Meridian Updates on Next Steps for PEL 82 in South Australia

Meridian Petroleum has announced an additional update on the next steps in the development of its PEL 82 license in South Australia.

Key Points

  • Further analysis of the 3D seismic data by the Company and its consultant geoscientists has identified a fifth Waarre sandstone trap bringing the total number of prospective Waarre/Flaxman structures to ten.
  • Additionally, integration of the 3D data with the 2D seismic across the whole license has identified a further interesting horst uplifted structure in the north of the license, outside of the area covered by the 3D seismic.
  • The proposal for renewal of the license for a further 5 year period has been submitted to Primary Industries and Resources South Australia ("PIRSA") for approval. The proposal clearly identifies the 50% of the total area of the license to be compulsorily relinquished. All of the identified structures are within the 137 square kilometer retained area applied for. The proposal provides for a minimum 2 well drilling program.
  • Initial volumetric analysis of the ten Waarre/Flaxman structures has been carried out. This analysis provides a guide to the prospectivity of these structures and is particularly useful in identifying the most prospective locations for drilling. Two locations stand out; the Waarre 1 and overlying Flaxman 1 traps with estimated P50 resources of 32 million bbls of oil or 45 bcf of gas; and the Waarre 2 and overlying Flaxman 2 traps with estimated P50 resources of 40 million bbls of oil or 54 bcf of gas. These prospects are located only 25 kilometers from existing gas pipeline infrastructure.
  • Excluding the horst uplifted structure, which may be sizeable, total estimated P50 resources for the ten targets are calculated as 133 million bbls of oil or 186 bcf of gas. These estimates are close to the previous estimates based on the 2D seismic published in October last year, but the more detailed data available from the 3D gives the Company greater confidence in the calculations. At this stage it is not possible to identify whether prospective resources would be oil, gas, or both.
  • The Company is currently in discussion with a number of parties interested in participating in the further development of PEL 82 through a drilling program.

Stephen Gutteridge, Chairman of Meridian, said, "The volumetric analysis, now based on the more detailed 3D seismic, has confirmed the significant prospectivity in the PEL 82 license, and the mapping of previously unidentified prospects is a bonus. We have also had the opportunity over the past two weeks to compare the PEL 82 geology with the prolific offshore Victoria Otway Basin and there is growing evidence that PEL 82 may be in the highly advantageous position of having offshore style plays in an onshore location."