PEL 106 – South Australian Cooper Basin
Drillsearch (Operator) 100% – subject to farmin interests
Project Summary
PEL 106 is located in the South Australian Cooper Basin and covers the southern-central portion of the Patchawarra Trough. PEL 106 was initially granted on the 9th of April in 2003 for one term, which is the equivalent of five years. After this period expired, the permit was renewed for a further term on the 9th of October in 2008 and half of the initial permit area was relinquished. The renewed area of PEL 106 is now 504 km2 which is due to expire on the 8th of October in 2013.
Drillsearch and farminees discovered ten gas wells out of the eleven drilled during the first term. These gas discoveries were cased and suspended and one dry well was plugged and abandoned, as listed in the table below. Out of the ten wells, eight wells have been completed and tested and are potentially successful. These wells are currently shut-in and are awaiting suitable commercial arrangements to connect them to the market. Work on a Gas Commercialisation strategy is described further in "Gas Commercialisation".
| Well | Spud Date | Rig Released | Result | Status | Total Depth (m) |
|---|
| Brownlow 1 | 19/10/2008 | 07/11/2008 | Gas Discovery | Case and Suspended | 2,785 |
| Cadenza 1 | 18/05/2006 | 06/06/2006 | Gas Discovery | Case and Suspended | 2,993 |
| Canunda 1 | 14/11/2008 | 08/12/2008 | Gas Discovery | Case and Suspended | 2,799 |
| Middleton 1 | 15/02/2006 | 10/03/2006 | Gas Producer | Shut-in | 2,841 |
| Nutmeg 1 | 16/01/2004 | 10/02/2004 | Gas Producer | Shut-in | 2,903 |
| Paprika 1 | 11/06/2006 | 29/06/2006 | Gas Discovery | Case and Suspended | 2,919 |
| Paranta 1 | 14/02/2004 | 31/03/2004 | Gas Producer | Shut-in | 3,050 |
| Rossco 1 | 14/12/2005 | 05/01/2006 | Gas Producer | Shut-in | 2,976 |
| Smegsy 1 | 06/07/2004 | 18/08/2004 | Gas Producer | Shut-in | 2,976 |
| Tennyson 1 | 06/08/2006 | 27/08/2006 | Gas Shows | Plugged and Abandoned | 2,860 |
| Udacha 1 | 11/01/2006 | 11/02/2006 | Gas Producer | Shut-in | 2,728 |
In order to generate drilling targets and reduce geological risk, Drillsearch has participated in the acquisition of 500 km of 2D seismic data and 577km2 of 3D seismic data. Simultaneously, the largest exploration 3D seismic survey ever acquired onshore Australia, Spinel 3D seismic survey. The combination of the Spinel and Paranta 3D datasets will form the basis of future exploration and development operations in PEL 106. Exploration will continue to focus on increasing reserves and to further define the Permian structural-stratigraphical targets within the Patchawarra Trough and its western flank.
Recent exploration has primarily been based on the conventional hydrocarbon system concepts within the Copper-Eromanga Basin. The results indicate that the hydrocarbons are sourced from the Permian age coals and shales that act as regional and local seals. The regional seals restrain hydrocarbon migration within the Permian section. In effect, the hydrocarbons are forced to move laterally up dip and towards the basin margins. Local sealing by coals and shales is evident by a number of hydrocarbon accumulations, which is mostly gas, within the bounds of PEL 106. In particular, the Raven Gas field (operated by Santos) has approximately produced 40BCF of gas from the estimated ultimate recovery 70 BCF of gas.
Recent Activity
A recent assessment of the Prospective Resource Potential of the Western Cooper Unconventional Gas Project has significantly increased. The Gross Deep Coal Seam Prospective Resource potential has risen from 9.9 to 19.9TCF - an increase of over 360% from previous estimates. The review is based on extensive data from over 450 conventional oil and gas well logs.
The Project is located close to extensive, existing gas pipeline infrastructure capable of accessing most Eastern Australia’s major gas markets. These Unconventional Gas Resources can be appraised and developed as part of the company’s conventional Western Cooper Wet Gas Project. Successful evaluation of these Unconventional Gas Prospective Resources presents a material growth and economic opportunity for the company.