Conventional Oil & Gas Activities
In addition to our flagship Leigh Creek Urea Project, the Company has diversified its portfolio into other oil & gas activities, focussing on operations in the Cooper Basin. The Cooper Basin was selected as it provides us with a low cost of entry, relatively low risk, potential for near-term revenue as well as a favourable and stable regulator in the South Australian and Queensland governments.
Our initial activity was to execute a Farm-in Agreement with Bridgeport Energy (QLD) Pty Limited as operator of ATP 2023 and ATP 2024. These permits are 10km north of the Jackson Field, Australia’s largest onshore oil field and are largely under-explored, providing opportunities for multiple conventional oil and gas plays. They are located close to infrastructure, minimising potential future tie-in and operational costs. It is expected that the 3D seismic surveys to be acquired in Permit Year 2 will mature the currently identified prospects and lead to drillable targets.
Following on from this, we were successful in bidding for two Petroleum Exploration Licence Applications (PELAs) in the recent South Australian Cooper Basin Acreage Release.
PELA 675 and PELA 676 are both proximal to historic hydrocarbon discoveries. They contain 2D seismic and the 3D seismic in the southern part of PELA 676 has been used to identify leads in the potential Northern Oil Fairway.
The next stage is to enter into Native Title agreements prior to being awarding the Petroleum Exploration Licences (PELs).
We will be looking to farm down a portion of the SA permits once we have identified drillable prospects.