Target Energy Limited announced quarterly report for the quarter ended 31 December 2013. Sydney #2 is located approximately 800 metres east of Sydney #1 and targeted both the Wolfberry and Fusselman sections. Drilling operations commenced on 26 November 2013, with the well reaching a Total Depth of 3,040.4m (9,975 ft) on 7 December 2013.

Good shows were encountered while drilling and subsequent wireline log analysis indicated potential pay in the target intervals. The Fusselman Formation was intersected 13 metres (42 feet) updip to that of the nearby Sydney #1 oil well. At the time of writing, completion operations were underway at Sydney #2, with a preliminary flow test yielding an oil flow rate of 75 BO in 19.5 hrs (equivalent to 92 BOPD).

The oil was accompanied by a large amount of water (approx. 800 BW), which appears to be flowing from vertically extensive fractures. Work is underway to minimise the water flow.

Wagga Wagga #1 (Target 45% WI): Wagga Wagga #1 is located 8.5 km (5.3 miles) south east of the Sydney #1 well and targeted the Ellenburger, Fusselman and Wolfberry sections. Operations commenced on 14 October 2013, with the well encountering good oil and gas shows while drilling and reaching a Total Depth of 3,057m (10,030 ft) on 27 October 2013. Subsequent wireline log analysis indicated potential pay in the Ellenburger and Fusselman/Devonian sections as well as within the Wolfberry interval.

The Ellenburger and Fusselman zones will be tested and produced prior to completing the well in the Wolfberry section. A completion rig is expected to be on site in the last week of January 2014.