Kalala S-1 Basic Well Completion Report REVISED · Kalala S-1 Well Completion Report (Basic) Page 4 of 23 1 Introduction and Summary Kalala S-1 was drilled by Origin Energy Resources

Kalala S-1

Well Completion Report (Basic)

EP 98

Beetaloo Basin Northern Territory

14th July – 25th August 2015

Origin Energy Resources Ltd

Kalala S-1 Well Completion Report (Basic)

Page 2 of 23

Table of Contents

Figures ..................................................................................................................................................... 2

Tables ...................................................................................................................................................... 2

Appendices .............................................................................................................................................. 3

1 Introduction and Summary ............................................................................................................. 4

2 Well Summary Sheet ....................................................................................................................... 6

3 Drilling ............................................................................................................................................. 7

3.1 Summary of drilling and related operations ........................................................................... 7

3.2 Drilling equipment installed in or on the well ...................................................................... 16

3.3 Casing and equipment installed in or on the well ................................................................ 16

3.4 Cementing operations carried out ........................................................................................ 18

3.5 Bit Records ............................................................................................................................ 18

3.6 Drilling Fluids ......................................................................................................................... 18

4 Geology ......................................................................................................................................... 19

4.1 Formation Tops ..................................................................................................................... 19

4.2 Reservoir and Prospective Horizons ..................................................................................... 20

5 Formation Sampling ...................................................................................................................... 20

5.1 Drill Cuttings .......................................................................................................................... 20

5.2 Sidewall Cores ....................................................................................................................... 20

5.3 CoreVaultTM

Pressurized Cores ............................................................................................. 21

5.4 Mud gas ................................................................................................................................. 22

6 Formation Evaluation .................................................................................................................... 23

6.1 Mudlogging ........................................................................................................................... 23

6.2 Wireline Logging ................................................................................................................... 23

6.3 Hydrocarbon Indications ....................................................................................................... 23

6.3.1 Gas detection whilst drilling .......................................................................................... 23

Figures

Figure 1. Kalala S-1 Well Location and Permit Map ................................................................................ 4

Figure 2. Kalala S-1 Location in relation to pastoral leases in the Daly Waters/Beetaloo Basin area .... 5

Figure 3. Kalala S-1 Time vs Depth Chart .............................................................................................. 15

Figure 4. Kalala S-1 as drilled schematic ............................................................................................... 17

Tables

Table 1. Kalala S-1 casing details ........................................................................................................... 16

Table 2. Kalala S-1 cementing operations ............................................................................................. 18

Table 3. Kalala S-1 prognosed vs. actual Formation Top depths .......................................................... 19

Table 4. Drill Cuttings Interval and Sampling Rate Summary ............................................................... 20

Table 5. Summary of Hostile Rotary Sidewall Coring (HRSCT) runs ...................................................... 21

Table 6. Sidewall Coring Depth Summary ............................................................................................. 21


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Table 7. Summary of CoreVaultTM

Pressurized Coring Runs ................................................................. 21

Table 8. CoreVaultTM

Pressurized Coring Run #4 Depth Summary ....................................................... 22


Unpressurized Coring Run #8 Depth Summary .................................................. 22

Table 10. Mud Gas Sampling Summary ................................................................................................ 22

Table 11. Summary of Wireline Logs .................................................................................................... 23

Appendices

Appendix 1: Bit record and drilling parameters summary

Appendix 2: Middle Velkerri Member lithological description

Kyalla Formation lithological description

Drill cuttings lithological description

Appendix 3: Rotary Sidewall core photography

Unpressurized CoreVaultTM

Sidewall core photography

Rotary Sidewall core summary depth recovery

Pressurized CoreVaultTM

summary depth recovery

Unpressurized CoreVaultTM

summary depth recovery

Appendix 4: Mud gas sampling and depth summary

Appendix 5: Mudlogging data

Mudlogging log displays

Geoservices End of Well Report

XRF raw values

HRDM Drill cuttings photography

Appendix 6: Wireline field data

Wireline processed data

Wireline log displays

Appendix 7: Gas data summary


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1 Introduction and Summary

Kalala S-1 was drilled by Origin Energy Resources Ltd in Exploration Permit EP98 in the Beetaloo

Basin (Figure 1), Northern Territory, approximately 400m south of the Carpentaria Highway and

25.4km east of the town of Daly Waters and the Stuart Highway (Figure 2). Kalala S-1 was the first

well drilled in the 2015 Beetaloo well drilling programme. The well was spudded on 14 July 2015 and

reached TD of 2619m on 25 August 2015. The well was cased and suspended. The rig was released

on 2 September 2015.

Figure 1. Kalala S-1 Well Location and Permit Map

The aim of Kalala S-1 was to test the potential of the Middle Velkerri Member organic rich

mudstones as a regional shale gas play within the northern Beetaloo Basin, with primary focus on

testing physical reservoir properties. A secondary aim was to sidewall core the Middle Velkerri

Member to capture potential facies variability that may impact future well stimulation. A third aim

was to perform a Diagnostic Formation Injectivity Test (DFIT) to evaluate pressures and driving

capabilities of selected intervals within the Middle Velkerri Member.


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Figure 2. Kalala S-1 Location in relation to pastoral leases in the Daly Waters/Beetaloo Basin area


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2 Well Summary Sheet

Well Name: Kalala S-1

Classification: Exploration

Permit: EP98, Northern Territory

Well Path: Vertical (1.1 deg. @ TD)

Location: Latitude: 16° 17' 38.75" S / Longitude: 133° 36' 44.47" E

Easting: 351 734.909 metres / Northing: 8 198 029.423 metres

(GDA 94; UTM 53, Map Sheet: SE53 Newcastle Waters, Graticule Block

Number 236)

Offset Well: Chanin 1 ~15.9 km (heading 65.3° from Kalala S-1)

Balmain 1 ~36.1 km (heading -174.7° from Kalala S-1)

Shenandoah 1A ~36.2 km (heading 174.7° from Kalala S-1)

Walton 2 ~40.5 km (heading 8.1° from Kalala S-1)

Seismic Control: East-West Control: 2D Seismic Line - L114.

Shot point 7998 – projected ~785 m heading-37.2° from well to 2D line

North-South Control: 2D Seismic Line - mc92-251

Shot point 4279 – projected ~790 m heading -90° from well to 2D line

Elevation: 239.7m (GL above MSL)

RT Elevation: 245.05m (above MSL)

Total Depth Driller: 2622.0 mMDRT / 2620.13 mTVDRT

Total Depth Logger: 2619.0 mMDRT

Casing: 16” @ 73.9 mMDRT

10.75” @ 368.0 mMDRT

7.625” @ 1304.0 mMDRT

4.5” @ 2617.0 mMDRT

Spud: 14-July-2015 @ 23:30 hrs

Reached TD: 25-August-2015 @ 18:00 hrs

Rig Released: 02-September-2015 @ 16:00 hrs

Well Status: Cased and Suspended

Suspended: 02-September-2015 @ 16:00 hrs

PBTD: 2581.32 mRT (top of float collar - No tag performed inside 4.5" casing)

Permit Interests: Origin Energy Resources Ltd (Operator - 35%)

Sasol Petroleum International (35%)

Falcon Oil & Gas (30%)

Rig Name/Type: Saxon 185 / Land-Onshore

Drilling Contractor: Saxon


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3 Drilling

3.1 Summary of drilling and related operations

# Start Date End Date Last 24hr Summary

1 14/07/2015 15/07/2015 • Rig on-hire to Kalala S-1 on 14-July-2015 @ 19:30 hrs.

• Resolved air pack issue and prepared to spud.

• Held pre-job meetings, hazard hunt and reviewed drilling program with

crews.

• Made up BHA, ran in hole and tagged cement.

• Spudded KS-1 and drilled out cement, shoe and new formation to 80

mRT. Began taking losses.

2 15/07/2015 16/07/2015 • Drilled surface hole from 80 to 145 mRT.

• Rig shut down, generators overloaded. Reset generators/loaded VFD's.

Attempted to break circulation with air packs. No success, hole packed

off.

• Attempted to free stuck drill string without success.

3 16/07/2015 17/07/2015 • Freed stuck pipe at 142 mRT.

• Pulled back to 72 mRT.

• Added 2 x 6-1/2" Drill collars and 1 x jar to BHA string.

• Washed and reamed from 100 to 145 mRT.

• Continued to drill 14-3/4" from 145 to 188 mRT. Avg ROP 6.5 m/hr.

4 17/07/2015 18/07/2015 • Drilled 14-3/4" from 188 to 266 mRT. Avg ROP 3.25 m/hr.

5 18/07/2015 19/07/2015 • Drilled 14-3/4" from 266 to 287 mRT. Avg ROP 1.6 m/hr.

• POOH from 287 mRT to surface. Due to slow penetration rate.

• Change out 14-3/4" bit. RIH from surface to 81 mRT.

6 19/07/2015 20/07/2015 • RIH from 81 to 142 mRT.

• Installed element and bearing assembly in RCD.

• Continued to RIH to 287 mRT.

• Drilled 14-3/4" hole from 287 to 400 mRT. Avg ROP 7 m/hr.

7 20/07/2015 21/07/2015 • Drilled 14-3/4" to 407 mRT TD.

• Pulled back and ran survey at 372 mRT 2-1/2 °. POOH to surface.

• Removed RCD and cut conductor. Installed base plate.

• Held PJSM. Rigged up Weatherford casing handling tools. Ran 10-3/4"

surface casing from surface to 95 mRT.

• Worked 10-3/4" casing could not get passed 95 mRT.

• Developed live JSA for tripping out of hole with casing.

8 21/07/2015 22/07/2015 • Pulled 10-3/4" surface casing out of hole and removed centrilisers.

• Ran 10-3/4" casing back in to 93 mRT. Worked casing string hole

bridged at 98 mRT.

• Pulled 10-3/4" surface casing out of hole.

• Prepared and strapped new clean out BHA.

9 22/07/2015 23/07/2015 • Picked up and made up 14-3/4" mill tooth bit and BHA, clean out

assembly. RIH from surface to 97.98 mRT.


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• Washed and reamed 14-3/4" hole from 97.98 to 197 mRT.

• POOH clean out BHA and laid down.

• Rigged up and ran 10-3/4" surface casing from surface to 97 mRT.

10 23/07/2015 24/07/2015 • RIH with 10-3/4" surface casing from 97 to 110.64 mRT.

• Hole bridged off at 110.64 mRT.

• Worked casing with RPM = 8 weight on shoe 1 - 8 klbs.

• POOH from 110 mRT to surface.

• Modified 10-3/4" shoe guide, inspected 10-3/4" float collar. Cleaned

and inspected 10-3/4" surface casing.

• RIH 10-3/4" casing from surface to 110 mRT.

• Hole bridged off at 110 mRT. Washed and reamed from 110 to 114

mRT.

• Continued to RIH 10-3/4" surface casing from 114 to 129 mRT.

Working tights spots as needed.

11 24/07/2015 25/07/2015 • RIH 10-3/4" surface casing from 129 to 271 mRT.

• Bridge encountered at 271 mRT. Worked casing from 271 to 280 mRT.

• Continued to RIH 10-3/4" surface casing from 280 to 385 mRT.

• Encountered bridge at 385 mRT. Attempted to break circulation, hole

packed off.

• Worked 10-3/4" from 385 to 375 mRT.

12 25/07/2015 26/07/2015 • Worked 10-3/4" surface casing from 378 to 367.9 mRT. No movement

in casing string.

• Discussed with OE and Halliburton regarding MOC for change in well

plan. Prepared to cement 10-3/4" surface casing.

13 26/07/2015 27/07/2015 • Completed cement top job and set slips in base plate at 90 klbs.

• Cold cut and laid out casing.

• Held weekly safety meeting with all site personnel.

• Installed the casing head assembly and energized.

14 27/07/2015 28/07/2015 • Installed casing head assembly.

• Nippled up BOP.

• Commenced pressure testing BOP as per program.

15 28/07/2015 29/07/2015 • Pressure tested BOP as per program - rams to 250 psi low and 5000 psi

high, annular to 3500 psi high and RFCD to 1500 psi high.

• Made up 9 -7/8" Smith mill tooth bit and RIH to 302 mRT.

• Slipped and cut drill line.

16 29/07/2015 30/07/2015 • Continued with slip and cut of drill line. Tested brake and crown saver.

• RIH to 344 mRT.

• Drilled out float collar, shoe and cleaned out hole to 367 mRT.

• Pulled back to 353 mRT. Repaired grabber box.

• Washed and reamed to 407 mRT. 3 m fill.

• Performed diagnostic leak off, pumped up to 500 psi and bled back to 0

psi in 10 minutes.

• POOH to surface, laid down BHA.

• RIH, pumped sweep, washed down to 407 mRT. Circulated hole clean.

• Mixed and pumped 43.6 bbls of 15.8 ppg plug cement slurry. Displaced


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with 8.5 bbls fresh water.

• Squeezed 4.8 bbls cement whilst undertaking a hesistation squeeze

(maximum 500psi surface pressure).

• Waited on cement.

17 30/07/2015 31/07/2015 • Waited on cement.

• Pulled out of hole.

• Made up and RIH with 9-7/8" drillout BHA.

• Attempted 1000 psi casing test with mud pump, 4 attempts.

• Tested BOP and wellhead in isolation to casing string.

• Tagged cement at 325.5 mRT. Drilled cement from 325.5 to 363 mRT.

• Circulated hole clean and pressure tested casing and cement to 580 psi

for 10 min.

• Drilled from 363 to 371 mRT.

• Attempted pressure test cement/shoe, 3 attempts, tests unsuccessful.

• Held safety meeting with cementers. Pressure tested surface lines.

18 31/07/2015 1/08/2015 • Attempted to pressure test cement / shoe.

• Pulled out of hole.

• Ran in hole with 4" open ended drill pipe for cement plug and squeeze.

• Rigged up cementers.

• Pumped and displaced cement plug #2.

• Pumped wiper ball and circulated annulus clear of cement.

• Squeezed 0.45 bbls of cement.

• POOH from 230 mRT to surface.

• Picked up, made up and RIH with 9-7/8" drill out BHA to 266 mRT.

• RIH with 9 7/8" drill out BHA on 4" drill pipe to tag cement at 332 mRT

• Drilled cement from 340.5 to 358 mRT.

19 1/08/2015 2/08/2015 • Drilled cement from 358 to 370.78 mRT.

• Circulated hole clean and for even mud weight 8.4 ppg.

• Attempted FIT to 560 psi. Observed linear pressure decline, approx 20

psi per minute. Approval to proceed granted, following risk assessment

and alteration of intermediate casing point.

• Drilled cement from 370 to 407 mRT.

• Drilled 9-7/8" hole from 407 to 410 mRT.

• Unloaded well. Water flow noted.

• Flow test estimated at 600 lts/min, 226 bbl/hr.

• Monitored well for flow. No flow noted.

• Pulled out of hole from 357 mRT to surface to change out BHA.

• Picked up, made up and ran in hole with 9-7/8" secondary BHA to 410

mRT.

• Filled hole (24 bbls) and circulated for even new mud 8.6 ppg.

• Drilled 9-7/8" intermediate hole from 410 to 420 mRT.

20 2/08/2015 3/08/2015 • Drilled 9-7/8" intermediate hole from 420 to 497 mRT.

• Circulated hole clean. Pulled back to 484 mRT.

• Ran deviation survey. Misrun.


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• Serviced rig.


3/08/2015 4/08/2015 • Drilled 9-7/8" from 775 to 1051 mRT.

• Serviced rig.

• Drilled 9-7/8" from 1051 to 1065 mRT.

22 4/08/2015 5/08/2015 • Drilled 9-7/8" intermediate hole from 1065 to1305 mRT, section TD.

Dynamic losses 7 - 15 bbls/ hr.

• Pumped 40 bbls hi-vis sweep and circulated hole clean, no losses.

• Pulled out of hole from 1305 to 204 mRT.

23 5/08/2015 6/08/2015 • Continued to POOH with BHA from 204 mRT to surface.

• Held PJSM for running casing. Made up shoe joint.

• POOH with shoe joint. Removed wear bushing and jetted BOPs and

wellhead.

• Ran in hole with 7-5/8" casing to 1281 mRT. Washed down from 281 to

1304 mRT.

• Circulated hole clean while mixing cement additives.

• Rigged up cement surface equipment.

• Cemented 7-5/8” casing.

24 6/08/2015 7/08/2015 • Pumped cement per program.

• Installed slip and seal assembly.

• Nippled down BOP at spacer spool .

• Moved BOP. Removed drilling spool and installed casing spool

assembly.

• Pressure tested casing spool assembly. Well acceptance criteria #8

achieved.

• Conducted AAR for intermediate cement job with all personnel onsite.

• Nippled up and function tested BOP.

• Annular BOP pressure test failed, pulled test plug and commenced

jetting BOP.

• Pulled test plug made up jetting tool.

25 7/08/2015 8/08/2015 • Pressure tested BOP - rams to 250 psi low and 5000 psi high, annular to

3500 psi high and RFCD to 1500 psi high.

• Made up 6-3/4" Smith PDC bit and RIH to 214 mRT.


• Continued to RIH from 214 to 1295 mRT.

26 8/08/2015 9/08/2015 • Drilled 3 m new formation from 1305 to 1308 mRT.

• Conducted FIT / XLOT test with Halliburton pumping unit. FIT = 1303

psi, EMW 15.3 ppg. XLOT, formation broke over at 2900 psi.

• Ran wire line survey 1294 mRT. Inclination 1.0° at 1294 mRT.

• Drilled 6-3/4" production hole from 1308 to 1394 mRT. Average ROP =

4.7 m/hr.

27 9/08/2015 10/08/2015 • Drilled 6-3/4" production hole from 1394 to 1440 mRT. Average ROP =

1.9 m/hr.



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1.2 m/hr.

• Flow checked, POOH from 1470 mRT to surface for bit change due to

low penetration rate.

• RIH to 88 mRT.

• Rig service.

29 11/08/2015 12/08/2015 • RIH with 6-3/4" TCI bit (IADC627) from 88 to 1470 mRT.

• Drilled 6-3/4" production hole from 1470 to 1514 mRT. Average ROP =

2.5 m/hr.


1.8 m/hr.

• Conducted rig service.

• Circulated hole clean.

31 13/08/2015 14/08/2015 • Circulated the hole clean.

• Unloaded the well.

• Blew the hole dry to confirm a water flow and rate.

• Filled the hole with mud.

• Tripped out of the hole for a bit change.

• Changed the bit to a 6-3/4" Smith PDC (IADC713) and ran in the hole to

the casing shoe.


• Continued to run in hole from 1278 to 1425 mRT.


7.4 m/hr.


11.85 m/hr.


8.96 m/hr.


5.2 m/hr.


9.8 m/hr.


0.2 m/hr.

• Pulled out of hole from 2383 to 1110 mRT.


38 20/08/2015 21/08/2015 • Continued to pull out of hole from 1110 mRT to surface. Flow checked

at 358 mRT and at surface - well static.

• Retrieved wear bushing.

• Pressure tested BOPs as per program.

39 21/08/2015 22/08/2015 • Continued to pressure test BOPs. Performed accumulator closing test.

• RIH to 1295 mRT.


• Serviced rig.

• RIH to 2100 mRT. Tight hole.


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• Jarred pipe free.

• Washed and reamed from 2103 to 2186 mRT. RIH from 2186 to 2275

mRT. Washed down to tag bottom at 2383 mRT.

• Drilled 6-3/4" production hole from 2383 to 2838.83 mRT.

40 22/08/2015 23/08/2015 • Drilled 6-3/4" production hole from 2383.83 to 2452 mRT.

41 23/08/2015 24/08/2015 • Drilled 6-3/4" production hole from 2452 to 2481.73 mRT. Average ROP

= 2.4 m/hr.

• Circulated hole clean.

• Pulled out of hole. Tight hole and pumped out from 2412 to 2406 mRT

and 2403 to 2393 mRT.

• Pulled out of hole to surface.

42 24/08/2015 25/08/2015 • Serviced rig.

• Shallow tested motor. RIH with BHA to 195 mRT.

• Skate cable pulled free of cable saddles. Cut frayed end of cable,

saddled and tensioned cable.

• Continued Running in hole to 2398 mRT.

• Washed and reamed to 2481mRT. Pumped 10 bbls hi-vis and jetted to

bottom.

• Drilled 6-3/4" production hole from 2481.7 to 2504 mRT.

• Rig Service.

• Drilled 6-3/4" production hole from 2504 to 2510 mRT.

43 25/08/2015 26/08/2015 • Drilled 6-3/4" production hole from 2510 to 2622 mRT (TD)

• Pumped 10 bbl hi-vis sweep and circulated bottoms up.

• Flow checked, well static. Pulled out of hole from 2622 to 2491 mRT for

wiper trip. Ran in hole to 2622 mRT.

• Pumped 20 bbl hi-vis sweep and circulated hole clean.

• Spotted 120 bbl of 10.6 ppg low salt logging pill on bottom to +/- 2000

mRT.

• Flow checked, well static. Pulled out of hole from 2622 to 2452 mRT for

logging.

44 26/08/2015 27/08/2015 • Pulled out of hole from 2452 to 1600 mRT, 12 klb overpull at 2078 mRT,

cleaned with one wipe, persistent 10 - 15 klb overpull at 1690 mRT,

washed and reamed between 1693 and 1688 mRT.

• Pulled out of hole from 1600 mRT to surface.

• Cleared floor for wireline operations.

• Held PJSM and rigged up wireline loggers.

• Waited on certification for Saxon dedicated wireline sheave anchor.

• Rigged up e-line equipment, made up logging tool string run #1.

• RIH from surface to tag TD at 2619 mRT, approximately 3 m off bottom.

Logged from 2619 to 2576 mRT at 1800 ft/hr.

45 27/08/2015 28/08/2015 • Continued logging run #1 - Laterolog Resistivity - Density & Micro

Resistivity - Neutron & GR –Spectral GR- Telemetry & GR - Spontaneous

Potential.

• Logging run #2 - Eccentered 4 Arm Caliper - Nuclear Magnetic

Resonance - Lithoscanner - Telemetry & GR.


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• Began logging run #3 - Electrical Imaging & Inclinometer - Sonic

Scanner - 4 Arm Caliper - Telemetry & GR.

46 28/08/2015 29/08/2015 • Completed logging run # 3 - Electrical Imaging & Inclinometer - Sonic

Scanner - 4 Arm Caliper - Telemetry & GR.

• Rigged down Schlumberger loggers.

• Held PJSM and rigged up Halliburton loggers.

• Made up Halliburton wireline logging tool string run # 4 - HRSCT Core

vault (pressure core), 9 cores from 2290 to 2263 mRT. Removed core and

installed new core barrel.

• Made up Halliburton wireline logging tool string run # 5 - HRSCT Core

vault (pressure core), attempted to core at 2475 mRT. POOH for failed

core sampler. Laid down tools.

• Made up Halliburton wireline logging tool string run # 6 - HRSCT

Standard core (sidewall core), RIH, tight hole at 1544 mRT. Pulled out of

hole, jarred up with 3 klbs overpull and 6 klbs overpull to 1517 mRT.

47 29/08/2015 30/08/2015 • Prepared wiper BHA.

• Picked up, made up and RIH with wiper BHA to 1900 mRT. No tight hole

noted. Continued to RIH with wiper BHA from 1900 to 2567 mRT.

• Washed and reamed from 2567 to 2622 mRT.

• Circulated hole clean and conditioned mud.

• Pulled out of hole from 2622 to1295 mRT.

48 30/08/2015 31/08/2015 • Continued to pull out of hole from 1295 mRT to surface.

• Cleared rig floor and prepared logging equipment. Held PJSM with

wireline loggers. Rigged up wireline loggers.

• Run # 7, HRSCT Standard core (sidewall core), 30 cores from 2570 to

1315 mRT.

• Pulled out hole Run # 7, tight hole and jarring from 2385 to 1655 mRT.

• Pulled out of hole to surface. Back up arm not retracted.

• Broke down and laid out tools.

• Run # 8 - HRSCT Core vault (pressure core), 5 cores from 2475 to 2467

mRT.

49 31/08/2015 1/09/2015 • Run # 8 - HRSCT Core vault (pressure core), 5 cores from 2465 to 2457

mRT. RIH to 2467 mRT.

• Run # 9 - Triple Combo. RIH from surface to 2620.4 mRT. Tagged TD at

2620.4 mRT ~1.6 m off bottom.

• Logged from 2620.4 to 1965 mRT. RIH to 2600 mRT and logged from

2057 to 1965 mRT for repeat section.

• Rigged down wireline loggers.

• Retrieved wear bushing and jetted BOPs.

• Serviced rig.

• Rigged up casing running equipment.

• RIH with 4.5" production casing from surface to 540 mRT.

50 1/09/2015 2/09/2015 • RIH production casing from 540 to 2568 mRT.

• Washed down from 2568 to 2621m RT.

• Circulated 1.5 hole volume.


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• Pumped tuned spacer. Landed out hanger with shoe at 2617 mRT.

• Pumped cement as per program. Well Acceptance Criteria # 10 and #

11 achieved.

• Flushed BOPs and wellhead for casing hanger packoff. Laid out landing

joint.

51 2/09/2015 2/09/2015 • Jetted wellhead for casing hanger packoff. Flushed choke manifold.

• Ran packoff, set down with 7 klbs. Tested seals to 10,000 psi for 15

mins. Tied in all lockscrews.

• Nippled down, cradled and removed BOP's.

• Installed and tested tubing spool and master valve. Achieved Well

Acceptance Criteria #12.

• Rig released to Amungee NW-1 at 16:00 hours.


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Figure 3. Kalala S-1 Time vs Depth Chart


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3.2 Drilling equipment installed in or on the well

The Saxon Energy Services Australia Rig 185 was used to drill Kalala S-1. This rig is a 1200 hp AC

hydraulic drive rig with a 178,000 daN (400,000 lbf) pull capacity. The rig pumps are 2 x AC/VFD

HongHua HHF-1000 triplex pumps powered by AmeriMex Dominator 1150 hp AC electric motors. An

air package consists 2 x screw compressors rated for 1400 CFM at 350psi and 1 x booster unit

capable of 2800 CFM at 1600psi. The mud system consists three trailer mounted mud tank units

rated for 767 bbl capacity complete with 2 x Derrick FLC 504 shale shakers, 1 x Derrick Vac-Flo 500

vacuum degasser and 1 x Derrick DE-1000 FHD centrifuge. The BOP system comprises 1 x 2M Drill

Master Elite RFCD-2000, 1 x 5M T3-Energy 11” Annular, 1 x 5M T3-Energy Double Gate Ram (Blind &

VBR), 1 x 5M Drilling Spool with 3-1/8” Choke Line and 2-1/16” Kill Line, 1 x 5M Cameron Choke

Manifold, 1 x Control Technology 7 Station 14 Bottle Accumulator.

3.3 Casing and equipment installed in or on the well

Table 1 summarizes the casing and equipment installed in or on Kalala S-1. Kalala S-1 as drilled

schematics showing the casing and equipment dimension is provided in Figure 4.

Type Size (“) Weight (ppf) Grade Thread Depth

(mMDRT)

Conductor 16” 42 X42 Plain End 73.85

Surface Casing 10-3/4” 40.5 K55 BTC 367.93

Intermediate Casing 7-5/8” 29.7 P110 JFE FOX 1304.0

Production Casing 4.5” 11.6 P110 JFE FOX 2617.0

Table 1. Kalala S-1 casing details


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Figure 4. Kalala S-1 as drilled schematic


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3.4 Cementing operations carried out

String (“)/

Plug

Cement

Type Cement Additives Slurry Vol (bbls)

Slurry

Density

(ppg)

Cement to

/ from

(mMDRT)

Test

Press

(psi)

Conductor Class GP

14.0 0

Surface Casing

Top Up Class G

Freshwater

D-Air 3000L 70 16 GL-100 580

Surface Casing

Plug Squeeze

#1

Class G

Freshwater

D-Air 3000L

Halad 413

43.1

(4.6 bbl

squeezed away)

15.8 354-407 580

Surface Casing

Plug Squeeze

#2

Class G

Freshwater

D-Air 3000L

Halad 413

12.3

(0.45 bbls

squeezed away)

15.8 332-371 580

Intermediate

Casing Lead Class G

Freshwater

D-air 3000L

Gascon 469

Halad-413-L

HR-5

174 13.5 GL-1154 5000

Intermediate

Casing Tail Class G

Freshwater

D-Air 3000L

Halad-413-L

HR-5

30 15.8 1154-1305 5000

Production

Casing Lead Class G

Freshwater

HR-12

Gascon-469

D-Air 3000L

Halad 413

HR-25

153 14.0 0-1764 5000

Production

Casing Tail Class G

Freshwater

HR-12

HR-25

D-Air 3000L

Halad 413

78 15.8 1764-2622 5000

Table 2. Kalala S-1 cementing operations

3.5 Bit Records

Bit records and drilling parameters are summarised in Appendix 1.

3.6 Drilling Fluids

Newpark Drilling Fluids were contracted to supply and maintain drilling fluids. Polymer Spud and

Pre-hydrated Bentonite (Gel) mud was made up to commence operations on Kalala S-1. Initially

while drilling the 16” conductor shoe track, rat hole and new formation down to 80m a ‘short’

circulating mud system was used with Polymer Spud Mud. After changing the bit, BHA and resuming

drilling progress was made to 80m where total lost circulation occurred. The remainder of the

interval was air drilled at 1900 scfm down to a depth of 407m.


Page 19 of 23

The drilling fluid utilized for the 9.875” Intermediate hole was water based Polymer Mud system and

NaCl Polymer for the 6.75” primary hole.

After completion of wireline logging program a 4.5” production casing string was run and cemented

in place at a depth of 2617m. The cement was displaced with a 9.6ppg NaCl Inhibited Completion

Brine before removing the BOP and setting a well suspension assembly to complete operations.

4 Geology

4.1 Formation Tops

Table 3 summarizes the prognosed vs. actual Formation Top depths for Kalala S-1

FORMATION Prognosed Depth Actual Depth Difference

COMMENTS (mMDRT) (mTVDSS) (mMDRT) (mTVDSS) (+/- mTVDSS)

Undifferentiated

Cretaceous 5.2 239 5.35 239.7 -

Anthony Lagoon

Beds* - - - - - *Not expected

Gum Ridge

Formation 78 161 104 141.1 19.9 L

Antrim Volcanics 200 39 **NR - - **No returns to

surface

Bukalara

Sandstone 457 -218 **NR - -

**No returns to

surface

Chambers River

Fm 495 -256 **NR - -

**No returns to

surface

Bukalorkmi

Sandstone 971 -732 828 -583 149 H

Kyalla Formation 1045 -806 916 -671 135 H Secondary Target

Moroak

Sandstone 1535 -1296 1347.5 -1102.5 193.5 H

Velkerri

Formation 2007 -1768 1845.5 -1600 168 H

Upper Velkerri

Member 2007 -1768 1845.5 -1600 168 H

Middle Velkerri

Member 2179 -1940 2064 -1818.5 121.5 H Primary Target

Doleritic Sill* - - 2378 -2133 -

Lower Velkerri

Member 2700 -2461 2572 -2326 135 H

Total Depth 2800 -2561 2622 -2376 185 H Driller TD @ 2622m

Wireline TD @ 2619m

Table 3. Kalala S-1 prognosed vs. actual Formation Top depths


Page 20 of 23

4.2 Reservoir and Prospective Horizons

Kalala S-1 geological objectives included the Middle Velkerri Member of the Velkerri Formation

(primary) and the Kyalla Formation (secondary target).

The Middle Velkerri Member consists of three organic-rich mudstone/siltstone intervals separated

by two organically poor finely interbedded, variable mud, silt and sand rich intervals. The three

organic-rich intervals are referred to as the Middle Velkerri Member “A”, “B” and “C” shale from

oldest to youngest respectively. In Kalala S-1, the top of the Middle Velkerri Member was intersected

at 2064m and the formation drilled to a depth of 2572m.

The Kyalla Formation represents a silty mudstone with thin planar interbeds of siltstone and

sandstone; however more significant intervals of fine sandstone up to 70 m in thickness are

recorded in the lower half of the formation (Lanigan et al, 1994). In Kalala S-1, the top of the

formation was intersected at 916m and drilled to a depth of 1347.5m.

The lithological description of the Middle Velkerri Member and Kyalla Formation are summarized in

Appendix 2

5 Formation Sampling

5.1 Drill Cuttings

Drill cuttings samples were collected over the interval from 5m to 2622m (Driller TD). Sampling

intervals are as follow:

Cuttings Interval Sample Rate Comments

5.0 – 75.35 m 5 m

75.35 – 407.0 m 5 - 10 m Variable sampling intervals based on ROP

(No returns from 115m-407m)

407.0 – 1950.0 m 5 m

1950 - 2622 m TD 3 m

Table 4. Drill Cuttings Interval and Sampling Rate Summary

Detailed drill cuttings lithological descriptions are enclosed in Appendix 2.

5.2 Sidewall Cores

Halliburton’s hostile rotary sidewall coring tool (HRSCTTM

) was run over the interval from 1315 to

2570 mMDRT recovering a total of thirty standard sidewall cores (1½ x 2 inches). Table 5 and Table 6

provide a depth summary of sidewall cores recovered. Sidewall core photographs in natural light and

additional information are enclosed in Appendix 3. Note that an exception to the submission of UV

light photographs was submitted and granted by the Department due to minimal evidence of

fluorescence in drill cuttings.


Page 21 of 23

No. Cored Interval

Drillers Depth (mMDRT)

Recovery

m (%)

Run 6 Unable to pass 1544m Not recovered

Run 7 1315 – 2570m 30 Cut / 30 Rec.

Table 5. Summary of Hostile Rotary Sidewall Coring (HRSCT) runs

No. CORE NUMBER DEPTH (m)

No. CORE NUMBER DEPTH (m)

Run 7 1 2570

Run 7 16 2308

Run 7 2 2563

Run 7 17 2257

Run 7 3 2550

Run 7 18 2250

Run 7 4 2523

Run 7 19 2237

Run 7 5 2513

Run 7 20 2228

Run 7 6 2482

Run 7 21 2190

Run 7 7 2470

Run 7 22 2179

Run 7 8 2462

Run 7 23 2143

Run 7 9 2444

Run 7 24 2119

Run 7 10 2436

Run 7 25 2091

Run 7 11 2430

Run 7 26 2080

Run 7 12 2394

Run 7 27 1357

Run 7 13 2376

Run 7 28 1329

Run 7 14 2350

Run 7 29 1315

Run 7 15 2325

Run 7 30 2381

Table 6. Sidewall Coring Depth Summary

5.3 CoreVaultTM Pressurized Cores

Halliburton’s Hostile Rotary Coring Tool with Corevault System (HRSCT-B with Corevault System) was

run successfully twice in Kalala S-1 with one run cancelled. The first run successfully recovered and

sealed (pressurized) sidewall cores at reservoir pressure. A second attempt was cancelled after a

rock fragment from the collapsing hole entered the tools cavity preventing tilting bit box in and out

of tools. A third run successfully cut and retrieved 10 sidewall cores but failed to seal the pressure

chamber at depth (unpressurized). Table 7, Table 8, and Table 9 provide a summary a depth

summary of the pressurized and unpressurized coring runs. Additional information is enclosed in

Appendix 3.

No. Cored Interval

Drillers Depth (mMDRT) Recovery

Run 4 2263 – 2290m Sealed in cylinder

Run 5 - Cancelled

Run 8 2457 – 2475m 10 Cut / 10 Rec.

Table 7. Summary of CoreVaultTM

Pressurized Coring Runs


Page 22 of 23

No. Core Number Depth

(mMDRT)

Run 4 1 2290

Run 4 2 2287

Run 4 3 2284

Run 4 4 2281

Run 4 5 2278

Run 4 6 2275

Run 4 7 2271

Run 4 8 2267

Run 4 9 2263


Pressurized Coring Run #4 Depth Summary

No. Core Number Depth

(mMDRT)

Run 8 1 2475

Run 8 2 2473

Run 8 3 2471

Run 8 4 2469

Run 8 5 2467

Run 8 6 2465

Run 8 7 2463

Run 8 8 2461

Run 8 9 2459

Run 8 10 2457


Unpressurized Coring Run #8 Depth Summary

5.4 Mud gas

A total of 82 Isojars and 88 Isotubes were collected for Kalala S-1. Sampling intervals are summarized

in Table 10 and a detailed summary of mud gas depths is enclosed in Appendix 4

Depth Interval

(mMDRT) Sample type Background Gas Sampling

Peak Gas

Sampling

75.35 – 407.0 Isotubes / Isojars No samples collected No samples collected

407.0 – 1305.0 Isotubes / Isojars 407m-1050m collected every 50m

1050m-1300m collected every 25m

At gas peaks

over 10%

1305.0 – 2622.0 Isotubes / Isojars 1050-1950m collected every 50m

1950-2622m collected every 25m

At gas peaks

over 10%

Table 10. Mud Gas Sampling Summary


Page 23 of 23

6 Formation Evaluation

6.1 Mudlogging

Geoservices (Schlumberger) provided mudlogging services for the drilling of Kalala S-1. This included

conventional mudlogging, formation evaluation, real time data monitoring, drilling analysis, as well

as high resolution imaging and X-Ray fluorescence (XRF) on drilling cuttings over the interval from

75.35 to 2622 mMDRT. Mudlogging data, XRF raw values, HDRM cuttings photography, log displays

and Geoservices End of Well Report are enclosed in Appendix 5.

6.2 Wireline Logging

The following wireline logs were run by Schlumberger and Halliburton at Kalala S-1

LOGGING

Depth (m)

Description

Operator Remarks RUN

# From To

1 2619 Surface HRLT-HDRS-HGNS-HNGS-EDTC-SP-LEH (PEX) SLB GR to Surface

2 2614.4 1304 PPC-CMR-NEXT-EDTC-LEH SLB

3 2616.9 14.8 FBST-MAST-PPC-EDTC-LEH SLB FMI TD – 2619.9 -1311m

Sonic Scan TD – 2619.9 -910m

4 2290 2263 CoreVaultTM

HAL 9 cores cut and pressurized

5 Cancelled Cancelled CoreVaultTM

HAL

Cancelled after rock fragment from

collapsing hole entered tools cavity

preventing tilting bit box in and out of tools

6 Surface 1544 HRSCT - Standard Sidewall Cores HAL No recovery. Unable to pass 1544m

7 2570 1315 HRSCT - Standard Sidewall Cores HAL 30 cores cut, 30 recovered

8 2475 2457 CoreVaultTM

HAL 10 cores cut, 10 recovered no pressurized

9 2620.4 1964 GTET-DSNT-I-SDLT-I-DLL-ACRt-GEM-CSNG-I HAL

Table 11. Summary of Wireline Logs

Field data, processed data and log displays for all wireline logs are provided in Appendix 6.

Note – Internally within the coring log files from Halliburton it is stated that the coring runs were

Run#3 to Run#7. This is incorrect. The coring runs were Run#4 to Run#8 as shown in Table 11

above.

6.3 Hydrocarbon Indications

6.3.1 Gas detection whilst drilling

Continuous Mud Gas monitoring (percentage) and C1-n – C5 analysis was perform by Geoservices in

Kalala S-1. A summary of Gas detection whilst drilling is enclosed in Appendix 7.

Documents

Kalala S-1 Basic Well Completion Report REVISED · Kalala S-1 Well Completion Report (Basic) Page 4 of 23 1 Introduction and Summary Kalala S-1 was drilled by Origin Energy Resources