Oil Basins: Backreef-1 Production Test announcement pending,...

Oil Basins: Backreef-1 Production Test announcement pending, halt granted
Friday, May 25, 2012 by John Phillips Canning Basin focused Oil Basins (ASX: OBL) has some potentially very interesting news on the horizon, with the ASX today granting the company a trading halt pending an update to the market in relation to the Backreef-1 Production Test.

Backreef-1 was drilled in October 2010 and intersected estimated net oil pay of between 12 metres and 39.2 metres.

Oil Basins had said previously that a modestly successful testing would value the Backreef Oil Pool at between A$1.8 million and A$5 million risked to itself.

It would also lead to a large reduction in risk for other mapped leads in the area that hold in-place oil of 48 million to 117 million barrels of oil.

Oil Basins and Green Rock Energy (ASX: GRK), which has a 20% stake in the Backreef Area, will also have options to follow up on the discovery by using the 2 drilling slot options included in the testing contract with Australian Drilling Services.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Tuesday 29 May.