Xanadu 1

A New Oil Discovery in the Perth Basin

 

TP/15 Joint Venture

JV Participant

ASXCode

Percentage Interest

Norwest (via subsidiary) (Operator)

ASX:NWE

25%

Triangle (Global) Energy Ltd (via subsidiary)

ASX:TEG

30%

Whitebark Energy Ltd (via subsidiary)

ASX:WBE

15%

3C Group IC Limited (via subsidiaries)  

30%

 

Background

Xanadu-1 is a conventional oil well located in TP/15, an offshore permit located in state waters, approximately 1.3km from the coastline.  Xanadu-1 was drilled as a deviated well,  from an onshore surface location to an offshore target.  The Xanadu-1 well is situated approximately 40km south of the township of Dongara, Western Australia.

The Xanadu-1 well was spudded on 4th September 2017, and reached a total depth of 2035 mMDRT when it was confirmed that the Xanadu-1 well had intersected hydrocarbon bearing intervals. Norwest confirmed Xanadu a discovery on 25th September 2017.


Progress

Since the last report (see ASX Announcement dated 18 September 2017), a suite of wireline logs over a 330m section of the well have now been acquired by service provider Schlumberger.  The logging suite included:

This comprehensive logging suite was run due to the highly encouraging results encountered while drilling.

This additional logging has delineated net and gross reservoir sections within the well, and to provide greater understanding on reservoir characteristics and yielded quality oil samples.

Xanadu-1 oil and oil-cut mud recovered from 1576.9 mMDRT in the Irwin River Coal Measures “A” sand with the Schlumberger Saturn Probe wireline tool.  Further oil samples from this zone have been sent for analysis in Perth


Results

The reservoir of interest is the top section of the Irwin River Coal Measures (IRCM).  The Dongara Sandstone was not encountered at this well location, with the IRCM found directly below the base of the Kockatea Shale at 854mTVDSS.  Reservoir quality sand intervals were encountered throughout the IRCM with porosities generally ranging from 15% to 16%.

Three discrete sand intervals (“A”, “B” and “C”) at the top of the IRCM have log-derived hydrocarbon saturations in excess of 40%.  Fluorescence in rock cuttings observed while drilling and log-derived hydrocarbon saturations persist for 120m in sands below these upper zones but the lower intervals are water-bearing.  MDT pressure sampling has established a high confidence water gradient and water was flowed and sampled via a wireline tool from the “B” sand despite the high oil saturation. 

Reservoir Unit

Gross True Vertical Thickness (m)

Net Sand True Vertical Thickness (m)

Oil

Saturation

Porosity

 

Net Pay  (m)

“A”

7.7

4.6

66%

15%

4.6

“B”

6.0

2.8

46%

16%

“C”

4.3

2.7

41%

17%

Oil was pumped through from the “A” sand utilising the Schlumberger Saturn pressure and fluid sampling tool and three downhole samples collected.  Based on the wireline log data, pressure points and recovered fluid samples a lowest known oil depth of 871.8mTVDSS and a highest known water depth of 880.2mTVDSS have been established for the Xanadu Field.

Seismic data indicate that it is possible to drill an up-dip location which could allow the higher quality sand units deeper in the section to be penetrated above the inferred oil-water contact.  Erosion of the upper, poorer quality, sands on a structural high similar to observed at the Cliff Head Oil Field would further increase the chance of intersecting the oil column in better quality reservoir.

Excellent reservoir quality was also encountered in the High Cliff and Kingia Sandstone sections, although oil shows were not encountered in this interval.  This does provide future exploration upside, with evidence that oil has passed through this system.  These are the same reservoir units that host the Waitsia Gas Field operated by AWE Limited.

Results at Xanadu-1 indicate that the assumption of the producing Cliff Head Oil Field being the primary analogue are correct.  Cliff Head Oil Field has now produced over 15MMbbls.  Analysis of the oil samples obtained from Xanadu-1 is expected to substantiate this with oil assay results expected by the end of the week.


Forward Plan

Although Xanadu-1 was successfully drilled utilising scant 2D seismic lines, to properly plan for the next well, 3D seismic acquisitions is an essential step in the exploration process.

In February 2018 the TP/15 Joint Venture made the unanimoua decision to proceed with a 3D seismic survey acquisition. Since that time, Norwest has been progressing the application process with the Department of Mines, Industry Regulation and Safety (DMIRS). As soon as the approvals have been granted, the Joint Venture will be able to announce a timeline for the survey acquisition program. 

Survey timing is dependent on numerous factors including humpback whale and lobster migration period, peak commercial fishing times and school holidays, when an increased number of vessels will be in the area. As a requirement for final approval, Norwest is required to work to the advice of DMIRS on the appropriate timing for the survey.

The seismic data is essential to determine both the optimal well surface location and trajectory path for any future wells on the Xanadu structure.  


Xanadu Key Attributes 

 


TP/15 Offshore Perth Basin

Well Details

Permit TP/15
Well Name Xanadu-1
Well Location GDA 94:  29°33?29.117”S114°58?42.074”E
Type of Well Deviated
NWE Working Interest 25%
Geology Interbedded sequence of shale and sand

 

 

 

       

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