This is a report from the AGE on 26 March 2007. THE COMMON THEME...

This is a report from the AGE on 26 March 2007.

THE COMMON THEME IS THAT MR ANDREWJEWSKI FEELS THAT THERE IS PETROLEUM OUT THERE. WHAT HAS SUDDENLY CHANGED AFTER THE STATE OF THE ART SEISMOLOGIC SURVEYS HAVE BEEN DONE???

ARE SAPEX SHAREHOLDERS BEING SHAFTED????

AFTER last year's false start,
Andrew Andrejewskis' SAPEX is
finally on its way to market in a
$12 million float.
The size of the float has
been cut from the $15 million
originally planned but given the
group's virtual entire coverage
of South Australia's Arckaringa
Basin, that could be put right
with any hint of exploration
success.
Most often referred to as
Australia's "forgotten" sedimentary
basin, the Arckaringa is
centred on the opal mining
town of Coober Pedy, some
450 kilometres to the west of
the prolific oil and gas fields of
the Cooper Basin.
The hydrocarbon potential of
the Arckaringa was the subject
of limited tests in the 1960s and
1970s when it was locked up by
Santos and Delhi Petroleum,
with the latter suggesting more
than 20 leads and prospects just
might have the (unrisked)
potential to contain 900 million
barrels of oil.
Santos/Delhi were encouraged
by the South Australian
government to relinquish the
land in 1987 but the low oil
prices and native title issues of
the 1990s meant the Arckaringa
was to remain forgotten until
SAPEX applied for the ground in
2000. It was awarded its
petroleum exploration licences
last year after finally securing
agreements with native title
owners under the right-tonegotiate
process.
Needless to say Andrejewskis
is as keen as mustard to finally
put the Arckaringa to the
modem-day test.
Andrejewskis, a geologist
with a background in management
roles in the resource
departments of South Australia
and the Northern Territory, is
joined on the board by Roger
Wilson (chairman), David King,
Paul Young and Pat Elliott.
The offer is 60 million shares
at an issue price of 20¢ each
with attached options on a onefor-
two basis. There are 40 million
shares held by the
founders, seed capital investors
and directors, giving a market
capitalisation on listing of
$20 Million.
SAPEX reckons the Arckaringa
contains a similar suite
of Permian-age sediments to
that found in the Cooper Basin.
There is some debate about
whether the sediments are too
27084324
Brief: SAPEX
Copyright Agency Limited (CAL) licensed copy
Age
Monday 26/3/2007
Page: 8
Section: Business News
Region: Melbourne Circulation: 200,000
Type: Capital City Daily
Size: 307.63 sq.cms.
Published: MTWTFSPage
1 of 2
Ref:
shallow but the counter argument
is that all of the oilforming
elements were in place
ahead of the "uplift".
Besides, only three exploration
wells have been drilled to
date and they were poorly
located to boot. It won't be long
before the debate on the Arckaringa's
potential gets some
hard evidence.
SAPEX is planning to drill at
least two oil exploration wells in
2007 after first gathering some
STATE OF THE ART seismic information.
While SAPEX is very much
an oil and gas explorer, it won't
be ignoring the coal seam gas
and coal potential of the
Arckaringa.