PETROLEUM company Rawson Oil and Gas Limited has upgraded its prospective resource volume for its Nangwarry prospect.
The exploration company is searching for a commercial gas field in the PEL 155 onshore Otway Basin.
The Nangwarry Prospect Unrisked Prospective Resource Best Estimate has been upgraded to 57 Bcf (billions of cubic feet) from 33 Bcf as previously carried by Rawson.
In a statement to the Australian Stock Exchange, the company said the independent GPoS (Geological Probability of Success) is 23pc for the top Pretty Hills reservoir and 19pc for the Sawpit Sandstone.
“With Haselgrove-3 ST1 recently discovering gas in the Sawpit Sandstone-3, the PEL 155 JV believe the sawpit play concept extends south from Haselgrove into PEL 155 and provides a second major objective for the JV’s Nangwarry-1 exploration well, and for the other exploration prospects and leads in the PEL 155 licence.
“The estimated quantities of petroleum that may potentially be recovered by the application of a future development project relate to undiscovered accumulations.
“These estimates have both an associated risk of discovery and a risk of development.”
Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.
According to the company, the Nangwarry prospect is a conventional gas and liquids prospect in a three-way dip, fault dependent trap and is considered analogous to the nearby Katnook, Haselgrove and Ladbroke Grove fields which have produced approximately 70 Bcf of raw gas since discovery.
“Drilling success at Nangwarry will extend the proven top Pretty Hill play province or confirm the presence of a significant new gas reservoir in the Sawpit Sandstone.
A commercial discovery will provide much needed gas to the South Australian market and increase exploration in the region,” the company said.
“Ultimately, the PEL 155 JV hopes continued investment will lead to a rebuild of the gas industry in the South East of South Australia, provide stimulus to other industries in the region and alleviate issues of gas supply for power generation and other industries in South Australia.”
Drilling of Nangwarry-1 is anticipated in late 2018, subject to rig availability.
