Strike Oil to explore for coal seam gas in Cooper Basin
STRIKE Oil will target coal seam gas in the Cooper Basin region after winning the first petroleum exploration licence granted under a native title land access agreement.
Strike Oil and joint venture partner Australian Gasfields Limited will have a 5-year licence for PEL 96, located south of the Moomba gas production facilities and close to gas infrastructure servicing South Australia, Queensland and New South Wales.
The company will be an early coal seam gas player in the area, Strike Oil managing director Simon Ashton said.
"Strike Oil is uniquely positioned to capitalise on the favourable market outlook for coal seam gas companies with a fast track exploration and development strategy with drilling planned to commence in the September quarter,'' Mr Ashton said.
Previous drilling and seismic indicates coal is present over an area of more than 1,800 sq km, Strike Oil said.
It is currently planning a drilling program for the prospect with the intention of securing regulatory approvals for drilling in the September quarter.
The licence is the first granted under the landmark Yandruwandha/Yawarrawarrka Native Title Petroleum Conjunctive Indigenous Land Use Agreement.
The Conjunctive Petroleum ILUA was a first for the State, and was Australia's first such agreement covering a proven petroleum-producing region, Mineral Resources Development Minister Paul Holloway said.
The Native Title land access arrangements were implemented in South Australia in 2001.
"The acceptance of the Conjunctive ILUA by a licensee represents an evolutionary step in streamlining the processes that enable the grant of licences for petroleum exploration and production in South Australia, while also protecting rights that flow from Native Title,'' Mr Holloway said.
Five Cooper Basin exploration licences have been offered to the market through a competitive bidding process, with bids due to close 15 October 2009.
Energy Business Review
Strike Oil Receives PEL 96 Exploration License In Southern Cooper Project Area, South Australia Published:13-May-2009
Strike Oil Limited (Strike Oil) has been granted a new petroleum exploration license, PEL 96, over its highly prospective Southern Cooper project area in South Australia where it will be targeting coal seam gas (CSG). Strike Oil will have a 66.7% working interest in the five year license which covers ground of more than 4,050 square kilometers in Australia’s premier onshore conventional oil and gas region.
The permit is immediately south of the Moomba gas production facilities and is close to substantial gas infrastructure servicing South Australia, Queensland and New South Wales.
The license is also the first granted under the Yandruwandha/Yawarrawarrka native title petroleum conjunctive indigenous land use agreement. The license is also the first granted under the Yandruwandha/Yawarrawarrka native title petroleum conjunctive indigenous land use agreement. Strike Oil and its joint venture partner, Australian Gasfields Limited (33.3 % Working Interest), are currently planning a drilling programme for the prospect with the intention of securing regulatory approvals for commencement of drilling in the September 2009 quarter. The program will be designed to evaluate the gas content and productivity characteristics of the coal as an input to the future reserve and resource assessments for the project.
Simon Ashton, Strike Oil’s managing director, said “We are delighted at the granting of this new exploration license in what is undoubtedly Australia’s premier onshore conventional oil and gas region and to be an early coal seam gas player in the area. Strike Oil is uniquely positioned to capitalize on the favorable market outlook for coal seam gas companies with a fast trace exploration and development strategy with drilling planned to commence in the September quarter.
“We were particularly attracted to the location, close to major pipeline infrastructure and the encouraging findings of previous drilling and seismic work in the area,” Ashton said.
Stewart Elliott, Australian Gasfields Limited’s managing director, said “As 33.3% joint venture partner in PEL 96 with Strike Oil as operator, we are delighted that this exploration license has been granted. We are fully supportive of Strike Oil in its planning to secure regulatory approvals and enable drilling of this exciting prospect to commence in the September quarter”.
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