Rey Resources (ASX:REY) and Key Petroleum (ASX:KEY) have agreed to production test the Dunnart-2 exploration well in the onshore Perth basin, Western Australia.
Oil shows over a 20 metre interval were observed during the wellsite evaluation while preliminary interpretations from wireline formation data indicate that there is a minimum 5 metres of good quality oil-bearing reservoir sand at the top of the Bookara sequence.
Operator Key noted that it was likely that an invasion of drilling fluids occurred during testing of the well, resulting in a mixed recovery of mud filtrate, formation water and oil emulsion during wireline sampling operations.
It is now re-mapping EP437 in light of Dunnart-2 results to rank prospects for a proposed three well drilling program.
The operator is now in discussions with parties for further exploration and development activities.
Rey and Key each hold 43.47% in EP437, which covers 400,000 acres. The remaining 13.06% is held by Caracal Exploration.
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