ASX Announcement

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ASX Announcement
25th July 2012
Fausse Point Project - Update
The Board of Verus Investments Ltd (‘Verus’) is pleased to provide the following update in regards to the
Fausse Point project, which is located onshore and approximately 140km from New Orleans, Louisiana.
Following an external engineering review of the drilling program of the TGR #1 well it has been
determined that a sidetrack of the existing well bore will enable more flexibility, reduce drilling risks and
ensure logging operations and evaluation can be completed effectively. The initial program of deepening
the well was determined technically risky and as the hole size proposed at TD would be insufficient,
restricting logging operations and evaluation.
Verus has engaged a third party drilling engineering company to act as operator as the existing operator
(Golden Gate Petroleum Ltd) has expressed a desire to step down as operator. The deepening planning for
the side-track of the Fausse Point discovery well TGR#1 is now fully underway and a revised AFE is in
the final stages of preparation and once complete will be forwarded to all JV partners for their approval
and consent to participate.
It is anticipated that the total drilling, completion and tie-in costs will be approximately US$1.5 million of which approximately US$1 million will be VIL’s share.
The Board is continuing its efforts to farm down a portion of Verus’ interest to offset the costs of
participation and in order to prudently manage its funds in difficult capital and commodity markets.
Fausse Point Sidetrack
The planned Fausse Point appraisal well is to be drilled as a side-track from the existing TGR # 1 well
kicking off from approximately 6,200 ft and drilling to a new bottom hole location approximately 100 ft
south of the current bottom hole location targeting the 32A sands.
Key Points to consider
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Seismic interpretation indicate the well did not reach the key 32A sands and that there is
potentially additional sands below the 32A sands.
The 32A sands are extensive and can be extremely productive.
There is high risk in drilling into the sands due to potential high pressures, gas and the presence
of salt.
Sand, trap and seal continue to be uncertain and are considered a possible risk.
The Board and technical team is of the opinion that if the primary sands we are targeting are
present below the current TD and extend to the edge of the salt dome that the best way to
determine the presence of the sands and potential hydrocarbons is to deepen the well.
Office Address: Level 21, 77 St Georges Terrace, Perth, Western Australia 6000
Postal Address: PO Box Z5446, Perth, Western Australia 6831
Phone: +61 (0)8 9389 2000 Fax: +61 (0)8 9389 2099 Email: [email protected]: www.verus.com.au
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The mapped and interpreted 32A sands indicate a structure that could potentially contain up to 16
billion cubic ft of recoverable gas and 164,000 barrels of condensate on an unrisked basis,
Analogue well production data on the 32A sands indicates flow test IP’s of 158 barrels of oil per
day & 6.4 million cubic feet of gas per day.
Forward Plan
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Draft AFE and drilling program submitted to partners for approval.
Finalise Farm in groups
Select drilling contractor
Submit final AFE and program to all partners for approval and consent to participate.
Mobilise rig, sidetrack and deepen the well
Evaluate the results and determine the forward plan
Partners in the Fausse Point Project are:
Verus Investments Limited (ASX code: VIL)
72.00% WI
Golden Gate Petroleum Ltd (ASX code: GGP) 18.00% WI (Operator)
Other Partners
10.00% WI
For further information regarding the Company’s activities, please contact:
Mr. Gregory Lee
Executive Director
Tel: (+61 8) 9389 2000
COMPETENT PERSONS STATEMENT: The information in this announcement that relates to oil and gas
exploration results and hydrocarbon reserves is based on information reviewed by Mr Greg Lee, who is a petroleum
engineer. Mr Lee is a Director of the Company. Mr Lee has more than 25 years’ experience in this discipline and he
consents to the inclusion in this announcement of the matters based on his information in the form and context in
which it appears.
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Diagram 1 - Structure map of the Sidetrack Prospect
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