Senex Finds Gas at Skipton-1 Unconventional Well

Senex Energy Limited has made a gas discovery at its Skipton-1 unconventional gas exploration well in South Australian Cooper Basin permit PEL 516.

Skipton-1 exploration well to test the unconventional gas potential of the shale and tight gas sands of the Roseneath-Epsilon-Murteree package, as well as the tight gas sands and deep coal seams of the Patchawarra Formation. The well has been cased and suspended ahead of fracture stimulation.

Regional mapping indicates the trough surrounding Skipton-1 covers an area greater than 200 square kilometres or more than 49,000 acres. This is equivalent to a gas field development of over 600 wells, spaced at 80 acres, the company said.

Senex is currently planning an extensive hydraulic fracture stimulation campaign across three of its unconventional gas exploration wells: Talaq-1, Skipton-1 and Kingston Rule- 1. The program will test gas quality and deliverability, with work scheduled to begin in December 2012.

Skipton-1 is the third dedicated unconventional gas exploration well that Senex has drilled in 2012. The Company plans to commence drilling its fourth operated unconventional gas well, Kingston Rule-1, in the coming week.

The Kingston Rule-1 unconventional gas exploration well is located in PEL 115, approximately 15 kilometres south east of Skipton-1. The well will target the Roseneath-Epsilon-Murteree package of shale and tight gas sands, and the tight gas sands and coal seams of the Patchawarra Formation.