 9 5/8" casing was then run to the current depth of 294m RT and the current operations at 0600 this morning are to cement the 9 5/8" casing to surface.
Once the 9 5/8" casing cementing operation has been completed, the forward plan is to conduct routine rig maintenance to the mud tanks, mud pumps and top drive. Shortly thereafter, DCA personnel will then proceed to nipple up the blow put preventer (BOP), pressure test the BOP, conduct a formation integrity test of the 9 5/8" casing shoe and then drill ahead in 8 ½" hole to the primary Bookara sandstones at approximately 617m RT. All wireline logging and formation test tools have been mobilised to the wellsite in preparation for evaluating the Bookara Formation.
As part of a research and development initiative, Key Petroleum Limited ("the Company") has collaborated with Crocker Group ("Crocker") to test the power up and power off functions of one of its new open hole testing tools inside the 13 3/8" conductor, considered a safe environment for testing. The collaboration has been undertaken so that Crocker can continue to develop this tool in an operational environment in places such as Cuba and Saudi Arabia. The testing of the electrical system of the tool was at no cost to the Company and was conducted while the operation was waiting on cement in the conductor section meaning no lost time to the EP437 drilling activities. The Company is in talks with Crocker for the use of their new test tool in the Canning Basin, as the tool has been specifically designed to test Carbonate reservoirs.
The next ASX Drilling Report will be made on the earlier of a weekly basis or where material disclosure is warranted.
For more information please contact:
Key Petroleum Limited (Tel: +61 8 6389 0322)
Ian Gregory
Company Secretary
28 July 2014
Ground Floor
39 Stirling Highway
Nedlands WA 6009
T: + 61 (08) 6389 0322
F: + 61 (08) 6389 0697
1. Well Name/Permit: Dunnart-2 EP437, Perth Basin, Western Australia
2. The Report is for the Period: 0600 - 21 July 2014 to 0600 - 28 July 2014
3. This ASX Release Time and Date: 0900 EST - 28 July 2014
4. Report No: Two
5. Start Date/DCA Rig #7: 13 July 2014
6. | Days since commencement of drilling operations: Fifteen | |
7. | Locations of the Well: North Perth Basin | |
8. | Elevation: GL | 40.96m |
RT from GL (MSL) | 3.5m | |
RT to GL | 44.46m | |
9. | Proposed Total Depth: 670 metres TVD RT |
10. Targets: Primary: Bookara Sandstone Formation
Secondary: Basement
11. Present Depth: Drilled into Cadda Formation in 12 ¼" hole at 294m RT at 0600 hours
28 July 2014
12. Geological Summary: Formation Tops (m RT):
Prognosed Actual Difference
Yargadee Sandstone 82m 82m -
Cadda Formation 280m 281m -1
Bookara Sandstone Formation 617m
Basement 670m
Ground Floor
39 Stirling Highway
Nedlands WA 6009
T: + 61 (08) 6389 0322
F: + 61 (08) 6389 0697
13. | Hydrocarbon Indications: | Oil Shows: None, none expected. Gas Shows: None, none expected. | |
14. | Operations since last Report: | Drilled 17 ½"conductor shoe, drilled 12 ¼"hole through Yaragadee Formation and into casing point within Cadda Formation at 294m RT. Conducted wiper trip and ran 9 5/8"casing to 294m RT. | |
15. | Current Operations: | Cement 9 5/8"casing to surface then conduct routine rig maintenance and mobilise BOP. | |
16. | Future Operations: | Nipple up BOP, pressure test BOP and conduct formation integrity test prior to drilling 8 ½"hole to primary objective. | |
17. | Prospect Description: | The Dunnart prospect is a well-defined moderate relief fault closed structure with the top seal provided by the proven regional seal, the Kockatea Shale which is the source rock for oil discovered to date in the North Perth Basin. The Bookara sandstone is middle to upper shoreface sand which laps the south-western margin of the Northampton Block. Dunnart-1 encountered good oil shows in Bookara sands but was never tested or cored. Estimated prospective resources in the best case estimate are 2 million barrels under SPE-PRMS guidelines. | |
18. | Participants in the Well: | Key Petroleum (Australia) Pty Ltd (Operator) | 43.47% |
Rey Oil and Gas Perth Pty Ltd | 43.47% | ||
Caracal Exploration Pty Ltd | 13.06% |
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PETROLEUM LIMITEDGround Floor
39 Stirling Highway
Nedlands WA 6009
T: + 61 (08) 6389 0322
F: + 61 (08) 6389 0697
Cracker Group Jogging truck (above} which wi/1 stay on site unti/ formation evaluation ofthe Bookara sandstones is completed and Cracker Group personnel (below} preparing to rig up test too/s to determine the reliability of powering on and off the too/s in an operational environment
• P ETROLEUM LIMITEO
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