EnCore Oil ..

Block 48/1b & 2c - Southern Gas Basin
NWE Southern Cross (UK) Pty. Ltd. Working Interest 50%

This block contains a significant gas discovery made in 1984 by Amoco where well 48/2-1 encountered at least a 60 metre gas column and flowed gas at up to 2.7 million cubic feet per day (mmcfd). 3D seismic covering the block has been reprocessed to PSDM by Norwest in Perth, and interpreted, and shows that the well is located on the flanks of the structure with large updip volumes. The prospect is called “Bounder”.

The license is adjacent to very large producing gas fields, which have platform and infrastructure facilities in place. Bounder is similar to these existing fields, and is estimated to have potential gas in place volumes of as much as 400 BCF. The reservoirs in this area are tight and fractured, and horizontal wells have flow capacity of 30 to 50 mmcfd. The Hoton Field immediately to the south was developed by BP in 2001 using a horizontal well, and tested at 65 mmcfd. The Babbage Field immediately to the north was flow tested from a vertical well at 10.7 mmcfd in September 2006. The Hoton development is aimed at recovering the crestal gas volumes and a development at Bounder is likely to take the same approach. Gas on the flanks of the structure is more difficult to recover. An independent analysis by RPS Energy (international consultants) quotes mean risked volumes in two structures of 94.3 billion cubic feet (bcf). Minimum economic field size in the area is around 30 BCF.

The Bounder structure is currently being offered for farmout to a number of UK companies and is attracting a considerable amount of interest.