Perth-based petroleum explorer Victoria Petroleum NL has entered into a coal seam gas joint venture with Queensland-based Bow Energy Ltd.
Perth-based petroleum explorer Victoria Petroleum NL has entered into a coal seam gas joint venture with Queensland-based Bow Energy Ltd.
The companies have combined their interests in Queensland's Surat Basin with Roma CBM Pty Ltd to form the Don Juan CSG joint venture, which plans to commence a pilot by the end of 2007, wiht hte goal to prove the existance of a gas deposit in 2008.
The announcement comes three days after Victoria Petroleum issued 28 million shares at 20 cents each, along with one option for every two shares issued, to raise funds for the appraisal and development of its oil and gas projects in Australia and the United States of America.
The full text of a company announcement is pasted below
The directors of Victoria Petroleum N.L. (Vicpet) are pleased to announce that Vicpet has entered into a coal seam gas (CSG) joint venture in the Surat Basin on its ATP 593P and ATP 771P permits with Bow Energy Ltd (Bow).
Vicpet and Bow have combined their interests in these two permits in the northwest Surat Basin and in partnership with Roma CBM Pty Ltd (RCBM) have formed the Don Juan CSG Joint Venture.
The Joint Venture is located immediately adjacent to previously discovered CSG gas flows and about 25 km northwest of Sunshine Gas's Lacerta CSG field as illustrated in the attached figure. The Walloon Coal Measures, the primary target coal seams in the area, are interpreted to be present and gassy over all of the Don Juan CSG Joint Venture area at depths between 250 to 600 metres.
Assuming only 50% of the 1,158 km2 Don Juan CSG Joint Venture area contained a modest 2 PJ of gas per km2, the area has the potential to contain in excess of 500 PJ of methane gas.
The Joint Venture plans to drill up to three test core holes immediately when the necessary equipment is available and, assuming the results of the core hole tests are as anticipated, commence a coal seam gas pilot by the end of 2007 with the goal to prove a commercial gas deposit in 2008.
The tenements that comprise the Don Juan CSG Joint Venture are ATP 593P (in which Vicpet currently has an existing 24% interest) and the adjoining ATP 771P currently owned 100% by Victoria Petroleum.
The participants in the Don Juan CSG Joint Venture after the initial coring and pilot programs will be:
- Victoria Petroleum NL 45% paying 25% of coring and initial pilot
- Bow Energy Limited (Operator) 45% paying 55% of coring and initial pilot
- Roma CBM Pty Ltd 10% paying 20% of coring and initial pilot
Vicpet's Managing Director, John Kopcheff, commenting on the Don Juan CSG Joint Venture stated:
"The Don Juan CSG Joint Venture is the first of several joint ventures planned to bring to commercial production the approximate gross resource of 1 TCF of CSG interpreted as present within Vicpet's Surat basin permit interests, ATP 593P/ ATP771P, ATP 574P and PL 171 in Queensland's premier Coal Seam Gas production area, the Surat Basin.
The planned CSG evaluation drilling program is in addition to the 14 well exploration and development drilling program taking place in 2007 in the South Australian and Queensland Cooper/ Eromanga Basin.
With the combined oil and now CSG exploration and production programs planned for Vicpet, there is increased potential for substantial growth of the Company over the next 12 months and beyond."
