North Perth-based development fund MEC Resources Ltd investee Advent Energy Ltd has entered into two farm-in agreements with Victoria Petroleum NL, Impress Energy Ltd and Roma Petroleum NL, the fund has announced.
North Perth-based development fund MEC Resources Ltd investee Advent Energy Ltd has entered into two farm-in agreements with Victoria Petroleum NL, Impress Energy Ltd and Roma Petroleum NL, the fund has announced.
The full text of a company announcement is pasted below
MEC is pleased to confirm that its investee Advent Energy Ltd ("Advent") has entered into two Farmin agreements in
the South Australian Cooper Basin with Victoria Petroleum N.L., Impress Energy Ltd and Roma Petroleum N.L.
The Farmin agreements cover the Typhoon and Catalina blocks in Petroleum Exploration Licenses ("PEL's") 104 and
111 situated in the western Cooper basin of South Australia. The conditional Farmin agreements enable Advent to
earn up to a 50% interest in the Catalina and Typhoon blocks in these PEL's.
With these farmin agreements, Advent Energy has entered into a working relationship with Victoria Petroleum and its JV partners who hold a significant acreage position in the highly prospective western Cooper Basin. The Victoria
Petroleum led Joint Venture is one of the most active drillers in the South Australian Cooper Basin with some eight
wells planned to be drilled over the next 6 months.
Advent Energy is thus well positioned to obtain access to drilling rigs and associated services to drill the Typhoon and Catalina block prospects as required.
The Advent Farmin provides Advent with the right to participate in four wells with the Victoria Petroleum led Joint
Venture in the prospects present in the PEL 104 Typhoon Block and PEL 111 Catalina Block (see attached maps).
Victoria Petroleum and JV Partners.
Current production from the Victoria Petroleum and JV partners oil fields in the South Australian Cooper Basin fields is gross of 210 barrels of oil per day with an objective to increase production to 550 barrels of oil per day in 2007.
Victoria Petroleum NL's (Vicpet) Managing Director John Kopcheff said:
"The Victoria Petroleum led JV has encountered significant exploration success at Growler and Wirraway in proving up a new Jurassic "Oil Fairway" and oil production province in the western part of PEL 104. We believe that this Jurassic "Oil Fairway" has the potential for an in place oil resource of up to 100+ million barrels of oil in the western part of PEL 104 and our adjoining PEL 111 permit, if oil is present"
"The 100% exploration success to date in the "Oil Fairway " has led the PEL 104/ PEL 111 Joint venture to focus its
exploration activities in this area. This focus on the Jurassic by Victoria and its partners provides an opportunity for an incoming party to test with the drill the 18 Permian prospect and leads that have been mapped to the east of the
Jurassic "Oil Fairway" in the Typhoon and Catalina blocks"
"Given that these Permian prospects are very similar in nature to those being successfully drilled immediately to the
south in the adjacent permit PEL 106 by the Great Artesian Oil and Gas Limited Joint venture with exploration drilling success rates of around 50 - 75%, we would anticipate by analogy similar exploration success rates in the Typhoon and Catalina blocks."
"We are pleased that Advent Energy and its advisers MEC Resources have been quick to recognize the opportunity to explore in the Typhoon and Catalina blocks and secured Farmin agreements with the Victoria Petroleum led PEL 104 and PEL 111 JV's."
"The level of expertise which Advent has access to through its MEC appointments is significant and offers good
potential for its project developments. Mr Ding Gui Ming of MEC was formerly head of one of the world's largest oil
producers, China National Petroleum Company and this level of expertise was a strong factor in MEC's decision to
accept the Typhoon and Catalina Block farmin proposals identified by Advent Energy."
PEL 104 and 111 -Background
Cooper Basin Prospect Positioning
PEL 104 is immediately adjacent to the Tirrawarra Oil Field, the largest oil field in the Cooper Basin and onshore
Australia, with estimated recoverable reserves of 70 million barrels of oil and 340 billion cubic feet of gas. The Typhoon Farmin Block is immediately adjacent to the Fly Lake Oil and gas Field to the east and adjacent and to the west of the Santos operated Callabona Jurassic Oil Field production licence.
The PEL 104 Typhoon Block is considered highly prospective for Permian oil and gas in view of its immediate proximity to producing oil and gas fields and the presence of prospective Permian section within the block.
The PEL 111 Catalina Block lies to the north of the adjacent PEL 104 Typhoon Block. The Catalina Block is also
immediately adjacent to the Fly Lake Oil and gas Field to the south and adjacent and to the east of the Santos
operated Charo Jurassic Oil Field production licence.
Mapping of seismic data within the Typhoon and Catalina Blocks has identified at least eighteen leads and prospects with an unrisked cumulative maximum (P10) recoverable oil and gas resource potential for theTirrawarra and Patchawarra targets of up to 93 billion cubic feet of gas and up 10 million barrels of oil, if oil and gas are present.
Within the Typhoon block, the Tempest and Typhoon prospects are drilling candidates interpreted from the seismic
data to have the potential to contain a recoverable resource of up to 18 billion cubic feet of gas and 2 million barrels of oil, if oil and gas is present. Within the Catalina Block, the Catalina Prospect is interpreted from seismic data to have the potential to contain within target Permian Patchawarra sands a recoverable resource of up to 14 billion cubic feet of gas, and 2million barrels of oil, if oil and gas is present. The Catalina Prospect lies six kilometres to the north of the Santos group Fly Lake-Brolga gas field.