Onshore Otway well dry: Essential

ESSENTIAL Petroleum says its Ayrford-1 well in onshore Otway Basin permit PEP 168 has been plugged and abandoned following disappointing results from wireline logging.

Detailed wireline pressure testing did not detect the presence of a producible gas column, despite recording elevated background gas in the target sandstone - Waarre Formation.

The company said the rig is now being moved to the East Wing-1 well, to be spudded on Friday.

East Wing-1 is targeting a gas accumulation in the Waarre C Sandstone and the prospect has the potential to hold between 5 and 10 billion cubic feet of recoverable gas, Essential said.

The lack of commercial gas at Ayrford-1 does not diminish the prospectively of the East Wing prospect, the company added.

Essential is targeting the onshore extension of the highly productive Pecten High trend, which has offshore discoveries containing more than 400Bcf of recoverable gas in the Waarre Formation at the Casino, Henry and Halladale gas fields.

Essential owns 100% of the PEP 168 permit.