EP487, positioned adjacent to Derby and boasting excellent infrastructure accessibility, holds substantial gas resources. With an estimated total of over 810 billion cubic meters, the site exhibits both conventional and unconventional resource potential. Its strategic location adjacent to the Fractured Gasfield and the Historical Oilfields, within the Canning Basin Petroleum Production Area’s northeastern region, solidifies its importance within the region. Notably, this significant stake is 100% owned by Rey and falls within the Derby Block’s purview.

Renowned for its significant hydrocarbon generating capacity, the Laurel Formation emerges as a world-class gas reservoir. With confirmed condensate oil content ranging between 25 and 38 barrels per million cubic feet, its total estimated resource capacity hovers between 2.2 and 18.1 trillion cubic meters of gas, highlighting its immense value within the energy landscape.

A comprehensive array of research initiatives has been completed within the EP487 permit area, facilitating a robust understanding of the region’s geological and resource potential. These efforts include seismic reprocessing spanning 600 square kilometers, regional seismic data collection, lithologic analysis, and thorough assessments of potential oil and gas reservoirs. Additionally, independent third-party resource estimations, coupled with in-depth analyses of the gas markets in China and Australia, emphasize the dedication to comprehensive research in the area.

With the completion of 60 kilometers of new 2D seismic lines covering the northern area, EP487 has strategically identified seven drilling areas, with a primary focus on well site No.7 in the central and northern regions. The proposed drilling target layer, the delta sandstone, lies at an expected depth of 3500 meters. Subsequent well site locations will be determined based on the outcomes of initial drilling activities. Notably, the region surrounding well site No.7 exhibits promising potential for conventional resources, necessitating no subsequent fracturing.

The thriving Valhalla and Yulleroo Gasfields serve as prominent exemplars of the resource richness within EP487. The successful completion of fracturing activities in the Valhalla Gasfield has confirmed an impressive 370 billion cubic meters (13 trillion cubic feet) of recoverable gas resources, alongside 230 million barrels of condensate. As the Valhalla gas reservoir extends throughout the northern area of EP487, the combined anticipated resources within the permit area total approximately 420 billion cubic meters (15 trillion cubic feet).


    EP104/R1, designated for oil and gas exploration within the Canning Basin, represents a promising prospect for gas production. Adjacent to northern EP487, the area covers approximately 1000 square meters, with resources discovered in two wells. Presently, the site boasts 150 billion cubic feet of economically recoverable gas resources, with a gas flow of 4.3 million cubic feet per day. Notably, the EP104 offshore area represents one of the last large undeveloped oil and gas reservoir regions, with an estimated resource potential of 63 million cubic feet.

    Integrating small-scale LNG processing technology presents a viable pathway for expediting economic value realization. With a projected daily production range of 200 to 500 tons and an investment estimate of approximately AUD$70 million to $120 million, this technology promises swift returns. Notably, the use of tank containers for transportation and exportation, alongside the potential expansion of existing ports, facilitates streamlined logistical operations, reducing overhead and enhancing profitability.

    Expanding the production capacity by connecting to the existing LNG processing plant signifies a strategic growth opportunity. This initiative entails the construction of approximately 600 kilometers of new pipelines to connect with the existing infrastructure, enabling streamlined production processes. Additionally, the proposal to construct a new large-scale LNG production facility at James Price Point, located 60 kilometers away from Derby Township, presents an expansive vision for the region’s energy industry. This comprehensive plan includes provisions for two export ports and six berths for freight, spanning a total area of 3400 hectares, illustrating a substantial commitment to the region’s long-term energy sustainability and growth.