This includes two Queensland drilling programs - with a conventional gas program starting next month and CBM drilling starting next year - as well as offshore UK oil drilling in 2006/07, Hudleston said at the company’s AGM this week.
All projects have major upside potential and Sunshine was now leaving behind its previous year of consolidation, according to Hudleston.
“The coming year will be exciting for Sunshine Gas,” he said.
“The board is focused on utilising the best operational practices to develop the undoubted potential of energy resources in Queensland and the UK.”
New data about the gas accumulations in ATP 645, which covers the Overston, Pialaway 1 and Narrene 1 prospects, will be released next month, according to Sunshine.
“The board continues to be encouraged by the potential of ATP 645P, with a drilling program due to begin next month subject to weather,” Hudleston said.
“Developing near-term gas production remains a priority with the potential to establish a resource in the region of approximately 290 BCF.”
In a presentation to shareholders, Sunshine said it used a specialist seismic technique to identify plays, which upon success, could be replicated elsewhere in the permit.
Sunshine holds a 100% interest in the lease.
Meanwhile, Hudleston said the UK's independent trade news have described the 50/50 Sunshine and UK-based Hurricane Exploration joint venture as the “stand-out name in the list of winners,” in reference to their successful bid for nine blocks in the recent 23rd Seaward Licensing Round.
“They noted their surprise that [our] bid was awarded in an area that has traditionally been the almost exclusive preserve of the independents, majors and supermajors,” he said.
“Besides lying between BP’s Clair oilfield and the supermajor’s Foinaven and Schiehallion oilfields, the blocks also include the significant Strathmore oil discovery.”
Hudleston said the joint venture believed inappropriate geological modeling had been applied to the region in the past, which was why a patented seismic technique was being used to explore the areas.
Two main prospects, with a combined potential of 2,150 million barrels, and one oil field, containing 200 million barrels of in-place oil, have already been identified, said Sunshine. It added that drilling was planned for 2006/07.
In the past year, Sunshine has increased its Roma Shelf gas sales by 60%, now holds 100% in the Overston Gas Field and has discovered pipeline quality gas at Champagne Creek. This is in addition to the joint award of the nine offshore UK oil blocks and the further delineation of the Tilbrook CBM discovery.
