Drillsearch Energy Limited (ASX:DLS) released its March Drilling Report to the ASX on Wednesday. Development and exploration drilling on the Western Flank Oil Fairway continued in March. Following the success at the Stanleys-1 site in early May, the Longbottoms-1 site was plugged and abandoned after the Namur Sandstone was found to be sub-commercial. The drill used at the Longbottoms-1 site will be returned to the Pennington-4 appraisal well in the June quarter. Last month, the Bauer-20 to -23 development wells were drilled from a single pad location. The need for rig demobilisation was unneeded due to the pad drilling. All four wells will be completed and connected to one another sometime in the future.
Drillsearch’s wet gas business continued to expand last quarter. Two new discoveries were made in the Western Wet Gas Fairway joint venture with Santos Limited (ASX:STO). The venture is 40 per cent owned by Drillsearch and 60 per cent owned by Santos and the operator. The new discoveries increase the venture’s success rate to six wells in FY2015. Kyanite-1, the fifth drill site, showed “excellent” gas assets as well as stacked reservoirs after the company drilled 3,354 metres into the well. Drillsearch decided to case and suspend the Kyanite-1 operation for future gas production. After completing of operations at Kyanite-1, the rig moved to the sixth and final well in the campaign. Spinel-1 was drilled to a total depth of 3,282 metres. Approximately 11.3 metres of net pay was observed across several zones in the Patchawarra Formation, with a gross interval of 510 metres. In the Tirrawarra Sandstone, approximately 2.5 metres of net pay was identified, with a gross interval of 58 metres. The well will also be cased and suspended for future gas production.
Shares of Drillsearch are up .5c, or .45 per cent, at $1.12 per share around 1:23pm on Wednesday. DLS has been up and down over the past several years. Its one-year return is down more than 30 per cent, but it is up 37.65 per cent so far this year.