Highlights
- The primary term work conditions for WA-544-P and NT/P87 (Melbana 100%)
have been suspended for 18 months and the terms of the Permits similarly
extended by 18 months1.
- These offshore Permits are in the Bonaparte Gulf in northern Australia
immediately adjacent to WA-488-P, containing the giant Beehive prospect - also
a carbonate buildup – expected to be drilled by the holder of that permit (a US
oil major) in 2024/20252.
- The Permits host a carbonate build up called the Hudson Prospect along with
the undeveloped Turtle and Barnett oil discoveries.
- Melbana estimates3 the unrisked mean Prospective Resources* for the Hudson
Prospect to be:
- Oil Only Scenario: 395 million barrels of oil
- Gas Only Scenario: 2,034 billion cubic feet
Melbana Energy Limited (ASX: MAY) (Melbana or Company) is pleased to announce that the
National Offshore Petroleum Titles Administrator (NOPTA) has approved an 18-month
suspension of the primary term work program conditions and an extension of the permit terms of WA-544-P and NT/P87 (Permits). The changes to the terms of the Permits are as follows:
1. Suspend the Permit Year 1 - 3 work program conditions of the Permits for a period of 18
months to 23 May 2025; and
2. Extend the term of the Permits for a period of 18 months to 23 May 2028.
Melbana now has until 23 May 2025 to complete geological and geotechnical studies, including seismic interpretation and operational planning, before deciding whether to progress to acquire 700 km2 of new 3D seismic by 23 May 2026. Should it elect to do so, Melbana would then have a drill / drop decision to drill two exploration wells by 23 May 2028.
The Permits host the attractive Hudson prospect, which has been identified by the Company
as an isolated carbonate build up. Isolated carbonate build ups host some of the world’s largest oil reservoirs, but is an untested play type in Australia. The first exploration well to do so, designated Beehive-1, will be drilled in the adjacent licence area WA-488-P, scheduled to be as early as this year.
Melbana identified the Beehive prospect and subsequently sold WA-488-P to a US oil major
in 2021. That company recently received approval to conduct a geotechnical survey on the
Beehive drill site, a first step on drilling the prospect. Melbana has no exposure to the cost of
a Beehive exploration well but has contingent cash and royalty interests, following a successful exploration well.
The Permits are in shallow water (20 to 40 metres deep) and located about 300 kilometres
southwest of Darwin in Australia’s Northern Territory.
The Blacktip gas field lies to the northwest and its pipeline transects the northern boundary of
NT/P87, allowing potential access to the Darwin LNG facility and/or the east coast gas market.
The Hudson prospect holds the potential to contain 395 million barrels of oil or 2,034 bcf of
gas (Mean Prospective Resources (100%)3. The Prospective Resources were based on a
probabilistic assessment with a 12% estimate for the chance of hydrocarbons. The Company
is not aware of any new information or data that materially affects this estimate.
Melbana intends to farmout some of its 100% interest in the licence areas to fund the
acquisition of a 3D seismic survey to further derisk the prospect.