Sentry Petroleum Ltd., Denver, (SPLM: OTCBB) has reported an update on the results from testing of Talundilly-CSG1 and Albilbah-CSG1 wells that were recently drilled in Queensland Australia.

The company has now completed most of the laboratory analyses following the drilling of Taludilly-CSG1 and Albilbah-CSG1 and confirms that gas was encountered in each well.

Albilbah-CSG1

During the drilling of the Albilbah-CSG1 well, the top portion of the Lower Winton Sandstone (LWSS) was cored to investigate the presence of gas. The company drilled into the top 33 feet of the 250 feet gross sand column and secured core samples before drilling had to be terminated due to severe hole conditions which could have resulted in the loss of the drill string. The cores containing organic material, were found to contain gas and were placed into canisters to measure the gas emitting from the cores. Evidence of gas in the canisters prompted the re-evaluation of the original Albilbah-1 (drilled by a previous operator) well logs to investigate the possibility of gas being present in the pore space of the LWSS. Sentry’s log analysis concluded that gas is present in a net 115 feet of the 250 feet interval. Further drilling and testing is required in order to make any determination as to whether the amount of gas present can be economically produced.

With gas obtained and analyzed from these cores, the company is reasonably optimistic about the potential for free gas to be present in the sandstone. Gas production rates from sandstones are generally higher than production rates normally expected from coal or shale deposits and the sandstone can be produced without requiring fracture stimulation, leading to better economics. Another well specifically targeting the LWSS is needed to determine the commerciality of the interval. Sentry has already located areas that are structurally higher than the Albilbah location and the next well planned to be drilled will target these gas sands and flow testing will be performed to determine the interval’s producibility. Gas recovered is being analyzed to identify its origin and the results are expect in approximately four weeks.

Sentry has forwarded samples for routine core analysis for core porosity, permeability and residual saturation measurements. This is proving to be difficult because of the brittle nature of the sands preventing the acquiring of core plugs for permeability and porosity measurements. Barring any further difficulties, the company anticipates that this work will be completed in four weeks.

It should be noted that based on the logs the company believes the best reservoir quality of the LWSS is below the cored interval and that the same sand is also present in the Talundilly-1 well. This interval was not cored in Talundilly-CSG1 as it was not part of the objective for the well.

Talundilly-CSG1

The company commissioned independent laboratories to conduct a thorough analysis of the core samples taken from Talundilly-CSG1. A number of analyses - including gas desorption, isotherm, proximate, and gas composition - have been completed. During the course of the drilling and subsequent laboratory analysis certain anomalous data were encountered which makes any firm quantitative conclusions related to the results currently unreliable.

A six to eight well appraisal program is required to secure reliable data which will enable management to make reasonable quantitative conclusions. Additional wells will also assess the possibility of gas resource in the Lower Winton and Macunda Sandstones in the Talundilly area.