Otway Basin OTWAY BASIN - onshoreBAS's onshore Otway Basin exploration projects complement the Company's offshore holdings in the Gippsland and Bass Basins. The area has good road access and infrastructure, which could allow rapid and cost effective commercialisation of any oil discoveries. The extensive gas pipeline network in the Victorian Otway Basin also enhances the potential to commercialise any gas discoveries.
Exploration permit PEP 167 is located in the onshore Otway Basin, near Portland, in western Victoria. BAS holds a 100% interest in the permit which comprises some 833 sq km.
PEP 167 contains discovery wells at the 1987 Windermere-1 oil well and at the 2002 Port Fairy-1 oil and gas discovery well. The adjacent PEP 150 permit also contains an oil discovery at the Lindon-1 and 2 wells. More generally, there have been numerous hydrocarbon shows and recoveries in this area of the Otway Basin, often in wells that may have failed to intersect valid structural closures due to sparse and poor quality seismic data. These existing oil and gas discoveries demonstrate an active petroleum system with the potential to charge economic accumulations.
Windermere-1 produced 32 barrels of oil from an open-hole test. BAS’s review indicates that there is good potential to achieve commercial flow rates at Windermere, particularly given careful well design, modern drilling techniques and potentially employing horizontal drilling. The economics of any oil production that may be established in this area are favourable, with good access and relatively short transport distance to the Geelong refinery.
In early 2010 BAS completed recording of a 3D seismic survey over the area of the Windermere-1 well and surrounding leads. Positive results from this survey could lead to drilling in 2011.
PEP 150 (application area): BAS can earn 15% via farmin
BAS can earn a 15% interest in PEP 150 by contributing to the drilling of a well. This area contains the Lindon oil discovery, but the permit is yet to be granted subject to negotiation of Native Title. BAS looks forward to a resolution of Native Title issues that will allow the granting of the PEP 150 permit and the commencement of an exploration programme in the area.
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