SENEX Energy (ASX:SXY) will begin a major drilling campaign in the Cooper Basin this weekend.
The company’s share price shot up 9.09 per cent today to $0.54 per unit after news of the multi-year, fully self-funded program, hit the market.
Senex Managing Director, Ian Davies, says the drilling campaign is focused on exploiting up to 50 low-risk opportunities identified in the South Australian oil field and will include at least 30 wells.
“By analysing reprocessed seismic data and considering the application of well-established production enhancement techniques, our technical team has identified a large number of opportunities to improve the productivity of our existing assets and exploit oil zones that have previously been overlooked,” says Davies.
Drilling will initially focus on prospects in the southern oil province, with well sites located at, or near, existing oil fields.
Work on the campaign will commence this weekend, with the Worrior-8 development well to be drilled at Worrior oil field (PPL-207), where two wells are planned. Senex is the operator in this tenement, holding a 70 per cent stake, while Cooper Energy (ASX: COE) holds the remaining 30 per cent.
The aim of these initial well is to add reserves, increase oil production and reduce costs in a number of mature fields with existing infrastructure and to evaluate near-field exploration opportunities.
Most of the prospects are located close to existing facilities. New prospects will be drilled on the western flank of the Cooper Basin.
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