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Key Petroleum To Spud Onshore Canning Basin Oil Well

Key Petroleum (ASX: KEY) is in position to spud the Cyrene-1 exploration well in the onshore Canning Basin later this month.

"Given that the wet season has started in the Canning and conditions are pretty tough we are very pleased with our progress to date," managing director Kane Marshall said.

"With the full support of the EP 438 joint venture we will now proceed to drill Cyrene-1 to assess the conventional and unconventional prospectivity of this part of the Canning Basin."

Over the past fortnight, DCA Rig 7 and its associated equipment has arrived at the wellsite located about 100 kilometres south of Broome.

A planned surface hole to a depth of 175 metres will be drilled, followed by the running and cementing of casing.

Operations will then be suspended prior to drilling towards the primary target in January.

Upon restart of operaions, all third party contractors and their subsequent equipment will be mobilised and rigged up on the Cyrene-1 location.

This will ensure that operations are conducted in the safest possible manner and that the critical components of the Cyrene-1 project are fully resourced.

Cyrene-1 will be drilled to a total depth of 1060 metres targeting the Willara and Goldwyer Formations.

A 135 metre section of the unconventional Goldwyer Shale, which is the focus of exploration by fellow Canning Basin explorer New Standard Energy (ASX: NSE) and supermajor ConocoPhillips (NYSE: COP), will be cored first.

It will then drill into the conventional Willara Formation that is estimated to host 5 million barrels of oil.

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