Cooper Energy announced Monday that Jolly-1, the first of two deep wells targeting the Casterton Formation within the Penola Trough of the onshore Otway Basin in South Australia, was spud in petroleum exploration license (PEL) 495 Jan. 11 by the Ensign 916 rig. 

The primary objective of Jolly-1 is to assess the unconventional oil and gas potential of shales within the Casterton Formation through drilling to a prognosed total depth of 13,123 feet (4,000 meters) and collecting over 328 feet (100 meters) of conventional core. It is anticipated that the well will intersect the Casterton Formation approximately 3,280 feet (1,000 meters) deeper than the Sawpit-2, which was drilled to a total depth of 8,480 feet (2,585 meters) in March 2013. The Casterton Formation is considered to be the primary source rock for the existing conventional gas/condensate fields in the Penola Trough.

Jolly-1 is within South Australian exploration permit PEL 495 4 miles (6.5 kilometers) south south-west of Sawpit-2, which was drilled in 2013. The well has an anticipated duration of 57 days. After completion of Jolly-1 the rig will move to petroleum retention license (PRL) 32 to drill Bungaloo-1, the second of two wells in the program.

Participating interests in the PEL 495 and PRL-32 are:

Cooper Energy (30 percent)Beach Energy (70 percent)