Canning Basin, Western Australia Backreef Block Environmental Audit On 7th November representatives of Oil Basins Limited (OBL) attended an Environmental Assessment of the Backreef site along with the Western Australian Department of Mines, Industry Regulation and Safety (DMIRS).
The Backreef 1 petroleum well is a vertical exploration well located in the Backreef area of Production Licence L6. The well is located approximately 70 km East of Derby, Western Australia.
The Backreef well was drilled by OBL as operator to a depth of 1,800m in October 2010. Following wireline logging, a cement plug was set in the open hole section at 1,164m. The well was later cased and suspended with a cement plug set at 79 m. The well was re-entered in May 2012 to conduct a cased hole drill stem test (DST) to test the hydrocarbon potential of the Gumhole and Yellow Drum formations at 957-961m and 918- 940m respectively.
After well testing was completed, the well was suspended with a bridge plug and 3m cement plug above the Yellow Drum formation at 900m. A second bridge plug and 3m cement plug was set at 300m.
A well integrity monitoring and maintenance inspection was completed at Backreef in April 2017. This inspection confirmed that the well plugs continued to be effective with no well head pressure evident.
Soil samples taken at that time confirm that there is no site contamination. In September 2017 Oil Basins submitted its environmental plan with the DMIRS. This has now been reviewed by DMIRS. Some minor changes are required prior to final approval.
The environmental assessment on 7th November did not raise any significant new issues that have not been addressed in the environmental plan. Oil Basins will now progress to submit an amendment to the environmental plan to include a plug and abandonment plan for the well.
When the amended plans are approved by DMIRS, Oil Basins will progress to plug and abandon the Backreef Well and complete the rehabilitation of the site. This work is planned for July 2018 during favourable dry season access conditions. Once this work is completed the ongoing cost of the Backreef area will be negligible.
The company will continue monitor activity in the Canning Basin and retains the right to conduct future work at Backreef in the event that economic conditions improve.
The company released its Resource Evaluation on 10 August 2017, following thie completion of Seismic reprocessing, mapping, and analysis.
The announcement of 10 August 2017 revealed that he reprocessed data has identified a significantly larger Conventional Gas Potential than previously defined over the Judith Structure in Vic/P47.
P50 unrisked Gas-in-Place (GIP) in prospective Emperor Sandstones (previously discovered at he Judith-1 well) over the greater Judith structure within Vic/P47 is estimated at 1.8 Trillion cubic feet (1.8Tcf).
P50 unrisked Gas Recoverable is estimated at 1.17Tcf.
Litigation update – Success in application for summary dismissal Oil Basins Limited (ASX: OBL) (Company) refers to its announcements dated 17 and 19 October 2017 and the Company’s September 2017 Quarterly Activities Report in relation to the Company’s application for summary dismissal of the claim made by former director Mr Neil Doyle.
The Company is pleased to announce that it has been successful in its application for summary dismissal of the claim. The judge today found that the Company and Mr Doyle executed a Deed of Settlement and Release in full and final settlement of all matters between them and that the Deed is a complete bar to Mr Doyle’s claims.
The judge was satisfied that Mr Doyle had no reasonable prospect of success in the proceeding. The judge ordered that there be judgment for the Company and that Mr Doyle’s application and statement of claim be summarily dismissed.
The judge ordered that applications for costs may be made by the parties. As previously advised, the Company intends to bring an application for costs against Mr Doyle.
Further updates to the market will be provided as necessary.