Perth, Nov 24, 2008 AEST (ABN Newswire) - Empire Oil & Gas NL (ASX:EGO)(PINK:EOLGF) is pleased to announce that the interpretation of the Wellesley 2D Seismic Survey within Exploration Permit EP 416, South Perth Basin has confirmed the Wellesley structure as a drillable prospect. The Wellesley 2D Seismic Survey was acquired by the Company during March-April, 2008.
Processing and interpretation of this seismic survey has now been completed. The structure is a fault controlled anticline defined by five reprocessed previously recorded seismic lines plus the four new seismic lines from the recently acquired Wellesley 2D Seismic Survey.
The primary objectives for the Wellesley Prospect are the Permian Sue Coal Measures, a sequence of fluvial and lacustrine deposits which provide both reservoir, seal and source. There is, therefore, the potential for stacked pays within the Sue Coal Measures section due to the potential for intra-formational shale seals.
There are no existing exploration wells near the Wellesley Prospect. The most significant well is Wonnerup-1 drilled in 1972 by Union Oil and located some 40 kms south of the prospect.
In this well, sandstones in the Sue Coal Measures had core derived porosities of 7.3 - 15.8% and permeabilities of 1.3 - 63 millidarcies. Gas shows started at the top of the Sue Coal Measures at 4,120 metres and increased to over 120 units below 4,430 metres. The presence of gas in the Wonnerup structure appears to be preserving porosity by preventing silicification, as these sandstones in Lake Preston-1, where there were no gas shows, had only 3-4% porosity.
The Wellesley structure covers an estimated area of 1,100 hectares with a vertical relief of 190 metres. While there is no significant crestal faulting at the top of the Sue Coal Measures, faulting is present on the southwest flank of the structure. Estimated potential recoverable gas reserves for the fault dependent Wellesley Prospect, if hydrocarbons were discovered and the structure was full to the currently mapped spill point, are of the order of 150 billion cubic feet (BCF).
Estimated potential recoverable gas reserves for the fault independent Wellesley Prospect, if hydrocarbons are discovered and the structure is full to its currently mapped spill point, are of the order of 35 BCF.
The Wellesley Gas Prospect is located adjacent to the City and Port of Bunbury and encroaches into the industrial area of Kemerton. Gas demand in the industrial satellites of the south west of Western Australia has seen prices firm substantially. The Bunbury-Kemerton industrial area is energy dependent with a demand for a diversity of gas supply.
The Company and the EP 416 Joint Venture plans to drill the Wellesley-1 well in 2009.
Joint Venture participants in the EP 416 Permit and the Wellesley Prospect are:
Empire Oil & Gas N.L. 75%
Allied Oil & Gas Plc 20%
ERM Gas Pty Ltd 5%
Contact
Mr Craig Marshall
Managing Director
Phone: +61-8-6389-2687
Facsimile: +61-8-9386-6812
E-mail: cmarshall@empireoil.com.au
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