Canning Basin

Introduction

The onshore Canning Basin covers approximately 467,000 km², and has had just over 300 wells drilled and approximately 90,000km of 2D seismic shot since the 1920s. Approximately 900 km² of 3D seismic has also been acquired. Infrastructure in the basin is limited and occurs mostly in the north western coastal regions.

The basin comprises numerous sub basins of which the Fitzroy Basin is the deepest and is the controlling feature for the known historic oilfields of Blina-Sundown on the northern flanks and the recently discovered Ungani oilfield on the southern flanks.

EP487-57-58 AGM 19 11 15 (002) (2)

Figure 1: The three major prospective trends relative to Fitzroy Blocks EP457 and EP458 and Derby Block EP487.

The Fitzroy Blocks- EP457 & EP458

Rey 25%
Buru 37.5% (and operator)
Mitsubishi 37.5%

The Fitzroy Blocks overly the southern flank of the Fitzroy Trough (refer Figure 1). The Ungani oil trend extends through much of the area covered by the leases. Conventional gas targets are also considered to occur on the leases as well as the extensive Laurel regional gas accumulation.

In late 2015 two wells were drilled by the JV: Victory-1 in EP457 and Senagi-1 in EP458. These wells satisfied the licence conditions for Year 5 in each block. Although neither well discovered commercial hydrocarbon accumulations although providing useful geological information for further exploration. Year 6 licence conditions require only evaluation of the information from the wells drilled in 2015.

The Derby Block- EP487

 Rey 50%
Oil Basins Limited 50% (operator)

The Derby Block occurs north of the Fitzroy Blocks and overlies the major road infrastructure in the region. It abuts the northern flank of the Fitzroy Trough and is considered prospective for both conventional oil on this northern flank as well as for large accumulations of gas in the Laurel regional gas accumulation.

The lease work programs comprise seismic surveys in 2015 and 2 wells in 2016. The Year 2 workplan, subject to confirmation by the Department of Mines and Petroleum, is for the drilling of two exploration wells in the licence. It is anticipated that a new partner will be introduced to the joint venture in 2016.