3D Energi Limited has successfully intersected two gas-bearing reservoirs at its Essington-1 exploration well offshore Victoria, with wireline logs confirming moveable hydrocarbons consistent with pre-drill expectations. Upcoming formation testing will determine the commercial potential of these discoveries.
- Essington-1 well intersects Waarre A and Waarre C gas-bearing reservoirs
- Net pay intervals of 58.5m in Waarre A and 31.5m in Waarre C confirmed
- Wireline logging indicates presence of moveable hydrocarbons
- Ora wireline formation testing planned to assess reservoir deliverability and gas composition
- Well drilled safely to 2735m total depth offshore Otway Basin
Exploration Success at Essington-1
3D Energi Limited (ASX – TDO) has announced encouraging results from its Essington-1 gas exploration well, located offshore in the Otway Basin, Victoria. The well has intersected two key gas-bearing sandstone reservoirs, Waarre A and Waarre C, with net pay intervals closely matching pre-drill predictions. This milestone marks a significant step forward in the company’s offshore exploration program within the VIC/P79 permit area.
The well reached its planned total depth of 2735 metres measured depth below rotary table (MDRT) without incident, drilled by the Transocean Equinox rig. Elevated gas readings were recorded in both reservoirs, supported by resistivity data from logging while drilling tools, suggesting the presence of hydrocarbons.
Wireline Logging Confirms Moveable Gas
Following drilling, a comprehensive wireline logging program was conducted, revealing a gross gas-bearing interval of 62.6 metres in the primary Waarre A reservoir, with 58.5 metres of net pay. The secondary Waarre C reservoir showed a gross interval of 33.2 metres and net pay of 31.5 metres. These results align well with the company’s pre-drill technical evaluations, reinforcing confidence in the reservoir quality.
Importantly, pressure data from the wireline logs indicate a clear gas gradient, providing evidence of moveable hydrocarbons rather than residual gas. This distinction is crucial for assessing the potential for commercial gas recovery.
Next Steps – Formation Testing with Schlumberger’s Ora Platform
3D Energi plans to deploy Schlumberger’s Ora intelligent wireline formation testing platform to conduct controlled drawdowns and buildups in the Waarre A reservoir. This testing will confirm reservoir connectivity and mobility, perform downhole fluid analysis to verify gas composition, and recover representative hydrocarbon samples for laboratory analysis. The results will be pivotal in determining the commercial viability of the discovery.
Executive Chairman Noel Newell expressed cautious optimism, highlighting that while the early data is promising, the company awaits formation testing outcomes to fully understand reservoir deliverability and gas composition.
Strategic Partnership and Regional Context
The Essington-1 well is part of a joint venture with ConocoPhillips Australia as operator (51%) and Korea National Oil Company (29%), with 3D Energi holding a 20% equity interest. The Otway Basin is a mature exploration region with established infrastructure, which could facilitate future development if commercial volumes are confirmed.
This drilling success adds momentum to 3D Energi’s portfolio, potentially positioning the company as a notable player in Australia’s offshore gas sector, subject to forthcoming test results and market conditions.
Bottom Line?
As 3D Energi awaits formation testing results, the market watches closely for confirmation of commercial gas potential offshore Victoria.
Questions in the middle?
- Will the Ora formation testing confirm reservoir deliverability and commercial gas flow rates?
- What is the expected timeline for development if the Essington-1 results prove commercially viable?
- How might these findings impact 3D Energi’s valuation and future exploration strategy?