The Company’s main goal is to discover and produce hydrocarbons and helium, thereby maximising shareholder returns by enhanced share value and potentially by dividend payments. It aims to operate a central Australian oil and gas hub connected to appropriate infrastructure to allow the export to domestic and overseas markets of both primary energy resources and value added hydrocarbon and helium products. Significantly, recent developments in the worldwide coal sector and recent coal discoveries by the Company in its vast Pedirka Basin mineral leases have led to interest from various groups in the Company’s wholly owned subsidiary, Merlin Coal Pty Ltd concerning potential coal resources in this area.
At the time of completion of this report, the Company had attained a milestone in its corporate objectives by the discovery of significant oil shows in the Surprise-1 well within EP 115 in the north western Amadeus Basin. Although the well has been suspended for re-entry and deepening into the main target zone due to problems with the drilling rig, a core was taken in the Lower Stairway Sandstone, a primary target above the main objective zone, the deeper Pacoota Sandstone. The core ended in sandstone which exhibited close to 100% fluorescence attributed to the presence of oil, with the base of the Lower Stairway Sandstone yet to be reached.
During the September 2010 quarter, the Johnstone West-1 well failed to flow oil to surface on test, but the oil shows here and at Surprise-1 have pushed the most westerly occurrence of oil within the Amadeus Basin much further west than any other occurrence of oil. The discovery of a “live” petroleum system this far west has potentially opened up a new petroleum exploration province. This development together with gas encountered at Ooraminna-2 in the Amadeus Basin and the significant coal intersections recorded in the Pedirka Basin have underscored the credibility of the Company’s original philosophy of putting together large areas of prospective ground in a counter-cyclical acquisition strategy.
For more information please download the PDF
