WHL Gets Seychelles Seismic Data, Farming-out Permit VIC/P67 Off Australia

Australian energy company WHL Energy Limited (WHL Energy or the Company) announced Thursday that it has received the initial “fast-track” data volume from the Junon 3D seismic survey acquired offshore the Seychelles by the Ophir Energy/WHL Energy JV in July. This post-stack migration volume is an intermediate product in the Pre-Stack Time Migration (PreSTM) processing of the 590 square miles (1,528 square kilometers) Junon 3D seismic survey.

An initial review of the fast track data is encouraging in that the key prospects identified on the previous 2D seismic data can be interpreted on the fast track volume, and it is expected that the fully processed 3D seismic volume will provide detailed definition of the Junon area features. WHL Energy are pleased that the fast track post-stack migration data generally shows encouraging seismic data quality although, as expected, the quality remains challenging in some areas due to the presence of shallow carbonate reefs.

The fully processed PreSTM dataset is now expected to be delivered during November. Interpretation of the fast track volume is now underway with an initial interpretation expected to be completed during December following receipt of the fully processed PreSTM data.

David Rowbottam, WHL Energy’s managing director, commented “It is pleasing to see the progress with the investigation of the high potential Seychelles project continue utilizing the latest technology available.”

“While this initial seismic volume of the Junon 3D seismic data is very early stage with a lot of state-of-the-art processing and interpretation yet to be undertaken, it is encouraging that the key geological features noted in the earlier 2D seismic can be interpreted on the fast track 3D seismic volume.”

“As with our VIC/P67 La Bella seismic, the real detail will not become apparent until we take delivery of the final Pre-Stack Time Migrated (PreSTM) processed dataset, which we now expect will be delivered in November. The follow-on PreSTM processed volume is expected to provide a significant uplift in data quality, as was experienced recently with the successful La Bella 3D seismic acquisition and evaluation.”

The Junon 3D seismic survey is designed to mature a number of prospects for drilling on the Junon trend in the east of the Ophir Energy/ WHL Energy Seychelles acreage (Junon South, Junon East and Junon Central), an area high graded by WHL Energy’s geological studies.

VICP/67

WHL Energy Limited has commenced a farm-out process for VIC/P67 to seek a carry through the exploration drilling phase while retaining meaningful exposure to the permit. A data room has been opened and strong interest has been received from a number of pre-qualified companies, with the process expected to take until the end of the year.

Regarding Peedamullah Petroleum’s (AWE) farm-in option, WHL Energy has granted AWE an extension to the exercise date for their option. The VIC/P67 Joint Venture agreed to some additional processing to further enhance the La Bella 3D seismic and as a result, AWE requested an extension to finalize their evaluation as well as to seek the necessary internal approvals of their recommendation.

The Joint Venture is continuing with the necessary activities for drilling currently planned for late 2015 subject to rig availability.

David Rowbottam, WHL Energy’s managing director, commented “The potential of VIC/P67 has been transformed by the La Bella 3D seismic survey into a material, long term gas supply opportunity from the Otway Basin. The seismic results exceeded our initial expectations and delivered a portfolio of low risk amplitude supported prospects and a range of high potential prospects that will also have an attractive risk profile. WHL Energy now views VIC/P67 as a strategic potential gas supply opportunity for the South Eastern Australia domestic market, with total best estimate Prospective Resources of 1,044 billion cubic feet (Bcf) gas and 31.2 million barrels of condensate and LPG, along with 2C (Best Estimate) Contingent Resources of 74 Bcf gas and 2.4 million barrels of condensate and LPG for La Bella Field, reported in the ASX announcement of Sept. 8* post the La Bella 3D.”

“The farmout process is being undertaken so that WHL Energy will be carried for the costs of exploration drilling and also to establish a Joint Venture that will take this project through its next phases – exploration drilling, and if successful, appraisal and development.”

“By the end of the year we expect to have the partnership established for the exploration drilling phase and be proceeding to drilling in the second half of 2015 or early 2016.”