Oilex Gets State Approval to Convert WA's SPA 17 AO to Exploration Permit
Oilex Ltd reported Thursday that its application to convert the Special Prospecting Authority (SPA 17 AO) to Exploration Permit Application (STP-EPA-0131) in Western Australia (WA) has been approved by the WA Department of Mines and Petroleum (DMP).
The committed work program for SPA 17 AO was fulfilled by the acquisition, processing and interpretation of a 2,522 line miles (4,060 line kilometers) gravity gradiometry/magnetic survey (Survey). Under the terms of the SPA, Oilex had exclusive rights to negotiate a formal exploration permit with the Government of Western Australia. The terms of the SPA state that the area retained as an exploration permit from within the SPA is limited to 30-50 percent of the total area.
The final report for SPA 17 AO incorporating the newly acquired Survey data with 2D seismic, regional gravity, magnetic, surface geological and well data, confirmed Oilex’s structural model of the Wallal Graben and its extension into SPA 17 AO.
The firm committed work program negotiated for the exploration permit comprises an airborne gravity/magnetic survey designed to “infill” the recently acquired Survey. This will facilitate a much higher resolution image and interpretation of the Wallal Graben extension. The retained area (2,101 square miles or 5,443 square kilometers) to be converted to STP-EPA-0131 encompasses the entire Wallal Graben extension and represents 48 percent of the original SPA area.
The graben is present in Oilex’s three, 100 percent-owned, exploration areas encompassing approximately 3 million acres (~11,900 square kilometers). The acreage is in a unique position in the Canning Basin as it is adjacent to many world class mining projects in the Pilbara region. This activity has led to the development of a significant amount of infrastructure in the area with the Great Northern Highway, numerous sealed roads, good quality graded roads and multiple airstrips being present within the Oilex acreage. The Telfer Gas pipeline traverses STP-EPA-0131 and any future pipelines from the Canning Basin to the main export terminals at Port Hedland and Karratha would have to pass through the acreage.
As previously announced, farm-out activities are in progress and the new data and commitment program has been incorporated into the discussions with prospective farminees. Negotiations with the Traditional Owners on Native Title Agreement(s) applicable for all areas are nearing completion. The regulatory process of conversion to a formal exploration permit have commenced with the DMP.
Managing Director of Oilex, Ron Miller, said:
“We are pleased that another significant milestone has been completed for our Canning Project. This Project is highly prospective, offers long term growth potential and is strategically located close to infrastructure and Western Australia’s global resource centre. The prospectivity continues to be upgraded and the level of interest shown by potential farminees is increasing with it.”
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