Empire Oil & Gas Awarded Canning Basin Permit

Empire Oil & Gas

Empire Oil & Gas' subsidiary, Gulliver Productions Pty Ltd has been granted exploration permit EP 488 in the onshore Canning Basin in Western Australia. The new permit is effective from June 16, 2006 for an initial six year period and was previously application 14/00-1.

The EP 448 permit has an areal extent of approximately 16,800 square kilometers and is located in the central and western part of the onshore Canning Basin, southeast of the Great Northern Highway, an all-weather sealed road. The permit is 200-400 kilometers south of Broome and 300-500 kilometers east of Port Hedland.

The potential reservoir objective at the Ordovician Nita Formation is sealed by thick, red bed and salt sequences at the base of the Carribuddy Group. These are excellent seals in the Permit area.

Source for hydrocarbons are provided by the thick, organic rich marine shales in the Ordovician Goldwyer Formation which are reportedly the richest source rocks in Western Australia and immediately underlie the potential Nita Formation reservoirs. Based on geochemical studies, they are interpreted to be thermally mature for oil generation I the targeted prospective part of the Permit.

Seismic reprocessing is planned to enhance seismic quality at the Nita Formation level and to bring out the character of the algal reservoir rocks to define algal build up structures for drilling.

The participants in EP 448 are Gulliver Productions (Empire Oil & Gas) with 25%; Maneroo Oil Company with 45%; Indigo Oil Pty with 20% and Kjirt Exploration Services with 10%.