Perth, May 5, 2008 AEST (ABN Newswire) - Empire Oil & Gas N.L. (ASX:EGO)(PINK:EOLGF) is pleased to announce that the Gingin West 3D Seismic Survey of approximately 45km2 in Petroleum Exploration Permit EP 389 was completed on 3 May 2008.
The Gingin West 3D Seismic is designed to define the Gingin West structure estimated to have potential recoverable gas reserves of 212 billion cubic feet of gas. Gingin West is the prospect located updip from Bootine-1 that flowed gas at a stabilised rate of 2.25 million cubic feet of gas per day from one sand. It is interpreted that Bootine-1 was drilled at or near the spill point of the structure. The 3D Survey is designed to define the crestal position of the structure to intersect all 5 of the Cattamarra Coal Measures sands with structural closure.
The EP 389 Permit is located approximately 100 kilometres from the city of Perth. Prior to the Gingin West 3D Seismic Survey, Empire has:
- Recorded two aeromagnetic surveys over most of the EP 389 Permit;
- Reprocessed all the seismic data recorded in the Permit (300 line kms);
- Acquired 333 line kilometres of new Tangletoe 2D Seismic Survey 160 fold (1998);
- Completed the Gingin 160 fold 2D Seismic Survey of 48 line kilometers (1999);
- Now completed the Gingin West 3D Seismic Survey of 45km2, 3 May 2008.
The Gingin Gasfield is located within EP 389 with both Gingin-1 and Gingin-2 discovery gas wells drilled in 1964 and 1965 and the Bootine-1 gas discovery well drilled in 1981. These are:
- Gingin-1 - put on production in 1972 and 1975 produced 1.72 BCF flowing at an average of 5 million cubic feet of gas per day before the well was shut in and plugged and abandoned upon focusing on the Dongara Gasfield discovery.
Empire considers there is the potential to sidetrack the Gingin-3 well drilled by Empire into prospective gas sands interpreted as "bright" on the seismic. Potential recoverable reserves for the Gingin Gasfield area are estimated at 200 billion cubic feet of gas.
- Gingin-2 drilled in 1965 and put on production test. Recent evaluation indicates progressive formation damage probably due to the use of diesel based mud system.
Empire considers the Gingin South area (south of Gingin-2) a gas prospective area requiring additional seismic to the Gingin West 3D Seismic Survey to map the extent along the bounding fault.
- Bootine-1 flowed at a stabilised rate of 2.25 million cubic feet of gas per day from Cattamarra Coal Measures Sand 5.
Empire recorded 45km2 Gingin West Survey in May 2008 to locate the Gingin West No. 1 well on the updip and crestal position to intersect all 5 Sands. Potential recoverable reserves are estimated at 212 billion cubic feet of gas.
Seismic Processing
All three seismic surveys recorded at Wellesley in EP 416, Mullering 3D in EP 432 and Gingin West in EP 389 are currently being processed by specialist seismic processing company, CGG Veritas.
Empire will be interpreting the new data sets in the near future upon the processing being completed to define a drilling location for Gingin West-1 and drilling locations in EP 416 and EP 432.
Markets
The economics of developing and selling gas has increased during the year with substantially higher natural gas prices being entered into between producers and consumers in Western Australia. There is an increasing demand for natural gas in Western Australia's deregulated market where producers of gas can negotiate gas sales directly with consumers. The onshore Perth Basin offers the gas market a diversity of supply from North West Shelf gas.
Contact
Mr Craig Marshall
Managing Director
TEL: +61-8-6389-2687
FAX: +61-8-9386-6812
EMAIL: cmarshall@empireoil.com.au
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