The 1987 Windermere-1 well produced oil on test but was never put on production given the oil prices and the available technology at that time, the company said. Its review indicates that the oil bearing formation may have been damaged during drilling operations.
According to the company, there is good potential to achieve commercial flow rates at Windermere, particularly given careful well design, modern drilling techniques and potentially employing horizontal drilling. The new 3D seismic data is expected to provide high quality definition of the Windermere oil zone for the first time.
The company further said that the objective of the new Windermere 3D survey is to define the nature and extent of the Windermere accumulation and to allow detailed planning and optimization for appraisal drilling. Surrounding follow-up leads will also be addressed by the new survey.
A successful 3D seismic survey could lead to appraisal drilling for Windermere oil in the next year. A key factor in the Windermere project is that the economics of any oil production that may be established in this area are favorable, with good access, local infrastructure and support and relatively short transport distance via sealed highway to the Geelong refinery.
Permit PEP 167 is held by a joint venture of Bass Strait Oil and Interra Resources with 50% each. Exploration permit PEP 167 is located in the onshore Otway Basin, near Portland, in western Victoria.
PEP 167 contains two discovery wells, the 1987 Windermere-1 oil well and at the 2002 Port Fairy-1 oil and gas well. Interra Resources is funding 100% of the Windermere 3D survey up to a cap of $1.75 m, after which joint venture contributions revert to 50/50.
The Windermere project is its first petroleum exploration interest in Australia. The Windermere 3D seismic survey will fulfill the PEP 167 Year three permit obligation.
