Apache hits gas at Phoenix South-1

Carnarvon Petroleum Ltd. reports that gas and indications of associated liquid hydrocarbons were observed in the Phoenix South-1 well, offshore Western Australia.

Offshore staff

PERTH, Australia -- Carnarvon Petroleum Ltd. reports that gas and indications of associated liquid hydrocarbons were observed in the PhoenixSouth-1 well, offshore Western Australia. The operator experienced drill bit failure, necessitating the drilling of a minor side track around a small portion of the wellbore in June.

Apache Energy, a subsidiary of Apache Corp., operator of the well, has thus far reached an MD of 14,717 ft (4,321 m), and is preparing to side track at around 13,123 ft (4,000 m) to complete the drilling to the expected TD of 14,764 ft (4,500 m).

The primary target within the Early to Middle Triassic Lower Keraudren formation sands was intersected as expected at about 13,648 ft (4,160 m) MD, around 33 ft (10 m) high to prognosis. Elevated gas readings were observed through this sand, with gas peaks being hit at around 16,681 ft (4,170 m) MD as the sands being drilled were cleaning up.

The well is being drilled by theAtwood Eagle semisubmersible in 450 ft (137 m) of water. Phoenix South-1 is in the WA-435-P permit.

The equity interest holders are: Carnarvon Petroleum 20%; Apache Energy (operator) 40%; JX Nippon 20%; Finder Exploration 20%.

07/29/2014

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