5 Jun 2008 07:00
05 June 2008
OILEX 3D SEISMIC SURVEY STARTS IN HIGHLY RATED BLOCK JPDA 06-103
HIGHLIGHTS
* Oilex Joint Venture has started its major 3D seismic survey in block JPDA 06-103 in the Timor Sea Joint Petroleum Development Area ("JPDA") * The survey will cover prospective geological structures, the largest of which has the potential to contain resources of up to 300 million barrels of oil initially in place (100% basis) in a proven oil-producing basin. * Recent discovery on the adjacent block JPDA 06-105 by ENI, Kitan-1, flowed oil at a reported rate of 6,100 barrels per day ("bopd") from a drillstem test.
Oilex advises that the first phase of offshore operations has commenced in the Block JPDA 06-103, located in the Timor Sea JPDA between Timor-Leste and Australia. The Geowave Champion seismic vessel has completed its clearances and is on location preparing to acquire the extensive, high resolution Maura 3D marine seismic program over an area of 2,082 km2. Data from this survey will be combined with existing 3D seismic surveys to provide 3D seismic coverage over more than 90% of the area of the Block. Processing of the data is expected to be concluded about the end of 2008 and the interpretation of the data over the entire block is anticipated to be completed by about end of March 2009. Locations for exploration wells will then be selected for drilling starting about mid-year 2009.
To that end, Oilex is also in negotiation with suppliers of offshore drilling equipment to secure the services of a suitable semisubmersible drilling unit to drill 2 wells in the first phase mid-year 2009 to be followed up by further drilling activity later in the year.
(The diagram can be found in the release posted on Oilex website)
Regional Location Map - Joint Petroleum Development Area
Participants in the JPDA 06-103 Production Sharing Contract are:
Joint Venture Party Participating Interest Oilex (JPDA 06-103) Ltd (Operator) 25% Global Energy Inc (Videocon) 25% Bharat Petroresources JPDA Ltd 25%
GSPC (JPDA) Ltd 25% BACKGROUND
The JPDA 06-103 block was considered by Oilex to be the most prospective of the blocks offered in the competitive bid round held in 2006 and a Production Sharing Contract for the block was signed in January 2007 by the joint venture operated by Oilex. The block lies directly to the east of the Laminaria-Corallina oilfields (130+ million barrels reported reserves, operated by Woodside) and to the north of the Bayu-Undan gas-condensate field (400+ million barrels condensate and 3.4 trillion cubic feet of gas reported reserves operated by Conoco Phillips).
There are also a number of other oil fields which have been discovered in the immediate vicinity (e.g. Buffalo, Kakatua, Elang). Fields in the area generally have very good recovery efficiencies (in excess of 50%), a function of the excellent reservoir quality and flow characteristics of the light oil present.
Oilex's evaluation of the existing seismic grid within JPDA 06-103 identified a number of structural leads with similar geological characteristics to these adjacent oil fields. These leads (see map below) vary in size and include larger structures that have preliminary volumetric estimates of potential undiscovered oil-initially-in-place of 200 and 300 million barrels (on a gross or 100% basis). The volumetric estimates will be revised when the interpretation of the new 3D is completed.
New Discovery - In April of this year, a significant oil discovery at Kitan-1 and -2 was made by ENI, the operator of block JPDA 06-105 (adjacent to the east of JPDA 06-103). The Kitan-1 discovery well flowed oil at a rate of 6,100 BOPD from a drillstem test. The discovery was followed by an appraisal well at Kitan-2 that confirmed the commercial viability. These wells lie close to the JPDA 06-103 block boundary and confirm the oil potential of the basin.
ENI subsequently made a Declaration of Commercial Discovery and the TSDA based in Dili, Timor-Leste declared Kitan a Development Area in May. This is the first significant commercial discovery of oil in the Timor Sea for many years.
(The diagram can be found in the release posted on Oilex website)
Location map - Maura 3D Seismic Survey, JPDA 06-103, Timor Sea
A glossary of terms used in the oil and gas industry and useful links to other glossaries can be found at http://www.spe.org/spe-app/spe/industry/reference/ glossary.htmhttp://www.spe.org/spe-app/spe/industry/reference/glossary.htm, the website of the Society of Petroleum Engineers.
Yours sincerely,B. H. McCarthyManaging Director
For further information, please contact:
Ray Barnes Technical Director, Oilex Ltd Tel. +61 8 9226 5577 (Western Australia)
Archie Berens Director, Pelham Public Relations Tel. +44 20 7743 6679 (United Kingdom)
The information in this report has been compiled by the Managing Director of Oilex Ltd, Bruce McCarthy B.Sc. Hons PhD (Geology) who has over 29 years experience in petroleum geology and Ray Barnes, B.Sc. Hons the Technical Director of Oilex Ltd who has over 35 years experience in petroleum geology and is a member of the AAPG and EAEG. Estimates of oil-in-place are reported in accordance with the standard definitions set out by the Society of Petroleum Engineers, further information on which is available at www.spe.org.
RFC Corporate Finance Ltd acts as Oilex's Nominated Adviser - contact Stuart Laing +618 9480 2506.
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