tommy
27-05-2008, 03:48 PM
Microcap hitting the jackpot!!!
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UOG TO ACQUIRE FOUR HIGHLY-PROSPECTIVE OIL SHALE AND OIL & GAS EXPLORATION PERMITS IN THE McARTHUR BASIN, NORTHERN TERRITORY
HIGHLIGHTS
· Four new exploration permits under application in the McArthur Basin, with strong
prospectivity for oil shale and hydrocarbon resources.
· Total projected oil shale resource potential of over 5 billion barrels of oil.
· Total projected conventional hydrocarbon resource potential of 80.2 – 100.6 million
barrels of recoverable oil, or 541 billion cubic feet of gas.
Uranium Oil & Gas Limited (ASX:UOG) is pleased to announce that the Company has applied for four exploration permits in the McArthur Basin region in the Northern Territory, a Proterozoic area which has shown significant potential for oil shale and conventional hydrocarbon resources.
The Exploration Permits are EP(A) 113, EP(A) 114, EP(A) 150 and EP(A) 151, and the locations are shown in Figure 1.
The McArthur Basin is characterised by thick sequences of organic rich shales which contain high contents of ancient algal plant matter, the prime source material for oil. Numerous oil and gas shows have been recorded from within this basin, with Figure 2 indicating the stratigraphic setting of these shows and Figure 3 showing oil stained cores from two of these shows. Figure 4 shows a schematic cross-section through the basin and Figure 5 shows the location, infrastructure and well database of the application areas.
RPS Energy Pty Ltd (RPS), an acknowledged Oil & Gas industry consultancy firm, was retained to report on both the oil shale prospectivity of the application areas as well as on the conventional hydrocarbon prospectivity.
Although exploration activities are only in the very early stages, application areas EP(A) 114, EP(A) 150 and EP(A) 151 are all inferred to contain substantial oil shale prospectivity.
RPS has identified 32 separate areas within these three applications. The study infers that the combined resource potential of the 32 areas is over 5 billion barrels of oil. All individual areas greater than 20 square kilometres have the potential to contain more than 100 million barrels of oil.
A summary of the evaluation of the oil shale potential is provided in Table 1.
Table 1: Summary of the evaluation of the oil shale potential
Permit Formation Number of
identified areas
Total area (km2) Total volume
(million m3)
EP(A) 114 Velkerri 3 41 410
Barney Creek 9 29 290
Yalco 5 178 1780
Caranbirini 8 57.5 575
EP(A) 151 Barney Creek 1 23.5 235
Yalco 2 27 270
Caranbirini 3 223 2230
EP(A) 151 Velkerri 1 236 2360
Sedimentary settings for each of the 32 identified areas vary substantially, so exploration is likely to show that many of these areas are non-prospective. However there may equally be settings where extractable oil content in the shales is substantially higher, e.g. localised rift basins containing Barney Creek Formation.
Shallow reconnaissance drilling allied to sedimentological analysis should quickly identify those areas containing prime oil shale potential to allow the Company to rank primary exploration targets.
The application areas also appear to contain conventional hydrocarbon prospectivity. Work carried out by Amoco Oil in the mid to late 1970’s and by the Bureau of Mineral Resources (now Geoscience Australia) during the 1980’s indicated that the area contains good to excellent oilprone source rocks in areas of optimal thermal maturity for the generation of oil, and lies close to rock sequences containing sufficient porosity and permeability to act as producible reservoirs.
As the rock sequences in the McArthur Basin are very ancient by industry standards, there has been concern in the Australian oil industry as to whether an adequate seal exists to prevent oil migrating out of any trap settings. However, a substantial body of data exists - for example apatite fission track analyses - which suggests the source rocks have been affected by heating events that were much more recent than the original time of deposition. This suggests oil generation and migration could yet be reservoired in trap settings such as anticlines.
Accordingly, RPS has calculated prospective oil and gas in place, as well as prospective oil and gas resources, for five separate Prospects in the application areas. These estimates are provided in Table 2.
Table 2: Summary of conventional oil & gas prospects
Permit Prospects Prospective
OIIP MMbbls
Prospective Oil
Resouce
MMbbls
Prospective
GIIP Bcf
Prospective
Gas Resource
Bcf
EP(A) 113 Burdo - - 700 350
EP(A) 114 Kilgour 25.4 - -
EP(A) 114 Abner 105 37 215 172
EP(A) 114 Kilgour South 32 11.2 - -
EP(A) 114 Glyde River 19-77.5 6.6-27 23.7 19
OIIP = Oil initially in place
GIIP = Gas initially in place
MMbbls = million barrels
Bcf = Billion cubic feet
These prospects require further drilling and the successful discovery of hydrocarbons before any reserves can be calculated. Each of the five prospects is situated close to infrastructure, and successful discovery would lead to rapid development, particularly in this time of elevated oil and gas prices.
J Karajas
Director 27 May 2008
________________
UOG TO ACQUIRE FOUR HIGHLY-PROSPECTIVE OIL SHALE AND OIL & GAS EXPLORATION PERMITS IN THE McARTHUR BASIN, NORTHERN TERRITORY
HIGHLIGHTS
· Four new exploration permits under application in the McArthur Basin, with strong
prospectivity for oil shale and hydrocarbon resources.
· Total projected oil shale resource potential of over 5 billion barrels of oil.
· Total projected conventional hydrocarbon resource potential of 80.2 – 100.6 million
barrels of recoverable oil, or 541 billion cubic feet of gas.
Uranium Oil & Gas Limited (ASX:UOG) is pleased to announce that the Company has applied for four exploration permits in the McArthur Basin region in the Northern Territory, a Proterozoic area which has shown significant potential for oil shale and conventional hydrocarbon resources.
The Exploration Permits are EP(A) 113, EP(A) 114, EP(A) 150 and EP(A) 151, and the locations are shown in Figure 1.
The McArthur Basin is characterised by thick sequences of organic rich shales which contain high contents of ancient algal plant matter, the prime source material for oil. Numerous oil and gas shows have been recorded from within this basin, with Figure 2 indicating the stratigraphic setting of these shows and Figure 3 showing oil stained cores from two of these shows. Figure 4 shows a schematic cross-section through the basin and Figure 5 shows the location, infrastructure and well database of the application areas.
RPS Energy Pty Ltd (RPS), an acknowledged Oil & Gas industry consultancy firm, was retained to report on both the oil shale prospectivity of the application areas as well as on the conventional hydrocarbon prospectivity.
Although exploration activities are only in the very early stages, application areas EP(A) 114, EP(A) 150 and EP(A) 151 are all inferred to contain substantial oil shale prospectivity.
RPS has identified 32 separate areas within these three applications. The study infers that the combined resource potential of the 32 areas is over 5 billion barrels of oil. All individual areas greater than 20 square kilometres have the potential to contain more than 100 million barrels of oil.
A summary of the evaluation of the oil shale potential is provided in Table 1.
Table 1: Summary of the evaluation of the oil shale potential
Permit Formation Number of
identified areas
Total area (km2) Total volume
(million m3)
EP(A) 114 Velkerri 3 41 410
Barney Creek 9 29 290
Yalco 5 178 1780
Caranbirini 8 57.5 575
EP(A) 151 Barney Creek 1 23.5 235
Yalco 2 27 270
Caranbirini 3 223 2230
EP(A) 151 Velkerri 1 236 2360
Sedimentary settings for each of the 32 identified areas vary substantially, so exploration is likely to show that many of these areas are non-prospective. However there may equally be settings where extractable oil content in the shales is substantially higher, e.g. localised rift basins containing Barney Creek Formation.
Shallow reconnaissance drilling allied to sedimentological analysis should quickly identify those areas containing prime oil shale potential to allow the Company to rank primary exploration targets.
The application areas also appear to contain conventional hydrocarbon prospectivity. Work carried out by Amoco Oil in the mid to late 1970’s and by the Bureau of Mineral Resources (now Geoscience Australia) during the 1980’s indicated that the area contains good to excellent oilprone source rocks in areas of optimal thermal maturity for the generation of oil, and lies close to rock sequences containing sufficient porosity and permeability to act as producible reservoirs.
As the rock sequences in the McArthur Basin are very ancient by industry standards, there has been concern in the Australian oil industry as to whether an adequate seal exists to prevent oil migrating out of any trap settings. However, a substantial body of data exists - for example apatite fission track analyses - which suggests the source rocks have been affected by heating events that were much more recent than the original time of deposition. This suggests oil generation and migration could yet be reservoired in trap settings such as anticlines.
Accordingly, RPS has calculated prospective oil and gas in place, as well as prospective oil and gas resources, for five separate Prospects in the application areas. These estimates are provided in Table 2.
Table 2: Summary of conventional oil & gas prospects
Permit Prospects Prospective
OIIP MMbbls
Prospective Oil
Resouce
MMbbls
Prospective
GIIP Bcf
Prospective
Gas Resource
Bcf
EP(A) 113 Burdo - - 700 350
EP(A) 114 Kilgour 25.4 - -
EP(A) 114 Abner 105 37 215 172
EP(A) 114 Kilgour South 32 11.2 - -
EP(A) 114 Glyde River 19-77.5 6.6-27 23.7 19
OIIP = Oil initially in place
GIIP = Gas initially in place
MMbbls = million barrels
Bcf = Billion cubic feet
These prospects require further drilling and the successful discovery of hydrocarbons before any reserves can be calculated. Each of the five prospects is situated close to infrastructure, and successful discovery would lead to rapid development, particularly in this time of elevated oil and gas prices.
J Karajas
Director 27 May 2008