Queensland

11.10.2021

Lakes Blue Energy holds 100% of ATP 1183 in the Roma Shelf area of Queensland.

ATP 1183 is highly prospective for oil, gas and condensate discoveries and is within close proximity of established production facilities and infrastructure. 

In late 2021, seismic interpretation and mapping of ATP 1183 was refined, allowing improved definition of exploration targets and their potential. Identified exploration prospects are depicted below.

Wellesley Dome 

The Wellesley Dome is a fault bound, three way dip closure lying on the Kincora-Yarrabend-Wellesley High to the south of the productive Kincora Gas Field. The Wellesley Dome has a prospective, recoverable gas resource (see note) of 85 – 112 Bcf across 13 leads.

A well (Wellesley-1) drilled by BHP in 1979 intersected in excess of 20 metres of thick clean Boxvale Sand. Although the well had fair gas shows and good porosity (average 28%) it was at the time not considered to be of commercial interest. Apart from the Wellesley-1 well, the extensive Wellesley Dome prospect is underexplored. With modern production techniques and at prevailing gas prices, the Company considers the Wellesley Dome to be a compelling exploration opportunity. 

The Company has committed to drilling of the Wellesley-2 well approximately 1 km northwest of Wellesley-1 targeting 27 – 54 Bcf of economically recoverable gas (see note) at a depth of around 1,270 metres. 

Emu Apple North

The Emu Apple North prospect comprises the northern extension of the Emu Apple oilfield, an oilfield recently brought back into commercial production by Armour Energy Limited.

The prospect is a broad, low relief, anticlinal structure separated by a small saddle from the main Emu Apple Field. The entire Emu Apple area has been charged with hydrocarbons from Permian source rocks to the southeast. 

The Hutton Sandstone and Boxville Sands, both of which are productive in the Emu Apple-3 well, are the main reservoir targets. The reservoir units will be intersected at shallow depths, between approximately 1350 and 1430 metres, which means drilling the Emu Apple North prospect will be low cost. The Company’s proposed well location is readily accessible by existing road infrastructure and is close to Armour’s Emu Apple production facilities (meaning any discovery can be quickly developed).   

The Emu Apple North prospect covers an area of approximately 382 acres and is estimated (see note) to hold 1.3 million barrels of recoverable oil.

Major East and Bendee Prospects

The Major East and Bendee prospects are four-way dip closures, located to the east of the producing Major Gas Field. The prospective ultimately recoverable resources of the prospects (see note) are 8.5 billion cubic feet of gas for Major East and 0.2 million barrels of oil for Bendee. An historic well (Bendee-1) flowed oil and water to surface, demonstrating that the Bendee structure contains oil. However, using currently available data the Company has identified that the Bendee-1 well was drilled on the edge of closure, at the level of the oil/water contact.

Riverslea Updip

Seventeen leads have been identified across the Riverslea Updip area, with estimated (see note) aggregate recoverable oil potential of 7.5 million barrels. The viability of the individual leads will be further assessed to identify which, if any, should be exploited.

Note:

These are best estimates prepared on a deterministic basis by Mr Peter Bubendorfer, Geotechnical Assessor, Armour Energy Limited. Mr Bubendorfer holds a BSc in Geology, is a member of AAPG, and has over 22 years of relevant experience in hydrocarbon exploration and production.  He has consented to the use of the estimate in the form and context in which they appear.