Beach Energy Limited (ASX: BPT) has announced that no significant hydrocarbon shows have been encountered in the target sandstones of the Ironbark 1 exploration well.
Located in exploration permit WA-359-P offshore Western Australia, the well was drilled to a total depth of 18,431 feet and intersected its primary target of the Mungaroo Formation at 17,306 feet. The exploration well will now be plugged and abandoned, in-line with pre-drill planning, Beach Energy Limited outlined.
Back in September, Beach Energy Limited noted that the Ironbark 1 well would be the first test of the “world class” Ironbark gas prospect. The company revealed on September 22 that the regulatory approvals required for the drilling of Ironbark 1 had been completed.
BP Developments Australia Pty Ltd holds a 42.5 percent operated interest in permit WA-359-P. Cue Energy Resources Ltd holds a 21.5 percent stake, Beach Energy Limited holds a 21 percent stake and New Zealand Oil & Gas (Ironbark) Pty Ltd holds the remaining 15 percent interest.
Commenting on the well development, Cue Energy said in a statement posted on its website, “when operations are complete, analysis of the well data and results will be undertaken over the coming months to understand the implications for the Deep Mungaroo play”.
New Zealand Oil & Gas Chief Executive Andrew Jefferies described the result as “very disappointing” for all involved.
“Ironbark was a world scale prospect in a highly prospective address, and it needed drilling. We got an answer, but it was not the one we wanted,” he added.
“While the operations are not over yet, I’d like to acknowledge the operator BP for their safe and professional operations throughout the drilling of the well, as well as our JV partners and our shareholders for their continuing support,” Jefferies went on to state.
To contact the author, email andreas.exarheas@rigzone.com
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