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Exoma Energy expands Queensland shale and conventional oil acreage

Published: 22:10 26 Jun 2012 EDT

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Exoma Energy (ASX: EXE) and its Chinese partner CNOOC have been awarded four new exploration permits in the Eromanga and Galilee Basins in Queensland that are prospective for shale oil and gas as well as conventional oil.

Permits ATP 1127P, ATP 1130P, ATP 1137P and ATP 1150P cover about 19,000 square kilometres and are adjacent to its existing ATP 999P.

This new acreage is prospective as an extension of the Eromanga Basin conventional oil and shale oil/gas plays discovered in ATP 999P.

Exoma’s predicted shale maturity fairway of the Toolebuc Shale extends west and south into the four permits, giving it access to a very large area that is high-graded for prospective shale oil and gas appraisal/production.

The company’s discovery of oil at Katherine-1 in ATP 999P has also demonstrated that a stratigraphic oil trap system operates between the Hutton sandstone and highs in the basement granite.

This has allowed Exoma to identify 14 conventional oil leads within the new areas with a combined potential of several hundred million barrels of oil in place.

These are in addition to the Katherine West, Katherine East, Corona and Harmony prospects oil prospects identified in ATP 999P.

ATP 1127P and ATP 1130P also cover part of the western edge of the Permian coal measures within the Galilee Basin that are prospective for coal seam gas though Exoma noted that these coals different geological environment to that encountered in its existing permits, giving it exploration diversity.

Award of these four permits is subject to negotiation of a Native Title agreement with traditional owners within a two year period ending in May 2014. Exoma has elected to follow the Right to Negotiate process and has commenced identifying the potential claimant groups with whom the Company needs to engage.

CNOOC has confirmed that it will up a 50% participating interest in the four permits.

 

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