Project Profile
Value: Undisclosed
Location: Otway Basin, Victoria state, south-east of Australia
Reserves: unknown
Area: 302 square kilometres (PEL 154) and 226 square kilometres (PEL 155)
Start-up Year:
-
Otway Energy currently holds 100% of the license via its incorporated subsidiaries and is operator of two exploration licenses in the Otway Basin; PEL 154 and PEL155. Otway Energy acquired 3D seismic surveys in both PEL154 and PEL155 in 2009. In PEL 154 a clearly defined and sizable structure in the Warre sandstone objective called the Benara Prospect. In PEL 155, a fault bounded trap called the Nangwarry Prospect, was identified on 3D seismic and is well positioned for charge from the Penola Trough, and close to the producing Katnook and Ladbrooke Grove gas fields and their production infrastructure. Both Benara and Nangwarry remain as ready-to-drill prospects, both with good proximity to pipeline infrastructure. Regarding the shale gas and shale oil potential of the area it is clear that PEL 155, which is situated over the south flank of the mature and generative Penola Trough, and is optimally placed to explore the Casterton formation shale gas play, as well as the overlying Sawpit Shale play. PEL 154 cover s an area of 302 square kilometres, while PEL 155 an area of 226 square kilometres.
The shale gas potential is currently being tested north of PEL 155, with drilling targeting the Sawpit Sandstone and the underlying Casterton Formation and basement. In 1992, oil was recovered from fractured basement from the.Sawpit-1 well. There were also extensive shows throughout the Casterton formation in Sawpit-1. A critical requirement for development of shale gas potential is proximity to gas infrastructure. In this respect PEL 155 is very well placed (within a 10-20 km) to access the under-utilised gas infrastructure at Katnook, with a pipeline link to the SEAGAS line supplying the large and growing regional gas market. PEL 154 is also well placed for developing a shale gas discovery in the underlying St Clair Trough. Although no well has yet penetrated to basement near this location, it is clear that there is a thick sedimentary section within the trough.
Operators:
Otway Energy: Operator with 75% interest
Vintage Oil and Gas: 25% interest