Mineral Resources, News, Norwest

Lockyer-2 gas well suspended

Mineral Resources (MinRes) and Norwest Energy have provided an update on the drilling operations of the Lockyer-2 conventional gas appraisal well.

Lockyer-2 is a downdip, step-out appraisal well located approximately 3.2km to the north-east of the Lockyer Deep-1 gas discovery in WA.

According to MinRes, while the Kingia Sandstone reservoir is of excellent quality, an analysis of the wireline data and sampling indicated the reservoir is water-saturated and the aquifer is at a much higher pressure than previously interpreted, resulting in the Lockyer-2 well being suspended for future potential use.

The Lockyer-2 well is situated in the north Perth Basin within exploration permit EP368, a joint venture (JV) between Norwest Energy and Energy Resources, a wholly owned subsidiary of MinRes.

The JV states that Norwest Energy holds 20 per cent of the agreement, and Energy Resources is the operator and holds 80 per cent of the agreement.

MinRes said drilling at the well began on March 15 and had the primary target of Kingia Sandstone. The target was reached at 4347m, with low levels of background gas evident. The drilling was completed at a total depth of 4574m.

Norwest Energy said the Lockyer-2 results will impact the resource potential of the Lockyer Deep-1 discovery, since the anomalously high aquifer pressure indicates a much-reduced gas column.

Norwest Energy said the free water line is now interpreted to be at a depth of approximately 4007m, with the potential resource area above the free water line now estimated to be approximately 11 square kilometres.

Norwest Energy said it does not think the Lockyer-2 result affects the geological chance of the North Erregulla Deep-1 succeeding, but it is expected to materially downgrade the resource potential of the greater Lockyer structure.

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