Jacka Resources has found high gas readings at its Hammamet West-3 well in the Bargou Block offshore Tunisia, with a horizontal side track drilling recording gas level of 37%.
The Bargou block is being explored by a joint venture including operator Cooper Energy (ASX: COE) with 30%; Dragon Oil with 55% and Jacka holding 15%.
The well’s objective is to drill and test a highly deviated wellbore through the naturally fractured Abiod Formation reservoir to confirm oil productivity. The JV has conducted a number of fracture prediction and the latest gas shows and possible fracture anomaly appear to validate the reservoir model.
Analysis of the high gas reading observed while drilling the interval from 3070 to 3,167 meters below the drilling table also indicated the likely presence of oil.
The oil and gas shows also align with image logs obtained while drilling, which indicate a probable fracture zone.
Drilling of the horizontal section will continue for another 600-700 meters after which the joint venture will decide on whether to conduct a production test.
The cost to drill the horizontal section and complete drilling operations on the well is likely to be around $49 million, with the production test likely to cost $9.8 million.
As part of its farmin agreement with Cooper Energy Jacka has contributed 30% of the well cost up to a gross well cost of US$27.2 million after which Jacka will contribute at its participating interest of 15%.