Energy: Key has eyes on the Perth Basin prize
The recent spate of successful gas wells targeting the Kingia and High Cliff formations in the Perth Basin, Western Australia, has – as widely expected – kicked off a mini rush to dust off tenements in the region for a second look.
Key Petroleum (ASX:KEY) has emerged as the latest junior to target this hotspot, executing a land access agreement that paves the way for exploration drilling in the western and southern parts of its Bookara Shelf project, immediately to the north of the producing Waitsia gas field.
The agreement covers the Becos, Parce and Becos South prospects, which target multiple objectives including the Kingia and High Cliff sandstones.
Key has already delineated the Parce-1 location, which it is considering as a firm candidate for drilling.
Separately, the company has applied for approvals to drill the Wye Knot-1 well further to the north that targets about 1.4 million barrels of oil.
Meanwhile, Oilex (ASX:OEX) is acquiring up to two licences in the East Irish Sea that are located in shallow water near gas fields that have produced up to 8 trillion cubic feet of gas to date.
The company has entered into a binding term sheet to acquire the Doyle-Peel licence and an exclusivity agreement for the potential acquisition of the Casteltown licence.
Doyle-Peel contains a firm commitment to obtain and reprocess 50sqkm of 3D seismic data, obtain 2,500km of aeromagnetic data and complete a rock physics study by October 2021.
“The EIS licences provide an attractive entry particularly as they lie adjacent to existing producing fields in a proven gas fairway in the centre of the East Irish Sea Basin,” managing director Joe Saloman said.
“The Doyle-Peel prospects have the potential to host substantial prospective resources and Castletown has discovered gas in multiple reservoirs with the next step being the preparation of a field development plan including appraisal/development drilling.”
Whiteback Energy (ASX:WBE) is poised to increase production from its Wizard Lake oil field following the completion and commissioning of expanded processing facilities. Both the Rex-1 and Rex-2 wells are now producing through the new infrastructure while Rex-3 will be switched over once clean-up operations are completed.