The farminees (private companies) will earn a 15% interest in PEL 104 by contributing to 30% of the cost of an accelerated exploration program to be carried out over the next 12-15 months, including seismic reprocessing, 150kms of new seismic and the drilling of two wells in March 2004.
The Christies-1 commercial oil discovery along with the Sellicks-1 2,160bopd discovery by the Beach Petroleum/Cooper Energy consortium lie 32km to the south of PEL 104 and have significantly upgraded the Permian oil potential on the western edge of the Permian Cooper Basin where PEL 104 is located.
The permit covers an area of 1,069sq.km and is immediately adjacent to the western edge of the Tirrawarra Oil Field, the largest oil field in the Cooper Basin and onshore Australia with estimated recoverable reserves of 70 million barrels of oil and 310 billion cubic feet of gas.
The block also surrounds the Fly Lake Oil & Gas Field with recoverable reserves of 67 billion cubic feet of gas and 2 million barrels of oil and the Callabona Jurassic oil field production license.
Twenty eight prospects and leads with Jurassic and permian target horizons are indicated from preliminary mapping in the block while only three wells have been drilled in the permit.
