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The Company was established for the purpose of acquiring, developing and commercialising specified oil fields and undertaking oil exploration, with a primary focus on prospects located either in Australia or within Australian territorial waters.
The Company will, subject to Approval and Registration, have a 100% Participating Interest in the Permit, which is in the Ashmore Cartier Exploration Permit area of the Vulcan Sub-Basin , located in the Bonaparte Basin in North Western Australia , within Uncontested Australian territorial waters. The Permit is located approximately 80 kilometres south west of the commercial Jabiru and Challis oil fields and approximately 25 kilometres from the Skua oilfield. Initially, the Company intends to develop the Proved Reserves in the Puffin Field (comprising the accumulations discovered by the Puffin-2 and Puffin-5 wells) and explore the Fairfield Prospect, which is located two kilometres from Puffin-2.
Proved (P90) Reserves estimates for the Puffin Field are 10.4MMstb. In overview, the potential in the Permit comprises the Reserves in the Puffin Field which range from 10.4 MMstb (P90) to 13.1 MMstb (P10), plus the undiscovered Prospective Resources which include Puffin Area Additions (5.2 MMstb high estimate) and the Fairfield Prospect (21.6 MMstb high estimate). Refer to the Independent Expert's Report in Section 5 of the Prospectus for further details.
Samples indicate that the oil from the Puffin Field is a high quality sweet light crude with a low wax content and no metal evident. Samples also indicate that the crude oil from Puffin-2 is approximately 48 0 API and the oil from Puffin-5 is of a comparable quality. The reservoir fluid has a low gas oil ratio and low viscosity. With these characteristics, the Directors believe the oil is easily producible and is of a premium quality by reference to the APPI Tapis benchmark. The APPI Tapis is the established marker for the light sweet crudes in the Asia Pacific region.
Company’s objectives and medium to long term strategy
The immediate focus of the Company is on developing the Reserves in the Puffin Field and on exploring the Fairfield Prospect. A more detailed discussion of the Field Development Plan for the development of the Puffin Field is set out in Section 3.5.
Following the development of the Puffin Field and the exploration of the Fairfield Prospect, the Company will seek to use the skills of its management to identify, evaluate and assess opportunities with short term development potential in the Timor Sea region. This may include oil fields which have been previously explored but not developed.
In the longer term, the Company will focus on the development of proved oil fields beyond the Timor Sea region and seek to identify assets where its expertise gives it a competitive advantage. The Company maintains a regional database of oil and gas resources to facilitate the identification and screening of target opportunities. The Company will make use of state of the art technology, such as pre stack depth migration (Pre-SDM) techniques and down hole technology, to assist it in determining and exploiting these opportunities. The Company intends to focus on fields and prospects which may generate positive cash flow returns within a short period from development.
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Copyright AED 2005 |
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