Baraka Energy & Resources (ASX: BKP) has received a boost to the prospectivity of its acreage in the Southern Georgina Basin, Northern Territory, after partner PetroFrontier (CVE: PFC) confirmed the presence of oil at Owen-3H.
Log data and core samples obtained after a successful hydraulic stimulation was performed on the Owen-3H unconventional well over ten open-hole stages confirmed the existence of oil in the Lower Arthur Creek and Thorntonia Carbonate Formations.
PetroFrontier is now preparing to conduct an extended flow-test of the Owen-3H well prior to the wet season.
While Baraka does not have a stake in Owen-3H, the well is located directly north of the eastern portion of EP 127, which it holds a 25% stake.
This allows it to place a of weight on the south eastern area of EP 127 displaying similar or identical results if and when any drilling programs in that area are embarked on in the future.
However, the company was disappointed by the operational & engineering failures on the MacIntyre-2H and Baldwin-2Hst1 wells, though it noted that these did not diminish the possible productivity of these wells or the prospectivity of the entire basin.
While hydraulic stimulation was successful at MacIntyre-2H well over nine open-hole stages, traces of hydrogen sulfide gas were detected after recovering about one-third of the stimulation fluid.
This required the well to be suspended while operator PetroFrontier sources the specialise equipment required to handle the explosive gas and allow flow testing to resume.
The experience also led to additional treatment of the completion fluid at the Owen-3H and Baldwin-2Hst1 wells to avoid a reoccurrence of this problem.
PetroFrontier is also planning to carry out remedial work to repair the Baldwin-2Hst1 well, where a shallow casing failure occurred during hydraulic stimulation though the multiple casing design protected the shallow aquifers.
Test results on MacIntyre-2H (Baraka 25%) and Baldwin-2Hst1 are not likely until 2013, depending on regulatory approvals, weather and the availability of required equipment and services.
Baraka added that while the current exploration program is focussed on unconventional targets, it will pursue further discussions with PetroFrontier to consider their interest in testing a number of conventional targets.
Independent petroleum consultants Ryder Scott had previously reported that conventional carbonate zones with potential to host oil may be located updip from 11 vintage wells with one target zone being the Hagen Member.
Baraka is targeting a conventional exploration program for as early as possible in 2013.
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