east wing 1 st well testing program to begin, page-7

Wednesday, 27 August 2008

ESSENTIAL Petroleum believes the Discovery Bay High play in the Otway Basin between Portland and Victoria's South Australian sea border has the potential to be Australia's next major hydrocarbon province.

Addressing the second day of the Paydirt 2008 Victoria Resources Conference, Essential managing director John Remfry said the play has the potential to host 2 trillion cubic feet of gas resource and up to 2 billion barrels of oil.

The Discovery Bay High is partly an onshore play and large offshore play in the central Otway Basin.

Remfry said the play has a simple profile and is similar to the much smaller but prolific Pecten High, also in the Otway Basin.

"The Pecten High has already yielded in excess of 1.7 trillion cubic feet of gas," he said.

"By comparison, the central part of the Discovery Bay High hosts a similar prospect and lead inventory to the Pecten High, ranging from small accumulations onshore to very large continental margins plays offshore.

"This makes for a compelling exploration play fairway offshore from Portland.�

Remfry added if its East Wing gas discovery in the Pecten High - which will be placed on production testing for both oil and gas on Saturday - is replicated further west in the Discovery Bay High, it would mark the emergence of a new hydrocarbon province.

"A sustainable oil flow from East Wing will be a first step in changing the view of the Otway Basin as being a gas-only basin," he added.

Essential's permit portfolio has complete coverage of the Discovery Bay High.