PEL 629 – onshore South Australia
Cabot has 100 per cent. of a large onshore exploration licence in the Otway Basin, South Australia, PEL 629. The licence area is approximately 1.4 million acres and was granted in September 2013 with a five year term. The licence has been suspended since June 2014 to allow the Company to develop the understanding of the area in order to farm out the licence.
The area contains both conventional and unconventional opportunities from the early Cretaceous Crayfish group to the late Jurassic Casterton formation. There are nearby discoveries within the Otway Basin which prove a working hydrocarbon system and recent wells drilled in the Penola trough by Beach Energy have identified new plays. The Otway basin also has pipeline infrastructure which would enable quicker development of any discovery.
The Company has completed a first year work programme that included reprocessing and interpretation of 1000 line km’s of existing seismic and extensive geochemical analyses and basin modelling work that supports the hydrocarbon potential in the Lower Sawpit Shale and Casterton formation.
A recent independent review of all the work on PEL 629 has concluded that a study programme is required to determine what work should be included in a formal year two work programme. The Company will now execute this study programme with a view to establishing what will create value within the licence. The South Australian government plans a new licensing round to include areas adjacent to PEL 629. The results will be indicative of farmout potential in the area.
High Power Petroleum have farmed into the licence for a 25 per cent. interest, with the option to go to a 50 per cent, interest through paying for a $1 million seismic programme.