MEO to Commence WA-454-P Farmout 1st November 2012
Melbourne, Oct 10, 2012 AEST (ABN Newswire) - MEO Australia Limited (
ASX:MEO) (OTCQX:MEOAY) advises that the data room for the WA-454-P exploration permit which contains the Marina-1 gas and probable oil discovery and the sizeable Breakwater prospect will open on November 1st.
The farmout brochure attached to this release provides an overview of the exploration permit and is being distributed to industry participants with the intention of securing a farminee to fund planned drilling in the permit. The farmout is scheduled to conclude by the end of 1Q-2013.
The Marina-1 discovery independently is assessed to contain 3C* contingent gas resources of up to 302 Bcf and 3C* contingent oil/condensate resources of up to 29.5 MMstb.
The nearby Breakwater prospect is an LNG scale prospect with potential for significant liquids located near discovered resources with plans for development using Floating LNG technology. The nearby Blacktip gas field supplies the Darwin domestic market. The "gas only case" prospective resource estimate is up to 2.7 Tcf with 87 MMstb condensate (High case*) while the "gas and oil case" prospective resource is up to 2.4 Tcf with 276 MMstb oil/condensate (High case*).
Prospective farminees are invited to contact MEO's commercial manager, Robert Gard to arrange data room access from November 1st.
MEO's CEO and MD Jürgen Hendrich commented on the announcement:
"It is a credit to MEO's technical team that this permit is offered for farmout merely 18 months after being awarded by the Australian Government. The prospects for significant gas resources and potentially for liquids as well should ensure strong interest from industry."
* refer to the "Resource Classifications" section below
Resource Classifications
The resource estimates included in this document were prepared by Senergy (GB) Limited (Senergy). In preparing the estimates Senergy used definitions and guidelines set out in the 2007 Petroleum Resources Management System prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed and jointly sponsored by the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE).
These definitions and Guidelines are summarised in the adjacent table (see link below for table).
JOSEPH BONAPARTE GULF: WA-454-P
(Up to 50% Participating Interest available)
Background
New 601 km2 3D seismic over oil/gas discovery and large prospect: MEO was awarded WA-454-P on 14th June 2011 as part of the 2010 gazettal round. The Permit contains the 2007 Marina-1 gas discovery, drilled by ExxonMobil and Drillsearch. In early 2012, MEO acquired the 601 km2 Floyd 3D seismic survey over the Marina discovery, the Breakwater prospect and two additional leads. Concurrent with the 3D seismic acquisition, MEO commissioned Senergy to conduct an independent assessment of the Marina discovery and Breakwater prospect based on the existing 2D seismic and well log data. Interpretation by MEO has recently begun on the newly acquired Floyd 3D seismic survey.
Marina gas and probable oil discovery
5 zones including proven gas and probable oil: Senergy concluded that Marina-1 contains contingent resources in up to 5 zones:
- Gas is considered "proven" in Zones 1, 2, 3 & 4, however only "possible" in Zone 5.
- Oil is considered "probable" in Zone 1 and "possible" in Zone 2.
- There is "additional potential" for Oil in Zone 4, however no volumes were assessed.
Senergy's assessment of the contingent resources in Marina is summarised below. These resources are classified as "Contingent" since Marina is yet to be demonstrated to be commercial.
Initial interpretation of Marina on the Floyd 3D seismic confirms and supports our geological assessment qualitatively and quantitatively over the 5 hydrocarbon zones in the Early Permian reservoir. Volumetrics are yet to be updated but significant changes are not expected. The 3D seismic does however highlight additional potential for hydrocarbons deeper in the section below the TD of Marina-1. It should be noted that Marina-1 reached a total depth while still in mud gas shows. This additional potential remains to be assessed.
Marina Contingent Recoverable Resources (based on 2D seismic interpretation)
Up to 300Bscf and 30 MMstb recoverable with undrilled deeper potential:
--------------------------------------------------------Ultimate Recovery Low (1C) Best (2C) High (3C)--------------------------------------------------------Gas (Bscf) 51 98 302Oil & Condensate (MMstb) 0.4 6.5 29.5--------------------------------------------------------
WA-454-P
Breakwater Exploration Prospect
Large salt related 4 way dip closure: The Breakwater prospect is a large, 4 way dip structure with an Early Permian Keyling sandstone reservoir objective. The trap is interpreted to be the response to a salt swell structure originating in the late Permian to early Triassic, and is therefore analogous to the Blacktip, Petrel and Tern gas fields which are also salt related structures. Senergy carried out an assessment of Breakwater based on 2D seismic mapping.
Amplitude anomalies show conformance with structure: Initial interpretation of Breakwater on the Floyd 3D confirms and supports the presence of a large structure in the hanging wall block, and an independent fault trap in the foot wall block. Seismic amplitude brightening is observed at reservoir level in both blocks. In the hanging wall block, the edge of the strong amplitudes show a conformance to structural closure, which may be interpreted as a hydrocarbon effect. Volumetrics are yet to be updated for the new 3D.
The most likely hydrocarbon phase at Breakwater is uncertain and consequently two scenarios, a gas and oil and a gas only case, have been considered. The un-risked volumes for both are summarised below.
Breakwater Prospective Recoverable Resources (based on 2D seismic interpretation)
Up to 2.8 Tcf and 270 MMstb recoverable:
--------------------------------------------------------Scenario A: Gas and Oil Low (1C) Best (2C) High (3C)Gas (Bscf) 173 636 2,391Condensate (MMstb) 8 41 201Oil (MMstb) 1.1 11 75Oil &Condensate (MMstb) 9.1 52 276----------------------------------------------------------------------------------------------------------------Scenario B: Gas only Low (1C) Best (2C) High (3C)Gas (Bscf) 205 751 2,798Oil &Condensate (MMstb) 1.4 13 87--------------------------------------------------------
Multiple paths to development: Senergy concluded that in the event of successful discovery and appraisal, the best estimate volumes would likely be commercial. Possible development scenarios include tie-in to the existing Blacktip (957Bscf) production facilities, the proposed Floating Liquefied Natural Gas (FLNG) infrastructure to develop the Petrel (970 Bscf) and Tern (468 Bscf) gas fields, or a stand-alone development.
Additional potential
Strat trap potential within same proven HCS: Seven additional salt structures are found on this block which makes it the highest concentration of salt structures found on the NWS. The Blacktip reservoirs have not been penetrated on any of these features. Additional stratigraphic trapping potential for these same proven reservoirs also exists on this block.
View the complete MEO Australia announcement including Tables & Figures at the link below:
http://media.abnnewswire.net/media/en/docs/ASX-MEO-380223.pdf
Contact
MEO Australia Limited
T: +61-3-8625-6000
F: +61-3-9614-0660
E: admin@meoaustralia.com.au
WWW: www.meoaustralia.com.au
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