ATP 552P – Queensland Surat Basin

Drillsearch 50%.

Project Summary

ATP 552P lies on the western flank of the Surat Basin, where it is well placed to receive hydrocarbons migrating to the west out of the adjacent basin deep (depocentre).  ATP 552P was originally granted on 1 July 1993 and was transferred to Great Artesian in 2003.  The Permit was renewed for a further 4 Year Term from 1 July 2005 expiring on 30 June 2009.  Work Commitments include seismic acquisition and one well during the current term.

ATP 552P is located adjacent to the Fairymount and Alton oil fields.  It contains the Bellbird, Bellbird West, Grail South and Ulla-Ulla downdip exploration targets, the latter being the largest un-drilled structure in the region.  Locally the Precipice and Showgrounds Sandstones are the principal reservoir targets.  Importantly, seismic data suggest that the Ulla Ulla structure, lying within ATP 552, has faulted margins which may enable hydrocarbons to vertically migrate into Precipice Sandstone reservoirs, an attribute lacking in unsuccessfully drilled nearby targets.

The 1984 Bellbird-1well, in the northeast corner of ATP 552P recovered oil at a rate of approximately initially 12, and later on extended testing, some 30 barrels of oil per day from the thin tuffaceous Permian Bandanna Sandstone (previously named the Kianga Sandstone).  Bellbird-1 also showed reasonable sand development in the Permian Tinowon Formation.  The Bellbird South-1 well also recorded good oil fluorescence but poor quality reservoir at the same level, establishing a ‘tight’ Permian oil play in ATP 552P.

As part of a 2005 farmin agreement, Ausam Resources and Rawson Resources drilled the Bellbird West-1 well during 2006 to each earn a 25% interest in the block.  The well used a coil-tubing unit and underbalanced drilling techniques to minimise formation damage while penetrating the ‘tight’ Permian objectives.  Unfortunately no moveable oil was encountered.

The joint venture is in the process of exchanging technical information with a view to progressing exploration in the block and satisfying the outstanding work commitments.