PEL 104 JOINT VENTURE

(Impress 40% Working Interest)

 

PEL 104 covers 519 square kilometres and is located on the Western Margin of the Cooper Basin. The permit forms part of the Western Oil Fairway that the Joint Venture has been appraising over the past year. The 2008 exploration drilling campaign of three wells (Tigershark-1, Tigercat-1 and Stormbird-1) satisfied the Permit Year 5 work commitments. Subsequently, the permit has been renewed for a second five year term following a compulsory relinquishment of 50% of the original permit area of 1,174 square kilometres under the South Australian Petroleum Act.  All of the prospective Western Oil Fairway has been retained as have significant Permian gas targets located to the east of the oil fairway.

 

PRL 15 consisting of 13 square kilometres and containing the Growler Field, was excised from the permit in May 2008. The permit also surrounds the Santos operated Callabona Oil Field in PPL 176 where Callabonna-1 recovered oil from the Birkhead Formation on a drill stem test. The Callabonna Field is not currently in production, however, 3D seismic was acquired by Santos over Callabonna in late 2008. That part of the survey which extends into PEL 104 has been made available to the PEL 104 Joint Venture at no cost under the provisions of the Petroleum Act. The Christies, Sellicks and Callawonga Oil Fields operated by Beach Petroleum are located 40 kilometres to the southwest.

 

Impress considers the permit highly prospective for both oil in the Jurassic sequences on the Western Margin and gas in the deeper Permian sequences in the central and eastern portions of the permit.

 

The 2008 drilling program resulted in one Birkhead oil discovery (Tigercat-1) which is scheduled to be completed for an EPT during the third quarter of 2009. Tigercat-1 tested a structure 7.8 kilometres east of the Growler Production Facility. The well encountered an 18.5 metre oil column in the Birkhead Formation with fair to good reservoir properties in two main zones, but was not successfully tested for mechanical reasons. Seven metres of net pay within the oil column is indicated from wireline logging.  This well is expected to be placed on production by pump in early 2010 at an expected initial rate of 200 BOBD

 

The Tigershark-1 and Stormbird-1 wells tested structures identified on the basis of 2D seismic data and although both wells encountered shows, neither well was deemed capable of production and they have been plugged and abandoned. The three wells satisfied permit work obligations.

 

Following the success of the Growler appraisal and development drilling program in encountering well developed channel sandstones within the Birkhead Formation, and given the uncertainties of structure and reservoir imaging on the basis of 2D seismic data, the Joint Venture committed to the 264 square kilometre Mollichuta 3D seismic program acquisition which commenced in the first quarter of 2009. The program covers parts of PEL 104 with additional coverage over PRL 15 and PEL 111.

 

With the completion of the acquired seismic program, the Joint Venture is now processing the data gained from the field work. Following a review of the preliminary data in September, the Joint Venture agreed to undertake further processing work which will be completed by the end of 2009. The decision to undertake this additional processing has meant that the drilling program has been delayed until the first quarter of 2010. Part of the program, the outline of which is shown on the Figure above, was specifically designed to image the Birkhead Formation channel systems in the Growler, Wirraway and Warhawk areas by an increase in seismic effort. Elsewhere a more reconnaissance grid with wider line spacing was acquired. A small part of the survey, representing less than 5% by of the survey area was affected by limited vehicular access around a Dieri aboriginal heritage area at Mollichuta Waterhole on the Coopers Creek north of the Wirraway discovery. Seismic cables were hand carried through this area.