Project Profile
Value: Undisclosed
Location: Onshore Canning Basin, Western Australia
Reserves: Unknown
Depth: 1,800 metres
Start-up Year: -
In March, 2008, Gas2Grid Limited acquired a 100% interest in Western Australian petroleum exploration licence EP 453, located onshore in the Canning Basin, Western Australia. The financial consideration for the acquisition was 6 million fully paid ordinary shares in the company and the assumption of existing royalties to the vendors of 3%.
EXPLORATION HISTORY:
EP 453 is a highly prospective licence with both oil and gas targets in Late Devonian age carbonate, pinnacle reefs and Late Devonian age, marine sandstone reservoirs. A number of pinnacle reef prospects have been mapped on existing seismic data and only two wells have previously been drilled (during the 1980s) within this region targeting these reefs. Neither of the two wells intersected reservoir quality limestone. The prospectivity of the Devonian age sandstone reservoirs is evidenced by the fact that the only well drilled within the area in recent history, Chestnut-1 (1994), intersected a shallow (1,350 metres - depth) 8 metre thick sandstone reservoir interpreted from logs to be hydrocarbon bearing, although the interval was not tested. A deeper (1,800 metres - depth) sandstone reservoir is hydrocarbon bearing but has relatively poor reservoir parameters and on a drillstem test flowed gas to surface at a rate too small to measure with no produced water. These two sandstone reservoirs were deposited in a submarine fan complex and reservoir quality should improve in the direction of their depositional source (proximal area). EP 453 enjoys the benefit of an executed Native Title and Heritage Protection Agreement with Kimberley Lan
The EP 453 licence conditions have been varied with the combination of the Year 2 and 3 commitments resulting in the requirement to acquire 200 kms new seismic data by 17th January, 2010. This work commitment remains outstanding. The company completed reprocessing all seismic data previously acquired over prospects and leads located within EP 453. These reprocessed data have been interpreted and target horizons mapped but no good drilling prospects have been delineated. Exploration drilling is not considered an option at this stage. EP 453 contains shale formations that might be attractive for oil and gas exploitation. Canning Basin shale exploration activity has increased markedly in recent times in concert with similar activity levels in other Australian sedimentary basins. The company is continuing its technical review aimed at determining the oil and gas shale potential within EP 453.
Operators:
Gas2Grid Limited: Operator with 100% interest