New Standard Energy Abandons Lawford-1 Well in EP417 in Australia's Fitzroy Trough

New Standard Energy has advised that the EP417 joint venture partners have agreed to revise the target depth of the Lawford-1 well to the current depth (2,690 metres). As a result the well will be logged, plugged and abandoned and the Century Rig #7 released to Buru Energy without the Laurel Formation being evaluated.

The well was drilling in claystones and red beds of what is interpreted to be the Lower Anderson Formation and has encountered slow drilling due to very hard and abrasive formations. Based on the slow drilling progress, geological uncertainty about the depth of the target Laurel Formation, depth limitations of the rig and the lack of significant hydrocarbon shows, the joint venture partners have decided to terminate the drilling of the well.

The Laurel Formation is present below the Anderson Formation in all wells drilled to sufficient depth within the Fitzroy Trough and as a result is still expected to be present across EP417 and the Lawford Ridge. The Lawford-1 deepening indicates that the Laurel Formation is at a significantly greater depth on the Lawford Ridge than indicated by previous geological modeling. As a result the Laurel Formation will remain untested in the basin centre of the Fitzroy Trough with the overall hydrocarbon prospectivity remaining, albeit at greater than expected depths.

The deepening of the Lawford-1 well fulfills the immediate work commitments across EP417 and enables its continued retention. The EP417 and Seven Lakes SPA joint venture partners currently intend to conduct further geoscience studies on both acreage areas over the next 12 to 24 months ahead of any further drilling activity. This work will involve both basin centre targets as well as basin margin prospects similar to those being pursued elsewhere in the Fitzroy Trough

In that time the joint venture partners will benefit from data obtained from an acceleration of exploration drilling and appraisal activity in the region via the joint venture between Buru and Mitsubishi. This appraisal will continue to define the geological understanding of the Laurel play across the region.