One of the problems faced by junior oil and gas explorers in the USA is that there is very little hard geological and geophysical data in state archives which is unlike Australia where it is mandatory to lodge all data as per state licence conditions and also Australian state geological surveys carry out extensive geophysical surveys which are made available to the general public and industry at minimal cost.
This situation in the USA is due to the fact that the majority of mineral and oil/gas rights are usually privately owned and exploration is by agreement between explorer and mineral right owners and therefore there are minimal requirements with data lodgement with USA state authorities.
As a consequence it is difficult to work up plays and test new concepts in the USA without ready access to basic data, particularly seismic, the main tool used in oil and gas exploration. Generally this means the junior explorer must buy in all seismic data, i.e. carry out his own speculative seismic surveys, usually 2D rather than the more expensive and superior 3D, or buy or licence seismic data from seismic brokers. This means exploration is expensive, restrictive and importantly the opportunity to generate worthwhile prospects is extremely limited.
Sun Resources with Victoria Petroleum (herein termed “Sun Group” for convenience) through their 100% owned USA subsidiaries, completed documentation of a Joint Venture late December 2005 with Wandoo, on the Texas Gulf Coast offshore and onshore 2D and 3D seismic data bank that Wandoo has access to by virtue of its exclusive agreement with the owner of the seismic data bank.
A month of preliminary work on the data base has resulted in the recognition of some interesting prospects and leads, particularly for gas in the range of 5 to 100 BCF in size in prospective stratigraphy/structures at various depths ranging from 1,000 to 4,000 metres in a large 3D data set. This now high graded seismic data set will be subjected to some reprocessing and definitive interpretation, before prospects are ranked for land acquisition by leasing and subsequent drilling in the next 12 months.
This bit caught my eye:- "on the Texas Gulf Coast offshore and onshore 2D and 3D seismic data bank that Wandoo has access to by virtue of its "exclusive" agreement with the owner of the seismic data bank."
So what do we know? Firstly the guys at Wandoo have been working on this "Data Bank" for over a year and have "Cherry Picked" a number of interesting sites in order to generate a quick income stream (IMHO). The cash generated could then be used to explore any number of other more challenging but potentially more lucrative targets, either on or offshore.
This partnership that we have with our partners in Margarita may (IMHO) be the best thing that has happened to EME in its short but turbulent existence.
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