Pancontinental told the Australian Stock Exchange this morning that GOP will earn a 60% interest in the Kenyan production sharing contract L-6 block, in the offshore Lamu Basin Block, by undertaking $US1.9 million ($A2.5 million) worth of 2D seismic, airborne gravity and possible geochemical acquisition programs by February next year.
“The combination of the Falcon gradiometer data in the onshore and shallow water near shore areas, which are 27% of the block, together with the 2D seismic data in the deeper water offshore areas, will accelerate the evaluation and definition of prospects within the L-6 block,” Pancontinental chief executive Andrew Svalbe said.
“This work will be in parallel with the Origin [Energy]-operated, December 2005 farm-in earning obligation detail and infill 2-D seismic surveys in the adjoining Pancontinental L-8 and L-9 blocks, and the drilling of two exploration wells by Woodside in the adjacent L-5 and L-7 blocks in the last quarter of 2006.”
Falcon is a highly specialised aerial gravity survey technique developed by BHPB and was brought into fruition by Gravity Capital, now called Gravity Diamonds, in 2001. Two directors of Gravity Diamonds, geophysicists Phillip Harman and Nicholas Limb, are on GOP’s board.
GOP told the ASX yesterday that the Falcon aircraft has now left Jamaica, having completed the 24,000-line kilometre airborne gravity gradiometer and magnetic survey of the under-explored Walton Basin.
With preliminary products indicating the data is of high quality, GOP said this information, together with data from the new seismic survey completed in May, would be key to unlocking the oil and gas leads in the basin.
“The integration of seismic data with the detailed Falcon data will be an exciting first for oil and gas exploration around the world and will allow mapping of the structure along with the extensive overprint of reef systems in the basin,” GOP managing director Cathy Norman said.
“Final prospect mapping is on target for completion by the end of 2006.”
The Walton Basin has been ignored in the past because previous seismic work has failed to provide a clear picture of the sub-surface potential.
The 6000 square kilometre survey mapped basin structure and reef distribution in shallow water where there is widespread commercial fishing.
Falcon measures minute changes in the earth’s gravity, which can indicate potential petroleum reserves. The system can identify structures missed by other exploration techniques, according to GOP, which holds a 50% interest in the Jamaica joint venture.
Previous mapping of the reefs indicates the basin has the potential to contain 3 billion barrels of oil. Of the 11 historical wells drilled, 10 have recorded oil and gas shows. The last well was drilled in 1978 and until this year there has been no licensing of the acreage.
