origin energy deal, page-3

Yes, this is the first of the Cooper JV, merger, acquisition, etc type of transactions which we will see in next 12-18 months in the Cooper. I think we will see even much bigger moves to some other assets; e.g. BPT's, DLS's or even Santos's.

The "Tight Gas" gas potential of Copper is huge. I have made a lot of research. I even don't have time put them all here. I can only tell you briefly;

The whole Gidgealpa Group is gas saturated but the main target of the explorers who know what they are doing, it's all about the TIGHT GAS in the Patchawarra sandstone of Patchawarra formation which is below the REM section.

REM is above the Patchawarra formation. it is consist of Roseneath Shale, Epsilon Formation and Murteree Shale. (see the stratigraphic schema below). Beach Energy insisted that REM is their main target but others (like Santos) were quietly assessing the potential of Patchawarra Tight Sands. Beach was saying REM has a self sourced hydrocarbon potential, but some others (including NSE) thinks that Patchawarra Formation is the main source and the HCs in the REM section was migrated from the Patchwarra coals and tight sands. There is some argument about it. Or some companies were trying to hide where the real potential was.

NSE mentioned about that on their presentation on Dec. 10 2013, and was clearly point out the Tight Sands. (See below)

NSE thinks that tight sands have the real hydrocarbon potential. And it is also confirmed by Origin's farmin move to Senex's tenements today

Now, see the maturity map of Cooper Basin below.

Then see the Senex's tenements below which Origin Energy has farmed in (They are PEL514 which covers both sides of NSE-AQO's PEL570 and the red ones on the south of Nappamerri Trough)

You can see Origin has farmed in to the SXY's tenements which are only in the high maturity zones. NSE's PEL570 is in this zone as you can see.

The Senex's tenement PEL514 (which is next to NSE's PEL-570) in the Patchawarra Trough is actually much better than the ones (marked in red) at the south of Napamerri trough as well. That is because the Senex's PEL514 (like NSE's PEL570) Patchwarra Trough is in the over pressured zone while the the south tenements are not in the overpressured zone.

"Overpressured" means, BSCA (Basin Centered Gas Accumulation) which we can also say Continues Tight Gas Accumulation is possible. (That is a gas accumulation on continues formations)

Here is the over pressured map of Cooper Basin. The red lines are the boundaries. The explorers in the red line borders are mainly Santos, Beach Energy (Chevron JV) and Drillsearch (BG Group JV). And now Senex, Origin Energy, NSE and other small JV partners.

Here is the stratigraphic schema of the Cooper basin (Only Gidgealpa Group is given)