Adelaide, Mar 3, 2006 AEST (ABN Newswire) - The first gas revenue proceeds for petroleum explorer, Enterprise Energy NL (ASX: EPE) are about to flow as a result of the Company's successful focus on the Cooper Basin.
Enterprise Energy - which has to date participated in three successful gas wells in the province - announced today that it would now be entitled to its first gas revenues after gas started flowing to the main Basin collection and processing network from the tie-in line to the Smegsy-1 discovery in PEL-106, west of Moomba.
The Company has a 25% interest in the Smegsy-1 production well, with sale proceeds supplementing a small revenue stream from minority producing oil interests in Queensland owned by Enterprise Energy since its May 2004 listing on the ASX.
The other 75% interest in Smegsy-1 is held by the Company's joint venture partner and well Operator, Great Artesian Oil and Gas Limited.
"First gas revenue is a milestone for the Company but there will be no let-up in our exploration effort, with a minimum seven well program scheduled for 2006," Enterprise Energy's Managing Director, Mr Warren Leslie, said today.
"This historic occasion achieves the first rung on the ladder for building gas as a cornerstone business," Mr Leslie said.
"The Smegsy flow heralds our emergence as a producer while helping underpin our cashflow position while we continue to pursue our exploration strategies and assess potential new acquisitions," he said.
"Our focus remains strongly on the Cooper Basin as the current energy prices provide a unique medium-term window of opportunity to bring on stream, some of the smaller gas and oil traps not previously considered commercial in this province."
Mr Leslie said Smegsy-1 is currently being assessed to determine optimal flow rates after which the Company would be in a better position to firm up its revenue profile from the well.
Smegsy-1 is currently flowing raw gas from one of the intervals within the lower Patchawarra Formation at rates of between 4 to 5 million cubic feet per day. Associated condensate is anticipated to be approximately 120 to 150 barrels per day
Enterprise Energy's other exploration successes to date, and which await development, include a 12.5% interest in the PEL-106 Rossco-1 gas discovery well, not yet tested but cased and suspended. The well is five kilometres north of Smegsy and has several interpreted hydrocarbon bearing zones, with other interests held by Great Artesian (operator, 50%) and Energy Investments (37.5%).
The Company has a similar 12.5% interest in the PEL-106/PEL-91 Udacha-1 gas discovery well, 10 kilometres west of Smegsy and 17 kilometres east of the Sellicks oil field.
The well flowed 441,000 cubic feet of gas per day on test but which Mr Leslie believes appears to have potential to flow at a much higher rate.
The gas flow in Udacha-1 - on the border of PEL-106 and PEL-91 - was recorded from a single zone and other untested zones exist in the well.
Fairbridge test imminent
In another joint venture, Enterprise Energy will shortly participate as a 10% owner in the testing of the potential Fairbridge-1 oil well in PEL-100, northeast of Moomba.
Mr Leslie said the well, spudded late in December last year, is currently cased and suspended. It is awaiting a work-over rig to equip and perforate the well for testing.
Contact
Warren Leslie
Enterprise Energy NL
TEL: +61 8 8231 4944
MOB: +61 438 538 833
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
| ||
|
