TXO report on CPR
From the TXO site this morning
29 January 2013
TXO PLC
("TXO" or the "Company")
UPDATE ON NEW JOINT VENTURE COMPANY TASMANIA OIL AND GAS LIMITED
TXO plc, an AIM quoted oil and gas investment company, provides an update on Tasmania Oil and Gas Limited ("TOG"), in that the Competent Persons Report being prepared for and on its behalf of TOG by Senergy (GB) Limited ("Senergy") is now complete . The Company has a current equity holding of 25% in TOG.
The Board of TOG announced today that:
Senergy has carried out an independent evaluation of the hydrocarbon potential of two seismically identified structures in Exploration licence EL 14/2009, granted to Great South Land Minerals Limited ("GSLM"), onshore Tasmania, Australia. TOG has a Mortgage Debenture over this Exploration Licence.
The results of this work have been presented in accordance with the 2007 and 2011 Petroleum Resources Management System (PRMS) prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) and others. GSLM has a 100% working interest in licence EL 14/2009 so the potential recoverable volumes quoted should be considered as both gross and net technical prospective resources.
Extract from Report
The permit area is approximately 3,108 sq km and includes two structures identified as Bellevue and Thunderbolt, which are reviewed in the Report.
The two structures were initially identified by GSLM while operating under the SEL 13/98 licence. GSLM had acquired approximately 1,150 line km of 2D seismic over the region and drilled seven stratigraphic wells. Five of the wells encountered gas shows in the Permian and two wells encountered gas shows in the Proterozoic. In addition, GSLM acquired gravity and magnetic surveys over much of the area and conducted numerous regional geological studies.
The Tasmania Basin covers approximately half of the island of Tasmania.
However, Senergy considers that the current seismic database is adequate to define one prospect at the Silurian-Ordovician level (the Bellevue prospect) and potentially a number of leads including the Thunderbolt lead. The prospectivity of the two structures is the focus of this report.
The Ordovician and Permo-Triassic reservoirs are potentially prospective for oil and gas although the Ordovician is likely to be gas prone because of its greater depth of burial, source rock maturity and reservoir quality. The assessment concludes that the Bellevue prospect is potentially sufficiently well-defined to be ready to drill and it constitutes a high risk but high reward opportunity. The net prospective resources and [associated risk or geological chance of success] for the Bellevue prospect and Thunderbolt lead are given below:
Table 1: Ordovician Larapintine Play System; Net Prospective Resources for the Bellevue Prospect
Net Undiscovered Prospective Resources1 (BCF gas)
Bellevue Prospect
Low
Best
High
Mean
Risk%
Silurian, Eldon sandstones
46
302
1,608
666
6
Ordovician, Gordon upper limestone
54
385
2,462
1,018
6
Ordovician, Gordon lower limestone
40
270
1,770
735
5
(Note 1: The low, best high and mean values are probabilistic estimates for each prospective reservoir in the prospect area. Net values are reported and these are also gross as GSLM currently holds 100% equity.)
Table 2: Ordovician Larapintine Play System; Net Prospective Resources for the Thunderbolt Lead
Net Undiscovered Prospective Resources2 (BCF gas)
Thunderbolt Lead
Low
Best
High
Mean
Risk%
Silurian, Eldon sandstones
5.2
38
244
104
4
Ordovician, Gordon upper limestone
5.6
42
282
117
4
Ordovician,Gordon lower limestone
2.4
20
164
73
4
(Note 2: The low, best high and mean values are probabilistic estimates for each prospective reservoir in the lead area. Net values are reported and these are also gross as GSLM currently holds 100% equity.)
Licence EL 14/2009: Gondwana Play Resource Assessment
Under Licence EL 14/2009 within the Tasmania Basin, two main geological systems have been identified which may have a potential for hydrocarbons. These are the Ordovician and Silurian within the Larapintine System and the Permo-Triassic within the Gondwana System. The former is likely to be gas prone while oil is also possible in the Permo-Triassic. Based on the current seismic grid, only an Ordovician-Silurian trap at Bellevue can be defined at present with sufficient confidence to consider drilling.
The licence evaluation by Senergy is work in progress. Nevertheless one prospect ("Bellevue") and several leads have been identified, which are compatible with the play assessment described above. Further work, which should include the acquisition of additional seismic data, when completed is expected to result in the identification of several leads or prospects for which the resource size can then be estimated.
Tim Baldwin, Chairman TXO PLC commented:
"This report confirms that there is significant potential for oil and gas within the licence area which supports the modest investment that has been made by TXO to date. TOG is making progress in restructuring GSLM and is confident that this will be achieved in due course. The report confirms the prospectivity of the licence area, which potentially holds prospective resources of over 2.5 trillion cu. ft. of gas. Once the license validity issue is resolved, as a first step TOG will progress the merits of drilling the Bellevue prospect with its technical advisers. The license benefits from existing gas pipeline infrastructure in Tasmania that could be used to market any gas we discover."
Background on GSLM and Exploration Licence EL 14/2009
GSLM's Exploration Licence EL 14/2009, over which TOG has a Mortgage Debenture, is valid until May 2015. Mineral Resources Tasmania ("MRT"), the state ministry, has issued a notification of their intention to revoke the licence and the Receiver Managers of GSLM have scheduled an Appeal to be heard on 22 April 2013.
For further information, please contact:
TXO PLC
Tim Baldwin, Chairman +44 (0) 207 518 4300
Fox-Davies Capital Limited +44 (0) 20 3463 5000
Simon Leathers / Daniel Fox-Davies / Richard Hail
Lothbury Financial Services Limited
Michael Padley / Chris Roberts +44 (0) 203 440 7620
Editors' Note
TXO plc, the AIM quoted oil and gas investment company, has one other main investment namely: The Grand Bahamas Group Limited ("GBG") which is establishing a waste oil collection facility and Hydrocarbon Recovery Plant in the Bahamas at Freeport and also produces oil from its leases in Western Kentucky, USA. TXO currently holds a 24.64% interest in GBG and a 25% interest in Tasmania Oil and Gas Limited ("TOG").
From the TXO site this morning
29 January 2013
TXO PLC
("TXO" or the "Company")
UPDATE ON NEW JOINT VENTURE COMPANY TASMANIA OIL AND GAS LIMITED
TXO plc, an AIM quoted oil and gas investment company, provides an update on Tasmania Oil and Gas Limited ("TOG"), in that the Competent Persons Report being prepared for and on its behalf of TOG by Senergy (GB) Limited ("Senergy") is now complete . The Company has a current equity holding of 25% in TOG.
The Board of TOG announced today that:
Senergy has carried out an independent evaluation of the hydrocarbon potential of two seismically identified structures in Exploration licence EL 14/2009, granted to Great South Land Minerals Limited ("GSLM"), onshore Tasmania, Australia. TOG has a Mortgage Debenture over this Exploration Licence.
The results of this work have been presented in accordance with the 2007 and 2011 Petroleum Resources Management System (PRMS) prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) and others. GSLM has a 100% working interest in licence EL 14/2009 so the potential recoverable volumes quoted should be considered as both gross and net technical prospective resources.
Extract from Report
The permit area is approximately 3,108 sq km and includes two structures identified as Bellevue and Thunderbolt, which are reviewed in the Report.
The two structures were initially identified by GSLM while operating under the SEL 13/98 licence. GSLM had acquired approximately 1,150 line km of 2D seismic over the region and drilled seven stratigraphic wells. Five of the wells encountered gas shows in the Permian and two wells encountered gas shows in the Proterozoic. In addition, GSLM acquired gravity and magnetic surveys over much of the area and conducted numerous regional geological studies.
The Tasmania Basin covers approximately half of the island of Tasmania.
However, Senergy considers that the current seismic database is adequate to define one prospect at the Silurian-Ordovician level (the Bellevue prospect) and potentially a number of leads including the Thunderbolt lead. The prospectivity of the two structures is the focus of this report.
The Ordovician and Permo-Triassic reservoirs are potentially prospective for oil and gas although the Ordovician is likely to be gas prone because of its greater depth of burial, source rock maturity and reservoir quality. The assessment concludes that the Bellevue prospect is potentially sufficiently well-defined to be ready to drill and it constitutes a high risk but high reward opportunity. The net prospective resources and [associated risk or geological chance of success] for the Bellevue prospect and Thunderbolt lead are given below:
Table 1: Ordovician Larapintine Play System; Net Prospective Resources for the Bellevue Prospect
Net Undiscovered Prospective Resources1 (BCF gas)
Bellevue Prospect
Low
Best
High
Mean
Risk%
Silurian, Eldon sandstones
46
302
1,608
666
6
Ordovician, Gordon upper limestone
54
385
2,462
1,018
6
Ordovician, Gordon lower limestone
40
270
1,770
735
5
(Note 1: The low, best high and mean values are probabilistic estimates for each prospective reservoir in the prospect area. Net values are reported and these are also gross as GSLM currently holds 100% equity.)
Table 2: Ordovician Larapintine Play System; Net Prospective Resources for the Thunderbolt Lead
Net Undiscovered Prospective Resources2 (BCF gas)
Thunderbolt Lead
Low
Best
High
Mean
Risk%
Silurian, Eldon sandstones
5.2
38
244
104
4
Ordovician, Gordon upper limestone
5.6
42
282
117
4
Ordovician,Gordon lower limestone
2.4
20
164
73
4
(Note 2: The low, best high and mean values are probabilistic estimates for each prospective reservoir in the lead area. Net values are reported and these are also gross as GSLM currently holds 100% equity.)
Licence EL 14/2009: Gondwana Play Resource Assessment
Under Licence EL 14/2009 within the Tasmania Basin, two main geological systems have been identified which may have a potential for hydrocarbons. These are the Ordovician and Silurian within the Larapintine System and the Permo-Triassic within the Gondwana System. The former is likely to be gas prone while oil is also possible in the Permo-Triassic. Based on the current seismic grid, only an Ordovician-Silurian trap at Bellevue can be defined at present with sufficient confidence to consider drilling.
The licence evaluation by Senergy is work in progress. Nevertheless one prospect ("Bellevue") and several leads have been identified, which are compatible with the play assessment described above. Further work, which should include the acquisition of additional seismic data, when completed is expected to result in the identification of several leads or prospects for which the resource size can then be estimated.
Tim Baldwin, Chairman TXO PLC commented:
"This report confirms that there is significant potential for oil and gas within the licence area which supports the modest investment that has been made by TXO to date. TOG is making progress in restructuring GSLM and is confident that this will be achieved in due course. The report confirms the prospectivity of the licence area, which potentially holds prospective resources of over 2.5 trillion cu. ft. of gas. Once the license validity issue is resolved, as a first step TOG will progress the merits of drilling the Bellevue prospect with its technical advisers. The license benefits from existing gas pipeline infrastructure in Tasmania that could be used to market any gas we discover."
Background on GSLM and Exploration Licence EL 14/2009
GSLM's Exploration Licence EL 14/2009, over which TOG has a Mortgage Debenture, is valid until May 2015. Mineral Resources Tasmania ("MRT"), the state ministry, has issued a notification of their intention to revoke the licence and the Receiver Managers of GSLM have scheduled an Appeal to be heard on 22 April 2013.
For further information, please contact:
TXO PLC
Tim Baldwin, Chairman +44 (0) 207 518 4300
Fox-Davies Capital Limited +44 (0) 20 3463 5000
Simon Leathers / Daniel Fox-Davies / Richard Hail
Lothbury Financial Services Limited
Michael Padley / Chris Roberts +44 (0) 203 440 7620
Editors' Note
TXO plc, the AIM quoted oil and gas investment company, has one other main investment namely: The Grand Bahamas Group Limited ("GBG") which is establishing a waste oil collection facility and Hydrocarbon Recovery Plant in the Bahamas at Freeport and also produces oil from its leases in Western Kentucky, USA. TXO currently holds a 24.64% interest in GBG and a 25% interest in Tasmania Oil and Gas Limited ("TOG").
