PEL 91 – South Australian Cooper Basin

Drillsearch 60%

Project Summary

PEL 91 is located in the South Australian Cooper Basin and covers part of the south-western flank of the Patchawarra Trough. The permit was initially granted on 8 of January, 2002 for a five year term. In 2008 the permit was renewed for the second term which expires in 2013. The renewed area of PEL 91 is 1,972 sq km.

PEL 91 is located in a prognosed ‘oil fairway’ on the western flank of the Patchawarra Trough. A number of recent oil discoveries were found in the blocks adjacent to PEL 91. To the south, in PEL 92 , discoveries include Sellicks, Christies, Parsons and Callawonga fields and most recently Perlubie, Butlers and Silver Sands. Additionally, to the north in PEL 104, new oil fields such as Growler, Wirraway, Tigershark, Tigercat and Warhawk which are being developed.

Encouraged by these discoveries, Drillsearch and joint venture partners have identified new drilling targets based on the 2008 Modiolus 3D Seismic Survey in the southwest corner of PEL 91 and drilled two exploration wells in August 2009. One well, Chiton 1, was the first  commercial oil discovery in the permit. Oil production tested at over 2400 barrels of oil per day and an estimated P50 recoverable reserves of 0.12 million barrels. The second well, Marino1 was a sub-commercial oil discovery with a six metre interval of oil shows within the Birkhead Formation.

Recent Activity

In future work plans, Drillsearch and joint venture partners have committed to expand exploration, with the Aquillus 3D seismic survey scheduled to commence later in 2010. The survey will cover nearly 450 sq km including the entire area running from the existing Modiolus 3D seismic survey to the Mollachuta 3D seismic survey in PEL 104. Drillsearch is particularly interested in completing a comprehensive study on the Namur sandstone and Birkhead Formation from the Aquillus 3D seismic data.

Currently, Drillsearch is evaluating multiple drilling targets covered by the Modiolus 3D seismic survey. A range of new prospects and leads have been developed based on the Birkhead Formation channel system. These are in addition to the prospects already delineated by the joint venture in the Namur sandstone which have proven successful at Chiton and further south of PEL 92. Over the year Drillsearch will develop both of these play concepts with a view to rapidly accelerate our drilling activity in the Western Flank Oil Fairway, and with success, our oil production.