Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Key Petroleum Observes Further Oil Shows During Coring Of Cyrene-1

Key Petroleum (ASX: KEY) has observed further oil shows in the first core cut from the Goldwyer Shale at its Cyrene-1 exploration well in the onshore Canning Basin.

Increases in background gas to 5.6 units were also observed during coring along with increased readings up to C5 (condensate) on the chromatograph.

The DCA Rig 7 cut the first 9 metres of Goldwyer core to 967 metres and was proceeding to pull out of the hole with the first core barrel this morning.

Test tools have started to be mobilised to site.

Cyrene-1 had intersected oil shows over a 43 metre interval in the lower Grant and Goldwyer Formations from a depth of 915 metres.

Cyrene-1 is being drilled through a 135 metre section within Goldwyer Formation Shales to assess its potential as for unconventional hydrocarbons before drilling through the conventional Willara Formation that is estimated to host 5 million barrels of oil.

The well has a planned total depth of 1,060 metres.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.