In August 2019, the Company announced its plans to acquire 100% of two Petroleum Exploration Licences in the prolific Cooper-Eromanga Basins, PEL 112 and PEL 444. The Licenses are located in the more explored South Australia section of the Cooper Eromanga Basins. Both blocks are located on extensions of the Western Flank oil fairway, the most important recent contributor to oil production in the Cooper Basin. This fairway hosts over 30% of the Cooper Basin oil reserves and has been a major industry focus for new drilling and field development over the last 10 to 15 years.
PEL 112 covers 1,086 square kilometres and PEL 444 covers 1166 square kilometres. Each PEL is currently in temporary suspension. The PEL’s carry an obligation to drill one well each before January 2021 (PEL 112) and January 2022 (PEL 444) respectively. Both blocks have modern 3D seismic surveys covering 127 square kilometre in PEL 112 and 80 square kilometres in PEL 444. Oilex’s intention is to re-evaluate the 3D seismic data using advanced IP which is designed to fast track the identification of stratigraphic features and geobodies, particularly given the the Western Flank discoveries include many fluvial channel features.
The PEL’s are favourably situated given the proven westward migration of oil from the Patchawarra Trough to the Western Flank fields. Migration is confirmed by the presence of oil in a well just to the east of PEL 444. Oilex believes that the existing high-quality 3D data coupled with advanced evaluation tools will result in the identification of new targets for stratigraphic oil pools within these licenses.
In September 2019, the Company announced it had entered into an exclusivity agreement with Koru Energy (KLW) Ltd for a potential acquisition of up to a 50% relevant interest in the Knox and Lowry, and Whitbeck gas discoveries in the East Irish Sea, offshore the United Kingdom. The KLW gas discoveries are a series of shallow water gas accumulations that were discovered between 1992 and 2009 by the then operators and successfully drill-stem tested confirming discovered volumes that the Company and Koru wish to bring into production. Knox and Lowry drill stem flow rates were 12.3MMCFD and 22MMCFD respectively.
The East Irish Sea is a prolific basin which has produced more than 6TCF of gas to date with considerable existing gas production, gathering, processing and transportation infrastructure. The KLW discoveries are in proven conventional shallow reservoirs in shallow water near existing EIS gathering and production infrastructure which delivers gas to the nearby and recently refurbished North Morecambe Gas Production Platform and Terminal.