Permit Summary

PEL 107 is located in the South Australian Cooper Basin and covers the southern tip of the Patchawarra Trough, the Lake Hope high and the south-western edge of the Gidgealpa-Merrimelia-Innamincka (GMI) trend.

PEL 107 was originally granted in 2003 and is now in the second term, which expires in the year 2013. The renewed area of PEL 107 is 407km². PEL 107 is adjacent to Tantanna, Taloola, Sturt, Malgoona, Spencer and Muteroo oilfields.

In 2003 Beach Energy farmed into and acquired a 40% interest in PEL 107 and following completion of the farmin work obligations PEL 107 is now held on a 60/40 basis. Beach is the technical operator of PEL 107.

To date one oil discovery, Kiana-1 has been made in PEL 107.  Another seven wells have been drilled in the permit, all of these wells had oil shows but were plugged and abandoned as non commercial discoveries.

A number of different exploration plays were tested during the drilling phase and the exploration focus has produced useful information. One of the lessons learned was the need for 3D seismic data to adequately map the structures that are being targeted. Accordingly, the Joint Venture acquired the 165km² SKM 3D Seismic Survey in 2007 to better define exploration targets and to delineate the bounds of the only oil discovery, the Kiana Oilfield.

Recent Activity

Learning from the success at Kiana, the Joint Venture is now actively exploring for other accumulations stratigraphically trapped oil within the Permian reservoirs around the flanks of the Spencer-Muteroo high within the SKM 3D area.

In 2010 Drillsearch has purchased Magellan Petroleum shares and now has 60% interest in PEL 107.