Perth, Australia, Oct 14, 2011 - (ABN Newswire) - MEC Resources (ASX:MMR.AX) is pleased to provide the following advice regarding investee company Advent Energy Ltd (Advent) and its 100% owned EP386 and RL1 permits in the onshore Bonaparte Basin. Advent's major shareholders include MEC Resources, BPH Energy (ASX:BPH.AX), Talbot Group Investments and Grandbridge (ASX:GBA.AX).
Beach Energy Limited (ASX:BPT.AX) (Other OTC:BEPTF.PK) announced on 12 October that it had taken a substantial acreage position in the onshore Bonaparte Basin. Beach has farmed-in to Territory Oil & Gas' (TOAG) exploration permits covering the Northern Territory portion of the onshore Bonaparte Basin.
Beach's farm-in and TOAG's permits do not encompass Advent's wholly owned Weaber gas field within Retention Licence 1.
Beach's planned exploration program includes an aeromagnetic/gravity survey and two deep wells.
The farm-in drilling expenditure is capped at $13 million per 25% equity interest, implying a 100% equity position in the permit at a value of $52 million of exploration spend.
As described by Beach, these highly prospective areas are vastly unexplored due to the limited volume of good quality modern seismic and other geophysical data. Beach stated "Working petroleum systems have been identified and confirmed by: strong hydrocarbon shows in the few exploration wells drilled to date; oil seeps identified at surface; oil staining and live oil observed in cores drilled for other minerals; and (Advent's 100% owned) Weaber gas field situated within but excluded from the acreage."
Advent agrees with this assessment.
Beach has also stated "The permits are prospective for both conventional oil and gas within the Milligans Formation, the Ningbing Group as well as other structures and formations, and unconventional gas and liquids in the Milligans Formation. The Milligans Formation is comprised of organically rich and thermally mature shales and other lithologies that represents a rich source facies which is likely to be prospective for liquids in the onshore part of the basin."
Advent Production Testing
Advent is currently performing the workover and production testing on Vienta-1. Operations will shortly expand to commence the workover at Waggon Creek-1. A production test on Waggon Creek-1 will then follow.
Advent's view is that these gas discoveries could produce significant quantities of gas and thereby allow Advent to consider commercial development of these resources.
There have been five gas discovery wells drilled in Advent's 100% owned and operated Bonaparte Basin permits of EP386 and RL1. In EP 386, the three main discoveries made so far are Vienta, Waggon Creek and Bonaparte. In RL1 in the Northern Territory, Advent has recently announced a mean1 independently assessed Contingent Resource for the Weaber Gas Field of 18.4 Billion cubic feet (Bcf).
Gas Discovery Wells Waggon Creek-1 and Vienta-1 Waggon Creek-1 was drilled in 1995 and flowed 1.34 million cubic feet of gas per day (MMcfgd) from upper sands within the Milligans Formation on an openhole Drill Stem Test (DST). Additional openhole DST of a deeper zone flowed a further 1.0 MMcfgd and oil was recovered to surface.
Testing was curtailed at the time due to the onset of the wet season, and the well was cased and suspended.
Vienta-1, drilled in 1998, is a faulted structure in the southern part of EP386 only 10 km from Waggon Creek-1. A number of DSTs over various intervals demonstrated gas flows to surface from sand bodies within the shale formations and no pressure depletion.
Furthermore significant gas kicks were observed at depth while drilling. However due to the onset of the wet season, the well was suspended without testing this zone.
For the complete BPH Energy Limited announcement including figures, please view the following link:
About BPH Energy Limited:
BPH Energy Limited (ASX:BPH.AX), (previously BioPharmica Limited), is an Australian Securities Exchange listed company developing biomedical research and technologies within Australian Universities and Hospital Institutes.
The company provides early stage funding, project management and commercialisation strategies for a direct collaboration, a spin out company or to secure a license.
BPH provides funding for commercial strategies for proof of concept, research and product development, whilst the institutional partner provides infrastructure and the core scientific expertise.
David Breeze Executive Director MEC Resources Limited Tel: +61-8-9328-8477
BPH Energy Limited
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