The Gingin & Red Gully EP-389 Development Perth Basin Western Australia
Background Wharf Resources Plc was incorporated in 2005 with the purpose of carrying out oil and gas exploration in Australia. Western Australia’s sedimentary basins hold more than 80% of Australia’s discovered natural gas resources, despite being one of the least explored territories in the world. Wharf Resources Plc acquired an interest in the EP 389 exploration permit in order to carry out oil and gas exploration and production activities within the onshore Perth Basin, Western Australia. EP 389 contains the Gingin/Red Gully gas field, first discovered in 1964, and now considered to be one of the largest onshore gas fields in Western Australia.
Partners Empire Oil Company (WA) Limited : 68.75% Wharf Resources Plc: 5.5% Allied Gold Plc 0.5% Allied Oil & Gas Plc 1% Dome Petroleum Resources Plc 1% Jurassica Oil & Gas Plc 1% Phoenix Resources Plc 1% ERM Gas Pty Ltd: 21.25%
Permit Summary Area: 1,540 square kilometers ie 390,000 acres Location: 80km North of Perth Pipelines: 2.8 kms from Gingin West to Compression Station 5 Parmelia Pipeline (Dongara to Pinjarra) 2.6kms to Dampier to Bunbury Natural Gas Pipeline. Markets: Deregulated Gas Pricing: Negotiated with consumer in Deregulated Market Economic Model for Gingin West Gas Price AUD$8 / 1,000 cf gas
Location Permit EP-389 covers 1,540 sq kms and is located in the Northern part of the onshore Perth Basin. The permit is covered by a grid of 2D seismic from the Moore River south past the town of Gingin to the northern outskirts of the city of Perth. The Brand Highway, an all weather sealed road and the Dampier-Perth and Dongara- Perth natural gas pipelines traverse north-south through the field.
Gingin West & Red Gully
The Drilling Rig
The Drilling Rig
First 2 Wells
Drilling Programme Gingin West - 1 – Drilled December 2009 Red Gully - 1 – Drilled January 2011 Gingin Deep Prospect Gingin Wannamal Deep Prospect
Estimated Recoverable Reserves Permit 389 Gas Oil Gingin West 1 50 bcf 1.0 mbbls Red Gully 1 59 bcf 1.0 mbbls Gingin Closure 97 bcf 1.0 mbbls Gingin 2 Deep 32 bcf 1.6 mbbls Bootine Deep 0 bcf 3.0 mbbls Wannamal Deep 20 bcf 1.4 mbbls Gingin South 100 bcf 1.2 mbbls Gingin Brook 600 bcf 7.2 mbbls Yeal 0 bcf 25.0 mbbls Eclipse 100 bcf 1.2 mbbls Eclipse West 225 bcf 2.7 mbbls Total 1283 bcf 46.3 mbbls Price AUD 8 / 1,000 cf AUD 100 / bbl (Average Prices) Value AUD 10.2 Bn AUD 4.6 Bn
Potential Income 2013 Gas Oil Gingin West 1 7.5 mcf / day 450 bbls / day Red Gully 7.5 mcf / day 450 bbls / day Total 15.0 mcf / day 900 bbls / day Gross Income pa GBP 28.2 m GBP 21.2 m AUD 43.2 m AUD 32.4 m @ AUD 8 per 1000 cu/ft gas & AUD 100 per bbl/Condensate Sales contracts in place with Alcoa & BP for total production
Potential Income 2013 + Gas Oil Gross Income pa AUD 43.2 m AUD 32.4 m 2014 Plus Similar income from 2 more wells ? 2015 And 2 more 2016 And 2 more Followed by 2 more wells each subsequent year until all EP-389 prospects have been fully developed. The future potential development program will be in the order of 20 years. At least 15 + years production is expected from each well
ours in the working day th at’ ’ in those hours that concern aged – excepts on those rare nderson Lee prefe rs employe ours EMPIRE OIL & GAS NL ‘ e’ at ABN 5 5 06 3 613 7 30 ’ SUITES 7 AND 8 1 54 HAMP DEN ROAD NEDLANDS 6 009 WESTERN AUSTRALI A TELEP HONE +6 1 8 6389 2 687 FACSIM ILE +61 8 9 386 68 12 EM AIL in fo @emp ireo il.co m.au WEB www.e mp ireo il.com.au 10 August 2012 The Manager The Australian Securities Exchange The Company Announcements Office Level 4/20 Bridge Street SYDNEY NSW 2000 Dear Sir, RE: RESULTS OF AN INDEPENDENT STUDY BY RPS ENERGY SERVICES PTY LTD OF THE UNCONVENTIONAL GAS POTENTIAL WITHIN EP389 , PERTH BASIN, WESTERN AUSTRALIA Please find attached summary results of an Independent Study by RPS which provides potential undiscovered unconventional gas in place of 24 TCF (trillion cubic feet) of gas within the EP389 Permit. This study was contracted by Empire Oil & Gas NL. The interest Empire Oil & Gas NL has in the EP389 Permit is: Empire Oil Company (WA) Limited (Operator) 68.75% Yours faithfully On behalf of the Board of Directors JL CRAIG MARSHALL Managing Director EMPIRE OIL & GAS NL
ours in the working day th at’ ’ in those hours that concern EMPIRE OIL & GAS NL aged – excepts on those rare nderson Lee prefe rs employe ASX RELEASE ours 10 August 2012 ‘ e’ at Results of an Independent Study by RPS Energy Services Pty Ltd of the ’ unconventional gas potential within EP 389, Perth Basin, Western Australia Empire Oil & Gas NL (‘Empire’) is pleased to announce the results of an independent study by RPS Energy Services Pty Ltd (“RPS”) of the unconventional gas potential of the Early Jurassic Lower Cattamarra Coal Measures in Exploration Permit EP 389, onshore Perth Basin. Exploration Permit EP 389 is the location of Empire’s current Red Gully development for the Gingin West and Red Gully gas/condensate fields that flowed 7.5 million cubic feet of gas per day and 375 barrels of condensate per day and 12 million cubic feet of gas per day and 832 barrels of condensate per day from conventional reservoirs in the Upper Cattamarra Coal Measures. The RPS study concluded that the un-risked, undiscovered gas-in-place potential is between 40 and 140 BCF (billion cubic feet) per square kilometre within the permit. The undiscovered gas-in-place potential is composed predominantly of adsorbed and solution gas with minimal free gas being present. Taking into consideration areas of low volumes and depth limiting factors such as excessive drilling costs below 5,000 metres, Empire believes that a total undiscovered gas-in-place volume of 24 TCF (trillion cubic feet) of adsorbed and solution gas is present in the interbedded shale/thin tight sand section in the Lower Cattamarra Coal Measures. The Company believes this is a reasonable estimate of the unconventional gas potential of the Permit. This potential is mostly located along the Gingin to Bullsbrook 60 km Trend where there are existing leads and prospects for conventional gas targets. Following the acquisition of and subject to the interpretation of the Wannamal 3D Seismic Survey, Empire plans to drill the Wannamal and Gingin Deep prospects into the potential Lower Cattamarra section. Empire also plans to deepen (following depletion of the conventional D Sand gas/condensate reserves) the Gingin West-1 well into the Lower Cattamarra section. During these operations, Empire plans to cut cores through the Lower Cattamarra section for further shale gas studies by qualified laboratories. As part of this programme, Empire will acquire a full suite of electric logs suitable to evaluate the shale gas potential of the Lower Cattamarra section and provide calibration with the cores. Empire is planning to undertake the Wannamal 3D Seismic Survey during the first quarter of 2013 using a helicopter supported shot hole survey. Following the interpretation of this seismic survey the Company looks forward to updating shareholders on the next phase of drilling in EP389. Independent reports have yet to be obtained by the Company on the unconventional gas potential of its North Perth Basin exploration permits, in particular EP432, which is located on trend with current unconventional gas programmes by Norwest Energy at Arrowsmith-2 and AWE at Woodada Deep. For more information contact: JL Craig Marshall BSc (Hons), F.Aus. IMM, CPGeo Suite 7, 154 Hampden Road Managing Director NEDLANDS W A 6009 Empire Oil & Gas NL AUSTRALI A Ph: +61 8 6389 2687 Fax:+61 8 9386 6812 cmarshall@empireoil.com.au
The other Empire permits with unconventional potential are EP426 and EP368 which are the subject of a farmout with Origin Energy Development Pty Ltd and where the recording of a 100 km 2 3D Seismic Survey is to be completed in first quarter of 2013. These three permit areas have unconventional gas objectives within the Triassic aged Lower Kockatea Shale and Permian aged Carynginia Formation and Irwin River Coal Measures. Competent Person’s Statement The consent by RPS Energy Services Pty Ltd to their Independent Report was received on 10 August 2012. Information in this ASX Release related to exploration results that are based on information compiled by Mr J L Craig Marshall who is a experience relevant to oil and gas exploration and production. full time employee of Empire Oil & Gas NL. JL Craig Marshall is a Fellow of the Australian Institute of Mining and Metallurgy and is a Certified Practicing Geologist BSc (Hons), F.Aus.Imm, CPGEO, and has more than 30 years’ For more information contact: JL Craig Marshall BSc (Hons), F.Aus. IMM, CPGeo Suite 7, 154 Hampden Road Managing Director NEDLANDS W A 6009 Empire Oil & Gas NL AUSTRALI A Ph: +61 8 6389 2687 Fax:+61 8 9386 6812 cmarshall@empireoil.com.au
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