With this final farmin, Victoria Petroleum now has a significant 40% free carried interest in PEL 104 with no cost to the company for its 40% interest in the accelerated work program of seismic reprocessing, 150 kms of new seismic and the drilling of two wells.
Victoria Petroleum is planning for a March 2004 two well drilling program.
The July 2003 Christies-1 commercial oil discovery by Beach Petroleum/Cooper Energy along with the August 2002 Sellicks-1 2,160 barrels of oil per day oil discovery by the Beach Petroleum/Cooper Energy consortium 32 kilometers to the south of PEL 104 has significantly upgraded the Permian oil potential on the western edge of the Permian Cooper Basin where PEL 104 is located.
PEL 104 covers an area of 1,069 square kilometers and is immediately adjacent to the western edge of the Tirrawarra Oil Field, the largest oil field in the Cooper Basin and onshore Australia with estimated recoverable reserves of 70 million barrels of oil and 310 billion cubic feet of gas. The block also surrounds the Fly Lake Oil & Gas Field with recoverable reserves of 67 billion cubic feet of gas and 2 million barrels of oil and the Callabona Jurassic oil field production license.
PEL 104 is considered highly prospective for Jurassic and Permian oil and gas in view of its immediate proximity to producing oil and gas fields and the presence of prospective Permian and Jurassic section within the major portion of the block.
Twenty eight prospects and leads with Jurassic and Permian target horizons are indicated from preliminary mapping in the block with the chance for a major Permian stratigraphic pinchout trap in the western portion of the block.
The extensive database of 2,117 kilometers of 2D seismic and 12 square kilometers of 3D seismic provides a strong initial database for the delineation of prospects within the block. Only 3 wells have been drilled in the Permit, with two wells with interpreted by passed gas pay and the other well with oil shows.
An active exploration drilling program of up to 11 wells planned over the next 6 months for the South Australian part of the Cooper Basin by current successful explorers, Beach Petroleum Limited, Stuart Petroleum Limited and Cooper Energy NL, will further focus the industry's attention on these areas adjacent and in the vicinity of PEL 104.
Victoria Petroleum's large no cost equity interest of 40% in this highly prospective Cooper Basin block provides an excellent first entry into the South Australian portion of the Cooper Basin where the latest round of 2002-2003 drilling on Santos released acreage has an 63% oil discovery success rate.
Following the above farmin to PEL 104, Victoria Petroleum retains a very significant and highly prospective "core" exploration acreage position in both the South Australian and Queensland portions of the Cooper Eromanga Basin, the South Australian PEL 104 interest adding to Victoria Petroleumís existing interests in south west Queensland in ATP 589P.
Victoria Petroleum plans to further increase its interests in the Cooper Eromanga Basin in South Australia and Queensland.
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