Xtract announces Luna spud

The latest operational update from Xtract Energy (XTR) revealed that the Luna prospect, offshore Denmark, was spudded on 12 February.

The Maersk Resolve rig will drill the well to a depth of 2,250 metres with a reservoir sandstone thickness prognosis of around 90 metres.

The Luna prospect is targeting between 35 million barrels to 153 million barrels net resources to Xtract - and is expected to take around one month.

Luna is located in a small half graben with the pinch out edge to the south east of the structure. The Rotliegendes reservoir is thought to have a high probability of being present at this location based on the seismic interpretation.

But Xtract said that uncertainty still exists on which seismic event represents the top reservoir and where the pinch out occurs. There is a possibility that the Rotliegendes does not, in fact, pinch out but continues up dip into Lead A. It is therefore possible that Luna and Lead A are connected and represent one feature.

The company also provided news on its oil shale business.

Worley Parsons has completed its technical study on the various technologies which are being used or developed around the world to extract hydrocarbons from oil shale and Xtract will review the commercial options available for the exploitation of the Julia Creek tenements in Queensland.

For an understanding of what to look for when considering exposure to the sector, read: Analysing... Oil companies.