Key Petroleum (ASX: KEY) is taking the lead role in drilling the Cyrene-1 well in EP 438 onshore Canning Basin that targets 5 million barrels of oil in the conventional Willara Formation.
The Willara is thought to contain well developed karsitic porosity analogous to that of other limestone formation reservoirs and a discovery here can be quickly commercialised thanks to its proximity to the Great Northern Highway and port facilities.
Key managing director Kane Marshall had previously said a Willara oil discovery could be developed within two years as it would require simple vertical wells with correspondingly simple facilities.
Core is also expected to be cut through the Goldwyer to assess its potential, which is believed to be comparable to the highly productive North American Bakken and the Eagle Ford shales.
This will provide vital information about the Goldwyer that will help evaluate its potential as another regional unconventional play.
Cyrene-1 is located close to the Ungani oil field, where Buru Energy (ASX: BRU) is carrying out an ongoing extended production test that continues to return encouraging results.
Buru will remain the operator of EP 438 after it completes its farm-in obligations, which includes a partial carry of Cyrene-1, with a 75% stake, up from its original 5%.
Key will hold a 20% stake in the permit following completion of the farm-in, down from 76%. The remaining 5% is held by Indigo Oil.
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