COMPOSITIONAL DATA : GAS : GAS PROPERTIES Puffin Fm RFT ...

APPRAISAL AND DEVELOPMENT DRILLING :Waggon Creek-1A was designed to cope with the shallow gas encountered in Waggon Creek-1 and totest the deeper Lower Milligans Formation targets not penetrated by Waggon Creek-1. The wellencountered oil shows at a similar stratigraphic level to the discovery well (104–120 mKB) and oil andgas shows between 474 mKB and 510 mKB. Log analysis indicates that sandstones and limestonesintersected between 971 mKB and 1,180 mKB are gas saturated but tight (a DST taken over the interval960-1,095 mKB flowed gas at a rate too small to measure, with no water recovery). Below 1,180 mKBthe section is water saturated. Waggon Creek-1A was plugged back to the cased section and suspended.Ningbing-2 was drilled in August 1996, 10km north of Waggon Creek-1 as an appraisal well on theWaggon Creek structure. Although oil and gas shows were noted, the Milligans sands at Ningbing-2proved to be tight and unconnected to the gas-bearing sands intersected by Waggon Creek-1. (Ningbing-1, drilled in 1982, 5 km north of Ningbing-2, flowed gas from the Milligans Formation at a rate toosmall to measure).REMARKS :In Waggon Creek-1, oil shows were noted between 117 mKB and 125 mKB. Small quantities of nonbiodegraded,31.4 o API oil were recovered from DST 3.In November 1995, (at the beginning of the wet season), the well was cased and suspended. Drillingresumed in June 1996 with the spudding of Waggon Creek-1A, adjacent to the Waggon Creek-1location.RESERVES :The Joint Venture has indicated that gas reserves at Waggon Creek are probably less than the 100 billioncubic feet required to commence commercial production. Further successful exploration drilling onadjacent structures will probably be necessary toensure the commercial viability of any development atWaggon Creek.