PL-231 REIDS DOME
Permit ATP 333P covers 231 km2 and is located in an area known as the central Bowen Basin and lies on the western flank of the Denison Trough, the gas fields of which have been supplying the local markets since 1990. ATP 333P has two principal targets: The deeper highly prospective and substantial lower Reids Dome, and the shallow, lower risk Cattle Creek Formation sandstone.
Reids Dome is a large elongated surface anticline, almost 40 km long and 10 km wide. The lower Reids Dome Beds which are to be targeted by the Company lie at between 1,400m and 2,500m with the principal target at the lower depth. The Experts have indicated that the structure is very large and well situated to trap gas migrating from within the Denison Trough, and has concluded that the gas potential of the Reid Dome Beds is considerable and justifies a fully engineered deep test.
PL-231 REIDS DOME
Permit ATP 333P covers 231 km2 and is located in an area known as the central Bowen Basin and lies on the western flank of the Denison Trough, the gas fields of which have been supplying the local markets since 1990. ATP 333P has two principal targets: The deeper highly prospective and substantial lower Reids Dome, and the shallow, lower risk Cattle Creek Formation sandstone.
Reids Dome is a large elongated surface anticline, almost 40 km long and 10 km wide. The lower Reids Dome Beds which are to be targeted by the Company lie at between 1,400m and 2,500m with the principal target at the lower depth. The Experts have indicated that the structure is very large and well situated to trap gas migrating from within the Denison Trough, and has concluded that the gas potential of the Reid Dome Beds is considerable and justifies a fully engineered deep test.
The shallower Cattle Creek Formation is regarded by the Company as having a proven resource of natural gas through commercial gas flows having been attained by a number of wells both in and surrounding the permit area. It is the view of the Board that irrespective of the results of the exploration well at the lower Reids Dome Beds, the resources within the Cattle Creek Formation will provide the Company with a commercially viable resource which, in effect, provides the proposed exploration with a 'safety net' that is not present in many hydrocarbon exploration situations.
Reserve studies based on mapping of high quality direct hydrocarbon indicators have shown that, the Reids Dome Gas Field has the recoverable reserves potential of 30 Bcf from the shallow sandstone formation.
However, the greater potential is in the deep section down to 2350m which hasn't been tested. Gas wells drilled nearby in the deeper Permian sands using under balanced drilling have produced at rates over 20 MMscf/d, and the independent reserves review indicates potential for over 600 Bcf of recoverable reserves.
Independent reports show that the project is economically robust, even for the development of only the shallow gas reserve
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