PPL 212 - Queensland Cooper Basin

Drillsearch 60%

Project Summary

In January 2006 the Kiana production licence, PPL 212, was granted to Drillsearch and Joint Venture partners. Since 2006 to present, the Kiana-1 oil discovery continues to produce free-flow oil rate at 800 barrels per day and has accumulated more than 60,000 barrels of oil. The well was perforated at an interval that has access to 8.7 metres in the Patchawarra Formation and flowed to the tank at approximately 1,152 barrels of oil per day.

The Kiana Joint Venture installed surface facilities including two 880 barrel capacity oil storage tanks, a gas-liquid separator, flow lines and up-take connections for loading oil into the road tankers to transport the oil at Moomba. The crude is sold to the South Australian Cooper Basin Producers (SACBP) who takes delivery to Moomba, some 50km to the east. The Joint Venture entered a crude oil sales agreement with SACBP based on Tapis light crude pricing, according to current market value. First revenue was received by Drillsearch in January 2006.