Sydney, Dec 12, 2016 AEST (ABN Newswire) - Petsec Energy (the "Company") (ASX:PSA) (OTCMKTS:PSJEY) is pleased to release the preliminary development schedule for the Company's Hummer Project at Main Pass Blocks 270/273/274 in which it holds a 12.5% working interest. This follows the successful production test of the Company's Main Pass Block 270 # 3 BP 01, Hummer discovery well, conducted over a 48 hour flow-back period beginning 16 November 2016.

During the test, flow rates were measured at restricted rates on variable choke sizes. Over the last three hours of the 48 hour test period the well flowed at an average rate of 19.88 MMcfpd (million cubic feet of gas per day) and 396 bcpd (barrels of condensate per day) through a 16/64th inch choke with an average flowing WHP (wellhead pressure) of 9753 psi (pounds per square inch) and no formation water. Production rates continued to rise over the duration of the test with a maximum gas rate of 20.5 MMcfpd recorded.

The next stage of development will use the results of the production test to design, fabricate and install a deck section with production facilities on the jacket, lay gas and oil flow lines and connect them to existing oil and gas sales pipeline transportation systems. The Company estimates first production from the Hummer project to commence mid-year 2017.

Petsec will continue to update the market on completion of key milestones in the development of the project.

The Main Pass Block 270 # 3 BP 01 well was perforated from 14,100 feet to 14,186 feet measured depth (MD), 14,058 feet to 14,144 feet true vertical depth (TVD) in a sand reservoir. Well logs indicate additional potential reservoirs in the well, which are yet to be tested. These untested sands will be targets of future drilling on the Hummer Project. Significant production occurs for similar reservoirs along trend. Peak production rates from those intervals can exceed 25 MMcfpd and 1000 bcpd.

Petsec's Chairman and Managing Director, Terry Fern, commented:

"The success of the Hummer production test confirmed that the Hummer Project is a substantial oil and gas discovery with resource potential significantly exceeding the Company's pre-drill mapped upper target estimates.

The Hummer development appears to be well timed as both gas and oil prices are substantially higher than at the beginning of the year. U.S. Henry Hub gas prices have moved above US$3.60/Mcf and US WTI above US$50/Bbl.

We look forward to first commercial gas and oil production from the Hummer Project in Mid-2017.

Participating working interests in the well are:

Petsec Energy Inc. 12.5%
Other Private Companies 87.5%

Details of the Hummer Development Project:

Discovery Well Name: OCS-G-22812 #3 BP 1
Type of Well Exploration, Pending Production Well
Location of Well: Offshore Louisiana, Federal Waters
Original TD: 16,041 feet MD/16,000 feet TVD
By-pass TD: 14,342 feet MD/14,300 feet TVD
Project Operator: Castex Offshore, Inc.
Petsec Working Interest: 12.5%
Petsec Net Revenue Interest: 10.24%

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About Petsec Energy Ltd

Petsec Energy LtdPetsec Energy Ltd (ASX:PSA) (OTCMKTS:PSJEY) is an independent oil and gas exploration and production company listed on the Australian Stock Exchange. It has operations in the shallow waters of the Gulf of Mexico and state waters of the Louisiana Gulf Coast region of the USA, and exploration activities in the Gulf Coast onshore and bay areas of Texas and Louisiana, USA and Yemen.

 


Contact

Mr. Paul Gahdmar
Company Secretary &
Group Financial Controller

Mr. Manny Anton
Head of Investor Relations &
Corporate Development

Tel: (612) 9247 4605
Fax: (612) 9251 2410



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