Vintage Energy Ltd., Adelaide, signed a binding heads of agreement with Firetail Energy Services Pty. Ltd. for Firetail to become a joint venture partner in Vintage’s EP126 exploration permit in the onshore Bonaparte basin, Northern Territory.
Firetail will earn a 10% interest in the permit through the provision of $850,000 (Aus.) of services for the testing of the Cullen-1 wildcat drilled in mid-2014, the total cost of which is estimated to be $3.2 million.
Vintage will retain a 90% interest and operatorship.
Following regulatory approvals, the Vintage JV plans to test Cullen-1 in this year’s third quarter. Testing will occur over four zones in a thick section of carbonates that have been interpreted to have natural fractures and vuggy porosity as well as an occurrence of large, irregularly shaped pore spaces that may hold oil and gas, Vintage said.
Gas shows were encountered during the drilling of Cullen-1 by Beach Energy. At that time Beach cased and suspended the well for future testing.
If the test is positive, the next step will be to acquire further seismic data followed by new exploration and appraisal drilling.
In addition to the carbonate play, there is a basin margin play for algal build-ups (reef carbonates) within the Ningbing Limestone, Vintage said. Also, towards the margins of EP126, there is potential for an oil play in younger up-dip sandstones of the Weaber Group.
A seismic survey would help to define these play concepts and help delineate structural traps for follow-up drilling.
Any success in the permit will find a ready market in the Northern Territory, including local industrial users for an oil, gas and/or condensate in commercial quantities.
