Ann: Appointment of OBL as manager of VIC/P41 Far, page-16

re: Ann: Appointment of OBL as manager of VIC... Hi Nat, I know a little of the area.

VICP41

BAS 45% and operator
MOG 30% (reduced to 25%, subject to farmin by OBL)
SER 25% (reduced to 17.5% subject to farmin by OBL)
OBL 12.5% (subject to earning pursuant to farmout by MOB &SER)


Firstly, "Gippsland basin area is saturated with gas and oil fields and heavily explored"

Honey, I give a thumbs up to you. That is a true statement.

Punters, get your maps out. Find Lake Reeves, go across one of the coarse ways and shove a long stick into the shallow, non-swimming, non-fishing lake (except for eels) and you will discover the black smelly stuff on the end of your stick!

For decades I have known men working offshore and at the Longford gas plant. It's a proven and heavily explored field.

And, going on the activities of late.

From OBL

The Company is pleased to advise that as a result of the Vic/P41 Joint Venture Meeting held on 28 April 2010, OBL was appointed agent on behalf of the Vic/P41 joint venture for Managing the Farm-Out.

Recently, on 22 April 2010, Esso Australia, an ExxonMobil subsidiary, reported that they had encountered oil and gas at the South East Remora-1 exploration wildcat well. Located 35 km off the Victorian coast in Bass Strait and 3 km north of the Marlin Platform, the well was drilled in 57 metres of water to a total depth of 3,602 metres below sea level, the wildcat discovered oil and gas in the Latrobe and Golden Beach groups in the Gippsland Basin. The well is included in the Gippsland Basin Joint Venture between Esso Australia Resources (50%, operator) and BHP Billiton Petroleum (Bass Strait) (50%). Data analysis and additional studies are being conducted to evaluate the discovery.

The importance of the South East Remora-1 discovery is that it has been made on the downthrown side of the Rosedale Fault due West to but on a similar geological setting to the Vic/P41 Kipling/Benchley Prospects and the nearby Kipper Gasfield. Verifying and derisking the Rosedale Fault play type prognosed by the Vic/P41 JVPs.


And from SER!

The eastward trending extension of the Rosedale Fault system sets up prospects analogous to the Kipper oil and gas field (first production scheduled for 2011 for ESSO et al). Key prospects on this trend are:

Kipling assessed as having P50 recoverable prospective resources of 124 milion barrels of oil and 620 billion cubic feet of gas.
Benchley assessed as having P50 recoverable prospective resources of 184 million barrels of oil and 1.4 trillion cubic feet of gas.
Lead A in the east of the permit is mapped on 2D seismic as a significant feature.

Further south in the permit, a second trend extension sets up plays that are anolagous to the Basker/Manta/Gummy oil and gas fields (in production since December 2006 for ROC et al). Along the trend, the Oscar prospects are defined on 3D seismic and are assessed as having combined P50 recoverable prospective resources of over 40 million barrels of oil.

The scale of potential discoveries at these and other Vic/P41 prospects and leads is significant.

From BAS

The recent ExxonMobil/BHP Billiton discovery at SE Remora-1 provides new impetus to exploration of
these trends and the nearby investment in the Kipper development is directly relevant to the Kipling
and Benchley prospects in Vic/P41.


Let me think... 124+184+40 million barrels, at say $45-50, plus the gas...Umm Couple extra cents on the SP I guess.


And here's the picture






Good luck to us all!

favco