Southern Amadeus Joint Venture

Tenement Information

MAP Southern Amadeus Basin Map Simplified 20150902

The combined area is operated by Santos under a three stage farmout agreement with Central, with the exception of the EP 82DSA area which is operated by Central as part of arrangements in the purchase of Central’s interest in the Mereenie Oil and Gas Field.

Tenement Approx
Area
(km²)
Location Operator CTP Consolidation Entity Other JV Participants
Registered
Interest
(%)
Beneficial
Interest
(%)
Participant
Name
Beneficial
Interest
(%)
EP 82* 9,898* Amadeus Basin NT Santos 75 60 Santos 40
EP 105 9,756 Amadeus/Pedirka Basin NT Santos 75 60 Santos 40
EP 106 4,097 Amadeus Basin NT Santos 75 60 Santos 40
EP 112  14,080  Amadeus Basin NT Santos  75 60 Santos 40
EP 125 12,773 Amadeus Basin NT Santos 30 30 Santos 70

* excludes EP 82DSA (1,492 km2), excised from the Joint Venture with Santos as part of arrangements in the purchase of Central’s interest in the Mereenie oil and gas field.

Joint Venture

On 28 September 2012 Central and Santos entered into a three stage farm-in agreement.

Stage one comprised the acquisition of a minimum of 1,500 km of 2D seismic in the Southern Amadeus area, 300 km 2D seismic in EP 115NMB, and drilling of Mt Kitty 1. These activities concluded in June 2014.

Stage two commenced in July 2014 and comprises a further 1,300 km of 2D seismic.

Stage three Santos has the option to drill for additional equity.

Description and Geology

The Southern Amadeus Basin is a large and underexplored region characterised by northwest trending structures in the northern area, and a central area dominated by an east-west central structural ridge or ridges. The southern area has a variety of structural styles including basement involved structural highs, compressional folds and salt-cored thrusted anticlines. The proven Larapintine petroleum system thins southwards. However, source rocks are also recorded deeper in the stratigraphic succession including in the Cambrian Tempe Formation and Chandler Salt, in the Neoproterozoic Aralka Formation, Finke Beds and Bitter Springs Formation, in particular in the basal Gillen Member and provide a source for gas charge.

EP 82

Gas was discovered at Magee‑1 in 1992, where a test at a depth of 2,340 metres flowed gas at a stabilised rate of 63 Mcfd, comprising natural gas, helium and nitrogen. Seismic data acquired to date indicate a possible updip location which requires additional seismic acquisition, programmed in Stage 2. A significant proportion of Stage 2 comprising 1,300 km 2D seismic will be acquired in this permit.

EP 105

This permit is immediately east of and geologically similar to EP 82.  A number of leads have been identified from potential field data, the extensive 2013 regional seismic program, and field (outcrop) mapping.

EP 112

This permit contains a variety of structural styles, and additional opportunities have been identified from potential field data and the extensive 2013 regional seismic program. A significant proportion of Stage 2 comprising 1,300 km 2D seismic will be acquired in this permit.

EP 125

In 2014, the joint venture operated by Santos drilled the exploration well Mt Kitty 1 to test a large basement structure with closure up to approximately 200 km2. The target Heavitree Quartzite reservoir was absent but gas flows were recorded from fractured igneous basement, opening up a new play type. The joint venture is evaluating well data to determine whether further appraisal of the structure is warranted. This permit contains a variety of structural styles, and additional opportunities have been identified from potential field data and the extensive 2013 regional seismic data. A proportion of Stage 2 seismic program comprising 1,300 km 2D seismic will be acquired in this permit.

Exploration

In July 2014, Santos elected to proceed to Stage 2 of the Southern Amadeus farm-in, which will involve acquisition of a further 1,300km of 2D seismic. The objective of this survey is to infill the existing seismic grid, and delineate drillable locations from the inventory of leads.

Opportunities

The size of the acreage and leads identified to date has encouraged the joint venture to acquire more seismic to identify prospects worthy of drilling. The percentage of helium recovered in known discoveries is in the range 4% to 9%, which is very high compared with worldwide analogues, and may represent a standalone commercial opportunity.