Beetaloo Basin

1
Beetaloo Basin Northern Territories Australia
2
Beetaloo Basin, Australia
7,000,000 Acres Two Thermally Mature,Thick Source
Rocks (Each800M) Large Unconventional Resource
Complex (Oil Gas) Large Untested Structures for
Conventional Resources
3

• Highly favorable fiscal regime
• 10 royalty to Northern Territory
• 1-2 royalty to traditional owners and hiring
  preference
• 8 Overriding Royalty to Bayless
• 5 Overriding Royalty to
• 30 corporate income tax

4
Northern Australia
DARWIN
Darwin LNG Facility
Natural Gas Pipelines
600KM TO DARWIN
Beetaloo Exploration Permits
5
Darwin LNG Plant and Vessel
Currently Operating Under Capacity
6
(No Transcript)
7
Beetaloo Basin PaleographyCompared to Major
NeoProterozoic Producing Basins
USGS Bull. 2201-C,F, 2167 PIRSA, 1998
8
Comparative Size
Beetaloo Basin Australia
Williston Basin USA
Daly Waters
9
Daly Waters
Wide Distribution of oil and gas shows and tests
throughout Basin. This is an active hydrocarbon
system.
10
(No Transcript)
11
(No Transcript)
12
(No Transcript)
13
Source Rock Cores
Kyalla Oil Shales-Bed C Jamison-1 1025.05 to
1028.93m
Mid Velkerri Oil Shales Altree-2 993.96m to 938.2m
14
Jamison Sandstone ReservoirJamison 1 Core
Oil Staining
15
Moroak Sandstone Reservoir Jamison 1 Core
Oil Staining
16

• Bessie Creek Sandstone
• Good distribution over basin
• Depths in wells 900m to 3000m
• Up to 400m thick
• Tight Reservoir
• Hydrocarbons probably Gas
• Potential Basin Center Gas Play

Residual oil staining in the Altree-2
17
Beetaloo Basin Composite Petrophysical Log
18
193 KM
S
N
CROSS SECTION A-A
500 M
Source Rocks
19
Beetaloo Basin Overthrust Belt (Daly Waters Arch)
Kalala and Dunmarra Structures
Daly Waters Arch
100 KM
Kalala
Shenandoah 1
Dunmarra
Source Rock Kitchens
GA Bouguer Gravity
20
Beetaloo Basin 3D View from South2D Seismic Time
Data--Moroak
Shenandoah 1
Kalala
Dunmarra
21
Unconventional Gas (Basin Center)and
Conventional Structures
Basin Center Gas gt1500M Deep
22
Shenandoah 1
Kalala
Amungee Mungee
Dunmarra
Jamison
23
Jamison SS Depth Map
24
Beetaloo Basin Conventional Jamison SS Structures
25

• Jamison Sandstone
• Good distribution over basin
• Depths from wells 500m to 900m approx
• 75 to 160m thick
• 40-50m with effective porosity gt12
• Perms 0.01 to 100mD
• 35º API oil recovered on test
• Sourced by underlying Kyalla and deeper Velkerri
• Sealed by Hayfield Mudstone
• Oil Shows on DST in Jamison 1 Well

Daly Waters
26
Moroak SS Time Structure

• Proposed wells will
• Test Conventional
• Structures and
• Unconventional
• Resource Complex
• For Oil and Gas

Shenandoah 2
Shenandoah 1
Kalala
Jamison
Dunmarra
27
Beetaloo Basin Conventional Moroak SS Structures
28
Kalala StructureLine SP06-18
W
Kalala
E
7 KM
500 M
29
Lower Kyalla ShaleBasin Center Gas Accumulation
30
L.Kyalla SH and Moroak SSPetrophysicsJamison 1
31
Moroak SS Basin Center Gas Accumulation
32

• Moroak Sandstone
• Good distribution over basin
• Depths from wells 500m to 1700m approx
• Up to 300m thick
• Up to 50m with effective porosity
• Perms 0.01 to over 100mD
• Hydrocarbons Oil or Gas
• DST flowed water at rates over
• 3000bbls per day i.e. good flow
• rates possible

Daly Waters
33
L.Kyalla SH and Moroak SSPetrophysicsElliott 1
34
Velkerri ShaleBasin Center Gas Accumulation
35
Middle Velkerri ShalePetrophysicsAltree 2
36
Bessie Creek SSBasin Center Gas Accumulation
37
Bessie Creek SSPetrophysicsAltree 2
38
Upper Kyalla ShaleUnconventional Oil
39
Kyalla Shale Hydrocarbon Potential in the
Unconventional Resource Complex
Cross Section C
S
N
SHOWS
Oil
Gas
40
Oil Shows in Kyalla Shale BedsJamison 1 Well
(1000M Depth)
100 M
Bleeding Oil
41
Jamison SS and U. Kyalla SHPetrophysicsJamison 1
42
Shenandoah 1 (2007) Central Beetaloo Basin
43
Shenandoah 1 History and Plan

• Reached 1550m Depth in 2007set pipe
• Multiple Hydrocarbon Shows
• Oil Shows in Hayfield SS
• Oil Shows in upper Kyalla Shale (significant
  fractured intervalstimulation program indicates
  economic viability of these zones)
• Well May have Reached Unconventional Gas (BCGA)
  at 1500M
• Gas Shows in Kyalla Shale Mid Kyalla SS
• Plan
• Deepen Shenandoah 1 to Bessie Creek (3250M) in
  2009, core, full log suite, calibrate with nearby
  Balmain core, evaluate horizontal unconventional
  oil potential and deeper (gt1500M) unconventional
  gas potential

44
Shenandoah 1A (2009) TD 2714M
45
Beetaloo Basin OilResource Potential In Billion
Barrels
Ryder Scott, 2009
46
Beetaloo Basin GasResource Potential in TCF
Ryder Scott, 2009
47
Shenandoah Conclusions

• From 1500M to 2714M in the Shenandoah 1A-the
  entire section is gas bearing (Lower Kyalla,
  Moroak and Mid Velkerri)this confirms the BCGA,
  and it is a regionally extensive system100KM to
  the northern Velkerri wells
• Lower Kyalla and Mid Velkerri shales have good
  preliminary desorption values, and fractures
• The Moroak SS has free gas (conventional) in 1A
  and good perm( up to 100Md-MREX), shows and thick
  (88M), clear gas/water contact
• The Upper Kyalla Shale at a depth of 1000M looks
  to be highly prospective for oil following new
  petrophysical work and resource evaluationit is
  behind pipe in Shenandoah 1

48
Summary

• In view of the recent Shenandoah 1 1A results,
  it
• demonstrates that the Beetaloo Basin has all the
• criteria of an excellent petroleum basin for
• both Major Unconventional Oil and Gas Resource
• and Conventional Structural Plays
• 7 Million Acres, Another 1.2 Million Pending
• 193 BBO In Place 19 BBO Recoverable Resource
• 385 TCF Gas In Place 64 TCF Recoverable
  Resource
• World Class Source Rocks ( 2 shales each 800 M
  thick)
• With Abundant Oil and Gas Shows
• Thermally mature for oil and gas
• Six Potential Sandstone Reservoir Units With
  Shows
• and Light Oil Recoveries
• Good Fiscal Regime in a Stable Country
• And A Pipeline Runs Through It