Sageo- After re-reading your post I see that I did not address your questions, so here is another effort.
From M D & A Dated Oct. 29, 2007
The Elk-2 well was spudded on February 9, 2007 to appraise the Elk-1 discovery and to explore for an oil zone in this structure.
Here is the last drilling report for Elk-2
Drilling Report No. 6 October 2, 2007 Elk Prospect Type: Gas appraisal / oil exploration well Location: PPL 238, Eastern Papua Basin 145° 08’ 02.7587” E; 7° 03’28.8562” S Current Status: Current Data: Elk-2 was TD’ed at 10,919 feet (3329 meters). Subsequently a full suite of logs was acquired including FMI and VSP followed by extensive sidewall coring in zones of logged porosity. Following logging and coring, drill stem testing (denoted as DST #2) began and 8 zones were tested through 2 October. Total limestone drilled was 3,254.6 feet (992 meters) from top Puri at 7,667 feet (2,337 meters) MD to TD at 10,922 feet (3,329 meters) MD. The top Mendi limestone is estimated at 9,596 feet (2,925 meters) MD and based on Strontium isotope dating and biostratigraphic markers the well penetrated a repeat Puri section at approximately 10,660 feet (3,250 meters) MD. The true stratigraphic thickness of the Puri penetrated at Elk-2 is 1,749 feet (533 meters) and the Mendi is 958 feet (292 meters) both thicker than pre-drill estimates. Logged net reservoir is 662.7 feet (202 meters) measured thickness with average log porosity of 4.5%. Log porosity ranged from the cutoff of 3% to 12.5%. As expected from offset wells, the Mendi exhibited higher average porosity of 6.3%. From the FMI over 3,400 fractures were identified with log indications that the bulk of the conductive (open) fractures are in the lower part of the hole below 9,187 feet (2800 meters). Although the lower part of the hole was known to be below the water contact, DST’s were conducted to determine the flow capacity of the fractured and porous section. The fracture conductivity was supported by the DST’s which resulted in flow capacities (kh) as high as 472,000 millidarcy-feet and water flow rates of up to 2,565 barrels per day in lower part of the well. The produced water had high gas saturation which separated and was flared at the surface during flow periods. Pressure data from the DST’s indicate the GWC could be at 7,596 feet (2315 meters) however highest known water was recovered during testing much deeper at 8,777 feet (2,675 meters). The formation above 8,777 feet (2675 meters) was liquids were recovered. October 2, 2007 Past Data: Ran 7” Liner at 7,414 ft (2,259m) with top of liner at 5,755 feet (1,754 meters) and drilled 6 1/8 inch hole to 8,717ft (2,657m) with full returns. Performed DST #1 and cored from 8,717 ft to 8,754 ft (2,657 - 2,668m), recovering 13.6 ft (4.14m) of core which has been sent for analysis, with oil/condensate shows in the base of the core. The top of the Puri limestone was encountered at 7,667 feet (2,337 m) and the revised top of the Mendi limestone at 9594 feet (2,925 meters). Set 9 5/8 inch casing to 5,939 feet (1,810 meters) and cemented in place. Installed a downhole deployment valve (DDV) within the 9 5/8 inch casing at 3,419 feet (1,042 meters). Set 18 5/8 inch surface casing at 177 feet. Drilled a 17 1/2 inch hole to 1,919 feet (585 meters), followed by setting 13 3/8 inch intermediate casing at 1, 913 feet (583 meters).
The well was drilled to 10,922 feet and I believe they were still in limestone. I believe they Drilled through the Puri Limestone, drilled some of the Mendi limestone, crossed a fault and started drilling Puri Limestone again in an up thrown fault block. They did not report drilling any shale or sandstones since I do not think they ever drilled completely through the limestone. So they did not find any sandstones or oil zones. The limestone was water filled at this location.
As far as I know this is the deepest well drilled in the Elk Field Area. I do not know if the Ieru shale (may have a different name in this area) is present below the Elk Field but if it is it looks like the Pale/Subu will be above or at the top of the Ieru? Shale. Of course Elk/Antelope is on the East side of the Aure Fault on the cross section shown at http://www.kinapetroleum.com/pdf/info-memo-aug.pdf (Elk/Antelope is actually on the West side of the Aure fault but it fits the geology better on the right side of the chart) The chart indicates that the Toro is lower Cretaceous and the Pale/Subu would be upper Cretaceous.
The lower Mendi Limestone, which would be above the Pale/Subu sandstones, if they are present, is Eocene aged which is below the Miocene aged Puri Limestone. Elk-3 will be about 1,600 - 1,700 feet up dip from Elk-2 so it is possible that we could drill through the limestone interval without drilling as deep as 11,000 feet but it is hard to say since we do not know the thickness of the entire limestone interval.
The next problem would be do we have a shale seal, will the Pale/Subu sandstones be present and will the sandstones, if present, contain water, gas or oil. As you know we are in a state of flux right now with the selection of the new partner so the planned depth and objective of Elk-3 could change with a new partner and/or operator. Based on the results of Elk-2 I do not believe there is any oil in the limestone interval. What is below the limestone interval can only be determined by drilling.
At Elk-3 the upper (Top) of the limestone will be over pressured and fractured which will probably cause loss of circulation with the mud weight that will be required. In order to drill below the Mendi Limestone and look for the sandstones I think they would need to case off the gas zone. I think that would probably be too complicated for now and there are probably better and cheaper locations to look for the presence of the sandstones. At the present time I believe the objective of Elk-3 will be to evaluate the Puri Limestone in the main Elk fault block for gas, porosity and permeability.
