|Location||Southwest Queensland, Onshore Australia|
|Terrain||Flat ground interspersed with small sand dunes and dry channels|
|Field Type||Four different currently recognised play concepts:
(1) conventional Cooper Basin gas play,
(2) unconventional basin centred gas,
(3) coal seam gas, and
(4) high potential unconventional shale oil
|Status||Planning seismic acquisition|
ATP 784 is a large permit that covers an area of 1,845 square kilometres in southwest Queensland. The permit is situated within an unexplored gas-condensate fairway. No seismic has been acquired since 1984 and no wells have been drilled in the permit. The acreage is thus at a very early stage of exploration.
There are compelling commercial advantages inherent to the permit. Commitments to several Queensland LNG processing and export projects had resulted in competition for gas and gas exploration acreage in an environment where existing long term gas supply contracts are expiring. As a result of current supply and demand, the gas price has been forecast to increase. Existing gas pipeline and processing infrastructure is located just 30 km from the permit, which reduces any development cost in the event of a discovery.
There are four separate geological plays currently recognised within the permit. The conventional gas play was identified upon application with an estimated 220+ bcf of prospective recoverable gas plus condensate adjacent to numerous market and export opportunities. Further gas prospectivity lies within the Permian section where there are two unconventional plays. Extensive regional seismic and well data confirm that both the Cooper and Eromanga Basin sequences are present in ATP 784. These basins are the most prolific in the region and the highest quality source rock is the Toolebuc shale which is present over the entire area. The significant potential of the Toolebuc oil shale has been recognised by the Queensland Geological Survey (QGS) together with domestic and international oil companies. QGS publications further confirm the Company’s interpretation that the ATP 784P licence is located in a prime area of the Toolebuc shale.
The permit was awarded to Redcliffe Resources effective 1 January 2015. On 8 April 2015 the permit was transferred to Twinza. Following the transfer Twinza is the operator of ATP 784 and holds a 100% working interest.
A prospectivity review by AWT has been undertaken. The review was finalised in September 2015 and incorporated regional data from surrounding blocks to determine the potential oil and gas resources within ATP 784. The final report documents better than previously understood the overall prospectivity that lies within the permit.
A field trip to the permit was conducted in October 2015 to investigate feasibility for seismic acquisition on the permit. No technical or environmental obstacles were observed, and planning for an effective 2D survey can be achieved using existing tracks and fence lines. It is anticipated that the footprint for any survey will be minimal.
A high-resolution ground survey is plannedwas acquired to map all existing tracks, fence lines, gates and other geographical features. This survey will be used as the basis for seismic acquisition planning.
ATP 784 was awarded in January 2015 for a four year exploration term. The licence commitments are for 300km of 2D Seismic and two wells. A field visit was completed in 2015 and determined good field conditions, access and logistics, in preparation for the design of an appropriate seismic survey and/or remote sensing data acquisition programme. This is the necessary first step to identify the optimum locations at which to drill the stratigraphic wells.
Unseasonable rainfall in recent years has hampered plans and an extension to the exploration term was sought leading to an extension that granted an additional two years to the term of the permit.
In the near term (1 to 2 years), the Company intends to acquire and interpret a 2D seismic survey to identify drilling locations for two stratigraphic wells.