Highlights
- Variation of minimum work requirements in WA-544-P and NT/P87 (Permits)
approved - commitment to acquire 3D seismic in Permit Year 4 changed to
geological and geophysical studies and well planning.
- The Permits contain the Hudson Prospect, along with the undeveloped Turtle
and Barnett oil discoveries, and lie offshore northern Australia.
- The Permits are immediately adjacent to WA-488-P, containing the giant
Beehive prospect (also a carbonate buildup), which Melbana sold to a US oil
major in 20211. Melbana is entitled to receive future contingent cash and royalty
payments as part of the sale consideration. Environmental permits to drill
exploration wells in the Beehive Prospect were granted earlier this year2.
Melbana Energy Limited (Melbana or Company) advises that the National
Offshore Petroleum Titles Administrator has approved a variation of the minimum work
requirements for Permit Year 4 of petroleum exploration permits WA-544-P and NT/P87
(Permits) granted to the Company in 2020 (Melbana 100%)3. The Permits are in the Joseph
Bonaparte Gulf offshore northern Australia (see Figure 1).
The approved changes to the minimum work requirements for Year 4 of the Permits were:
1. Remove the acquisition of a 300km2 3D seismic survey from the Permit Year 4 work
program conditions for WA-544-P;
2. Remove the acquisition of a 400km2 3D seismic survey from the Permit Year 4 work
program conditions for NT/P87; and,
3. Undertake geological and geophysical studies and well planning.
Melbana now has until 23 May 2027 to complete geological and geotechnical studies, including
well and operational planning, before deciding whether to progress to drilling one exploration
well 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 they are an untested play type in Australia.
The first exploration well to do so, designated Beehive-1, in WA-488-P adjacent to the Permits
has received an environmental permit to drill a well 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 has now received environmental approvals to drill up to four
exploration wells. Melbana has no exposure to the cost of these exploration wells but is
entitled to receive future contingent cash and royalty interests.
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 of the Permits 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.
Melbana and its advisors are currently running a process to identify parties interested in
funding an exploration well to further derisk the prospect in return for receiving an interest in
the Permits. A copy of the technical presentation Melbana is using during the farmout process
is available on the Company’s website.