The Mineral Resources Limited (ASX: MIN) share price is falling today despite good news from its 80%-owned gas discovery.
The Lockyer Deep-1 Gas Discovery is expected to contain more gas than pre-drilling activities found previously.
The resource is 80% owned by Mineral Resources' subsidiary Energy Resources Limited and 20% owned by Norwest Energy NL (ASX: NWE). It is located in the Perth Basin.
Right now, the Mineral Resources share price is $44.39, 2.7% lower than its previous close.
Let's take a closer look at today's news of the Lockyer Deep-1 Gas Discovery.
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Positive update on Lockyer Deep-1
The Mineral Resources share price is in the red amid Norwest Energy's announcement of the companies' gas discovery.
The Lockyer Deep-1, a joint venture between the companies, has been found to be more prosperous than previously thought.
Norwest Energy released an update on wireline logging operations at the discovery this morning, stating the findings upgrade the discovery's prospects.
Lockyer Deep-1's Kingia target, found within Kingia sandstone, has been found to be of higher quality than previously predicted.
Norwest stated high reservoir pressures indicate the target has a gas column of between 600 metres and 800 metres.
This means the indicative areal extent of the discovery is around 66 square kilometres. The area's estimated gas resources are now believed to be greater than the company's pre-drill prospective resources.
The reservoir is now estimated to have a net gas pay of 20.2 metres, total vertical depth. It's expected to have an average porosity of 16% and average permeability of 500 millidarcys.
The companies' petrophysical analysis of the target found a 34-metre gross pay interval at the top of the Kingia sandstone. The gross pay interval has a total vertical depth of between 3,888 metres and 3,922 metres from sea level, with no gas-to-water contact found.
According to Norwest, the finding is remarkable and confirms the fault-seal integrity of the structure's main bounding faults despite a very significant gas column.
Mineral Resources share price snapshot
Despite today's dip, the Mineral Resources share price has been performing well lately.
It is currently 16% higher than it was at the start of 2021. It has also gained 77% since this time last year.
