Since obtaining this permit the JV has conducted a review of past hydrocarbon exploration, together with an assessment of gravity and magnetics recently acquired by BHP/Billiton using their revolutionary airborne technique.
The JV’s assessment has confirmed several dome-like structures occurring in the permit, two of which coincide with open cut coal mines at Loy Yang and Hazelwood.
There has been little exploration activity in the permit with only one modern well, Loy Yang-1, being drilled in 1994. Loy Yang-1 was drilled to a depth of 1736 metres very close to the power station of the same name and was designed to test the Loy Yang dome.
The well targeted the Rintoul’s Creek Sandstone and the underlying Tyers conglomerate; both of which were prognosed to lie in the basal Strzelecki Formation. Lakes said dips encountered in the well suggest that the well was located off structure at the Strzelecki level and it appears that the well did not reach its primary targets.
Oil and gas shows were encountered in the Strzelecki Formation. Preliminary discussions are now underway with one of the power companies in the valley, which could see them join with the joint venture in drilling a well.
