Significant gas shows and the presence of liquids-rich gas during drilling and coring of the Sasanof-1 exploration well in South Australian permit PEL 516 are among several indicators that suggest the southern Cooper Basin could host a world-class unconventional gas resource according to Operator Senex Energy.

Exploration data extracted to date suggests that Sasanof-1 exhibits many of the attributes typically associated with successful unconventional gas fields. During drilling and coring of Sasanof-1, Senex observed significant gas shows across the Epsilon and Patchawarra tight sand reservoirs of the Permian section. Subsequent chromatographic analysis suggests the presence of 'wet gas' (i.e. heavy gases and condensate). In addition, initial desorption testing of Roseneath and Murteree shale samples and Toolachee and Patchawarra coal samples has delivered positive gas content.

Sasanof-1 is the first of three dedicated unconventional gas exploration wells to be drilled as part of Senex's current campaign in southern Cooper Basin permit PEL 516. The well was spudded on 4 January 2012 and reached a total depth of 3,102 metres on 28 March. Century Rig 3 was released on 4 April after cementing 4 ½ inch casing to a depth of 2,988 metres.

As part of the Sasanof-1 exploration program, Senex successfully completed an extensive wireline logging program through the Permian section. In addition to the standard log suite normally used on conventional gas wells, a specialised shale log suite was run for Sasanof-1. This encompassed magnetic resonance, formation lithology and circumferential borehole imaging logs. Petrophysical interpretation of the wireline logs is currently underway, along with comprehensive analysis of mechanical rock properties on six shale intervals (from three Roseneath and three Murteree core samples). Further petrographic analysis of shale and tight sand intervals is also underway.

Senex will conduct an extensive hydraulic fracture stimulation program at Sasanof-1 to evaluate the potential for commercial production of unconventional gas. Senex is currently finalising the design of the program, which will draw on data gathered from successful 'mini fracs' at the neighbouring Allunga Trough-1 well during January. The program will commence in early May 2012.

Senex holds 100% working interest of PEL 516.