Exploration
The CO2009-E block is now known as PELA 516. Stuart was informed by PIRSA in December 2009 that they were the successful bidder for the block.
The licence is not expected to be granted until at least the middle of 2010, after Access Agreements are signed with Native Title Claimant groups.
Seismic and well data for the area have been loaded onto Stuart's database and seismic mapping has commenced.
Four oil prospects have been identified with two exploration wells to be drilled in the last half of 2010 and two to be drilled in the first half of 2011. The four oil prospects have a total mean recoverable oil of 1.1 million barrels. A number of additional oil and gas leads have been identified as mapping of the block progresses.
Seismic
Seismic mapping is underway, incorporating a large amount of 3D seismic data recorded by previous licencees.
The first year of the new licence has a program of 300km of new 2D sesimic acquisition and 1000km of 2D seismic reprocessing. Mapping of the block will need to be completed before new seismic can be located. A portion of the reprocessing will involve Quantitative Interpretation (QI) involving 2D seismic plus rock properties from well data to see if gas saturated reservoirs can be identified directly from seismic sections.
Licence Management
Access Agreements with Native Title Claimants will have to be negotiated before PIRSA will offer PELA 516 to Stuart Petroleum as a new licence. It is anticipated that the licence will be offered and granted in the 3rd quarter of 2010.
The first year exploration program will be the drilling of four exploration wells (all of which have been identified) plus the recording of 300km of 2D seismic and the reprocessing of 1000km of old 2D seismic.
The second licence year has a guaranteed exploration program of three exploration wells and the third year has two exploration wells.
Discoveries and Potential
Four oil prospects have been identified for drilling in the first licence year. The prospects are in former Production Licences that have been abandoned or are adjacent to currently producing fields. All are regarded as low risk targets with a total mean recoverable oil volume of 1.1 million barrels.
As seismic mapping is progressing a number of oil and gas leads have been identified. Further mapping is required to assess the oil and gas potential of the block.
Licence Commitments
