North Perth Basin

Perth Basin Western Australia

Petrel extend its Call Option Deed on exploration permit application STP-EPA-012, in the north Perth Basin Western Australia.

The Call Option Deed which is over all the shares in Palatine Energy Limited (Palatine) provides Petrel with an additional 12 month call option to acquire all Palatine shares for $200,000 in cash or Petrel ASX listed ordinary shares with a further $100,000 of shares payable once approvals are in place and a work programme has commenced in the northern Perth Basin Permit. 

The initial Call Option Deed signed in April 2016 was subject to progress on Native Title Agreements with 3 native title parties which were in the early stages of negotiations. With the substantive terms of the three Native Title Agreements almost finalised and about to be lodged with the National Native Title Tribunal Petrel is hopeful of the permits being granted and has elected to extend for a further year for $10,000 to allow this process to be completed. Petrel will meet all reasonable costs in relation to the native title negotiations during this period.

STP-EPA-0127 which on final grant will be 2.2m acres (8,700 square kms) will be the largest of the exploration permits in the Perth Basin. It is 130 km north of the AWE - Beach Perth Basin Waitsia  play which has re-invigorated Perth Basin exploration and development, and is the largest onshore conventional gas discovery in Australia for the last 40 years. AWE Limited recently recommended a takeover from Mitsui & Co valuing AWE at $602m based largely on its 50% interest in the Waitsia gas project in the Perth Basin. 

Background 

  • STP-EPA-0127 lies 420km to 600km north of Perth and straddles the Northwest Shelf to Perth gas pipeline.
  • There is local and regional demand for energy from mining and industrial users and there is also scope for export, if sufficient reserves are discovered.
  • STP-EPA-0127 was granted to Palatine Energy Pty Ltd in August 2014 with Native Title negotiations commencing in 2015.
  • In April 2016 Petrel executed a Call Option Deed with Palatine to provide modest funding to allow Native Title negotiations to continue. Native Title negotiations nearing successful completion.
  • Petrel can exercise its call option for all Palatine Shares for $200,000 cash or Petrel shares with further $100,000 of shares payable once approvals in place and work programme commenced.

The STP-EPA-0127 permit

  • is 185km long and about 55km wide (8,700 square kms) and essentially covers the entire Coolcalalaya Sub-Basin.
  • contains up to 9000m of Neo-Proterozoic, Palaeozoic and Mesozoic sediment
  • lies at the northern limit of the prospective and partially developed Perth Basin, which produces conventional oil and gas with several tight gas and shale gas fields recently discovered. The AWE Waitsia discovery was the largest conventional onshore gas discovery in Australia in the last 40 years.
  • Includes Carynginia shale which the U.S. Energy Information Administration (EIA) estimates has TCF gas potential.

Main exploration targets identified in the Coolcalalaya sub-basin are:

  • Conventional (Waitsia type) Permian sands
  • Permian Unconventional Carynginia shale
  • Devonian Unconventional Gneudna shale
  • Conventional Permo-Carboniferous tilted fault blocks  

Conventional and Unconventional Potential

Primary Lower Permian Kingia and High Cliff Sandstone targets are equivalent to the Waitsia conventional/tight gas setting.

Upper Permian Dongarra Sandstone represents a secondary conventional/tight gas target. 

Devonian Gneudna Fm. is absent in most of the Perth Basin but is present in the Coolcalalaya Sub-basin (STP-EPA-0127) and the Merlinleigh Sub-Basin (South Carnarvon Basin) and represents a secondary unconventional target. 

Potential play in conventional tilted fault blocks, involving Permo-Carboniferous sandstones reservoirs along the western edge of the main trough, and sourced from the Devonian Gneudna Formation.

 

North Perth Basin Work Programme

  • Two years full review of existing well data: outcrop geology; geochem.; physical properties; coring; seismic reprocessing
  • Comprehensive stratigraphic drilling to recover fresh shale samples and test hydrocarbon presence
  • New 2D seismic acquisition and interpretation
  • At least one (stimulated) exploration/appraisal well; and
  • Evaluation studies and resource assessment