Australian junior explorer Oilex reported Monday that it has been awarded two exploration permits in the onshore Canning Basin in Western Australia.
The contiguous blocks, L12-08 and L12-09, cover 1.6 million acres, meaning that Oilex now holds an acreage position of 4.4 million acres in an area that is possibly prospective in oil and liquids-rich gas. They also mean that Oilex controls acreage encompassing the entire Wallal Graben – a deep, undrilled half graben (trench) in one of Australia’s premier emerging onshore unconventional basins.
In its statement Monday, Oilex noted that the US Energy Information Administration identifies the Canning Basin as having the largest unconventional hydrocarbon potential in Australia.
Oilex has begun tendering for an airborne gravity and magnetic survey for its SPA-0055 permit, which is adjacent to L12-08 and L12-09. However, due to the contiguous nature of the three permits, Oilex may consider the opportunity to acquire a single, large survey to both realize cost efficiencies and expedite a technical understanding of the area's potential.
Oilex Managing Director Ron Miller said in the company's statement:
"Oilex is pleased with the successful application for two prospective permits adjacent to SPA-0055. This has placed Oilex in an extremely strong position and enables full control of a deep, undrilled half graben and its identified prospective play fairways. The areas are located adjacent to the established Pilbara Mining District and therefore have the potential benefit of access to significant infrastructure already in place.
"Located in a region that we have designated as a priority for the company, Oilex remains committed to developing prospective acreage on the Indian Ocean Rim that will help supply energy to the Indian economy.
"Oilex is uniquely positioned to capitalise on the Indian energy market opportunity where domestic natural gas prices are very robust and use the company's extensive commercial relationships developed through our existing Indian operation."
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