• A comprehensive analysis of over 50 wells in the area showed an exploration success rate of greater than 60% for all wells drilled on valid traps
• Gem Prospect interpreted on new 3D seismic to be a robust trap
• Charge migration modelling concluded that the Gem structure is ideally located to receive hydrocarbons from the proven Cartier Trough source kitchen
• Success at Gem has the potential to unlock a number of nearby stranded oil discoveries, adding low cost/high margin barrels to the development

Finder Energy has released the positive results from recently completed technical studies on the Gem Prospect, located within the AC/P 61 permit. Finder holds a 50% interest in the permit which is located in the proven Vulcan Sub-basin.

The Gem Prospect is surrounded by a number of oil discoveries including the Jabiru and Challis oil fields (~180 MMbbl oil recovered) to the south as well as a number of stranded undeveloped fields such as Tenacious, Audacious and Oliver.

The studies undertaken by the Finder team included the analysis of over 50 historical wells drilled in the area surrounding the Gem Prospect which showed an exploration success rate of greater than 60% for all wells drilled on valid traps. Interpretation of the new Gem 3D seismic survey has interpreted the Gem Prospect to be a robust trap, further upgrading the prospect. Additional charge migration modelling also concluded that Gem is ideally located to receive hydrocarbons from the proven Cartier Trough source kitchen.

Commenting on the outcomes of these studies, Finder CEO, Damon Neaves, said: 
“Finder believes Gem is the best undrilled prospect in the prolific Vulcan Sub-basin and these positive results provide strong support to our farmout efforts as we campaign in the UK this week. A farmout deal to fund a well to test the Gem Prospect has the potential to create significant value for shareholders.”

WELL RESULT ANALYSIS

Finder completed a comprehensive review of over 50 exploration wells drilled in the area over the past 40 years. The results showed that approximately 50% of the exploration wells were invalid tests, largely due to incorrect interpretation as a result of the poor imaging in vintage seismic datasets. When a valid structure was drilled the exploration success rate in the area was greater than 60%. Modern seismic data, such as the new Gem 3D seismic survey has shown significant uplift in data quality and the Gem Prospect has been interpreted to be a robust trap.

CHARGE MIGRATION MODELLING

Regional petroleum system modelling was undertaken to review hydrocarbon migration pathways from the proven Cartier Trough source kitchen into AC/P 61. The study showed that both the Plover Formation and Lower Vulcan Formation source rocks are mature to generate and expel hydrocarbons from the Cartier Trough, immediately to the west of Gem. The Gem Prospect is ideally located along migration pathways with all modelled scenarios showing Gem trapping hydrocarbons.

TIE BACK OPPORTUNITIES

In the event the Gem-1 well is a discovery, this has the potential to unlock a number of nearby third party owned stranded oil discoveries, including Oliver (~15 MMbbl), Audacious (~10 MMbbl), and Tenacious (~8 MMbbl).

A ‘hub-and-spoke’ development concept would see Gem as the focal point of the development providing sufficient reserves to underpin a development and commercialising surrounding stranded oil fields. In this scenario, the surrounding fields can be tied back into the Gem production facility cheaply and quickly utilising subsea pipelines. The incremental barrels from the tie back fields will be low cost/high margin barrels adding value and enhancing the overall project economics.

Location and Status

• Basin: Bonaparte Basin, Vulcan Sub-basin
• Area: 337 km²
• Water Depth: 125 – 275 metres
• Status: Exploration Permit

Interests

• Finder Energy (50%, Operator)
• Fugro Exploration Pty Ltd (50%)

KeyFacts Energy: Finder Exploration Australia country profile