WA-435-P, WA-436-P, WA-437-P and WA-438-P – Bedout Sub-basin







News:
03/05/2016 – Finder hands over the baton to Quadrant in the Bedout Sub-Basin. Finder has entered into a sales and purchase agreement with Quadrant Oil Australia Pty Ltd for its entire acreage holding in the Bedout Sub-basin. For more details please click here.

New oil and gas province offshore Australia confirmed – Finder’s deal with Quadrant insulates Finder from further exploration costs, but maintains access to upside

Finder has entered into a sales and purchase agreement with Quadrant Oil Australia Pty Ltd for its entire acreage holding in the Bedout Sub-basin. Following the successful farmout of WA-435-P and WA-437-P to Apache (now Quadrant) and JX Nippon the Phoenix South oil discovery was made in 2014 and the Roc wet gas discovery was made in 2015. The 2014 Phoenix South oil discovery was arguably the most significant new oil play on the North West Shelf since the Wanaea/Cossack discovery 25 years ago with the 2015 Roc wet gas discovery delivering potential to provide gas into the domestic gas market in early the 2020s. With the discovery of oil at Phoenix South-1 the 1980 Phoenix-1 discovery has been reclassified as an oil discovery. The transaction is effective 1 March 2016 and is subject to conditions precedent as well as procurement of regulatory approval and registrations approval. Financial details of the transaction remain confidential, but include a combination of success payments and a royalty. Finder was advised by Miro Advisors Pty Ltd.

The WA-435-P, WA-436-P, WA-437-P and WA-438-P Exploration Permits were awarded to Finder and Carnarvon on 4 August 2009 (Permits). These Permits are situated in the north-western Bedout Sub-basin within the greater Roebuck Basin, offshore Western Australia. The Permits lie in a previously under-explored area between the prolific Carnarvon Basin hydrocarbon province to the southwest and the Browse Basin to the northeast. The town of Port Hedland lies approximately 150 km to the south of the Permits and Broome lies 250 km to the northeast. Permit Year Six has been extended for all four Permits until 3 August 2017 with a commensurate suspension of the Permit Year Six work program commitments.

Phoenix South-1

  • Significant oil discovery with potentially large reserves

• There is estimated to be as much as 300 mmbbls in place in the Triassic reservoir;

• Phoenix South is arguably the most significant oil discovery on the North West Shelf in the last 25 years.

  • Oil and reservoir quality indicate a potential commercial discovery

• The Phoenix South-1 well intersected at least four oil columns ranging in thickness from 26 to 46 metres;

• Potential oil productive reservoir with permeability calculated up to hundreds of millidarcies;

• Six oil samples recovered with API gravity estimates of 46 to 48 degrees;

• Significant reservoir improvement – as seen in Keraudren-1 tied to the 3D to the southeast.

Roc-1

  • Significant gas discovery with potentially large reserves

• The Roc-1 crestal test of primary target was water wet, ie the (Phoenix South oil pay level) however wet gas pay was intersected at the deeper secondary target;

• There is estimated to be as much as 1.4 TCF in place in the Triassic reservoir;

• The intersection of the wet gas pay is ~90 metres down-dip from crest with ~40 km² up-dip potential and the Roc-1 well has determined the limits of the field;

• Gas and reservoir quality indicate a potentially commercial discovery.

Extensive emerging hydrocarbon province with large exploration potential

  • Prolific and emerging hydrocarbon province – 100% success from drilling on 3D seismic data

• The excellent oil shows at Roc-1 confirm significant oil in the system, ie

    • above the Phoenix South-1 pay levels;

    • in the gas reservoir; and

    • bottom 50 metres with possible sand development at TD!

• The Bedout Sub-basin offers a naturally hedged portfolio – gas for the domestic market and/or oil depending on the economic cycle.

  • Significant upside and running room

• Four permits totaling 21,720 km² (5.36 million acres) captures the known limits of the petroleum system;

• >60 remaining prospects and leads greater than 10 km² currently identified on existing data over five play levels;

• ~4,100 km² of existing 3D seismic data and ~5,100 km² of NEW 3D seismic data and 9,800 km of NEW 2D Seismic data to explore;

• Exposure to near-term appraisal and exploration drilling and potential development with appraisal success.

Development concepts are currently being assessed targeting early first oil and/or gas

• Reputable operator and a motivated Joint Venture;

• Quadrant is an operator of choice in Australia and has a strong reputation for developing projects on time and on budget;

• The Joint Venture is aligned with the exploration and development strategy.

Geology of the Bedout Sub-basin

The Bedout Sub-basin consists of an east-northeast to west-southwest trending Mesozoic depocentre that is filled with approximately 2.5 km of Palaeozoic sediments and 7 km of Mesozoic section. The sub-basin is separated from the Beagle Sub-basin to the west by the North Turtle Hinge Zone, and bounded to the northwest by the Bedout High. The Mesozoic section has generally experienced gentle structuring and thickens to the west before pinching out against and partly draping over the Bedout High. To the east and south the Mesozoic sediments thin and progressively onlap the older Palaeozoic section.

The Bedout High locally separates the Bedout Sub-basin to the south from the Rowley Sub-basin to the north and consists of uplifted and eroded Permo-Carboniferous sediments above an interpreted faulted basement core and is capped by Late Permian volcanics. Early-Middle Triassic sediments onlap the Bedout High from all directions and approximately 3 km of Late Triassic-Cainozoic sediments are draped over the top. The Bedout High is approximately 30 km wide at its upper surface which is expressed as a peneplain.

Only seven wells have been drilled in the Permits to date. The two wells, Phoenix-1 and Phoenix-2, drilled on the large Phoenix structure in Exploration Permit WA-435-P. It now appears that the Phoenix-1 well intersected significant gross oil pay, which was not recognised at the time of drilling, and was thought to be a gas discovery, due to the gas influx on the mudlogs. Depending on petrophysical cut offs used it appears that Phoenix-1 recorded 110 metres of net hydrocarbon-bearing section in the lower-porosity, mid-Triassic reservoir. From the recent 3D seismic survey it is also now clear that Phoenix-2 was not drilled within closure.

The larger, Phoenix South structure in WA-435-P (5-15 km to the southwest and on trend from Phoenix-1) was drilled in 2014 and intersected 4 separate oil columns, from which oil samples with API gravity estimates of 46 to 48 degrees were recovered with permeability calculated up to hundreds of millidarcies potentially indicating a commercial discovery.

Further to the southeast in Exploration Permit WA-437-P lies the recent Roc-1 gas discovery. The Joint Venture drilled the Roc-1 well in Q4 2015. Reservoir quality improves southward toward the Keraudren-1 well as confirmed by the Roc-1 well result and the Phoenix South-1 well result. These Triassic structures have significant economic potential with the discovery of an emerging hydrocarbon province on the North West Shelf of Australia.

Prospect and leads map showing Roc-1, Phoenix South-1 and Phoenix-1 discoveries and over 140 prospects and leads over 5 play levels, of which at least 60 have an areal extent > 10 km².

Oil samples recovered from the Phoenix South-1 well and a representative well log.