MEC Updates on Operations at Bonaparte Basin, Sydney Basin in Australia

MEC Resources provided Thursday an update on its investee company Advent Energy Ltd. (Advent), an unlisted Australian-focused oil and gas exploration company, and its 100 percent owned EP386 and RL1 permits in the onshore Bonaparte Basin and PEP 11 (85 percent) in the offshore Sydney Basin. Advent’s major shareholders include MEC Resources Ltd., BPH Energy Ltd., Talbot Group Investments and Grandbridge Ltd.

Bonaparte Basin Project

Beach Energy Ltd. – Drilling Results Bonaparte Basin

Beach Energy have released results from the drilling of their Cullen-1 well in the Bonaparte Basin in the area adjacent to Advent’s Bonaparte areas. Beach Energy report extracts include:

• “initial Cullen-1 findings highly encouraging and results currently being assessed”
• “5,249 feet (1,600 meters) of over-pressured marine shale with variable carbonate content
  • Encouraging gas and oil shows in tight sands
  • 177 feet (54 meters) of core recovered”
• “3,281 foot (1,000 meter) of fractured platform carbonate
  • Elevated gas shows over natural fracture intervals
  • Extended production testing required to assess potential”

Beach Energy Ltd. – Annual Report

“The Cullen-1 exploration well was designed to evaluate the conventional hydrocarbon potential of the largely unexplored Keep Inlet sub-basin on the Bonaparte Basin. Subsequent to year-end, the well was cased and suspended for further evaluation after intersection 3,281 feet (1,000 meters) of naturally fractured limestone and interbedded shale with elevated mud readings. Furthermore, 1,600 meters of dark marine shales were intersected and cored for analysis of gas content and other parameters.”

PEP 11 – Update

Advent has commenced preparation of an Environmental Plan for a seismic survey within PEP 11. This survey is intended to refine the existing multi-trillion cubic feet (Tcf) structural targets present in the offshore Sydney Basin for future drilling. If successful, and gas is discovered in the future as a consequence of these activities, the economic benefits for New South Wales (NSW) gas and electricity consumers could be significant.

Bonaparte Basin

During 2014 Advent continued with commercial discussions, planning and engineering evaluation for development of its gas resources in EP386 and RL1. It signed a letter of intent for gas supply and has continued discussions on the framework of potential gas off-take agreements. In addition, Advent has evaluated the optimum production process of compressed natural gas (CNG) and liquefied natural gas (LNG) delivery of gas to mine sites and other potential customers.