International TME Acquires Stake in Gippsland Basin

International TME Resources has acquired a stake in another offshore oil & gas permit. The permit, VIC P-54 is located in the Gippsland Basin, offshore Victoria, Australia. The permit contains 155,676 acres.

The TME royalty block is in the lowest risk area for exploration in the Basin. New 3D seismic technology is being applied to the block and several prospects have been identified. The block had a previous gas discovery called the LONGTOM which was not completed due to low gas prices and lack of gathering facilities at the time.

The Operator for the permit is Nexus Energy Limited.

Reserve estimates for prospects on the block are significant:

  • LONGTOM FIELD - 87 BCF to 480 BCF of Gas; Logs indicate a 1,253 feet gas column in the Longtom discovery well.
  • SOUTH LONGTOM - 85 BCF of Gas Recoverable
  • GRAYLING & NORTH GRAYLING - Combined potential Recoverable Reserves of 130 Million BBLS. of Oil
  • HARDYHEAD - 18 Million BBLS. of OIL Recoverable
  • HUSSAR - 10 Million BBLS. of OIL Recoverable

  • These prospects lie within the trend of hydrocarbon migration in the north of the Basin and are analogous in structure and type to large producing fields in adjacent Esso acreage such as the TURRUM FIELD which contains 600 Million BBLS. of Oil.

    Drilling on the project is anticipated to begin in the fall of 2004. TME management believes this block could provide a significant revenue stream.

    The permit now has close proximity to infrastructure such as gathering lines and terminal facilities. TME Onshore Cooper-Eromanga Basin royalty holdings total 3,328,304 acres. Offshore royalty holdings in the Gippsland Basin now total 370,572 acres.