Lakes Oil NL, via wholly owned subsidiary Otway Energy Pty Ltd, is undertaking logging operations at the Nangwarry 1 gas exploration well in PEL 155, located in the Otway Basin, as of January 2020. On 7 January, joint venture partner Vintage Energy reported that the operator was recovering logging equipment, which became stuck in hole, before resuming logging operations. It was reported that initial results of logging had indicated a 120 m gas saturated gas column, within the Upper Pretty Hill Formation. The middle and lower section will be evaluated in the coming operations. There is a possible 160 m gas column within the mid-Pretty Hill section.  Lakes Oil spudded the Nangwarry 1 well on 1 December 2019. The Easternwell owned âRig 106â has been contracted to drill the well, which was mobilized to site in late November 2019. On 2 January 2020, Lakes Oil reported that the well had reach a total depth of 4,300 m on 31 December 2019 with gas shows across two intervals in the Pretty Hill Formation. Logging of these sections is currently underway to confirm the shows and potential for flow testing. The secondary target in the Sawpit Sandstone was found to be dry at location.  The Pretty Hill Formation was encountered at approximately 2,940 m with Lakes Oil reporting elevated gas reading over an interval of 140 m. It is planned, that after reaching total depth, the interval will be logged to assess the significance of the readings. The Sawpit Sandstone is expected to be intersected at around 4,094 m and it is anticipated by Lakes Oil that the well could enter this secondary target before 29 December 2019.  Nangwarry 1 had a planned total depth of 4,350 m. The well is targeting the Lower Cretaceous Pretty Hill and Sawpit sandstones, which were expected to be encountered at around 2,993 m and 4,094 m respectively. The well will take approximately 45 days to drill and log. If gas is encountered, the well is planned to be flow tested.  The Nangwarry prospect is a three-way dip fault dependent closure at the Pretty Hill Sandstone and the Sawpit Sandstone levels and has an estimated prospective resource of 57 Bcf. The prospect is covered by the 34 sq km Nangwarry 3D seismic survey, acquired in February 2008. An airborne gravity, gradiometry and magnetics survey was acquired in October 2018 to provide further data on the structural trends, including faults and fault blocks, within the permit but also to assist in de-risking the Nangwarry 1 well. The prospect thought to be analogous to the proximal Katnook, Haselgrove and Ladbroke Grove gas condensate fields which have all produced from the Pretty Hill Formation. In the event of success at Nangwarry 1, hydrocarbons could be rapidly commercialised given its proximity to existing production infrastructure which includes the Katnook gas processing plant.  The drilling of Nangwarry 1 forms part of a farm-in agreement that was completed on 28 May 2018. Under the terms of the agreement, joint venture partner Vintage Energy Ltd acquired an additional 25% interest in the licence by assisting with the funding of the Nangwarry 1 exploration well on a 50:50 basis with Rawson. The joint venture had previously been successful in applying for a PACE (Plan for Accelerating Exploration) gas grant from the South Australian government, receiving AUD 4.95 million after executing the PACE Funding Deed. The funds will cover approximately 50% of the cost of the planned Nangwarry 1 well.  PEL 155, which covers an area of 226 sq km, was awarded on 30 June 2003. Interests in the permit are: Lakes Oil subsidiary Otway Energy Pty Ltd (50% plus operatorship) and Vintage Energy Ltd subsidiary Vintage Oil & Gas (50%).
Nangwarry 1 expl. (Otway Energy 50%, op. Vintage O&G 50%) in PEL 155, gas disc. 120m gas saturated gas column, within the Upper Pretty Hill Fm. and there is a possible 160m gas column within the mid-Pretty Hill section.