Project Profile
Location: Northern New South Wales, north of Narrabri Gas Project in PEL 238 permit, west of Moree from the QLD-NSW border, south to Maules Creek, Australia
Reserves: 700 PJ (net recoverable contingent resources) and 2,460 PJ (net recoverable prospective resources)
Area: 7,010 sq km
PEL 427 is located in northern New South Wales, immediately north of Santos’ Narrabri Gas Project and Wilga Park Power Station in PEL 238 permit, west of Moree stretching from the QLD-NSW border, south to Maules Creek. The initial partners in the license were Eastern Star Gas Limited as CSG Operator of Joint Ventures in PEL 427, with Orion Petroleum Limited and Comet Ridge Limited as partners.
On 21 June 2012, Comet Ridge signed an Asset Sale Agreement for the acquisition of Petrel Energy Limited’s interests in PEL 6, PEL 427 and PEL 428 in the Gunnedah Basin in northern New South Wales. At the conclusion of the acquisition of Petrel Energy’s Gunnedah Basin assets, Comet Ridge will have a 50% interest in PEL 427, which covers an area of 7,010 sq km, with the rest of the share being hold by Santos (also the operator) which acquired Eastern Star Gas Limited in November 2011.
An initial resource booking was announced on 7 March 2011 for PEL 427, which was assessed by independent reserves certifiers MHA Petroleum Consultants LLC. Resources have been booked in the Late Permian Black Jack Formation and the Early Permian Maules Creek Formation in the south of the permit, and the Early Cretaceous Bungil Formation in the north. PEL 427 has been estimated to hold 700 PJ of net recoverable contingent resources and 2,460 net recoverable prospective resources. Two wells have been drilled in the south east corner of PEL 427 to date, Bellata 1 and Bellata 2, both targeting conventional gas prospects. While Permian coals were intersected at Bellata 1, the Bellata 2 well did not target the deeper Permian coals.
In March 2009 the Joint Venture drilled the Moree 4 core hole in the north of PEL 427. This well was drilled to a depth of 495m and encountered approximately five metres of coal in the Bungil formation. MHA Petroleum Consultants LLC mapped the Bungil formation to be extensive across the north of PEL 427, extending into adjacent acreage including Comet Ridge’s permit PEL 428. The Permian coals identified in Bellata 1 are believed to be the northern extension of the coal formations seen in the Edgeroi and Blue Hills wells drilled by Eastern Star Gas in PEL 238. Edgeroi 2 was reported to have intersected approximately 20m of Permian coals within the Maules Creek and Black Jack Formations, including 14.8m within the Bohena coal seam. Exploration activities in PEL 427 have been focused on better delineating the extent of the Permian coals in the Bellata Trough, in the south east of the permit. Reprocessing of existing seismic has been completed, and a new seismic acquisition programme is scheduled for 2013.
Operators:
Santos: Operator with 50% interest
Comet Ridge
59.09% interest (CSG equity)
100% interest (Conventional equity)
Contractors:
MHA Petroleum Consultants LLC: Resource estimation study and formation mapping services