Drillsearch Energy Limited (ASX:DLS) released its April Drilling Report to the ASX on Friday. The company reported that the FY2015 drilling campaign on the Western Flank Oil Fairway (formerly PEL 91) was completed late in the month with the final well, Pennington-4, cased and suspended as a future oil producer. The well was drilled as a standalone appraisal well to test the potential assets of the Namur reservoirs in the Pennington field.
In total, the joint venture drilled 19 wells in FY15, five of them being exploration, four being appraisal and 10 of them being development wells. The joint venture also revealed three new oil discoveries and two successful appraisal wells. All 10 Bauer development wells were cased and suspended as future oil producers. The FY2015 oil campaign on the Western Flank was completed with a 79 per cent success rate. In the West Gas joint venture with Santos (Drillsearch 40 per cent, Santos 60 per cent), two new discoveries were made in the month, bring the total to seven wells for FY15.
In the beginning of the month, the sixth well, Spinel-1, was cased and suspended as a future gas producer in the PEL 513 Central area. The seventh well, Emery-1, was spudded half way through the month. Preliminary data would suggest that Emery-1 has the potential to be a future gas producer. Shares of Drillsearch are up .7c, or .59 per cent, at $1.19 per share. Some analysts have viewed the company’s future as mostly positive, including Deutsche Bank and JP Morgan. DLS has a one-year return of negative 25.24 per cent but it has risen 46.30 per cent so far this year.
Author: Imran Valibhoy
May 08, 2015
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.