Icon Energy (ASX: ICN) is encouraged after the unconventional gas exploration well in the Cooper Basin, Queensland, it is drilling with Beach Energy (ASX: BPT) intersected significant mudlog gas show units.
The shows were observed while drilling the Halifax-1 exploration well through the target Patchawarra Formation, which had come in about 100 metres lower than prognosed.
The extent of the gas saturation will be determined using the final log interpretation after the well reaches total depth, which will be deeper than the planned 4,130 metres.
Halifax-1 is currently at a depth of 4,006 metres.
Upon reaching total depth the well will be cased and suspended, with hydraulic fracture stimulation planned for the current quarter.
Halifax-1 is being drilled to evaluate the shale gas and basin-centred gas potential in the Roseneath-Epsilon-Murteree and Patchawarra Formation intervals within the Queensland portion of the Nappamerri Trough.
It is located about 12 kilometres southeast of Beach’s successful Encounter 1 well, which flowed gas at a rate of over 2 million cubic feet of gas per day allowing it to book a contingent resource of 1 trillion cubic feet of gas.
Data from the Halifax-1 will be used to identify the best targets for a future horizontal well and the well will also be used for micro-seismic monitoring of this future well.
Icon has a 40% stake in ATP 855P while Beach has a 60% operating interest.
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