Rawson loves what the neighbours are doing with their gas discoveries
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Oil and gas minnow Rawson Oil and Gas is excited by a discovery — made next door to its South Australian gas prospect.
The latest find for Beach Energy (ASX:BPT) — which has doubled in price over the past six months — is “less than 8km” from the site where Rawson (ASX:RAW) is planning a well in the Otway Basin.
Rawson shares climbed 10 per cent in Tuesday morning trade after the nearology announcement.
Beach’s “Hasslegrove-3 ST1” well intersects an estimated gas column of 104 metres, with a net pay of 25.6 metres. A cased hole test was undertaken and flowed gas at a rate of 25 million standard cubic feet per day (MMscfd) over 100 minutes. Early indications are that it could flow at rates greater than 25 MMscfd.
Rawson and its joint venture partner Vintage Energy are planning to test the nearby Nangwarry-1 well, which is in the same geological sequence, chairman Allister Richardson told investors.
The well will be drilled about 10km southeast of the Katnook Gas processing facility, and target a 33 billion cubic feet conventional gas and liquids prospect in a threeway dip, fault dependent trap in the proven top Pretty Hills Formation.
Vintage managing director Neil Gibbins believes Beach’s discovery extends into their licence area PEL 155.
In December, Rawson was granted a $4.95 million PACE (Plan for Accelerating Exploration) grant as part of the South Australian government’s gas scheme to discover and bring new gas to market within three years.
Rawson shares were up 10 per cent on the news to 5.5c.