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Here it is.
3 April 2004 Quarterly Report for the period ending 31 March 2004
HIGHLIGHTS FOR THE QUARTER · Cooper Basin drilling expected to commence in June · PEL 115 study identifies 22 prospects and leads · Seismic survey to commence in New Zealand · Impress completes fund raising · Healthy cash position of $3.95 million
FINANCING ACTIVITIES During the quarter Impress finalised its fund raising via an issue to sophisticated investors of $1.36 million (before capital raising costs). This completed the December 2003 and January 2004 raisings to a total of $2.29 million. After some expenditure on seismic and other exploration activities during the quarter, Impress has $3.95 million in cash to fund its share of the 2004 Cooper Basin drilling program of up to seven wells.
EXPLORATION ACTIVITY PEL 115 The operator has completed an initial study of PEL 115 and has identified 22 leads and prospects of which 17, with mid range hydrocarbon potential, would be economic in the event of a discovery. There are 5 prospects that have marginal economics at the mid range level. A number of the features identified have potential for discovery in more than one horizon and in all cases they are very close to infrastructure. At this stage 13 prospects are identified as having oil potential and 9 gas and liquids potential. In a number of cases the prospects are ready for drilling while a number also will require minor seismic reprocessing and/or further interpretation which is currently ongoing. In addition casing is being purchased and rig contracts being secured. Following the late March 2004 PEL 115 Joint Venture meeting it was recommended that four wells be drilled, three oil prospects in the southern part of the permit and one large gas prospect in the northern most block. The drilling of four wells will be subject to unanimous Joint Venture approval as the statutory commitment for 2004 is only two wells. Due to the difficulty in acquiring casing, as well as the general lack of rig slots due to a significant increase drilling activity, it is anticipated that drilling will not commence until June, in the southern part of the permit. The first well to be drilled will be identified after a further JV meeting.
PEL 104, COOPER BASIN, SOUTH AUSTRALIA, 12.5% WORKING INTEREST PEL 104 covers 1,069 square kms and is located immediately adjacent to the Tirrawarra Oil field, Australia’s largest onshore oil field with estimated reserves of 70 million bbls and 340 billion cubic feet of gas. Also adjacent is the Fly Lake Oil and Gas field and the permit surrounds the Callabona oil discovery. In August 2002 the Sellicks 1 well-located 30 kms south of PEL 104 flowed 2,160 barrels of oil per day and in early July 2003 the Christies 1 well was declared commercial with an 18 metre oil column. Impress considers the permit is highly prospective for both gas and oil in both the Permian and Jurassic sequences that are highly productive in the Cooper/Eromanga Basin. Under the terms of the Agreement Springfield will contribute 30% of the initial work program (estimated cost $4.2 million) to earn a 15% interest in PEL 104. Preliminary analysis of the blocks outlined in excess of 20 leads and prospects some of which required further seismic to mature and some of which required seismic reprocessing. The 215km Andracurie Seismic survey, carried out in both permits, was completed in mid February. It is currently being processed. This is expected to be completed in late May. Following receipt of the data, interpretation and analysis of the leads and prospects will commence. At this stage it is intended to drill two wells in PEL 104 and one well in PEL 111. The final drilling program will be known by mid June at which time the drill locations will be chosen. Drilling in PEL104/111 will probably commence after the PEL 115 wells have been completed (late 3rd quarter) however as there may be the requirement of a larger rig for the PEL 111 prospects there is the possibility that, if a rig slot was available, drilling could be held concurrently.
PEL 86,87 and 89, COOPER BASIN, SOUTH AUSTRALIA, 15% WORKING INTEREST There was no activity in the permits during the quarter.
PEP 38728, ONSHORE NEW ZEALAND, 5% WORKING INTEREST During the March quarter and continuing into the next quarter the Operator will continue to evaluate the Ratanui lead and the Miocene amplitude anomalies. This will complete the work program for the permit year to the 16 August 2004 after which a new exploration program for the August 2005 year will be submitted or the permit will be relinquished.
PEP 38716, ONSHORE NEW ZEALAND, 5.48571% WORKING INTEREST During the quarter mapping of the permit resulted in the identification of two leads at Rawhitiroa and Atarangi. In mid May a 14 kilometre seismic program will be run over the two leads. This will complete the work program for the year to 30 January 2005 after which a well will have to be drilled or the permit surrendered.
OTHER PROJECTS Impress is continuing to evaluate oil and gas opportunities, including production, and anticipates that one or more of these opportunities will become available to the company over the next two quarters. For further information, please contact Douglas Jendry, Executive Chairman on (08) 9214 2500.
ITC Price at posting:
0.0¢ Sentiment: None Disclosure: Held
