The NT/P68 Permit will have an initial life of 6 years, with two further 5-year rights of renewal, and covers an area of 12,070sq kms and contains a number of significant natural gas and liquids prospects.
The previous operator of the permit area estimated that the structures surrounding the Heron 1 well (Heron North, Heron South and Epenarra), have the potential for mean success volumes of gas in the order of 5 trillion cubic feet (5 TCF).
Methanol Australia is developing prospects within NT/P68 into drillable targets, and plans to farmout part of its interest in the permit in order to meet costs of drilling. A gas discovery would significantly enhance the supply options for the company's Tassie Shoal gas conversion projects.
