![[Exploration Drilling]](DrillingRig.jpg)
Exploration News
A midden - a collective noun to describe a group of exploration companies.
After all, they are just a bunch of shells
-- Sam Lees
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Exploration News |
RE: PROGRESS REPORT ON EAGLE NO. 1, EAGLE OIL POOL
DEVELOPMENT PROJECT, SAN JOAQUIN BASIN, CALIFORNIA, USA
Lakes Oil N.L. has been advised by Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, that the Eagle-1 well is at a depth of 3,954 metres, and drilling ahead.
Directional drilling towards the primary objective and horizontal well section will commence at 3,980 metres. The well will be drilled to a measured depth of 4,557 metres. A horizontal well bore of up to 300 metres in length between 4,252 – 4,557 metres is programmed.
Eagle No. 1 will be the first well in the Eagle Oil Pool Development Project, a horizontal drilling project targeting potential recoverable reserves of up to 24 million barrels of oil and 62 billion cubic feet of gas.
The Australian Worldwide Exploration group advises that as at 0900 hours on June 29 the Balnaves-1 well in PEL32 in the Otway Basin, South Australia, was at total depth of 2874mMD and was completing wireline logging operations. When they are finished, straddle test DST2 will be run over the interval 2748 - 2774mMD in the Pretty Hills Sandstone.
Cue Energy Resources Limited (Cue) announces that at 6am on 29th June 2001 the Oyong-2 well in the Sampang PSC offshore East Java, was at 950 metres and preparing to cut core five.
Oyong-2 is located approximately 125 metres north of the Oyong-1 discovery well and is designed to appraise the gas (110 metres) and oil (+/- 22 metres) accumulations penetrated in the Oyong-1 well and to drill the deeper Wonocolo and Ngrayong primary objectives that could not be reached in Oyong-1.
EMPIRE OIL & GAS (29 JUNE 2001)
The Company announces that the operations being conducted at the Brooke No 1 Well located 3 kilometres south of the Rough Range Oil Field in EP41 (Part 3) Exmouth Gulf, at 0600 hours on the 29 June, 2001 is the preparation to run cement plugs after electric wireline logs demonstrated that there was not any significant hydrocarbon accumulations in the Birdrong Sandstone Reservoir.
It is planned to mobilise the DCA Rig No 6 from the Brooke No 1 well Location to the Tess No 1 location.
HILL 50 GOLD (29 JUNE 2001)
The company has reached agreement to purchase the New Celebration Gold Project ("New Celebration") from Newcrest Mining Limited, effective close of business June 30, 2001.
Hill 50's Managing Director, Peter Cook said "The Company has been quite stagnant for the last two years whilst it focussed its attention upon the revival and expansion of its Mt Magnet Gold Project into a profitable and long-life gold producer. The Board has been certain not to cripple the Company with debt through this phase and has managed to achieve the results at Mt Magnet without the Company incurring any debt."
The acquisition of New Celebration adds to Hill 50's Mt Magnet operations, currently producing at 200,000oz per annum and further compliments the Company's growth strategy that has seen it pick up the advanced Maud Creek Gold Project in the Northern Territory and a substantive exploration project at Golden Grove in the previous 6 months.
The purchase price is $10 million plus adjustments for stores, consumables and gold outside of normal levels. A royally of A$10/oz on all production above 400,000oz from the tenements and a contingent payment of $1million dollars for each new discovery with an ore reserve greater than 250,000 oz is also payable to Newcrest. The acquisition will be funded by debt.
KALREZ ENERGY (29 JUNE 2001)
Kalrez is pleased to announce that the second and final shipment of drilling equipment and support equipment has today (29 June 2001) arrived at the Bula Oilfield. Unloading of the Contract Drilling Rig and other equipment is proceeding. Kalrez is now in a position to commence its drilling and workover programme of the Bula Oilfield.
RANGER MINERALS (29 JUNE 2001)
Ranger Minerals wishes to announce that it advised Coronation International Mining Corporation on June 28 of its withdrawal from the Essakan Joint Venture in Burkina Faso established by Letter Agreement on 21 September, 2000. Although an extensive drilling campaign confirmed that the deposit contains in excess of 1 million ounces of gold, our economic evaluation of this resource concluded that under the various development scenarios envisaged it did not meet Ranger's economic criteria at prevailing gold prices.
Approximately A$3.2 million was expended on this evaluation, but under the terms of the Agreement Ranger has earned no interest in the property.
VICTORIA PETROLEUM (29 JUNE 2001)
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is currently at a depth of 3,954 metres, and drilling ahead.
Directional drilling towards the primary objective and horizontal well section will commence at 3,980m. The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4257 - 4557 metres is programmed.
Eagle No 1 is the first well in the Eagle Oil Pool Development Project, a horizontal drilling project targeting potential recoverable reserves of up to 24 million barrels of oil and 62 billion cubic feet of gas.
The Company announces that the operations being conducted at the Brooke No 1 Well located 3 kilometres south of the Rough Range Oil Field in EP41 (Part 3) Exmouth Gulf, as of 0600 hours on the 28 June, 2001 is pulling the drill string out of the well bore and preparing to run electric wireline logs. Total depth of the well was made at 1,168 metres at 2100 hours, 27 June 2001.
HARDMAN RESOURCES (28 JUNE 2001)
Hardman Resources NL provides the following progress report for the drilling of the Courbine-1A well offshore Mauritania.
Progress (24 hours to 14:00 hours WST 27 June 2001):
Current depth 3,195 metres. Completed widening hole from 12(1/4) inch to 17(1/2) inch (445mm) hole size and drilled from 3,025 metres to 3,190 metres depth. Preparing to run wireline logs.
Hydrocarbon Shows:
Hydrocarbon shows will be reported after wireline logs have been run and evaluated at the current well depth of 3,195 metres.
This morning at 6.00 am Eastern Standard time the Spring Grove No 2 well was at 1270 meters and drilling ahead.
The Total Depth of the well is estimated to be 1970 meters.
The prospect has the potential to hold between 3 - 6 billion cubic ft of gas and if commercial gas is encountered some condensate and LPG could be expected.
The Spring Grove Prospect is 2.5 kms from a gas pipeline. Mosaic Oil will pay 70% costs of the well for a 77.5% interest and private interests are paying 30% of the costs of the well.
OIL COMPANY OF AUSTRALIA (28 JUNE 2001)
Oil Company of Australia Limited advises that:
Dalwogan No 01, a coal seam methane exploration core hole, is situated approximately 750 metres east north east of Dogwood 01, latitude 26 deg 41 min 13.65 sec south, longitude 150 deg 09 min 51.81 sec east. The well was spudded at 07:00 hours on June 10, 2001. 168 mm surface casing was set at 96.0 metres RT. The well reached a total depth of 585 metres RT at 21:30 hours on June 22, 2001. The well was plugged and abandoned, and the rig released at 14:00 hours, on June 26, 2001. Progress for the week was 165 metres.
OIL SEARCH (28 JUNE 2001)
Oil Search reports that the Moran-6 well, an appraisal/development well in the Moran Central oil field, is preparing to sidetrack at 887 metres.
During the week, the well was drilled from 985 metres to the casing point at 1,209 metres. Prior to running casing, the drill string was stuck in the hole. After working the stuck pipe, it was decided to plug-back and sidetrack. The forward programme is to redrill the base Darai section and run 13(3/8)" casing.
The Moran-6 well is located in PDL 5 and is being drilled from the Moran-4 well pad as a deviated hole to a bottom hole location approximately 1.5 kilometres north-west of Moran-4, having a planned total measured depth of 4090 metres.
This well forms part of the Moran Central development and will provide important structural and production information on the possible extension of the field to the north-west of Moran-4. It is anticipated that the well will add between 7,000 and 10,000 BOPD to the existing production capacity of this field.
Oil Search's interest in PDL 5 is currently 52.50%. The other participant is ExxonMobil (47.50%). The PNG Government has an option to acquire, or be carried for, up to 22.5% interest in PDL 5, which is currently subject to regulatory process. Our interest in the current production from the Moran Central field is approximately 49%.
The Company's share of the drilling costs for Moran-6 is 41.08%, which equates to our unitised interest in the Moran Central Development.
Moran-6 is the second well of a 6 well contracted programme that will address production potential at Kutubu and Moran Central, as well as test the Bakari feature in PPL 138. The first well, IDT20, in the Kutaba held was successfully brought on production in May and is presently producing over 4,000 BOPD.
Moran-6 will be followed by the Bakari-1 exploration hole in PPL 138 (Oil Search 52.5%), with the contracted programme continuing with further Moran Central and Katubu development and appraisal drilling.
SUMMARY
VICTORIA PETROLEUM (28 JUNE 2001)
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is currently at a depth of 3,852 metres in new sidetrack hole, and drilling ahead.
Directional drilling towards the primary objective and horizontal well section will commence at 3,980m. The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4257 - 4557 metres is programmed.
WEEKLY DRILLING REPORT
In the last week, the following developments occurred on QGC operated wells:
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Coring commenced. |
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Well logged and completed and desorbtion of the coal cores commenced. |
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Coring commenced. Well logged and completed and desorbtion of coal cores commenced. |
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Preparation for commencement of coring continued. |
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Well spudded and casing set in preparation for coring. |
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Well spudded and casing set in preparation for coring. |
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Dewatering operations continued. |
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Dewatering operations continued. |
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Dewatering operations continued. |
This is work being carried out pursuant to QGC's coring and pump testing programme announced on 1 June 2001.
The purpose of this programme is to better define the Coal Bed Methand gas resource contained in QGC's permit interests. The objective is to bring the CBM resource to the earliest possible commercial development.
QGC COAL BED METHANE TESTING PROGRAM – INTERIM ADVICE
As reported separately to the ASX, a program of coal coring and dewatering of the Walloon Coals is in progress at several of QGC’s Surat Basin projects. The objectives of this program are to assess the extent of dewatering that will be required to release potentially commercial quantities of coal bed methane (CBM) from the water saturated coals; and to measure the actual gas content and permeability of the coal.
While the program is still in an early stage, the initial results have been very encouraging and warrant an interim report to shareholders.
Dewatering
Pumps have been installed at Lawton-1, Avon Downs-1 and Berwyndale-1 and have been in operation in these wells since June 16. The initial focus has been to measure the water inflow from the coal and the coals are not yet dewatered. However the early reduction in water pressure caused by this pumping has already resulted in the release of gas from the coal at Avon Downs and Berwyndale, which is now free-flowing to surface.
Facilities are being installed at each location to measure accurately the gas flow rate. These rates will be reported progressively as dewatering proceeds.
Additional pumps have been installed at Trafalgar-1, Ridgewood-1 and Aberdeen-1.
Core Testing
Cores have been cut from Lawton-2 and Pinelands-2. The coal from these cores has been separated and is presently subject to desorption testing to measure the gas content. The initial results have demonstrated that the core contains substantial quantities of gas and that the coal exhibits high permeability. These are critical technical prerequisites for a successful CBM development.
It is anticipated that quantitative core data will be available over the next several weeks.
Further cores are to be cut at Berwyndale-2, Bellevue-1, McNulty-1 and Broadwater-1
Preparations are continuing for a resumption of drilling in the Thrace Joint Venture anticipated in August 2001. Drilling is timed to start after commissioning of the Gocerler pipeline. Details will be announced when available.
Evaluation of exploration data has continued over much of the basin and in Amity's 100% owned licences.
Construction of the pipeline from the Gocerler gasfield to Misinli industrial area, in the Republic of Turkey, is nearing completion.
The Company would like to clarify an announcement made today by Conquest Mining Limited in regard to the Company's rights to earn an interest in Lower Smoke Creek tenements. The announcement by Conquest was incorrect. The correct position is as follows:
i) under the farm-in and joint venture agreement dated 1 June 2000 the Company has an obligation to issue to Conquest and others 4 million fully paid ordinary shares in Astro which took place on 2 May 2001;
ii) during the period commencing 1 May 2000 to 30 April 2002 the Company is required to expend $600,000 on pre venture activities which has taken place; and
iii) to earn a 51% interest, incur expenditure of not less than $5.6 million on pre venture activities or fund the completion of a bankable feasibility study by 30 April 2005.
The Company reiterates that the announcement by Conquest is not correct as the Company does not have to spend $5.6 million within 2 years to earn its interest.
Conquest Mining announced that a major sampling program has now begun on the company's Lower Smoke River tenements in the East Kimberley, which are highly prospective for diamonds.
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is currently at a depth of 3,752 metres in new sidetrack hole, and drilling ahead. The sidetrack has now bypassed the downhole obstruction at 3,744m, and attempts will be made to re-enter the original hole, or otherwise continue with the new sidetrack towards the primary objective and horizontal well section.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4257 - 4557 metres is programmed.
Tantalum Australia Pty Ltd ("TA") has maintained a high level of exploration, project acquisition and development activity over the last three months. Preliminary RC drilling programmes have been completed at Binneringie, Dalgaranga (Niobe prospect) and Walwa, whilst a new project has been acquired at Mt Deans. Results from all the projects have been very encouraging and reinforces the company's objective of establishing significant open pitable resources in each area. The objective at each of the three advanced projects is to define at least one million pounds of contained Ta(2)O(5) with an average minimum resource grade of 150g/t.
Resource definition RC drilling will recommence next week at Binneringie and then at Dalgaranga during July. Resource models are being constructed for all three projects and will be supplemented by the additional drilling.
NEW ZEALAND - PEP38719, TARANAKI BASIN, BLIGH INTEREST: 5.00%
Bligh Oil & Minerals reports that the Kauri-1 is currently tripping for a bit change at 3,707 metres, prior to drilling ahead to the proposed target depth of 4,500 metres.
Bligh holds a 5% interest in PEP38719 and the Kauri well through its wholly owned subsidiary, Marabella Enterprises Limited. The other permit holders are Swift Energy New Zealand Ltd (Operator, 90%) and Antrim Energy, Inc (5%).
Cue Energy Resources Limited (Cue) announces that at 6am on 25th June 2001 the Oyong-2 well in the Sampang PSC offshore East Java, was at 906 metres and preparing to cut the first of three cores. The top of the Mundu limestone was penetrated at 850 metres, 33 metres high to prediction. Good gas shows were encountered from 850 metres to the current depth of 906 metres. The 16" casing was set at 650 metres.
The Company announces that the operations being conducted at the Brooke No 1 Well located 3 kilometres south of the Rough Range Oil Field in EP41 (Part 3) Exmouth Gulf, as of 0600 hours on the 26 June, 2001 is the drilling ahead in 8(1/2") hole at a depth of 1085 metres in the Windalia Radiolarite.
The Brooke No 1 well programme is then designed to drill 8(1/2") (216mm) hole to a total depth of 1195 metres. The Top of the Birdrong Sandstone reservoir is prognosed at 1135 metres.
LANGFORD 25 #3H-TXV HORIZONTAL, HARDEMAN COUNTY, TEXAS
Operations are continuing on the Langford 25 #3H-TXV well in Hardeman County texas using Paterson Rig #33. The well is preparing to kick off at 5,053 feet after a delay in setting a new cement plug and waiting on cement to dry.
Plans call for the Langford "25" well (drilled by Ensearch in 1984) to be re-entered and a new hole to be directionally drilled to a kick off point in the lower Chester for a high angle horizontal drain hole in the Upper Chappel.
Barrick/Homestake - Merger Plan US$2.3B Share Exchange
Barrick Gold Corporation and Homestake Mining Company (NYSE: HM) today announced plans to merge, creating a new leader in the gold industry -- both in quality and scale. The combined company is expected to have a market capitalization of US$9 billion, double that of the nearest competitor. It will be the second largest gold producer with the lowest cash costs of any major producer and have approximately US$900 million in cash. The merged Company's earnings and cash flow are expected to be the highest in the industry.
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is currently at a depth of 3,684 metres in new sidetrack hole, and drilling ahead. The sidetrack will bypass the downhole obstruction at 3,744m, then either re-enter the original hole or continue with the new sidetrack. Directional drilling will then recommence towards the primary objective and horizontal well section.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4257 - 4557 metres is programmed.
Woodside Petroleum Ltd, Operator of the Mauritania, Area B Joint Venture, reports that the Courbine-1A ST1 well was drilled to a depth of 3195 metres in a 12(1/4) inch hole.
Wireline logs and fluid sampling have been completed. The well has been suspended with a 7 inch suspension liner. The current operation is waiting on weather to allow abandonment operations to proceed before releasing the rig.
AGREEMENT WITH GOLDFIELDS EXPANDS YANKS BORE GOLD PROJECT
PRELIMINARY DRILL PROGRAM COMPLETED
Cullen Resources Limited ("Cullen") is pleased to announce that it has concluded a three year Option Agreement with Goldfields Exploration Pty Ltd to acquire the Red Hill West tenement (E08/1135) ("Red Hill") situated immediately south-east of Cullen’s Yanks Bore Project located 1100 km north of Perth in the Ashburton region of Western Australia.
The Agreement provides Cullen with exclusive rights to explore the 131 km2 Red Hill property for a period of three years and Cullen can exercise its option to purchase 100% of the tenement at any time within that period for a modest cash consideration plus a royalty on any future production.
The Red Hill Option significantly enhances Cullen’s strategic position in the Yanks Bore district. The Yanks Bore Joint Venture (Cullen earning 65%) covers the Hunter Zone, a north-north-west trending structural zone marked by silicification and extensive gold soil anomalies.(Figure 1). The Zone at the Aberfoyle Knoll prospect has returned an average of 3.5 g/t gold in rock chip samples collected over a width of 20m. The Yanks Bore tenement covers 12.4 km of the Zone and the Zone also extends southwards into the Red Hill tenement. The option to acquire Red Hill gives Cullen access to a total of 25 km of the Zone, effectively doubling Cullen’s exposure to this highly prospective target.
Cullen also advises that it completed the first drill test of five targets in the Yanks Bore Joint Venture area and one target in the Red Hill area on June 23, 2001. The preliminary program of 11 holes, (totalling 630m of percussion drilling) consisted of five holes at the Aberfoyle Knoll prospect, two holes at the Cummins Hill prospect and one hole at each of the Aberfoyle North, Aberfoyle South, Fig Tree Ridge and Marshall Find prospects.
All 11 holes intersected zones of silicified and chloritised dolomite with 10-15% quartz veining over widths of 5 to 15m downhole. The intersections are inferred to be down dip extensions of the outcropping zones of silicification which are anomalous in gold. Assays of 4m composite samples are currently awaited.
Coal bed methane (CBM) drill hole Dundee-1 reached total depth 320m on 23 June 2001. The well intersected several gas bearing zones in the Walloon Coal Measures.
The results substantiate potential for economic coal bed methane production in the Walloon Coal Measures in ATP 676P. High permeability indicated by water flows of 2,400 barrels per day support the potential for high gas flow rates on pumping and dewatering of the coal seams (standard CBM production techniques).
At 0900 hours on June 25 the Balnaves-1 well in PEL32 in the Otway Basin, South Australia, was drilling ahead at 2785mMD in gas shows, towards a total depth of 2921m. DST1, which tested approximately the top 10m of the Pretty Hills Sandstone indicated that that part of the formation was tight. The well was then drilled ahead while still recording good gas shows and an 18m core was cut and recovered from the interval 2745-2472m.
A drilling program would commence as early as July on the Company's Round Top Hill tenements following the granting of an exploration licence over the area.
Previous work carried out on the tenements in joint venture with Goldfields Limited identified nickel results of 4 metres @ 1.56% within an intercept of 18 metres grading 0.57% from 24 metres depth to the end of hole RTRB 24, and 4 metres of 0.46% from 8 metres depth in hole RTRB 24, using shallow RAB drilling methods. The planned follow up RAB drilling program, to a greater depth than previous work, is designed to test the extent of potential nickel sulphide mineralisation at Round Top Hill.
Bullion has also completed its second round of RC/diamond drilling on its Mt Day tenements. While the target sulphide zone was intersected, the Company reported that no significant nickel results were obtained from these holes.
However, some gold mineralisation was encountered, including 1 metre at 1.29 g/t from 227m and 1 metre at 1.11 g/t from 233m, both in hole MDRD 01, and the Company intends to carry out more work on the prospects to fully evaluate their potential.
The operations being conducted at the Brooke No 1 Well located 3 kilometres south of the Rough Range Oil Field in EP41 (Part 3) Exmouth Gulf, as of 2400 hours on the 24 June, 2001 is the drilling ahead in 8(1/2)" hole at a depth of 1015 metres in the Lower Gearle Siltstone. Slow drilling has resulted in a drill bit change.
Equinox Resources Limited ("Equinox") announces that Billiton Sweden Resources B.V. and Billiton Exploration Australia Pty Ltd (collectively "Billiton") will proceed to the next stage of the alliance to explore for Iron Oxide Copper-Gold deposits in Sweden.
The principle components of the Norrbotten Alliance announced on 3 July, 2000 included:
(1) The subscription by Billiton for 10,000,000 shares in Equinox at A$0.15 per share, raising A$1,500,000 for Equinox.
(2) Billiton had an Option exercisable by the 30 June, 2001 ("Option Date") under the terms of the Norrbotten Joint Venture Agreement by which:
EXCO RESOURCES (25 JUNE 2001)
Exco Resources NL announced today that Rio Tinto has commenced diamond drilling of two electro-magnetic (EM) anomalies at its Cunyu Joint Venture, located approximately 80 kilometres northwest of Wiluna in Western Australia.
Rio Tinto recently completed a ground EM survey, confirming discrete anomalies identified by a wide-spaced (500 metre) airborne EM survey over the areas targeted by magnetic and rock chip geochemistry anomalies.
The primary target is magmatic hosted nickel-copper-PGM's in massive sulphides associated with interpreted major feeder zones proximal to mafic intrusive bodies.
Hardman Resources NL provides the following progress report for the drilling of the Courbine-lA well offshore Mauritania.
Progress (72 hours to 14:00 hours WST 24 June 2001):
Current depth 3,195 metres. Drilled sidetack hole in 12(1/4) inch (311mm) hole size from 2,661 metres to 3,195 metres depth. Preparing to run wireline logs, prior to widening hole to 17(1/2)inch (445mm) hole size and running and cementing 13(3/8) inch (340mm) casing to 3,195 metres depth.
The directors of Molopo Australia NL wish to announce preliminary production results from the Harcourt #1 and Mungi #1 coalbed methane wells in ATP564P, Bowen Basin, Queensland.
The Harcourt #1 well was producing at a rate of 317,000 cubic feet of gas per day before increasing wellbore water levels associated with pump inefficiency temporarily hampered testing. Testing has now resumed.
The Mungi #1 well is currently producing at a rate of 113,000 cubic feet of gas per day.
Gas production from both wells is expected to increase as the water levels are further drawn down with continued pumping. At this point in time these well results are highly encouraging.
Mosaic Oil spudded a well called Spring Grove No 2 on Sunday morning 24th June 2001 at 2.00 am.
At 6.00 am Eastern Standard Time today, the well was at 215 meters and the primary casing was being set.
The Total Depth of the Spring Grove well is estimated to be 1970 meters. The prospect has the potential to hold between 3 - 6 billion cubic ft of gas and if commercial gas is encountered some condensate and LPG could be expected.
The Spring Grove Prospect is 2.5 kms from a gas pipeline. Mosaic Oil will pay 70% costs of the well for a 77.5% interest and private interests are paying 30% of the costs of the well.
Sepon Project-Khanong Copper Drill Results
Results received from broad spaced scout drilling completed over 400 metres of strike extent to the west of the main Khanong resource have identified additional near surface high grade copper mineralization.
BETTER RESULTS INCLUDE:
KHN181 31m @ 3.8% Cu from 3m
KHN182 l7m @ 1.2% Cu from 1m
KHN185 19m @ 4.3% Cu from 31m
These holes confirm the existence of westerly extensions to the high grade copper oxide and chalcocite zones and highlight potential for additional copper resources in this area
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is currently at a depth of 3,608 metres in new sidetrack hole, and drilling ahead. The sidetrack will bypass the downhole obstruction at 3,744m, then either re-enter the original hole or continue with the new sidetrack. Directional drilling will then recommence towards the primary objective and horizontal well section.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4257 - 4557 metres is programmed.
TSUMKWE – Diamonds/Base and Precious Metals Potential
(Mount Burgess Mining N.L. 75%/Kimberlite Resources Pty Ltd 25%)
At Tsumkwe brecciated and altered rocks probably belonging to the early Proterozoic (late Archaean?) Grootfontein Metamorphic Complex were discovered during regional diamond exploration. The pre-Damaran Grootfontein Complex comprises a broad range of rock types including sediments/schists, intermediate to mafic volcanics and gneissic to undeformed granitoids.
Follow-up mapping over an interpreted fold closure at least 5km in length has revealed brecciation/shearing and alteration in sparse surface float material throughout the area.
Petrographic assessment of rock samples has confirmed that an early brecciation/shearing event has been overprinted by metasomatism which has introduced silica-chlorite-epidote and iron mineralisation.
The iron mineralisation is represented by magnetite-haematite-specular haematite-limonite and is considered encouraging for exploration for basemetals/precious metals. Copper oxide mineralisation has been noted in rockchips.
A soil sampling programme designed to cover the fold closure with 200 metre spaced lines and sample sites spaced from 25m to 50m apart along the lines is nearing completion. Ground magnetic surveys have also been carried out over the area of interest.
The aim of the soil sampling programme is to test for the presence of any base/precious metals mineralisation associated with the iron alteration. If positive results are returned, a percussion drilling rig currently on-site at Tsumkwe will be utilised to quickly drilltest any positive anomalies.
PERRINVALE – Gold and Basemetals Project
(Mount Burgess Mining N.L. earning 70%)
Orientation soil sampling work carried out during the March 2001 quarter has confirmed that auger sampling designed to intersect the calcrete horizon within the soil profile at Perrinvale is an effective geochemical sampling technique.
Accordingly, a modified Bobcat mounted auger sampling programme consisting of approximately 650 shallow holes has commenced at Perrinvale with the aim of infilling existing geochemical anomalies and closing down the regional geochemical line spacing.
At 1500 hours on June 22 the Balnaves-1 well in PEL32 in the Otway Basin, South Australia, had reached a depth of 2,720 metresRT and was preparing to run DST1 over the interval 2693 - 2720m after encountering good gas shows in the top of the primary objective, the Pretty Hill Sandstone.
Following the test, the well will be drilled to the proposed total depth of 2921m.
Cue announced that at 6am on 22nd June 2001 the Oyong-2 well in the Sampang PSC offshore East Java, was at 650 metres and running 16" casing. The 20" casing was set at 317 metres.
Oyong-2 is located approximately 125 metres north of the Oyong-1 discovery well and is designed to appraise the gas (110 metres) and oil (22 metres) accumulations penetrated in the Oyong-1 well and to drill the deeper Wonocolo and Ngrayong primary objectives that could not be reached in Oyong-1.
The operations being conducted at the Brooke No 1 Well located 3 kilometres south of the Rough Range Oil Field in EP41 (Part 3) Exmouth Gulf, as of 2400 hours on the 21 June, 2001 is the drilling ahead in 8(1/2)" hole at a depth of 961 metres in the Lower Gearle Siltstone.
The Brooke No 1 well programme is then designed to drill 8(1/2)" (216mm) hole to a total depth of 1195 metres. The Top of the Birdrong Sandstone reservoir is prognosed at 1135 metres.
The WA Energy Minister, Mr Eric Ripper announced on the 21 June 2001, seven separate groups of companies had been short listed to generate power for Exmouth. Empire Oil & Gas NL and MAN B & W Diesel Australia are one of the short listed groups for the power procurement process for the Exmouth Region.
Hardman provides the following progress report for the drilling of the Courbine-1A well offshore Mauritania.
Current depth in sidetrack hole 2,661 metres. Placed cement plug from 2,900 metres to 2,600 metres. Commenced drilling sidetrack hole at 2,603 metres in 12(1/4) inch (311 mm) hole size. Drilled sidetrack hole to 2,661 metres depth.
Preliminary assays for composite drill samples from the first 17 drill holes at Labelle have been received today. Most encouraging were strong results from the previously reported pegmatite located beneath soil cover NE of the main Labelle pegmatite. The Eastern margin of this zone has recorded a 9 meter intercept of 2230 ppm Ta (over 4 Ibs Tantalum per Tonne) from 39m to end of hole 48m (including 3m at 6300 ppm Ta Per tonne). This hole was inclined 60 degrees to the horizontal and appears to be across a vertically dipping body.
The Molopo Tullymorgan # 1 well reached target depth of 1041 metres on June 19, 2001. The well was drilled to test the coalbed methane potential of the Walloon Coal Measures as well as the conventional gas potential in the quartz sandstones of the underlying Koukandowie Formation.
In total, 23 core samples from the Walloon Coal measures were taken containing an estimated 11 metres of included coal. The samples are currently on desorption test to analyse the gas content and its composition. Testing of the core samples is expected to take several months. Initial testing indicates that the methane content is high but that the permeability is low. Preliminary analysis of core samples and electric logs indicate the conventional gas potential of Koukandowie Formation in this particular area of the permit is low.
Sun Resources NL ("Sun") wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
Current operations at 1600 hours WST (California) is making up directional drilling assembly to drill past obstruction in hole to get to bottom to resume drilling ahead to target.
The hole is currently at 4,046 metres and is in survey and is on track to be horizontal at target depth of 4,557 metres, which is expected in a few days after resuming normal drilling. A horizontal well bore of up to 300 metres is programmed in the reservoir target at final depth for subsequent testing.
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is currently at a depth of 4,046 metres. The current operation is making up the directional drilling assembly to drill past the downhole obstruction. Directional drilling can then recommence towards the primary objective and horizontal well section.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4257 - 4557 metres is programmed.
WEEKLY DRILLING REPORT
| Well |
Status | Joint Venture Interests (following completion of QGC farmin) |
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Berwyndale #2 Permit: ATP 632P (Surat Basin) TD: Proposed total depth is 295m. Objective: Core in the Walloon Coal Measures from252m. |
Well spudded on 24.5.2001 and is currently at a depth of 252m and cased to that depth. Coring of the target coal seams below the cased interval will take place using a coring drilling rig. These operations are expected to commence around 27.6.2001. |
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Lawton #2 Permit: ATP 695P (Surat Basin) TD: Proposed total depth is 295m. Objective: Core in the Walloon Coal Measures from 194m. |
Well spudded on 5.6.2001. The coring rig has cored to a total depth of 297m. The well will be logged and completed. Desorption of the coal cores will continue. |
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Pinelands #2 Permit: ATP 574P (Surat Basin) TD: Proposed total depth of 300m. Objective: Core in the Walloon Coal Measures at 250m. |
Well spudded on 10.6.2001 and is currently at a depth of 239m and cased to that depth. Coring of the target coal seams below the cased interval will take place using a coring drilling rig. These operations are expected to commence on 22.6.2001. |
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Belleuve #1 Permit: ATP 610P (Surat Basin) TD: Proposed total depth is 220m Objective: Core in the Walloon Coal Measures at 148m. |
Well spudded on 17.6.2001 and casing has now been set at a depth of 146m. Coring of the target coal seams below the cased interval will take place using a coring drilling rig. These operations are expected to commence around 1.7.2001. |
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The Directors of Arrow Energy NL advise that at 5:00pm on 20 June 2001 Dundee-1 was at a depth of 226m.
In addition to the previously reported gas flows, the well has encountered further significant gas flows from unusually thick coal seams (2.5m thick from 184m and 11.5m thick from 209m).
Austral Coal has continued the fast track expansion program that will double production of its Tahmoor mine with the announcement today that it has secured funding of $7 million to enable acquisition of a new continuous miner and installation of a high capacity conveyor belt system to service the Tahmoor North longwall panels.
Development of Austral Coal's Tahmoor North and Bargo resources will ultimately double production to 3.2 million tonnes per annum and allow extraction of 42 million tonnes under the current mine plan to 2018 - with extensive in situ reserves beyond that.
Underground development of the first Tahmoor North longwall panel is planned to start in January 2002 with extraction of coal from this panel planned for January 2004.
Fourteen diamonds have been recovered from sands and gravels from fifteen metres of the Streak of Luck Tunnel at Mount Ross, Copeton. They were recovered in two samples, from about 100 metres along the tunnel and going progressively into the hill.
Gold resources at Frog`s Leg more than double
HIGHLIGHTS
* The estimate of combined gold resources at the Frog's Leg has increased substantially to 5.07 million tonnes grading 4.6 g/ (750,000 contained ounces) using a lower cut off grade of 1 g/t (previously estimate was 3.15 million tonnes grading 3.35 g/t for 339,000 contained oz);
* The new combined resource figures represent an increase of:
- 121% in contained metal (gold)
- 61% in tonnage, and
- 37% in average grade
* The quality of the resource has also improved substantially, with two thirds of the resource now reporting to the higher quality Measured and Indicated categories; (previously 100% of the resource was placed in the lower quality Inferred Resource category).
* The robustness of the resource is indicated by the fact that a combined resource of 1.63 million tonnes grading 8.9 g/t (468,000 contained oz) lies above a cut-off grade of 5.0 g/t
* The mineralisation is contained in 3 main zones (supergene, Contact Zone, and Quartz Lode) over a strike length of approximately 1,200 metres (1.2 km) and has been estimated to a maximum depth of 440 metres;
* Notwithstanding its size and tenor, the latest resource estimate is still an interim figure. The mineralised envelope is incompletely explored and remains open at depth and along strike, particularly in the northern and central portions of Frog's Leg;
The operations being conducted at the Brooke No 1 Well located 3 kilometres south of the Rough Range Oil Field in EP41 (Part 3) Exmouth Gulf, as of 2400 hours on the 20 June, 2001 is the drilling ahead in 8(1/2)" hole at a depth of 807 metres in the Lower Gearle Siltstone.
The Brooke No 1 well programme is then designed to drill 8(1/2)" (216mm) hole to a total depth of 1195 metres. The Top of the Birdrong Sandstone reservoir is prognosed at 1135 metres.
Initial rock chip sampling at the Westwood Palladium Prospect has returned anomalous values in palladium, platinum, copper and gold. Westwood is located 50 km south west of Rockhampton in central Queensland and 25 km west of the historic Mt Morgan Cu/Au Mine. Westwood lies within the recently granted Exploration Permit for Minerals (EPM) 13305 - Glengarry has 100% equity in this EPM that covers about 320 sqkm, except for two small Mineral Development Licences held by other parties.
BILLITON AND LAKE RESOURCES N.L. FORM ALLIANCE TO EXPLORE FOR COPPER AND OTHER BASE METALS IN SWEDEN
Billiton Development Far East BV and Billiton Arctic Resources BV (collectively “Billiton”), have entered into an alliance with Australia’s Lake Resources NL (“Lake”) to explore for iron oxide copper-gold and hybrid zinc-lead-silver base metal deposits in granted tenements in the Norbotten district of northern Sweden. Drilling of the identified targets is likely to be completed in the current field season.
The broad terms of the agreement are as follows:
Commenting on the agreement, David Whitehead, Billiton’s Chief Executive Exploration and Development, said, “Billiton believe that Lake’s well founded regional screening program in Sweden has generated base metal targets that are prospective for copper-gold and silver-lead-zinc deposits that warrant scout drilling. We look forward to working closely with Lake’s exploration management team to bring these projects to fruition.”
Downlands East was a new field discovery made in late January 2001 in Pl 119 Surat Basin, Qld.
An 800 meter spurline has been constructed and the well is now on-stream.
The initial production rate is 2 million cubic ft a day. Interests in the well are Santos (BOL) Pty Ltd 28.847% and Mosaic Oil 71.153%
OIL COMPANY OF AUSTRALIA (21 JUNE 2001)
Dalwogan No 01, a Coal Seam Methane exploration core hole, is situated approximately 750 metres east north east of Dogwood 01, latitude 26 deg 41 min 13.65 sec south, longitude 150 deg 09 min 51.81 sec east. The well was spudded at 07:00 hours on June 10, 2001. At 06:00 hours today the rig was coring ahead at a depth of 420 metres RT. 168mm surface casing was set at 96.0 metres RT. Progress for the week was 216 metres.
The primary targets of the well are the Upper and Lower Juandah coal measures.
OIL SEARCH (21 JUNE 2001)
Oil Search reports that the Moran-6 well, an appraisal/development well in the Moran Central oil field, was spudded at 1300 hours on Friday 15 June, 2001.
As at 0500 hours today, the well was at a measured depth of 985 metres, after setting 18(5/8)" casing at 74 metres. Progress for the week was 985 metres.
The Moran-6 well is located in PDL 5 and is being drilled from the Moran-4 well pad as a deviated hole to a bottom hole location approximately 1.5 kilometres north-west of Moran-4, having a planned total measured depth of 4090 metres.
This well forms part of the Moran Central development and will provide important structural and production information on the possible extension of the field to the north-west of Moran-4. It is anticipated that the well will add between 7,000 and 10,000 BOPD to the existing production capacity of this field.
Oil Search's interest in PDL 5 is currently 52.50%. The other participant is ExxonMobil (47.50%). The PNG Government has an option to acquire, or be carried for, up to 22.5% interest in PDL 5, which is currently subject to regulatory process. Our interest in the current production from the Moran Central field is approximately 49%.
The Company's share of the drilling costs for Moran-6 is 41.08%, which equates to our unitised interest in the Moran Central Development.
Moran-6 is the second well of a 6 well contracted programme that will address production potential at Kutubu and Moran Central, as well as test the Bakari feature in PPL 138. The first well, IDT20, in the Kutubu field was successfully brought on production in May and is presently producing over 4,000 BOPD.
Moran-6 will be followed by the Bakari-1 exploration hole in PPL 138 (Oil Search 52.5%), with the contracted programme continuing with further Moran Central and Kutubu development and appraisal drilling.
ORIGIN ENERGY (21 JUNE 2001)
Origin Energy Resources Limited, as Operator of petroleum exploration permit VIC/P43, advises that the Geographe 1 exploration well has identified a significant new gas resource in the offshore Otway Basin.
Wireline formation samples have now been recovered from Geographe 1 at three levels (1831.7mRT, 1896.4mRT, and 2015.8mRT), with gas having been recovered from each. Preliminary analysis of the samples indicates that the gas has an inert level ranging from 6 to 8%. Condensate and LPG content is still pending final analysis.
RIMFIRE PACIFIC MINING (21 JUNE 2001)
Rimfire have recovered one macrodiamond in bulk samples from the Bingara, Diamond Project. Processing and observation of Rimfire's samples has been completed by Independent Diamond Laboratories in Perth.
SUN RESOURCES (21 JUNE 2001)
Sun Resources NL ("Sun") wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
Current operations at 1600 hours WST (California) is completion of drilling out cement plug in the next few hours to get to bottom to resume drilling ahead to target.
The hole is currently at 4,046 metres and is in survey and is on track to be horizontal at target depth of 4,557 metres, which is expected in a few days after resuming normal drilling. A horizontal well bore of up to 300 metres is programmed in the reservoir target at final depth for subsequent testing.
The Directors of Yardarino Ltd wish to announce that they have entered into a Joint Venture Agreement with WMC Resources Ltd in respect to Yardarino's Collurabbie Hills Nickel Project located approximately 200 km north of Laverton in Western Australia.
Under the terms of the Agreement WMC have the right to earn 70% equity in the project by funding a total of $400,000 towards exploration expenditure.
Based on a regional geological synthesis WMC has identified the Collurabbie Hills project as having potential for nickel sulphide mineralisation. Proposed work to be carried out will include airborne electro magnetics, followed up by ground EM and drilling of targets as required.
Crown Structure Results
Further significant results have been received from drilling on the Crown structure at Cracow. Recent holes were aimed at testing the strike and depth potential of the Crown quartz vein structure beyond CBK027 (22.7m@15gAu/t) and CBK030 (18.25m@31gAu/t), previously reported.
Drilling has now encountered gold mineralisation on a strike length in excess of 350 metres and a vertical extent of 400 metres. (See section and diagrammatic plan). The Crown structure remains open along strike and at depth.
AUSTRALIAN GOLD COUNCIL (20 JUNE 2001)
The AGC expressed concern over the drop in exploration expenditure for gold for Q1 2001 of 11% or A$11 million, according to ABS data recently released.
KAGARA ZINC (20 JUNE 2001)
Kagara announced the results of the first four holes of a six hole programme at its 100% owned King Vol prospect in northern Queensland. It is expected that mineralisation at King Vol will be treated through Kagara's proposed treatment facility at Mt Garnet.
All holes drilled encountered high grade intercepts with values up to 1.71 metres at 26.46% zinc which has confirmed continuity of the eastern zone mineralisation (EZM) at King Vol.
KIMBERLEY DIAMOND COMPANY (20 JUNE 2001)
MINCOR RESOURCES (20 JUNE 2001)
Mincor is pleased to announce that the drilling carried out by its 75.6% subsidiary the TCC Ltd has successfully defined a substantial copper resource at the H4 Project at Reko Diq. The bulk of the resource is sufficiently robust to achieve classification as an Indicated Resource to the exacting standards of the JORC code.
The resource statement is as follows:
Indicated Resource: 68 million tonnes @ 0.8% copper
Inferred Resource: 7 million tonnes @ 0.7% copper
(both at a 0.6% copper cut-off)
MOSAIC OIL (20 JUNE 2001)
Rig mobilisation to the Spring Grove Prospect has begun. The well is a sole risk well drilled by Mosaic after other participants in the Bainbilla Block elected not to participate.
The Total Depth of the Spring Grove well is estimated to be 1970 meters. The prospect has the potential to hold between 3 - 6 billion cubic ft of gas and if commercial gas is encountered some condensate and LPG could be expected.
The Spring Grove Prospect is 2.5 kms from a gas pipeline. Mosaic Oil will pay 70% costs of the well for a 77.5% interest and private interests are paying 30% of the costs of the well.
Activity Update - SUMMARY
SUN RESOURCES (20 JUNE 2001)
Sun Resources NL ("Sun") wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
Current operations at 0600 hours WST (California) is running in to spot cement plug over reamed sticky zone to drill ahead to target.
The hole is currently at 4,046 metres and is in survey and is on track to be horizontal at target depth of 4,557 metres, which is expected in a few days after resuming normal drilling. A horizontal well bore of up to 300 metres is programmed in the reservoir target at final depth for subsequent testing.
VICTORIA PETROLEUM (20 JUNE 2001)
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is currently at a depth of 4,046 metres. The current operation is running in with drill pipe to spot a cement plug over the under-reamed zone, prior to reaming to bottom to condition the wellbore. Directional drilling can then recommence towards the primary objective and horizontal well section.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4257 - 4557 metres is programmed.
In order to ensure a fully informed market, ARC Energy NL ("ARC") advises that it has received preliminary log information on the Yardarino 5 well. These preliminary logs indicate that the hydrocarbon column encountered in the Dongara Formation is residual and that this zone will not contain significant reserves at this location. Further logs and down hole fluid samples are required to confirm this interpretation and to assess the potential of the hydrocarbon shows in the deeper Carynginia and Irwin River Formations.
Consideration is also being given to a sidetrack of the well and further information will be released as it becomes available.
The Australian Worldwide Exploration group advises that as at 0845 hours on June 19 the Balnaves-1 well in PEL32 in the Otway Basin, South Australia, had reached a depth of 2,475 metres and was drilling ahead.
The primary objective (Pretty Hill Sandstone) should be reached within the next week.
NEW ZEALAND - PEP38719, TARANAKI BASIN, BLIGH INTEREST: 5%
Bligh Oil & Minerals reports that the Kauri-1 is currently drilling ahead in 8(1/2)" hole to the primary target, the Tariki Sandstone.
As at 6.00am this morning, the well was at a depth of 3,367 metres.
During the past week, 12(1/4)" hole was logged and 9(5/8)" casing set at 3,156 metres. A decision on cased hole testing of the show interval 2,890 to 3,140 metres will be made once the well has reached total depth of 4,500 metres.
The Company announces that the operations being conducted at the Brooke No 1 Well located 3 kilometres south of the Rough Range Oil Field in EP41 (Part 3) Exmouth Gulf, as of 2400 hours on the 18 June, 2001 is the drilling ahead in 8(1/2)" hole at a depth of 509 metres in the lower Gearle Siltstone after pulling out of the hole at 480.25 metres to run a new drill bit.
The Brooke No 1 well programme is then designed to drill 8(1/2)" (216mm) hole to a total depth of 1195 metres. The Top of the Birdrong Sandstone reservoir is prognosed at 1135 metres. The calculated volume of potential Oil in Place is 2.6 million barrels.
FURTHER GAS SHOWS IN NEIL HEIRS-1 WELL, TEXAS SUCCESSFUL TEST OF LAKE LONG NO 7 WELL, LOUISIANA NEW TEXAS WELL SPUDS/EAGLE-1 PROGRESS CALIFORNIA
NEW BARN PROSPECT, CASS COUNTS, TEXAS
NEIL HEIRS #1 WELL
Further gas shows have been reported in the Neil Heirs #1 over the primary objective Cotton Valley Formation. While drilling between 10,676 and 10,688 feet background gas increased from 6 units to 92 units with an associated drilling break. A further drilling break and gas readings to 46 units were recorded while drilling between 10,839 and 10,857 feet.
LAKE LONG FIELD, LAFOURCHE PARISH, SOUTH LOUISIANA
STATE LEASE 328 NO 7 WELL
The lowermost sand (5,780 foot Sand) in the No 7 well has been perforated and tested gas at an estimated rate of approximately 1.0 million cubic feet of gas per day on a 9/64 inch choke at a flowing tubing pressure of 1550 psi. This rate is an estimate as a test unit was not available. The well continued to clean up while testing.
LANGFORD 25 #3H-TXV HORIZONTAL, HARDEMAN COUNTY, TEXAS
The Langford 25 #3H-TXV well in Hardeman County Texas was re-entered on 13 June using Paterson Rig #33. The well is currently at 5,123 feet and waiting on a cement kick off plug to dry prior to the resumption of drilling.
Majestic has decided not to proceed with the development of the Orange River prospect in Kimberley, South Africa after grades failed to meet commercial standards.
Majestic said this decision was based on an extensive bulk sampling program during which approximately 22,000 tonnes of gravel was mined from six pit areas.
The company will receive a $1.5 million refund from the deposit it was required to pay before commencing bulk sampling at Orange River, having now withdrawn from the potential $5 million commitment.
Woodside Petroleum Ltd, Operator of the Mauritania, Area B Joint Venture, reports that the Courbine-1A well was drilled to a depth of 2900 metres in a 17(1/2) inch hole where drilling problems were encountered. The forward programme is currently being evaluated.
Expressions of interest to be sought for Pine Creek assets
AngloGold Ltd is considering options for extracting the most value from its Pine Creek assets in the Northern Territory. Amongst these options is the possible sale of the assets.
The company has appointed SMP Group to seek expressions of interest in the assets, which comprise the operating Union Reefs mine and treatment plant, the Brocks Creek treatment plant, service facilities associated with these operations and mining and exploration leases held by the company in the Pine Creek area.
AngloGold acquired the Pine Creek operations through the successful takeover of Acacia Resources Ltd at the end of 1999.
ARC ENERGY (18 JUNE 2001)
Yardarino-5 Daily Drilling Report - Drill ahead from 1956 meters to 2446 meters.
The Dongara formation objective section had gas shows up to 300 units over the interval 2303 to 2320 meters. The significance of these shows will be evaluated once wire line logs and formation fluid samples have been obtained.
ARROW ENERGY (18 JUNE 2001)
Further Gas Flows from Dundee-1
At 1.30pm on 18 June 2001, Dundee-1 was at a depth of 144m having set surface casing at 74m.
The well, the first of four in Arrow's program of six coal bed methane (CBM) gas wells in the Surat Basin, South East Queensland encountered several strong gas shows between 74m and 144m in sandstone and siltstone of the Walloon Coal Measures.
The shows flowed gas to surface at a stabilised rate of 37,000 cubic feet per day and a pressure of 490 kilo pascals (71 psi) through a (1/8)" choke. Cumulative tested gas flows in Dundee-1 now total 61,500 cubic feet per day.
Dundee-1 is currently drilling ahead. The well is planned to reach a total depth of 320m to test the main objective coal seams prognosed in Dundee-1, the MacAlister, Wambo, Iona and Argyle seams.
PINELANDS-1 SPUDS AND CASED
As part of a three well farmin Agreement with Australian CBM Pty Ltd (ACBM) Queensland Gas Company Limited (QGC) spudded the second well, the Pinelands-2 CBM Core hole in Queensland permit ATP 574P on Sunday June 10, 2001. Arrow has an option to purchase 100% of ACBM. ACBM will have 6.25% of ATP 574P following the completion of QGC's farmin drilling program. The well reached a depth of 239 metres on June 13, 2001 and was cased to that depth. Coring of the target coal seams below the cased interval will take place using a coring drill rig in about nine days time. The proposed total depth of the well is 300 metres.
MCNULTY-1 TO BE DRILLED AS THE THIRD WELL IN A SEVEN WELL FARMIN PROGRAM
As part of a seven well farmin Agreement with ACBM, QGC plans to drill and core McNulty-1 to a proposed TD of 145 metres later in June in the QGC farmin area of Queensland permit ATP 676P. McNulty-1 is to be located some 8km south of Avon Downs-1 (also in ATP 676P) which flowed at 220,000 cubic feet per day of dry gas earlier this year.
ACBM is fully carried on up to seven wells within the QGC farmin area of ATP 676P and will have a 50% working interest in the QGC Farmin area of ATP 676P after the completion of QGC's farmin drilling program. The first two wells in QGC's farmin program were the successful Wyalla-1 and Avon Downs-1 wells drilled late in 2000 that flowed 75,000 and 220,000 cubic feet per day respectively from Walloon Coal seams.
The Company announces that the operations being conducted at the Brooke No 1 Well located 3 kilometres south of the Rough Range Oil Field in EP41 (Part 3) Exmouth Gulf, as of 2400 hours on the 17 June, 2001 is the drilling ahead in 8(1/2)" hole at a depth of 478 metres in the upper Gearle Siltstone.
The Brooke No 1 well programme is then designed to drill 8(1/2)" (216mm) hole to a total depth of 1195 metres. The Top of the Birdrong Sandstone reservoir is prognosed at 1135 metres. The calculated volume of potential Oil in Place is 2.6 million barrels.
HARDMAN RESOURCES (18 JUNE 2001)
Hardman Resources NL provides the following progress report for the drilling of the Courbine-1A well offshore Mauritania.
Current depth 2,900 metres. Drill out cement in 20 inch (508mm) casing. Drill ahead in 17(1/2)inch (445mm) hole size from 2,144 metres to 2,900 metres depth. Attempting to free stuck drill pipe at 2,900 metres depth.
Julia has extended its search for viable tantalite deposits south of the Bynoe, Northern Territory area, to a 300 square kilometre area in the Pine Creek Geosyncline near Cosmos Howley.
Central to the area acquired are the Mt Shoobridge and Barretts Tin/Tantalum Mines.
Julia Gold Pty Ltd ("Julia") has acquired MLN 544 from Mr Bob Biddlecombe, a Darwin Prospector, as an outright purchase for $50,000. Julia has also entered into a three-year option with Mr Biddlecombe to acquire ERL 88, MLN 296, MCN 60 and HLDN's 45 and 43 and with Mr Biddlecombe's company, Biddlecombe Pty Ltd, to acquire ELA's 22186 and 23105. Terms of the option include a three year option for Mr Biddlecombe to acquire 500,000 shares in the capital of Julia Corporation Limited at 20 cents per share, and Julia may exercise its option after three years by payment of $250,000 and the issue of 2,500,000 ordinary shares in the capital of Julia Corporation Limited to Mr Biddlecombe. Mr Biddlecombe and his company shall also retain a 1% production royalty over the tenements.
This area is located approximately 30km south of the Labelle pegmatite currently being drill tested by the company.
Origin Origin Energy Resources Limited, as Operator for VIC/P43, provides the following progress report for the drilling of the exploration well Geographe 1 in the offshore Otway Basin, Victoria.
Geographe 1 has reached a total depth of 2430mRT and a wireline evaluation programme is currently in progress. Preliminary results indicate the presence of a single gross gas column of approximately 240m in interbedded sands and shales of the Flaxmans/Waarre Formation. No comment can be made on the composition of the resource until samples are recovered and analysed.
PILBARA MINES (18 JUNE 2001)
Pilbara announced that a surface soil geochemical survey in an area of colluvial/alluvial cover to the NW of the old Teutonic Bore base metal mine in WA, has outlined a coherent gold anomaly up to 15 times background, over an area of 1km by 1.5km. This prospect is located in the northern part of Pilbara's extensive tenement holding, less than 20km to the SE of the recently announced Thunderbox gold mine development, within a similar structural environment.
Sun Resources NL ("Sun") wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
The situation in the well with stuck pipe and the sticky fault zone has been successfully overcome since our Friday June 15, morning report. Current operations at 0600 hours WST (California) is completion of under reaming over sticky zone to set cement sleeve plug to drill out mid-week and thence drill ahead to target.
The hole is currently at 4,046 metres and is in survey and is on track to be horizontal at target depth of 4,557 metres, which is expected in a few days after resuming normal drilling on Tuesday. A horizontal well bore of up to 300 metres is programmed in the reservoir target at final depth for subsequent testing.
VICTORIA PETROLEUM (18 JUNE 2001)
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is currently at a depth of 4,046 metres. Over the weekend the jarring operation was successful and the stuck drillpipe retrieved. The current operation is stabilising the wellbore, by under-reaming and spotting a cement plug, prior to recommencing directional drilling towards the primary objective and horizontal well section.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4257 - 4557 metres is programmed.
Dundee-1 is currently being cased and cemented to 74 metres. As announced on 13 June 2001, an open hole test of gas shows in coal seams between 70 and 74 metres flow tested gas at a stabilised rate of 24,500 cubic feet per day and 295 kilo pascals (43 psi). Following the setting of the cement, Dundee-1 will be drilled ahead to a projected total depth of 320 metres to test the deeper primary target coal seams in the Walloon Coal Measures.
Drilling at Dundee-1 is scheduled to recommence on the morning of June 16 2001.
Cue Energy Resources Limited (Cue) announces that at 6am on 15th June 2001 the Oyong-2 well in the Sampang PSC offshore East Java, was at 322 metres and preparing to run 20" casing. The 30" casing was set at 143 metres.
The well is programmed to a total depth of 2280 metres with drilling expected to take 30 days.
The Company announces that the operations being conducted at the Brooke No 1 Well located 3 kilometres south of the Rough Range Oil Field in EP41 (Part 3) Exmouth Gulf, as of 1800 hours on the 14 June, 2001 is the drilling ahead in 8(1/2)" hole after drilling out the 9(5/8)" casing shoe at 156.2 metres.
The Brooke No 1 well programme is then designed to drill 8(1/2)" (216mm) hole to a total depth of 1195 metres. The Top of the Birdrong Sandstone reservoir is prognosed at 1135 metres. The calculated volume of potential Oil in Place is 2.6 million barrels.
Progress Drilling Report - Courbine-1A Well - Current depth 2,144 metres. Completed connecting the Blow out Preventers and Marine Riser to the 20 inch (508mm) casing. Preparing to drill ahead in 17(1/2) inch (445mm) hole size at 2,144 metres depth.
KANOWNA LIGHTS (15 JUNE 2001)
Kanowna Lights Limited ("KLS") advises that it has entered into a Joint Venture Agreement with G E Resources Pty Ltd ("GE") on the Great Western Gold Prospect M37/54 ("prospect") on the following terms:
1. GE will undertake a minimum of 1,000 metres of percussion drilling on the prospect within three months to test the potential for an underground mining operation.
2. In return for completion of this drilling and associated assaying and geological work, GE will acquire an immediate 51% and management of the prospect.
3. Additional equity in the prospect will be acquired pro rata to further expenditure above that incurred in Clause 1 with 100% equity acquired through the total expenditure of $200,000.
4. On completion of the undertaking in Clause 1 and irrespective of the level of additional expenditure in Clause 3, on commencement of commercial mining activities by GE, GE will be entitled to 100% of the prospect.
5. Any production of gold from the prospect will be subject to a sliding royalty payable by GE to KLS.
6. The royalty to commence at $10/ounce at a gold price of AUD$550/ounce or below. Above AUD$550/ounce, the royalty payable to rise by $0.50 for each $1.00 rise in the gold price. The royalty shall apply to all ounces won from underground mining.
7. Any potential open cut ore won from the lease shall be subject to a fixed royalty of $10.00/ounce irrespective of the gold price.
8. In the event of GE acquiring tenements adjacent to the prospect, GE commits to negotiate in good faith with KLS to include them in the acquisition of the new tenements on royalty or equity basis at KLS' proportionate cost.
9. GE has the right to withdraw from the agreement after drilling of 500 metres of percussion drilling retaining no interest in the prospect.
ORIGIN ENERGY (15 JUNE 2001)
Origin Energy Resources Limited as Operator of PEL 32 advises that the exploration well Balnaves 1 which spudded at 4am on Sunday 10 June 2001 was at a depth of 1602 mRT and drilling ahead in the Eumeralla Formation at 6am on Friday 15 June 2001.
Balnaves 1 is located in exploration permit PEL 32 in the onshore Otway Basin of South Australia. The well is located on a separate and previously undrilled structure, approximately 6.5 km west of the Katnook gas field.
The well has a planned total depth of 2921 mRT, the primary objective the Pretty Hill Sandstone is prognosed to be intersected at depth of approximately 2707 mRT.
REEFTON MINING (15 JUNE 2001)
Reefton has discovered substantial tantalite mineralisation over a 50 kilometre length of the Sandamap-Erongo pegmatite belt. Evaluation of results to date indicate potential for hard rock and alluvial resources of world class magnitude.
Highlights are:
* Wide mineralised pegmatites (up to 300 metres width) would allow large scale open cut mining and have returned high grades averaging 1.1 lbs/t Ta(2)O(5) at Sandamap.
* Identification of the 15 kilometre Sandamap area as a priority target. This part of the belt contains a series of wide well mineralised steeply dipping pegmatites which have returned high grade results of up to 1.67 lbs/t Ta(2)O(5).
* Substantial Ta(2)O(5) grades of up to 1.85 lbs/t Ta(2)O(5) have been returned from reconnaissance sampling of the alluvial material over 50 kilometres tested.
* All the pegmatites that have been sampled over the 50 kilometre strike length were mineralised.
* Swarms of mineralised pegmatites exist which have contributed to alluvial deposits of tantalite.
* RC drilling to commence in July.
Santos Limited, as operator for WA-264-P, announces a successful oil exploration well in the Carnarvon Basin, offshore Western Australia.
Corowa-1 flowed 839 cubic metres of oil per day (5,276 barrels) through a 19mm (3/4") surface choke at a flowing well head pressure of 880 psia from the interval 1549 - 1560m in a Barrow Group Sand.
The oil flow was accompanied by 64,565 cubic meters of gas per day (2.28 million cubic feet per day) with no water. There is no oil-water contact in the well.
Corowa-1 is located in 84 metres of water, 40km west of the Thevenard Island production facility and 24km south of the Griffin Field.
SUN RESOURCES (15 JUNE 2001)
San Resources NL ("Sun") wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
Current operations at 0600 hours WST (California) is jarring to retrieve stuck pipe, prior to reaming out hole to run casing over sticky zone to drill ahead to target. Sticky zone is due to a fault at 3,559 metres. The hole is currently at 4,046 metres and is in survey and is on track to be horizontal at target depth of 4,557 metres, which is expected in a few days after resuming normal drilling at the end of the week. A horizontal well bore of up to 300 metres is programmed in the reservoir target at final depth for subsequent testing.
VICTORIA PETROLEUM (15 JUNE 2001)
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is currently at a depth of 4,046 metres. The current operation is jarring to retrieve stuck drillpipe. Following retrieval, drilling will continue towards the primary objective and horizontal well section.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4257 - 4557 metres is programmed.
Giants Reef is pleased to advise that $7,000,000 (seven million dollars) has been paid to Normandy Consolidated Gold Holdings Pty Ltd, a subsidiary of Normandy Mining, thereby completing the purchase of Normandy Tennant Creek Pty Ltd.
This is an important step for Giants Reef towards achieving its goal of becoming a substantial gold producer.
Yardarino-5 Appraisal Well Drilling Report - Drill ahead from 1470 metres to 1718 metres.
The primary objective section is expected to be encountered below 2,200 metres
CARNARVON PETROLEUM (14 JUNE 2001)
Carnarvon announced the successful testing of WB-N2, the second new well on the SW1A Concession in Central Thailand. Testing is proceeding with a natural flow rate that has averaged 326 bopd (barrels oil per day).
After perforating WB-N2 at 13:05 on 11 June 2001 a strong blow was observed. Following swabbing of the completion brine and a six hour shut in through to the morning of 13 June 2001 the WB-N2 well started flowing naturally. Over a ten-hour period a total of 136bbl of crude was produced through a variety of choke sizes. Flow was sometimes intermittent due to waxing up of tubing and flowlines. The initial measured rate was 276 bopd on a 20/64 inch choke with a flowing wellhead pressure of 40 psig. The oil is presently being produced directly to an oil tanker. The natural flow period will be curtailed soon for the purpose of installing a beam pump and additional heated tankage at site to ensure continuity of production. The first delivery of WB-N2 crude to the refinery should occur tomorrow and continuous commercial production should commence this week.
EMPIRE OIL & GAS (14 JUNE 2001)
The operations being conducted at the Brooke No 1 Well located 3 kilometres south of the Rough Range Oil Field in EP41 (Part 3) Exmouth Gulf, as of 1800 hours on the 13 June, 2001 consists of pressure testing the blow out prevention equipment.
The Brooke No 1 well programme is then designed to drill out the 9 (5/8)" casing shoe set at 156.2 metres and then the drilling of 8 (1/2)" (216mm) hole to a total depth of 1195 metres. The Top of the Birdrong Sandstone reservoir is prognosed at 1135 metres. The calculated volume of potential Oil in Place is 2.6 million barrels.
GREENSTONE RESOURCES (14 JUNE 2001)
Exploration Update
NORTH BULLFINCH GOLD PROJECT
The Company advises that it has commenced a second RC drilling program, totalling 2300 to 2500 metres, at its North Bullfinch Gold Project.
RAVENSTHORPE NICKEL SULPHIDE PROJECT
Project operator QNI has completed a moving loop ground Electromagnetic survey (MLEM) over selected sections of the ultramafic belt from the RAV 1 nickel sulphide deposit (Boyup Creek) in the west to near the RAV 8 tenement (Tectonic Resources) in the east.
The MLEM survey has located 3 main conductors named JEM 1, 2, 3, and 4. JEM 2 and JEM 3 are associated with discrete magnetic anomalies.
All four conductors are interpreted to be associated with ultramafic rocks. Apart from JEM 1, which is poorly constrained and deep, these conductors will be drill tested. A fifth conductor adjacent to JEM 2 may also be considered for drilling after further data processing.
A down-hole, off-hole EM anomaly at the Discus Prospect, which was discovered during drilling in the December quarter of 2000 (hole RVD 12, 0.3m @ 0.94% Ni), will also be tested with one hole.
In addition, one hole will be drilled to test the Mt Short gossan within the area previously drilled by the joint venture at Mt Short, approximately 25km to the north-west of Boyup Creek.
YALGOO GOLD PROJECT OPTION
The Company has acquired an Option to Purchase claims covering the Wadgingarra and Carlaminda Mining Centres adjacent to the town of Yalgoo. The project is strategically located with respect to processing facilities, which are located at the nearby Gullewa Mine approximately 30km to the south-west and the in-construction mill at the Minjar Mine approximately 30km to the south-east.
HADDINGTON INTERNATIONAL RESOURCES (14 JUNE 2001)
Haddington International Resources has further increased the Tantalite resource at its Bald Hill Tantalite Project to 1,140,000 tonnes @ 472 ppm Ta(2)O(5), containing approximately 1,186,000 pounds of Ta(2)O(5).
The total resource at Bald Hill has been increased by 41% since listing, and as a consequence, the life of the project increased to almost 6 years at the proposed throughput of 200,000 tonnes per annum. The additional resource adds a new dimension to the Project and gives potential for substantial increase in revenue and profit to an already robust project.
KIMBERLEY DIAMOND COMPANY (14 JUNE 2001)
Kimberley has entered into an agreement with Ellendale Resources NL ("Ellendale") whereby Kimberley can earn a 75 percent interest in the Ellendale diamond field tenements held by Ellendale (being 100 percent interest in EL04/804, EL04/911, EL04/1062, EL1092 and ELA1093) by meeting all expenditure on the project area through to the completion of bankable feasibility.
Kimberley also announced the recovery of a further 234 diamonds weighing 34.5 carats from further trench results on Ellendale Pipes 9 and 4. Included in the results were a 1.47 carat gemstone with 2 other diamonds larger than 1 carat and a further 9 stones weighing more than half a carat.
OIL COMPANY OF AUSTRALIA (14 JUNE 2001)
Dalwogan 01 & Lilyvale 03 Update
Dalwogan No 01, a coal seam methane exploration core hole, is situated approximately 750 metres East North East of Dogwood 01, Latitude 26 Deg 41 Min, 13.65 Sec South, Longitude 150 Deg 09 Min 51.81 Sec East. The well was spudded at 07:00 hours on June 10, 2001.
At 06:00 hours today the rig was coring ahead at a depth of 204 metres RT. 168 mm surface casing was set at 96.0 metres RT progress for the week was 204 metres.
The primary targets of the well are the Upper Juandah coal measures. Proposed total cored depth of the well is 299 metres RT.
Lilyvale No 03 is situated approximately 5 kilometres Soth-South-West of GSQ Emerald NS 44, Latitude 23 Deg 20 Min 43.13 Sec South, Longitude 148 Deg 18 Min 02.96 Sec East. The well was spudded at 16:50 Hours on April 11, 2001. 168 mm surface casing was set at 96.8 metres RT. A total depth of 441.31 metres was reached at 16:00 hours on April 26, 2001, and the well was capped and suspended for later abandonment. The well was re-entered at 16:00 hours on June 3, 2001 and plugged and abandoned. The rig was released at 17:00 hours on June 7,2001.
The primary targets of the well were the coals of the German Creek Formation.
ORIGIN ENERGY (14 JUNE 2001)
Origin Energy Resources Limited, as Operator for VIC/P43, provides the following progress report for the drilling of the exploration well Geographe 1 in the offshore Otway Basin, Victoria.
As at 2.30pm on 14 June Geographe 1 is drilling ahead at a depth of 2042mRT after encountering gas indications in interbedded sands and shales over a gross interval of 233m from 1809mRT to current depth. A second core has been cut over the interval 1907mRT to 1915mRT. The forward plan is to drill ahead to a depth of 2405mRT and then conduct a wireline evaluation program.
Sun Resources NL ("Sun") wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
Current operations at 0600 hours WST (California) are continuing to retrieve stuck pipe, prior to reaming out hole to run casing over sticky zone to drill ahead to target. Sticky zone is due to a fault at 3,559 metres. The hole is currently at 4,046 metres and is in survey and is on track to be horizontal at target depth of 4,557 metres, which is expected in a few days after resuming normal drilling at the end of the week. A horizontal well bore of up to 300 metres is programmed in the reservoir target at final depth for subsequent testing.
VICTORIA PETROLEUM (14 JUNE 2001)
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is currently at a depth of 4,046 metres. The current operation is jarring to retrieve stuck drillpipe. Following retrieval, drilling will continue towards the primary objective and horizontal well section.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4257 - 4557 metres is programmed.
DRILLING CONFIRMS MAJOR REGIONAL GOLD TARGET
AT GUNBARREL PROJECT
Cullen Resources Limited ("Cullen") announces that a 2099m drilling program completed in May 2001 at the Gunbarrel Project, 125 km east of Wiluna, WA has produced significant results.
The large Gunbarrel Project encompasses a 46 km long portion of the prospective Mount Eureka Greenstone Belt. This Greenstone Belt is located east of the highly productive Yandal Greenstone Belt, which hosts the major Bronzewing gold deposit.
The drilling program was designed as a preliminary test of various targets arising from Cullen's exploration efforts over the past two years. It has succeeded in locating three areas of gold mineralisation in the Eureka North Zone, confirming it as a major regional gold target. It also located new zones of gold mineralisation at the Taipan Prospect.
RE: PROGRESS REPORT ON EAGLE NO. 1, EAGLE OIL POOL
DEVELOPMENT PROJECT, SAN JOAQUIN BASIN, CALIFORNIA, USA
Lakes Oil N.L. has been advised by Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, that the Eagle-1 well is at a depth of 4,046 metres. The drill string has been backed-off successfully above the stuck point, and the current operation is preparing to run in hole with a jarring assembly to retrieve stuck drillpipe. Following retrieval, drilling will continue towards the primary objective and horizontal well section. This retrieval operation is expected to take several days, and drilling is expected to resume towards the end of this week. The well path has been surveyed and is following the design path to the objective.
The well will be drilled to a measured depth of 4,557 metres. A horizontal well bore of up to 300 metres in length between 4,252 – 4,557 metres is programmed.
Eagle No. 1 will be the first well in the Eagle Oil Pool Development Project, a horizontal drilling project targeting potential recoverable reserves of up to 24 million barrels of oil and 62 billion cubic feet of gas.
AKD (13 JUNE 2001)
AKD has re-negotiated a joint venture over its Echunga diamond project in South Australia with diamond explorer, Flinders Diamonds Limited. The agreement is subject to Flinders listing on the ASX by 31 December 2001, and upon listing Flinders will pay AKD and its partner, Statelink Holdings Pty Ltd, a cash payment of $40,000.
AKD currently has a 75% interest in the Echunga diamond project with the remaining 25% held by Statelink. The Echunga project area contains a number of diamond targets in the Adelaide hills of South Australia.
The joint venture allows for Flinders to earn initially a 51% interest by spending $500,000 over five years. This interest can be increased to 75% by Flinders spending a further $500,000 (total $1 million). Flinders is committed to spend at least $100,000 prior to withdrawal.
ARROW ENERGY (13 JUNE 2001)
Coal Bed Methane (CBM) drill hole Dundee-1 located approx 9km south of Chinchilla in south east Queensland has encountered a gas flow at 74m in a coal seam approximately 4m thick in the Walloon Coal Measures.
The flow tested 24,500 cubic feet per day at a flowing pressure of 44 psi or 295 Kilo Pascals (KP) through a (1/8) choke. The flow was dry gas. There was a minor water incursion from the seam. The gas saturated seam encountered is regarded as a secondary target.
The Oyong-2 well in the Sampang PSC offshore East Java, spudded at 11.15 EST on 13th June 2001.
Oyong-2 is located approximately 125 metres north of the Oyong-1 discovery well and is designed to appraise the gas (110 metres) and oil (22 metres) accumulations penetrated in the Oyong-1 well and to drill the deeper Wonocolo and Ngrayong primary objectives that could not be reached in Oyong-1.
Oyong-1 has been suspended to allow future testing after pressure related drilling difficulties did not allow the well to be deepened past the current total depth of 1068 metres.
Emperor Mines has now received the independent report by, epithermal gold deposit specialists, Greg Corbett and John Nethery, on the prospectivity of Emperor Gold Mine in Fiji.
As a result of this review, the Company is now releasing it's latest investor presentation.
The presentation highlights the similarities between the Tavua Basin (where Emperor's Vatukoula Mine is located) and Lihir and Porgera gold systems.
The presentation highlights the enormous exploration opportunities in the Tavua Basin, as well as noting new factors which contribute towards a favourable exploration environment. These include;
EMPIRE OIL & GAS (13 JUNE 2001)
The Company announces that the operations being conducted at the Brooke No 1 Well located 3 kilometres south of the Rough Range Oil Field in EP41 (Part 3) Exmouth Gulf, as of 1800 hours on the 12 June, 2001 consist of the installation of the wellhead and blow out prevention equipment and pressure testing.
The Brooke No 1 well programme is then designed to drill out the 9 (5/8)" casing shoe set at 156.2 metres and then the drilling of 8 (1/2)" (216mm) hole to a total depth of 1195 metres. The Top of the Birdong Sandstone reservoir is prognosed at 1135 metres. The calculated volume of potential Oil in Place is 2.6 million barrels.
LONGREACH GOLD OIL (13 JUNE 2001)
This is to advise that the Directors of Longreach Gold Oil Limited (LGO) have resolved to revert to the original objectives of the company, viz to be an oil and gas exploration company.
LGO has a valuable portfolio and/or conditional agreements in respect of diamonds, gold and tantalum assets which the market does not seem to take into account when valuing the company's shares.
As a significant amount has been invested in the acquisition and/or investigation of diamond properties in Angola, Botswana, Russia and South Africa, if LGO is unable to sell its diamond interests at a satisfactory price it would float a separate diamond company in which to vest those interests, with priority being given in such a float to existing LGO shareholders.
Origin Energy Resources Limited as Operator of PEL 32 advises that the exploration well Balnaves 1 spudded at 4am on Sunday 10 June 2001. Balnaves 1 is located in exploration permit PEL 32 in the onshore Otway Basin of South Australia. The well is located on a separate and previously undrilled structure, approximately 6.5 km west of the Katnook gas field.
The well has a planned total depth of 2921 mRT, the primary objective the Pretty Hill Sandstone is prognosed to be intersected at depth of approximately 2707 mRT.
At 6am on 12 June the well had reached a depth of 857 mRT. The current operation is setting surface casing prior to drilling ahead.
Summary of Target Generation for Broken Hill Project
Rimfire's consultants recently completed a comprehensive evaluation of modern digital information for the Project and identified a number of high-priority exploration targets.
The styles of targets identified are interpreted to represent:
1. Iron Oxide Copper-Gold (FeOx Cu-Au) deposits such as Ernest Henry in northwest Qld, and Olympic Dam in South Australia.
This class of deposits is regarded as an attractive exploration target and is under-explored in the district. Small-scale or sub-economic examples are known and other explorers are currently actively searching for this class.
2. Broken Hill Type Silver-Lead-Zinc (BHT) deposits such as the giant Broken Hill orebody nearby, and Cannington in northwest Qld.
BHT's are another attractive target type with potential for high-grade and large-size, as with the largest example, the Broken Hill Main Lode twenty kilometres to the east of Rimfire Project area.
3. Deep-sourced, pipe-like ultramafic bodies (including possible diatremes) in a cratonic terrain with diamond potential.
SUN RESOURCES (13 JUNE 2001)
Sun Resources NL ("Sun") wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
Current operations at 0600 hours WST (California) are continuing to retrieve stuck pipe, prior to reaming out hole to run casing over sticky zone to drill ahead to target. Sticky zone is due to a fault at 3,559 metres. The hole is currently at 4,046 metres and is in survey and is on track to be horizontal at target depth of 4,557 metres, which is expected in a few days after resuming normal drilling at the end of the week. A horizontal well bore of up to 300 metres is programmed in the reservoir target at final depth for subsequent testing.
VICTORIA PETROLEUM (13 JUNE 2001)
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is currently at a depth of 4,046 metres. The drill string has been backed-off successfully above the stuck point, and the current operation is preparing to run in hole with a jarring assembly to retrieve stuck drillpipe. Following retrieval, drilling will continue towards the primary objective and horizontal well section. This retrieval operation is expected to take several days, and drilling is expected to resume towards the end of this week. The well path has been surveyed and is following the design path to the objective.
RE: PROGRESS REPORT ON EAGLE NO. 1, EAGLE OIL POOL
DEVELOPMENT PROJECT, SAN JOAQUIN BASIN, CALIFORNIA, USA
Lakes Oil N.L. has been advised by Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, that the Eagle-1 well is at a depth of 4,046 metres, and current operation is preparing to run in hole to retrieve stuck drillpipe. Following retrieval, drilling will continue towards the primary objective and horizontal well section. This retrieval operation is expected to take several days, and drilling is expected to resume towards the end of this week. The well path has been surveyed and is following the design path to the objective.
The well will be drilled to a measured depth of 4,557 metres. A horizontal well bore of up to 300 metres in length between 4,252 – 4,557 metres is programmed.
Eagle No. 1 will be the first well in the Eagle Oil Pool Development Project, a horizontal drilling project targeting potential recoverable reserves of up to 24 million barrels of oil and 62 billion cubic feet of gas.
Discovery of New Zone of Nickel Mineralisation at Miranda
Jubilee Mines NL has reported to Alkane the discovery of a new zone of nickel sulphide mineralisation at the Taurus prospect on the Miranda property in Western Australia.
Taurus is located about 11 kilometres south east of Jubilee's Cosmos Nickel Mine and is within the Leinster Region Joint Venture in which Jubilee is entitled to earn a 75% interest by spending $4.5M before March 2005.
Exploration to date at Taurus has comprised five diamond core holes, and all five holes have intersected nickel sulphide mineralisation - both massive and disseminated. Better drill intercepts include:
TAD005 - 0.2m @ 8.1% Ni from a downhole depth of 245.3m;
and, located 370m to the south,
TAD004 - 9.0m @ 0.57% Ni, including 1.0m @ 1.3% Ni from a downhole depth of 351.0m
and 0.15m @ 2.9% Ni from a downhole depth of 324.85m.
Taurus is situated at the base of an ultramafic unit which runs along the western side of the Miranda property. Approximately 2.5km of strike length of the host ultramafic are contained within the Miranda ground and, to date, drilling has only tested about 370m of the prospective basal contact of the ultramafic.
ARC ENERGY (12 JUNE 2001)
Yardarino-5 Appraisal Well Drilling Report - Run 9(5/8)" casing, install BOPS, run FIT, drill ahead to 1301 metres.
The primary objective section is expected to be encountered below 2,200 metres
ARROW ENERGY (12 JUNE 2001)
Dundee-1 spudded at 12.00pm on 12 June 2001. Dundee-1 is the first well of Arrow's six well Coal Bed Methane (CBM) exploration program in the Surat Basin, South East Queensland.
AUSTRALIAN WORLDWIDE EXPLORATION (12 JUNE 2001)
The Balnaves-1 well in PEL32 in the Otway Basin, South Australia, has commenced drilling operations.
As at 0001 hours on June 12 the well had reached a depth of 857 metres where surface casing was being set. The proposed total depth is approximately 3,000 metres which is anticipated to be reached within the next 2-3 weeks.
BLIGH OIL & MINERALS (12 JUNE 2001)
NEW ZEALAND - PEP38719, TARANAKI BASIN, BLIGH INTEREST: 5.00%
Bligh reports that the Kauri #1 has been drilled to a current depth of 3157 metres in 12(1/4)" hole. During the past week, the well has intersected several zones that have yielded hydrocarbon shows of varying quality over the interval 2890 metres to 3140 metres. This interval has largely consisted of multiple sections of sandstones and claystones that have yielded good oil and gas shows associated with accelerated drilling rates and, on the basis of log analysis, appears to be hydrocarbon-bearing. However, hole washout has caused a deterioration in log quality and, while encouraging, the logs are not definitive, and further analysis and testing will be required in order to determine whether the sands are commercially productive.
NEW ZEALAND - PML 38141, TARANAKI BASIN. BLIGH INTEREST: 1.62%
The Te Popo-l well is currently being plugged and abandoned. Weak oil shows were recorded in the target Tikorangi Formation limestones, but fracture porosity, a requirement for production from these limestones, was not developed. However, the well has delineated the previously uncontrolled north-eastern limit of the Tikorangi limestone oil pool in the Waihapa-Ngaere field.
Resolution of Dispute - Joint announcement with Legend
East Coast Minerals NL and Legend Mining Limited are pleased to announce they have today amicably resolved the litigation between them.
ECM and LML have reached an agreement which is designed to secure the maximum utilisation of their respective interests in the mining tenements comprising the Munni Munni Joint Venture.
ECM and LML, henceforth, will jointly manage the Joint Venture. An appropriate mechanism for resolving deadlocks has been agreed.
As a result of this agreement up to $1.5 Million will be spent on exploration of these tenements by LML on behalf of the joint venture with a view to further exploring the platinoid, silver, copper and nickel horizons which exist on the tenements.
LML will earn an additional 20% in the tenements to equalize the interests at 50% each in the joint venture and ensure that the parties can move forward with the common goal of fully developing the tenements.
EMPIRE OIL & GAS (12 JUNE 2001)
The Company announces that the operations being conducted at the Brooke No 1 Well located 3 kilometres south of the Rough Range Oil Field in EP41 (Part 3) Exmouth Gulf, as of 1800 hours on the 10 June, 2001 consist of the installation of the wellhead and blow out prevention equipment.
The Brooke No 1 well programme is then designed to drill out the 9(5/8)" casing shoe set at 156.2 metres and then the drilling of 8(1/2)" (216mm) hole to a total depth of 1195 metres. The Top of the Birdrong Sandstone reservoir is prognosed at 1135 metres. The calculated volume of potential Oil in Place is 2.6 million barrels.
FIRST AUSTRALIAN RESOURCES (12 JUNE 2001)
The Neil Heirs #1 well is currently at a depth of 10,234 feet and conducting operations to retrieve seperated drilling pipe. The primary objective Cotton Valley Formation (known as the King Sand) is expected to be encountered once drilling resumes between current depth and planned total depth of 10,950 feet.
Earlier gas shows recorded in secondary objectives between 7,732 and 7,742 feet, between 7,800 and 7,805 feet and between 7,891 and 7,902 feet will be evaluated by logs once the well has reached total depth.
Hardman Resources NL provides the following progress report for the drilling of the Courbine-1A well offshore Mauritania.
Progress Current depth 2,144 metres. Run and cement 30 inch (762mm) casing at 1,330 metres depth. Drill 26 inch (660mm) hole from 1,330 to 2,144 metres depth. Run and set 20 inch (508mm) casing. Commence cementing casing.
Hardman also announced that its wholly-owned subsidiary, Planet Oil Limited, has been awarded an Exclusive Exploration Licence ("EEL") covering offshore French Guyane, South America. The licence, which was published in the French Government Official Journal on 1 June 2001, covers the major part of the offshore basin of Guyane, and extends from the twelve-mile coastal limit to the 3,000 metre water depth contour. The total area covered by the permit is approximately 65,000 sq km. The EEL provides for a five year exploration work programme with a well commitment due at the end of the first three years.
KIMBERLEY DIAMOND COMPANY (12 JUNE 2001)
Kimberley Diamond Company reported the recovery of 93 diamonds weighing 27.03 carats between a depth of 0.3 metres to 2.9 metres of the first trench excavated on Ellendale Pipe 9, representing a near surface enrichment grade of 19.39 carats per hundred tonnes (cpht). The March 2001 Prefeasibility Study assumed an average grade of 15.7 cpht from the surface enrichment zone on Pipe 9.
MOSAIC OIL (12 JUNE 2001)
Next week, Mosaic Oil commences an exploration-drilling program involving four wells in the Surat Basin of South East Queensland.
Mosaic's net share of the program's potential reserves is 24 billion cubic feet of gas and 0.8 million barrels of oil and oil condensate.
Chief Executive Officer, Dr Howard Brady comments "Our production revenue increase this year (from $4 million to $9 million) has come from re-entering old wells. We now proceed to a new phase of growth and will drill prospects near pipelines which can be quickly developed".
The prospects to be drilled are:
Origin Energy Resources Limited, as Operator for VIC/P43, provides the following progress report for the drilling of the exploration well Geographe 1 in the offshore Otway Basin, Victoria.
Geographe 1, which was spudded on 30 May 2001, has been drilled to a depth of 1850mRT. Gas shows were encountered at a depth of 1809mRT in Flaxmans/Waarre Formation, and a core has been cut over the interval 1814mRT to 1850mRT. The current operation is preparing to drill ahead. At this point in time it is too early to comment on the significance of the gas shows.
OXIANA RESOURCES (12 JUNE 2001)
Full results for extension and in-fill drilling at the five Sepon gold deposits have been received. Each of the deposits remains open. Continuity of the near surface, high grade mineralization targetted by the close-spaced drilling has been excellent. The final resource estimate for the gold Bankable Feasibility Study (BFS) is likely to be upgraded.
EXTENSION DRILLING
Assay results from some 1840m of extension drilling at the Discovery and Discovery West deposits, continue to incrementally expand the resource envelopes. Further extensions are possible, but no further drilling is planned before gold BFS completion. Better results include:
Discovery (Colluvial zone) DIS361 8m @ 9.7g/t Au from 2m
Discovery (Colluvial zone) DIS371 16m @ 4.6g/t Au from 2m
Discovery West DIS335 14m @ 14.5g/t Au from surface
SUN RESOURCES (12 JUNE 2001)
Sun Resources NL ("Sun") wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
Current operations at 1600 hours WST (California) are running in hole in preparation to retrieve stuck pipe, prior to reaming out hole to run casing over sticky zone to drill ahead to target. Current operations are expected to take 3 to 4 days. The hole is currently at 4,046 metres and is in survey and is on track to be horizontal at target depth of 4,557 metres, which is expected in a few days after resuming normal drilling. A horizontal well bore of up to 300 metres is programmed in the reservoir target at final depth for subsequent testing.
Tuart has entered into an option agreement with Australian Cancer Technology Limited (formerly Exodus Minerals Limited) (Exodus) in respect of the possible future exploration and development (subject to Ministerial and other requisite approvals) of the ground comprised within a total of ten (10) applications for exploration licences by Exodus in the Peak Hill mineral field comprising the Labouchere, Horseshoe and Padbury Project areas. The total area the subject of the option is 1656 square kilometres. Tuart is already the holder of or applicant for mining tenements in the Horseshoe area adjoining part of the Horseshoe project area.
VICTORIA PETROLEUM (12 JUNE 2001)
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is currently at a depth of 4,046 metres and the current operation is preparing to run in hole to retrieve stuck drillpipe. Following retrieval, drilling will continue towards the primary objective and horizontal well section. This retrieval operation is expected to take several days, and drilling is expected to resume towards the end of this week. The well path has been surveyed and is following the design path to the objective.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4257 - 4557 metres is programmed.
WOODSIDE PETROLEUM (12 JUNE 2001)
Drilling Rpt: Courbine-1A & Geographe-1
Woodside Petroleum Ltd, Operator of the Mauritania, Area B Joint Venture, reports that as a result of problems in running the 20 inch casing, the Courbine-1 well was plugged and abandoned on 5 June. The Scarabeo 7 drill rig then moved 20 metres to reposition and Courbine-1A was spudded on 6 June. This well has been drilled to a depth of 2144 metres and the 20 inch casing has been set.
Preparations are underway to drill ahead in a 17(1/2) inch hole.
Woodside Petroleum Ltd reports that on 12 June 2001, the Geographe-1 wildcat well was at a depth of 1850 metres, having cut a 36 metre core in the 8(1/2) inch hole section. Current operation is pulling out of hole with core barrel.
Tsumkwe Diamond Project, Namibia
(The Company has earned 55% with the right to earn 75%)
The Company is pleased to announce the discovery of a macrodiamond and accompanying pyrope garnet from sample number NN 569 in the Tsumkwe project area.
Sample NN 569 is located in the Nyae Nyae North anomaly, one of four primary source target areas defined on the western side of EPL’s 2012 and 2014. The grains were recovered from a 27.6 kg field loam sample which was processed by heavy liquid (TBE) at SGS Mineral Services in Springs, South Africa. The resultant mineral concentrate was then sorted and optically classified by Microsearch (Pty) Limited in Gaberone, Botswana.
The macrodiamond and kimberlitic garnet were recovered from the +1.0mm to –2.0mm size fraction. Loam samples are screened in the field and the size fraction which falls in the range from +0.425mm to –2.0mm is bagged and submitted for processing and analysis to detect the presence of kimberlitic indicator minerals. Results from the +0.425mm to –1.0mm fraction from NN 569 are yet to be completed by the laboratory, however, a higher number of kimberlitic grains are usually found in this fraction.
The diamond was observed by Microsearch (Pty) Limited to contain a small olivine inclusion, confirming its peridotitic origin. Surface texture analysis of the diamond and other kimberlitic pyrope garnets found in the sample batch is underway.
The Company views the recovery of the diamond as very encouraging. The sample was taken in a deflational hollow composed of calcrete, lake silts and fine sands. There appears to be a complete absence of far-travelled gravels or other material in the area. This implies that the kimberlitic source is buried below the Kalahari sand cover in close proximity to the sample site.
Drilling Report-Yardarino 5 - Run intermediate logs, drill ahead to casing point at 1102m.
Current Operations: Run 9(5/8)" casing
Farmout of Gunnedah Basin Tenements ltr from Pacific Power - Pacific Power has decided to farm out its 20% equity in PELs 1,10,12, and 286, NSW.
I am authorised to advise that the equity is now open to an offer by ACM alone, and that this offer will remain open to ACM alone until the close of business on Friday July 6th. After this date, Pacific Power reserves the right to negotiate with other parties as it sees fit.
We accept that Australian Coalbed Methane Pty Ltd (ACM), as the 80% partner in all these these tenements, holds pre-emptive rights to acquire the equity held by Pacific Power. We are therefore prepared to provide ACM with the opportunity to exercise its rights to match the cash value of any offers made by a third party.
The decision to farm out, which was made the Board of Pacific Power, is a consequence of a Government decision to wind up Pacific Power as a corporate entity. It should not be construed as a reflection of our perceptions of the prospectivity of the tenements.
CUE ENERGY RESOURCES (8 JUNE 2001)
Cue advised that at 6am on 8 June 2001 the Oyong-1 well in the Sampang PSC offshore East Java, was at 1068 metres after setting 9(5/8)" casing at 1000 metres.
EMPIRE OIL & GAS (8 JUNE 2001)
The Brooke No 1 Well located 3 kilometres south of the Rough Range Oil Field in EP41 (Part 3) Exmouth Gulf, has as of 1800 hours on the 7 June, 2001 cemented 9(5/8)" casing to a depth of 156.2 metres. The current operation is waiting on cement to set prior to installing the wellhead and blow out prevention equipment.
HAMILL RESOURCES (8 JUNE 2001)
Drilling Program
The drilling program will involve two RC drill rigs targeting mineralisation within the historic Timoni mine environs including the Timoni, Meteor, Unexpected and Federation prospects. The programme will cover approximately 6,000 metres with an average hole depth of 150 metres.
The program will take approximately 2 months to complete with the first results expected within 4 weeks.
In addition, the Company has planned a RAB drilling programme of approximately 10,000 metres to commence in the short term. This program will target the four lode systems within the Timoni mine area.
HARDMAN RESOURCES (8 JUNE 2001)
Hardman Resources NL provides the following progress report for the drilling of the Courbine-1A well offshore Mauritania.
PROGRESS (24 hours to 14:00 hours WST 07/06/2001):
The Courbine-1A well spudded on 6 June 2001. Drilled 36" hole to 1,332 metres depth.
Impressive rock chip results from Asmara Project in Eritrea
A total of 120 Rock chip samples have been collected from Sub-Sahara's Asmara Project and a number of very exciting results have been returned.
The project area hosts Volcanogenic Massive Sulfide (VMS) mineralisation with a number of copper/gold, copper/zinc and gold targets having been generated by previous explorers and the rock chip programme results from a first pass regional mapping programme.
SUN RESOURCES (8 JUNE 2001)
Sun Resources NL ("Sun") wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
The well at 1600 hours WST (California) USA was at 4,026 metres. Current operations are drilling ahead in a 5(7/8)" hole with a new bit to a measured depth of 4,557 metres where a horizontal well bore of up to 300 metres length is programmed in the reservoir target.
Current drill prognosis suggests the target Gatchell reservoir should be encountered by late Monday to commence the horizontal well.
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is drilling ahead at a depth of 4,026 metres and building angle towards the primary objective and horizontal well section.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4257 - 4557 metres is programmed.
CULLEN GRANTED EXPLORATION LICENCE E 63/722, KILLALOE, WA
Cullen Resources Limited is pleased to announce that it has been granted Exploration Licence E 63/722 (Killaloe) 20 kms ENE of Norseman, by the Department of Mines and Energy.
Cullen has keenly awaited granting of this licence as it considers the Killaloe area to be of particular strategic importance. It is an area of high prospectivity and has already drawn joint venture interest from major producers and explorers. The Killaloe Exploration Licence covers a 150 sq km area of Archaean greenstones (ultramafic and mafic volcanics) between the Zuleika Shear and the Boulder-Lefroy Fault at the southern end of the Norseman-Wiluna Greenstone Belt. The entire Killaloe Project, which includes adjoining tenement applications of Bansha E63/765 and P63/1131-1133, contains numerous indications of base and precious metal mineralisation and is highly prospective for gold, nickel and base metal deposits.
AMADEUS PETROLEUM (7 JUNE 2001)
Through its 100% owned USA subsidiary, Amadeus Petroleum Inc, the company has executed a contract with Dallas Texas based Gruy LLC to acquire a 50% working interest in an oil exploration project located in Jefferson County, Oklahoma, 20 miles north of the Texas/Oklahoma border.
The leasehold area consists of approximately 21,000 gross acres, being in the region of 34 square miles. Geologically the project area is situated on the northwest nose of the Muenster Arch. Oil was discovered along the Muenster Arch in the mid 1920's and over 150 million barrels of oil have been produced from fields to the southeast of the leasehold, in Jefferson County, Oklahoma and Montague County, Texas.
Amadeus has contracted to spend $US160,000 for leasehold option, geological and geophysical costs and a further $US540,000 on the acquisition and interpretation of 3-D seismic data costs, in order to earn a 50% working interest. The project will be funded out of current cash reserves, leaving all existing bank lines of credit available to fund further acquisitions.
ARC ENERGY (7 JUNE 2001)
Yardarino-5 Daily Drilling Report - Drilled to 980 metres, run intermediate logs.
The primary objective section is expected to be encountered below 2,200 metres.
Carnarvon Petroleum announced that drilling of the second new well on the SW1A Concession in Central Thailand has reached total depth and that oil has been encountered within the F Sandstone interval at depths ranging from 928m to about 1,010m.
Dr Ken Tregonning, Carnarvon's Managing Director, who is currently on-site in Thailand, said "The Wichian Buri-N2 ("WN-N2") well reached total depth of 1,020m yesterday. Preliminary results indicating good oil shows, even better than those of WB-N1, have now been confirmed by electric wireline logs. Preparations are presently underway to run casing and test the F sand."
The Company is pleased to announce that the Brooke No 1 Well located 3 kilometres south of the Rough Rango Oil Field in EP141 (Part 3) Exmouth Gulf, has drilled ahead to a depth of 165 metres in 12(1/4)" (311mm) hole with air and foam as of 1800 hours on the 6 June, 2001 and has rigged up and run 9(5/8)" casing to 156.2 metres.
The Brooke No 1 well programme is designed to cement the 9(5/8)" (244mm) casing prior to drilling 8(1/2)(216 mm) hole to a total depth of 1195 metres. The Top of the Birdrong Sandstone reservoir is prognosed at 1135 metres. The calculated volume of potential oil in place is 2.6 million barrels of oil.
HARDMAN RESOURCES (7 JUNE 2001)
Progress Drilling Report for Courbine-1 Well - Currently at 2,094 metres depth. Ran in hole and set plug. Repositioned rig 35m from original location. Prepare to commence re-drill of Courbine-1.
The first round of drilling has commenced at the highly prospective Mt Watson Prospect. Mt Watson is located 20 km NNW of the Mt Cuthbert Operation and is considered to have the resource potential to substantially increase the life of the Mt Cuthbert Operation.
The initial program comprising approximately 2,500m of reverse air blast (RAB) drilling commenced today with the program designed to test three parallel zones of copper mineralised outcrop which were confirmed in the recent surface mapping program. The three mineralised zones vary in width up to 15m and extend beyond the mapped strike length of 1 km. Additional reconnaissance mapping completed at this stage indicates the strike extends a further 500m.
The initial drilling program is scheduled to be completed in late June with the first interpreted results expected in mid July.
Lilyvale No 03 is situated approximately 5 kilometres south-south-west of GSQ Emerald NS 44, latitude 23deg 20min 43.13sec south, longitude 148deg 18min 02.96sec east. The well was spudded at 16:50 hours of 441.31 metres was reached at 16:00 hours on April 26,2001, and the well was capped and suspended for later abandonment. The well was re-entered at 16:00 hours on June 3, 2001. At 06:00 hours today the cementing string was being run in prior to pumping cement and pluging and abandoning the well.
The primary targets of the well were the coals of the German Creek formation.
The well is subject to a Farmin by Lowell Petroleum NL, a subsidiary of Molopo Australia NL.
ORIGIN ENERGY (7 JUNE 2001)
Geographe 1, which was spudded on 30 May 2001, has been drilled to a depth of 1664mRT. As at 7 June, 9(5/8)" intermediate casing is being run in the 12(1/4)" hole. Preparations will then be made for drilling the 8(1/2)" section.
Geographe 1 is being drilled using the Ocean Bounty semi submersible drilling rig and is planned to be drilled to a depth of at least 2120mRT. The well is located in Victorian offshore exploration permit VIC/P43, approximately 55 kilometres from the Victorian coastline off Port Campbell, and approximately 15 kilometres north of the recent Thylacine discovery in adjacent permit T/30P.
Activity Update
SUN RESOURCES (7 JUNE 2001)
Sun Resources NL ("Sun") wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
The well at 1600 hours WST (California) USA was at 4,017 metres. Current operations are running back in hole with a new bit to resume drilling ahead in a 5(7/8)" hole to a measured depth of 4,557 metres where a horizontal well bore of up to 300 metres length is programmed in the reservoir target.
VICTORIA PETROLEUM (7 JUNE 2001)
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is at a depth of 4,017 metres, and running back into the hole with a new bit, to resume drilling ahead and building angle towards the primary objective and horizontal well section.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252-4557 metres is programmed.
RE: PROGRESS REPORT ON EAGLE NO. 1, EAGLE OIL POOL
DEVELOPMENT PROJECT, SAN JOAQUIN BASIN, CALIFORNIA, USA
Lakes Oil N.L. has been advised by Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, that the Eagle-1 well is at a depth of 4006 metres, and drilling ahead and building angle towards the primary objective and horizontal well section.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252 – 4557 metres is programmed.
Eagle No. 1 will be the first well in the Eagle Oil Pool Development Project, a horizontal drilling project targeting potential recoverable reserves of up to 24 million barrels of oil and 62 billion cubic feet of gas.
The Directors of Arrow announced the commencement of a six well (four firm and two optional) coal bed methane (CBM) exploration drilling program in the Surat Basin, South East Queensland.
Two of the proposed wells are located near the town of Chinchilla within ATP 676P(Chinchilla Block) that is owned 100% by Australian CBM Pty Ltd (ACBM) (Figure 1). Arrow recently announced that it had entered into an option to purchase 100% of ACBM.
The wells in the Chinchilla area are located between the successful Avon Downs-1 and Wyalla-1 wells recently drilled by Queensland Gas Company Ltd (QGC). ACBM will have a 50% equity in the Avon Downs-1 and Wyalla-1 areas after QGC completes its drilling, dewatering and flow testing farmin commitments.
CityView has received notice from PT Medco Energi Corporation ("Medco"), the operator of the Simenggaris and Madura Blocks, that it will award the contract for the dredging of the approach channel at Pidawan in the Simenggaris Block next week. Dredging will be to a depth of 3-4 metres, a width of 40 metres and a length of approximately 660 metres. Upon completion of the dredging, the drilling of the well at Pidawan can commence immediately.
Site preparations for the drilling of the well at Sebaya in the Madura Block have been completed. Medco will despatch its rig to the Sebaya site as soon as the land acquisition program has been finalised for the drilling of the second well in the Madura Block at Karasan.
The Brooke No 1 Well located 3 kilometres south of the Rough Range Oil Field in EP41 (Part 3) Exmouth Gulf, has drilled ahead to a depth of 116 metres in 12 1/4" (311mm) hole with foam as of 2400 hours on the 5 June, 2001.
The Brooke No 1 well programme is designed to drill the 12 1/4" hole to 150 metres then run and cement 9 5/8" (244mm) casing prior to drilling 8 1/2" (216mm) hole to a total depth of 1195 metres. The Top of the Birdrong Sandstone reservoir is prognosed at 1135 metres.
Drilling at the Labelle Tantalite Resource in the Northern Territory commenced on Friday 1st June and to date 22 holes for 722 metres of reverse circulation drilling have been completed.
This previously reported indicated resource of 140 000 tonnes at 130 g/t tantalum (0.29 lbs/t), 160 g/t tin is among 60 known tantalite bearing pegmatites within the project area. The Bynoe Tantalite Project covers a total of 765 square kilometres in the Bynoe Tin/Tantalite Field 60km south west of Darwin. Pegmatite and its weathered components are the host rocks for most economic tantalum deposits of the world, and the largest of these have been found within Australia. Tantalum is the metal derived from the naturally occurring mineral known as tantalite.
Drilling at Labelle has already identified a new mineralised pegmatite to the east of the existing ore body that has been traced for 100m and is not closed off to the north or south. This new zone has an average indicated width of 20-30 metres and potential to double the overall resource. Drilling has intersected this new zone to a vertical depth of 40 metres with no indication of it narrowing.
Zones within the pegmatite visually indicate extremely good potential for high grade mineralisation yet to be confirmed by assay.
Chatree Gold Project Thailand
A program of exploration drilling has been finished at A Prospect. This is the first exploration program at Chatree for 2 years, due to the demands of feasibility, permitting and construction.
Mineralisation at A Prospect consists of low sulphidation epithermal quartz, carbonate stockworks and breccias within a silicified andesitic host sequence and is similar to that to be mined at Chatree. The Mineralisation is located within a wide structural zone over a length of about 1,300 metres.
Lafayette is pleased to announce initial results of the recent exploration on the Rapu Rapu project, Highlights include:
Striker has entered into an agreement with De Beers Australia Exploration Limited (DBAE) with respect to the company's interests in several diamond exploration tenements representing, in part, the Casuarina project area.
In broad terms the Agreement provides DBAE with the right to earn a 50.1% interest in certain tenements by completing minimum expenditure of approximately $5 million.
Sun Resources NL ("Sun") wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
The well at 1600 hours WST (California) USA was at 4,006 metres and is currently drilling ahead in a 5(7/8)" hole to a measured depth of 4,557 metres where a horizontal well bore of up to 300 metres length is programmed in the reservoir target.
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is at a depth of 4,006 metres, and drilling ahead and building angle towards the primary objective and horizontal well section.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252 - 4557 metres is programmed.
Temporary Suspension of Drilling Operations
USA
Icon regrets to announce that it is necessary to suspend drilling operations in the development well, Icon Victory Financial No.1 in Louisiana, due to mechanical problems on the drilling rig.
Following a mechanical breakdown on the rig the conditions in the well bore deteriorated when the mud circulation system was down while repairs were being made. This caused the drill bit to stick and a small portion of the bottom hole assembly could not be recovered. A decision was made to switch to a different drilling mud system before proceeding further and this particular rig requires minor modifications to prepare for these operations. This bears no relation to the previous problems encountered and is purely mechanical. Therefore the well is to be suspended and prepared for re-entry as soon as another rig is available and equipped to the specifications we now require. Every effort is now being made to locate a suitable rig and indications are that one could be available within 3 months.
YARDARINO-5 APPRAISAL WELL, DRILLING REPORT NORTHERN PERTH BASIN, WESTERN AUSTRALIA
Well was spudded at 5:30 pm on 3 May 01. Make up BHA, run in hole, drill ahead to 720 metres.
The Yardarino 5 well will be drilled to a total depth of 2500 metres and is expected to take approximately 15 days to drill and complete for production. The well is a development/appraisal well on the Yardarino Field, six kilometres to the east of Dongara and is some 400 meters from an existing flow line to the Dongara processing facility.
Commonwealth Bank of Australia decreased its relevant interest in ARC Energy NL on 01/06/2001, from 8,097,072 ordinary shares (9.31%) to 7,059,359 ordinary shares (5.16%).
Arrow has entered into an option to purchase 100% of Australian CBM Pty Ltd (ACBM), a privately owned company with substantial interests in several key Walloon Coal Bed Methane (CBM) projects in the eastern Surat Basin in southeast Queensland.
The option to purchase ACBM may be exercised by Arrow in two stages. 55% of ACBM may be purchased by exercising the first stage option on or before July 2, 2001 and making the payment of a total of $450,000 cash and issuing 2.5 million fully paid Arrow shares and 4.5 million 20 cent options expiring 28 February 2004. Arrow has a further option to purchase the remaining 45% of ACBM on or before July 2, 2002 by paying an additional $320,000 cash and issuing 2.5 million Arrow shares and 4 million 20 cent options expiring 28 February 2004.
Several of the ACBM project areas are subject to farmin agreements with Queensland Gas Company Limited (QGC). Arrow understands that QGC may drill and test a further fourteen wells in order to earn a 50% interest in part of ATP676P, ATP689P and 75% of ATP574P, but only to the base of the Jurassic age Walloon Coal Measures in all areas. Arrow has been advised that ACBM estimates a full farmin program would cost in excess of $2.0m to complete.
NEW ZEALAND - PEP38719, TARANAKI BASIN, BLIGH INTEREST: 5.00%
The Kauri-1 exploration well is currently drilling ahead in 12(1/4)" hole, at a depth of 2624 metres.
Kauri-1 is being drilled to a total depth of 4500 metres to evaluate the Tariki sandstone, Rimu limestone and Cretaceous sandstone reservoirs within upper and lower thrust blocks in the large Kauri structure. The well is expected to take a further 20 days to reach total depth.
NEW ZEALAND - PML 38141, TARANAKI BASIN, BLIGH INTEREST: 1.62%
The Te-Popo-1 well is currently at a depth of 2920 metres. The well is being drilled to evaluate the north-eastern extent of the Tikorangi reservoir in the Waihapa-Ngaere field, in which Bligh holds a 1.62% interest through its 50% owned subsidiary, Bligh Oil & Minerals (NZ) Ltd. The well has been logged and 7" casing will be run prior to drilling ahead into the target Tikorangi Formation.
The joint venture is pleased to announce the completion of a Bankable Feasibility Study on the Thunderbox gold deposit located within the Wildara Project, north-eastern goldfields of Western Australia.
Dalrymple has a 40% interest in Thunderbox together with LionOre Mining International Ltd (a company listed on the Toronto Stock Exchange) who manages the Project and holds a 60% interest.
The Study proposes an open pit mining operation with a waste to ore strip ratio of 3.5:1 and an on-site, stand alone treatment facility.
The initial mine life is estimated at five years based on current reserves. There is considerable scope to extend this life with further investigation of underground mining opportunities within the existing resource base and the excellent potential for ongoing exploration success within the region.
The joint venture manager of the Frog's Leg project, Mines and Resources Australia Pty Ltd, has advised that exploration has recommenced over the Frog's Leg Project. Three drill rigs are currently operational at the project.
Mines and Resources have also advised that the recalculation of the resource at Frog's Leg following the last phase of exploration will now be available in mid June to allow for specialist input from Mines and Resources head office in France. The re-calculation will be released to the market as soon as it is available.
The Brooke No 1 Well located 3 kilometres south of the Rough Range Oil Field in EP41 (Part 3) Exmouth Gulf, has drilled ahead to a depth of 75 metres in 12(1/4)" (311mm) hole with air as of 1800 hours on the 4 June, 2001.
The formation currently being drilled is the Trealla Limestone which is a very hard formation being drilled with air as it is a "loss of circulation prone zone" when drilled with conventional water based drilling fluids.
The Brooke No 1 well programme is designed to drill the 12(1/4)" hole to 150 metres then run and cement 9(5/8)"(244mm) casing prior to drilling 8(1/2)"(216mm) hole to a total depth of 1195 metres. The Top of the Birdrong Sandstone reservoir is prognosed at 1135 metres.
NEW BARN PROSPECT, CASS COUNTY, TEXAS NEIL HEIRS #1 WELL
The Neil Heirs-1 is currently drilling ahead at 9,345 feet using Grey Wolf Rig #710. The primary objective Cotton Valley Formation (known as the King Sand) is expected between 10,000 feet and planned total depth of 10,950 feet.
Earlier gas shows recorded in secondary objectives between 7,732 and 7,742 feet, between 7,800 and 7,805 feet and between 7,891 and 7,902 feet will be evaluated by logs once the well has reached total depth (10,950 feet).
MENZIES NICKEL PROJECT
The Company has commenced deep Reverse Circulation drilling of a massive nickel sulphide target identified at the Menzies Nickel Project.
The drilling follows up on recent TEM geophysical surveys that tested four kilometres of strike of the basal sequence of the Walter Williams Formation for massive sulphide targets on the Highway Extended Prospect (87% owned by Golden State). The survey successfully located a number of discrete conductivity anomalies, potentially indicative of massive sulphide occurrences.
The targeted anomaly is close to the basal contact within a large demagnetised area. Computer modelling indicates a strong bedrock conductor, with a depth to top of 100 to 150 metres, over two 50m spaced EM traverse lines.
Initially two holes will be drilled to 200 metres depth to test the target. Further drilling will depend on results. The target host rocks are covered by 30 metres of transported overburden, masking them from previous nickel exploration.
HIGHWAY LATERITIC NICKEL PROSPECT
Golden State also plans to begin RC drilling during June to expand its lateritic nickel resource deposit at Menzies.
This follows recent announcements by our neighbour Heron Resources NL of further high-grade lateritic nickel intersections.
Eight diamonds weighing 3.98 carats (average stone size 0.498 carats) were recovered from 170 tonnes of material treated from Pit 77 on KDC's 100 percent owned Blina tenement, north of Pit 61 where 46 diamonds weighing 21.61 carats were recovered last year. Pit 77 is one of two channels to the north of Pit 61. These results indicate that the undiscovered source of the Terrace 5 diamonds lies to the north of the previously defined main Terrace 5 valley.
Sun wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
The well at 1600 hours WST (California) USA was at 3,973 metres and is currently directionally drilling ahead in a 5(7/8)" hole to a measured depth of 4,557 metres where a horizontal well bore of up to 300 metres length is programmed in the reservoir target.
An agreement to acquire the exploration licence number E29/459 in the North East Coolgardie mineral field from Mabank Nominees Pty Ltd, known as the Lake Barlee Project.
The tenement is adjacent to existing Tuart exploration licences at Cashmere and contains a number of reported gold occurrences within a well defined greenstone belt.
ENCOURAGING NICKEL RESULTS AT CASHMERE
TARGET A6:
Target A6 is located in the central tenement area near the northern end of a 10 kilometre long ultramafic/mafic volcanic rock sequence.
The area was selected for drilling based on soil nickel, cobalt and chromium anomalies and a coincident geophysical EM anomaly. Follow-up RC drilling located approximately 400 metres to the south of the original RAB holes intersected additional near surface mineralisation, hole A6 RC4-0.54% Ni over 36 metres with 0.70% Ni over 12 metres from the same hole and 0.62% Ni over 24 metres from hole A6 RC5.
THE BASIN PROSPECT (TARGET A12)
The northern tenement area contains a number of excellent targets which have been generated from geophysical and geochemical data.
Recent RC drilling within a 20 kilometre long fold structure has intersected a disseminated sulphide mix, pyrrhotite, pentlandite and chalcopyrite in 2 sheared serpentenised ultramafic (hole A12 RC4), from 29-32 metres with an additional sulphide zone from 48 to 71 metres. This is the first hole to be drilled on the geophysical anomaly within the central basin area and is located 150 metres east of the original A12 target. To the north of A12 within the same structural zone hole A13 RC3 intersected 0.80% Ni and 0.047% Co at a depth of 16-24 metres.
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is drilling ahead at a depth of 3,983 metres.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252-4557 metres is programmed.
Woodside Petroleum Ltd, Operator of the Mauritania, Area B Joint Venture, reports that the Courbine-1 well was spudded on 29 May 2001.
The well was drilled to a depth of 2094 metres and is currently experiencing difficulties in setting the 20 inch casing at this depth.
The Courbine-1 well is located offshore Mauritania in 1226 metres of water. Planned total depth is 4,000 metres.
Woodside Petroleum Ltd, Operator of the WA-4-L Joint Venture, reports that the Maia-1 exploration well located in the Carnarvon Basin is currently logging prior to the well being plugged and abandoned at 3179 metres. No hydrocarbons were encountered.
New Gold and Copper Find in the Tarcoola Region
Grenfell Resources Limited is pleased to announce the discovery of a new gold and copper mineralised zone at the Soyuz prospect 25 kilometres northwest of Tarcoola.
An intersection of 7 metres @ 4.83g/t gold from 26 metres to the end of hole at 33 metres has been returned on the last hole, SOYUZ06, of the programme. Anomalous copper and silver are associated with this interval
RE: DRILLING MCNAMARA PARK-1 WELL,
PEL 72, OTWAY BASIN, SOUTH AUSTRALIA
Lakes Oil N.L. has been advised by Origin Energy Resources Limited, as Operator for the PEL 72 Joint Venture, that as at 8.00 am this morning the McNamara Park-1 well was at a total depth of 2062 metres and running abandonment plugs.
Drill Stem Test No. 2, over the interval 1,917.5 - 1,936 metres, tested the top of the primary target, Waarre Formation sands, and recovered 1,830 metres of slightly gas cut water. This test was conducted by the Operator on behalf of Lakes Oil N.L. and Victoria Petroleum N.L.
RE: PROGRESS REPORT ON EAGLE NO. 1, EAGLE OIL POOL
DEVELOPMENT PROJECT, SAN JOAQUIN BASIN, CALIFORNIA, USA
Lakes Oil N.L. has been advised by Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, that the Eagle-1 well is at a depth of 3,973 metres, and changing the bottom-hole assembly in preparation for drilling ahead and building angle towards the primary objective and horizontal well section.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252 – 4557 metres is programmed.
Eagle No. 1 will be the first well in the Eagle Oil Pool Development Project, a horizontal drilling project targeting potential recoverable reserves of up to 24 million barrels of oil and 62 billion cubic feet of gas.
TEXAS SILVER PROJECT – SOUTHEAST QUEENSLAND
PROMISING NEW SILVER PROSPECT DEFINED
DRILL TESTING SCHEDULED FOR AUGUST 2001
In the fourth quarterly report for 2000 reference was made to encouraging silver in rock samples from Mt Gunyan Southeast Prospect. Grid soil sampling has now defined a silver in soil anomalous zone in excess of 300m long and up to 100m wide with a maximum soil value of 47g/t silver (similar peak soil value to peak soil value at Twin Hills Silver Mine site). Both to the north and south of the above anomalous zone silver anomalism appears to pass into gold anomalism.
The Mt Gunyan Southeast Prospect is 1.5 kms southeast of the Mt Gunyan Prospect which has an Inferred Resource of 2.2Mt at 132g/t silver and 0.94g/t gold for 12 million ozs of contained silver equivalent. Mt Gunyan itself is scheduled for ore definition drilling after the start up of the Twin Hills Silver Mine and could be Macmin’s second silver mine in the Texas District. The Mt Gunyan Southeast Prospect is also approximately 4km east of the proposed silver mine at Twin Hills. (Inferred Resource of 25M ozs silver, including 15M ozs silver in Indicated and Measured catagories).
Twenty five rock samples were collected from Mt Gunyan Southeast and 23 are regarded as anomalous in silver. In addition to silver, indicator elements such as antimony, arsenic and lead all exhibit similar ranges in values to those in rock samples from Twin Hills. Soil samples also exhibit similar values and range of values for indicator elements to Twin Hills. Silica adularia alteration which hosts the Twin Hills orebody is also widespread at Mt Gunyan Southeast.
In summary, the Mt Gunyan Southeast Prospect is geochemically and geologically similar to Twin Hills; is less than 1.5km from the 12M ozs silver Inferred Resource at Mt Gunyan; and is regarded by Macmin as having very high potential to host a further silver resource in the Texas District.
The Brooke No 1 Well located 3 kilometres south of the Rough Range Oil Field in EP41 (Part 3) Exmouth Gulf, has drilled ahead to a depth of 40 metres in 12(1/4)" (311mm) hole with air as of 1800 hours on the 3 June, 2001.
The Brooke No 1 well programme designed to drill the 12(1/4)" hole to 150 metres then run and cement 9(5/8)" (244mm) casing prior to drilling 8(1/2)" (216mm) hole to total depth of 1195 metres. The Top of the Birdrong Sandstone reservoir is prognosed at 1135 metres.
Recent Magnetotelluric (MI) Survey Station recorded and interpreted over the last week indicate that the Laura Prospect located immediately adjacent to the Brooke Prospect is oil charged and is likely to be the westward extension of the Brooke Prospect with a similar volume of potential Oil In Place as the Brooke Prospect.
The Brooke Prospect has a potential volume of Oil In Place of 2.6 million barrels.
Gateway Mining NL wishes to announce a new joint venture agreement with Goldfan Limited (a member of the Herald Resources Group) that covers part of Gateway's Gidgee Project in Western Australia.
Under the agreement, Gateway will have the right to earn 85% equity in the prospective Montague Mining Leases (ML 57/48,98,99,217 and GPL57/2) by contributing $100,000 towards Joint Venture Expenditure within a three year period.
The Joint Venture properties are part of Gateway's Gidgee Project located 630 kilometres northeast of Perth containing the Gum Creek Greenstone Belt, a 100 x 25 kilometre zone located on the western margin of the East Murchison Mineral Field.
The company has agreed to form a new joint venture covering the four mining leases that cover the Montague Mining centre. Gateway's land holding totally surrounds the joint venture area that has produced over 100,000 ounces of gold.
Goldfields' wholly owned subsidiary, Paddington Gold Pty Ltd (Paddington), has entered into an Exploration and Farmin Joint Venture Agreement with Solomon Resources Limited (Solomon) to explore the Randalls and Mt Monger gold properties. This 650 sqkm contiguous block of tenements is collectively referred to as the Kalgoorlie Southeast Project (KSP) and is 50 kilometres east of Kalgoorlie, Western Australia, within trucking distance of Goldfields' Paddington mill.
Existing resources at Randalls are estimated at 2.3 million tonnes at 3.9 g/t gold for 291,000 contained ounces, and include the Maxwells open pit with 1.4 million tonnes grading 3.75 g/t gold. Previous production between 1992 and 1997 was 240,000 ounces recovered from 2.75 million tonnes mined.
Hardman Resources NL provides the following progress report for the drilling of the Courbine-1 well offshore Mauritania.
Progress (48 hours to Completed 26" hole. Currently at
14.00 hours WST approximately 2,090 metres depth.
2 June 2001):
Forward Programme: Run 20" casing.
Otter Gold Mines has given notice to the mining contractor, (Roche Mining), at its 60% owned Tanami Mine (AngloGold 40%), to cease mining operations as at 30 June 2001. Approximately 12 Tanami Mine site staff associated with those mining operations will be made redundant.
Milling of ore stockpiles is anticipated to continue through to the end of September, 2001. Negotiations are at an advanced stage with Normandy NFM Limited on the leasing of the Tanami treatment plant (and associated infrastructure) to enable NFM to treat ore from their Groundrush deposit (42km from the Tanami treatment plant).
Preliminary results of soil sampling on the Flinders Island Diamond Project in South Australia have been received. Sampling was conducted on a regular grid basis throughout the island with more intense sampling concentrated over selected areas were previous sampling had indicated the presence of kimberlitic mineral anomalies.
One such area, known as Flinders Paddock, is situated some 3 kilometers to the north west of the Gem Grid area in which most of the kimberlitic minerals found to date have been located.
Preliminary results received today from an independent laboratory in Perth reveal anomalous concentrations of kimberlitic minerals from all samples collected at Flinders Paddock. This indicates that in addition to the Gem Grid area, the Flinders Paddock area is also likely to host kimberlite.
Results of the remaining samples that were collected over the island are expected by the end of July at which time additional work including drilling is planned.
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is drilling ahead at a depth of 3,973 metres.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252-4557 metres is programmed.
QUEENSLAND GAS COMPANY COMMENCES CORING PROGRAM
The Directors of Queensland Gas Company Limited (QGC) announce that the company has commenced a six well coring program. This program, combined with information that will be obtained from the dewatering of existing QGC wells will assist in defining and measuring the Coal Bed Methane resources in its acreage.
This program, QGC Surat Basin Coring Program (Phase1), will target coals from the Kogan and Macalister seams, the two uppermost seams of the Juandah interval, the upper coal interval of the Walloon Coal Measures. The six wells in the program (Berwyndale 2, Lawton 2, Pinelands 2, Bellevue 1, McNulty 1 and Broadwater 1) are located across the company’s acreage from just south of Wandoan to south of Dalby.
Santos (Sampang) Pty Ltd, the Operator for the Sampang PSC offshore East Java, has advised that hydrocarbons are indicated on logs run in the Oyong-1 well. The well is currently at 1068 metres.
Santos has stated that "logging has indicated a 110 metres gross column of gas with a possible 22 metres gross column of oil in the Early Pliocene Mundu limestone formation at a depth of 813 metres."
The Company is pleased to announce that the Brooke No 1 well located 3 kilometres south of the Rough Range Oilfield in EP 41 Part 3, Exmouth Gulf spudded the 17(1/2)" conductor hole at 1100 hours, Friday 1 June 2001.
It is prognosed that the DCA Rig No 6 will take up to a total of 25 days to drill the well to a total depth of 1135 metres from spud.
Hardman Resources NL provides the following progress report for the drilling of the Courbine-1 well offshore Mauritania.
PROGRESS AND CURRENT OPERATION: (14:00 hours WST 31 May 2001)
Currently at 1,330 metres depth. Ran and commenced cementing 30" (762mm) conductor.
FORWARD PROGRAMME:
Cement 30" conductor and drill 26" hole.
Projected drilling time for the Courbine-1 well (P50, most likely case) is 62 days. The well is located approximately 95 kilometres from the coastline in Joint Venture Area B.
Novus Petroleum Limited has announced exploration success in its Ras El Hekma Concession in Egypt and is drilling ahead in another exploration well in the adjoining Khalda Offset Concession.
The Ras El Hekma 2X exploration well has tested gas and flowed at a stabilised rate of 11.5 million standard cubic feet per day and 2,120 barrels of condensate per day from two zones in the Lower Cretaceous AEB 5B formation. The well is located in the southwestern part of Novus' Ras El Hekma Concession in Egypt's Western Desert.
The commerciality of this discovery is enhanced by its close proximity to the existing infrastructure of Novus' Western Desert Gas Development Project (WDGDP) and follows on from a stream of discoveries in Novus' Western Desert acreage.
Summit has finalised the Isa North Funding and Joint Venture Agreement with Noranda Pacific Pty Ltd, the Australian subsidiary of Toronto listed international mining company Noranda Inc ("Noranda").
The first placement of funds, A$500,000 has been received by Summit and the Company has issued 2.5 million shares to Noranda. The shares were issued at A20 cents (NZ25 cents); a significant premium to the current market price.
Exploration is underway on the George Fisher North targets with control aerial photography flown, geological interpretation and drill site selection in progress, a five hole 3,000 metre drill contract out to tender and drilling anticipated to commence later in June 2001.
Sun Resources NL ("Sun") wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
The well at 1600 hours WST (California) USA was at 3,885 metres and is currently directionally drilling ahead in a 5(7/8)" hole to a measured depth of 4,557 metres where a horizontal well bore of up to 300 metres length is programmed in the reservoir target.
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is drilling ahead at a depth of 3,885 metres.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252 - 4557 metres is programmed.
West Oil NL announced today that it has been granted a 12 month extension to its work obligations on its 100% owned AC/P 28 permit in the Timor Sea.
West Oil has been granted the extension to acquire 250 kms of 2D seismic to better define the potential 200 million barrels Aristarchus West Prospect. This prospect is only partially covered with existing seismic data.
DAIRI ZINC/LEAD PROJECT
Project Interests:
METALLURGICAL TESTWORK
IAX
80%
PT Aneka Tambang
20%
Herald's 71% owned subsidiary, International Annax Ventures Inc. (IAX) reports as follows:
The Company is pleased to announce that encouraging metallurgical test results have been obtained from samples of mineralization taken from the Anjing Hitam sedex massive sulphide deposit. Initial results indicate a zinc recovery of 87% reporting to a 58.5% zinc concentrate and lead recovery of 74% reporting to a 54.5% concentrate, using a primary grind of 80% passing 35 microns. It is believed that further testing will improve on these figures, particularly with regard to lead.
Recognizing similarity in proportions of main sulphides to Western Metals Ltd’s Hellyer zinc mine in Tasmania, the company commissioned Western Metals to carry out flotation test work on quarter core samples from hole SOP30D. This core is regarded as being typical of the expected run-of-mine product, although a little higher in grade than the overall resource. The results were also compared with Hellyer ore, and indicate Anjing Hitam zinc and lead sulphides as having superior characteristics in several key components.
RE: DRILLING MCNAMARA PARK-1 WELL,
PEL 72, OTWAY BASIN, SOUTH AUSTRALIA
Lakes Oil N.L. has been advised by Origin Energy Resources Limited, as Operator for the PEL 72 Joint Venture, that as at 10.30 am this morning the McNamara Park-1 well was at a depth of 1682 metres and running Drill Stem Test No. 1 over the interval 1666 – 1682 metres within the Flaxman Formation, which is a secondary target in the well. The test recovered approximately 1600 meters of water. The well will now drill ahead to its primary target, sands of the Waarre Formation, which should be intersected at approximately 1936 metres sometime tomorrow.
RE: PROGRESS REPORT ON EAGLE NO. 1, EAGLE OIL POOL
DEVELOPMENT PROJECT, SAN JOAQUIN BASIN, CALIFORNIA, USA
Lakes Oil N.L. has been advised by Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, that the Eagle-1 well is drilling ahead at a depth of 3,826 metres.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252 – 4557 metres is programmed.
Eagle No. 1 will be the first well in the Eagle Oil Pool Development Project, a horizontal drilling project targeting potential recoverable reserves of up to 24 million barrels of oil and 62 billion cubic feet of gas.
Black Range Minerals (BLR) was today granted development consent for the Syerston nickel/cobalt/platinum project by the State Government of New South Wales, as announced by the Premier, Bobb Carr, in Parliament.
This consent is an essential component in joint venture and partnering negotiations presently underway for Syerston. It is also mandatory for meaningful discussions with major banks regarding debt financing arrangements and leverage leasing.
Syerston is a fully appraised development project located near Parkes, some 400km northwest of Sydney. It is a limonitic nickel laterite with design production levels of nickel and cobalt of 20,000 tonnes and 5,000 tonnes respectively. The Government's Development Consent is initially for 21 years and total project life is more than 36 years. With robust project economics, Syerston is a prime development project.
Santos (Sampang) Pty Ltd, the Operator for the Sampang PSC offshore East Java, has advised that hydrocarbons are indicated on logs run in the Oyong-1 well. The well is currently at 1068 metres.
Santos has stated that "logging has indicated a 110 metres gross column of gas with a possible 22 metres gross column of oil in the Early Pliocene Mundu limestone formation at a depth of 813 metres."
Wire line pressure measurements have been obtained and a wire line sample obtained at 928.2 metres recovered a total of 10.5 litres of 41deg a API oil and 61 cubic feet of gas.
The pressure information indicates a single gas column in good quality rock underlain by an oil leg of at least 8 metres.
The forward plan is to set 9(5/8)" casing and drill ahead to evaluate the other objectives of the well.
Gold Mines of Sardinia is advancing plans for a strategic drilling campaign over the company's new gold field discovery at Monte Ollasteddu in eastern Sardinia. A Research Permit application has been lodged with the Sardinian Government to enable reserve circulation (RC) and diamond drilling to fully evaluate the prospect.
Company geologists continue to report high gold values from a wide-ranging channel sampling program.
Woleebee East No 01 (previously Woleebee No 01) a coal seam methane exploration core hole, is situated approximately 100 metres west of Roma 04, latitude 26 deg, 15 min, 01.78 sec, south, longitude 149 deg, 50 min, 15.09 sec, east. The well was spudded at 08:00 hours on May 10, 2001. 168mm surface casing was set at 97.0 metres RT. The well reached a total depth of 617 metres RT, at 06:30 hours, on May 19, 2001. At 06:00 hours today the rig was preparing to plug and abandon the well. Progress for the week was 0 metres.
A Drill Stem Test was performed over the interval, 580 to 587 metres RT, with no recovery of formation fluids.
The primary targets of the well are the upper Juandah Coal Measures.
Proposed total cored depth of the well is 330 metres RT.
Rio Tinto and its joint venture partners have approved the development of the A$425 million Hail Creek Coal Project, in central Queensland near Mackay. The Hail Creek Coal Project is based on one of the largest coking coal deposits in the world, with total resources estimated at 1.2 billion tonnes. The project is located 85 kilometres west of Mackay.
Chief Executive Rio Tinto Energy group, Mr Greg Boyce, said conditions in the international coal market were right for the development of Hail Creek.
"Mine closures in Canada and an energy shortage in the US have provided a natural opening for a new mine like Hail Creek," Mr Boyce said.
Sun Resources NL ("Sun") wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
The well at 1600 hours WST (California) USA was at 3,826 metres and is currently directionally drilling ahead in a 5 7/8" hole to a measured depth of 4,557 metres where a horizontal well bore of up to 300 metres length is programmed in the reservoir target.
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is drilling ahead at a depth of 3,826 metres.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252 - 4557 metres is programmed.
ARC Energy advised that it has delayed accepting Century Rig 24 and spudding the Yardarino 5 well due to mechanical problems with the rig which are currently being resolved.
Century Drilling expect to complete repairs to the rig by Friday, 1 June 2001, and if ARC agrees the rig is operational at that time, the well will then be spudded.
Drilling Activity & Project Status Report
NEW ZEALAND - PEP38719, TARANAKI BASIN, BLIGH INTEREST: 5.00%
The Kauri-1 exploration well is currently drilling ahead in 12(1/4)" hole, at a depth of 2226 metres.
Kauri-1 is being drilled to a total depth of 4500 metres to evaluate the Tariki sandstone, Rimu limestone and Cretaceous sandstone reservoirs within upper and lower thrust blocks in the large Kauri structure. The well is expected to take a further 20-25 days to reach total depth.
The Operator has indicated that the testing of the Rimu B-1, B-2, A-2 and A-3 wells is nearing completion, and a comprehensive release will be forthcoming within the next week, once interpretation of the data has been completed.
Location clearing has commenced, in advance of construction of the Rimu production station. The facilities are being designed for an initial throughput of 3500 barrels of oil per day and 10 million cubic feet of gas per day, with easy modular upgrade to a capacity of 7500 barrels of oil per day and 20 million cubic feet of gas per day.
As previously announced, a gas contract has been agreed, under which the first 10 million cubic feet per day is already committed.
NEW ZEALAND - PML 38141, TARANAKI BASIN. BLIGH INTEREST: 1.62%
The Te-Popo-1 well is currently drilling ahead in 8(1/2)" hole at a depth of 2613 metres. The well is being drilled to evaluate the north-eastern extent of the Tikorangi reservoir in the Waihapa-Ngaere field, in which Bligh holds a 1.62% interest through its 50% owned subsidiary, Bligh Oil & Minerals (NZ) Ltd.
UNITED STATES- BAYOU CHOCTAW PROJECT, LOUISIANA, VICTORY FINANCIAL LEASE. BLIGH INTEREST: 22.50%
The Icon Victory Financial No 1A well has been plugged back to a depth immediately below surface casing at 2500 feet, and is being sidetracked from this point towards a revised target total depth of 8800 feet. The well is currently at 3700 feet and is drilling ahead.
The forward plan calls for 7(5/8)" casing to be set at a depth of approximately 7200 feet, immediately above the fault zone which caused the technical difficulties in the first wellbore. The well will then be drilled to a depth of 8800 feet, to penetrate the majority of the known field pay zones in the Marg Idi, Marg Howeii, Cib Hazz, and Marg Tex formations, at which point the well will be logged, and 5(1/2)" production casing will be run. A decision on slim-hole deepening will be made at that point, dependent upon the condition of the wellbore, the quality of the pays behind pipe, and the cumulative cost of the well at that time. If the decision is made not to deepen, the rig will be released, and the well completed in the pays behind pipe.
Further to our announcement on 24 May 2001 regarding the imminent spudding of a new well on the SW1A Concession in Central Thailand, Carnarvon Petroleum NL announced that the well, WB-N2, has now reached a total depth of 548 meters.
Preparations are underway to run intermediate casing. The objective horizons are targeted from 600 meters onwards and WB-N2 has a prognosed total depth of 1,015 meters.
The SW1A Concession Joint Venture participants are Carnarvon Petroleum NL 40% and Pacific Tiger Energy Inc (60%).
Section B of Trench 6, located in the upper river flats of Backwater Creek has been completed, yielding 780 carats of rough ruby and 1228 carats of corundum and sapphire at a grade of 7.2 carats per tonne of ruby and 11.4 carats per tonne of corundum and sapphire. The largest rubies sampled weighed 3.4 and 3.2 carats, and a 5.2 carat corundum (non gem ruby) was also recovered. All tracers were recovered. 108 tonnes of gravels were treated. Backwater Creek is a tributary of the Gummi River, and this trenching is about two kilometres upstream from the previously demonstrated inferred resource of ruby.
NEW BARN PROSPECT, CASS COUNTY, TEXAS NEIL HEIRS #1 WELL
Gas shows have been reported in mud logs while drilling the Neil Heirs #1 well. The first drilling break between 7,732 and 7,742 feet was associated with an increase in background gas from 8 units to 48 units and gold fluorescence in cuttings. A second drilling break was reported between 7,800 and 7,805 feet with background gas increasing to 66 units. A third drilling break was recorded between 7,891 and 7,902 feet with background gas to 56 units. These shows will be evaluated by logs once the well has reached total depth (10,950 feet).
The well is presently drilling ahead at 8,054 feet using Grey Wolf Rig #710. The New Barn prospect is located in Cass County, Texas, approximately 16 miles northwest of the town of Jefferson. The Prospect is located on the north flank of the Lassater Field.
Diamond drill hole MGD 27, designed to test the possibility of a near vertical copper ore zone close to the northern end of the 10 kilometre long Elaine Zone geophysical anomaly was completed on 22nd May. This hole is the first one sole funded by Billiton Exploration Australia Pty Ltd as part of the Mt Gunson Joint Venture initiated on 9th April 2001.
The hole was collared on the same section as previous drilling late last year and earlier this year, and the results are consistent with earlier indications that the geophysical anomaly is caused by iron oxide associated copper-gold mineralisation.
The best copper mineralisation in the hole is wider and better grade than in previous drilling and appears to lie "up dip" to the east of that encountered near the base of the previous wedge hole, MGD 26-W1. Assay results and other details of MGD 27 are listed in Appendix 1. The best intersection is a 15 metre interval between 865-880 metres which averaged 0.3% copper, including 2 metres at 0.7% copper between 878-880 metres. This mineralisation is associated with strong chlorite alteration with accessory magnetite and fluorite, overprinting earlier red rock alteration.
Hardman Resources NL provides the following progress report for the drilling of the Courbine-1 well offshore Mauritania.
PROSPECT DESCRIPTION:
The Courbine-1 well will target the Courbine prospect (formerly referred to as Lead 8). The proposed Total Depth is 4,000 metres.
PROGRESS AND CURRENT OPERATION: (14:00 hours WST 30 May 2001)
The Courbine-1 well spudded on 29 May 2001. Drilled 36" hole to 1,330 metres depth.
FORWARD PROGRAMME:
Cement 30" conductor and drill 26" hole.
Projected drilling time for the Courbine-1 well (P50, most likely case) is 62 days. The well is located approximately 95 kilometres from the coastline in Joint Venture Area B.
Rio Tinto has sold its 100% interest in the Cowal Gold Project, located in central New South Wales, to Homestake Mining Company, subject to the parties receiving certain government approvals. The value of the sale represents less than one per cent of the net assets of Rio Tinto.
According to the feasibility study, the Cowal project hosts a recoverable reserve of 73.0 million tons (66.4 million tonnes) of ore grading 0.035 ounces of gold per ton (1.18 grams per tonne) or approximately 2.5 million ounces of gold. This reserve is contained within mineralized material totaling 100 million tons (90.3 million tonnes) grading 0.044 ounces per ton (1.5 grams per tonne). Many of the holes defining the resource bottomed in economic grade mineralization indicating considerable potential to enhance the original North model. Homestake expects to complete re-examination of parameters of this project as quickly as possible. The Cowal Project is located within the acquired land package covering approximately 153,000 acres (620 square kilometers) of highly prospective Lachlan Fold Belt volcanics, which are also host to the large Cadia/Ridgeway copper/gold mines and numerous smaller gold mines in central New South Wales.
Iluka Resources has decided to proceed with a major expansion of its Old Hickory titanium minerals operations in Virginia, USA. The project will be the first phase of Iluka's investment in the creation of a world-scale titanium minerals business in the USA
Work will commence immediately on a construction project valued at US$23 million to increase the combined output of ilmenite and zircon by 50%. When the project is commissioned in the third quarter of 2002 it will have an average annual output of 225,000 tonnes of ilmenite and 50,000 tonnes of zircon.
The scope of the project requires a second mining pit to be developed at Old Hickory, with an associated mining unit and mobile gravity concentration plant. The minerals separation plant will be upgraded to remove bottlenecks and increase production capacity.
The project will be funded from cash flow and may utilise the Company's existing debt facilities.
Iluka is mindful that the current global economic climate is difficult.
However, the Company is confident that the medium to longer term outlook for the titanium dioxide pigments industry (the major outlet for the company's TiO2 minerals) remains positive.
Old Hickory zircon, which is highly regarded for ceramics and zirconium applications, is expected to remain in strong demand.
This investment decision is part of Iluka's growth plans, involving new production in Western Australia, the Murray Basin, USA and other potential areas of operation.
Ivanhoe will resume limited operations at the Bakyrchik Gold Mine in Kazakhstan this summer.
Production is expected to begin at a rate of 20,000 ounces a year, with the potential to expand to between 40,000 and 50,000 ounces of gold a year. Gold recovery operations will use the existing facilities and a carbon-in-leach (CIL) plant, part of the mine complex that has been maintained on a production-ready basis since 1998.
Origin Energy Resources Limited, as Operator for VIC/P43, provides the following report for the drilling of the exploration well Geographe 1 in the offshore Otway Basin.
Geographe 1 was spudded at 02:45 EST on 30 May 2001.
Geographe 1 is being drilled by the Ocean Bounty semi submersible drilling rig and is planned to be drilled to a depth of at least 2120mRT.
We are pleased to provide a progress report on the activities of Strike Oil NL (Strike), the unlisted oil and gas exploration company in which Perilya Limited (Perilya) holds a 23.4% interest.
Strike's interests lie in oil and gas exploration opportunities in the Carnarvon, Otway, Cooper and Sydney Basins. Recent developments relating to Strike's holdings in the Carnarvon and Otway Basins hold the potential for significant oil and gas production, which will add materially to the value of Strike and to Perilya's investment.
1. OTWAY BASIN
Strike holds a 100% working interest in the VIC/P44 permit in the offshore Otway Basin area of Victoria.
Industry interest in this permit has significantly increased following the recent offshore gas discovery by Woodside, Origin and Benaris at Thylacine 1 and five onshore gas discoveries by Santos in the Port Campbell area.
Strike, within its VIC/P44 permit, has defined TCF scale prospects similar to Thylacine 1. In particular, Strike's Casino Prospect exhibits an Amplitude Versus Offset (AVO) anomaly on seismic data. AVO anomalies are indicators of the potential presence of gas and are similarly believed to be present on seismic data over the Thylacine discovery and some of the onshore Santos discoveries.
Strike is currently negotiating a Farminee Company into the Permit to drill the Casino Prospect and acquire 3D seismic over the most prospective area. Subject to farm-in negotiations and rig availability, a well could be drilled as early as August or September this year.
2. CARNARVON BASIN
Strike holds a 5% interest in WA-261-P and a 100% interest in TP/17 situated in the offshore Carnarvon Basin of Western Australia.
Within TP/17, Strike has defined on 3D seismic, the Altostratus Prospect, with the potential to host up to 100mm bbl of recoverable oil within the same formation which hosts the Stag Oilfield 20km to the north west.
The Altostratus prospect is to be drilled towards the end of this year.
3. COAL SEAM NATURAL GAS
Strike has Coal Seam Natural Gas interests in the Gunnedah Basin in NSW and the Cooper Basin in South Australia. Strike has recently appointed Mr Andy Lydyard as General Manager of its Coal Seam Natural Gas business in Australia. This appointment brings new focus to Strike's Coal Seam Natural Gas business, initiating a strategy to develop and expand these activities as a separate business unit to compliment Strike's conventional gas activities in Eastern Australia and its oil activities in the Carnarvon and Cooper Basins.
Sun Resources NL ("Sun") wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
The well at 1600 hours WST (California) USA was at 3,750 metres and is currently directionally drilling ahead in a 5 7/8" hole to a measured depth of 4,557 metres where a horizontal well bore of up to 300 metres length is programmed in the reservoir target.
Homestake Gold of Australia Limited has commenced fieldwork on the Company's Western Australian Tanami tenements following a 6-8 week delay in start-up due to record wet season rains. Homestake will use two RAB drill rigs in order to catch-up on lost time. Initial RAB drill programs will complete regional testing of target areas selected by Homestake.
Evaluation of the known gold resources (Kookaburra, Sandpiper and Hawk) and mineralised occurrences (Camel, Camel North, Hutch's Find, Osprey, Finch, etc) is being carried out in parallel with the RAB drill and surface lag sampling programs. Based upon this evaluation, the Company is hopeful that a RC percussion drill program will commence in the September 2001 quarter to test various advanced prospects and to test for extensions to known gold resources.
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is drilling ahead at a depth of 3,826 metres.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252 - 4557 metres is programmed.
BULLFINCH NORTH JV PROJECT (WSA 60%) Nickel, Gold
Six conductive EM anomalies identified in the Trough Weft area during April were confirmed by an induced polarisation (IP) survey. These anomalies are high priority targets which will be tested initially by RC drilling to 150m depth. Drilling is planned to commence as soon as a rig is available, to determine whether the source of the anomalies is conductive sulphide mineralisation.
Two anomalies are located immediately north and west of the Trough Well nickel sulphide deposit where previous drilling reported significant intersections including 14m @ 2.74% nickel. Another is located 1km south of Trough Well and three anomalies form a 1000m long conductive zone located in a fault bound block of ultramafic and banded iron formation units, 900m west of Trough Well.
Western Areas has notified Polaris Metals that it has earned 60% interest in the Bullfinch North joint venture. The agreement enables Western Areas to earn up to 70% interest by 11 April 2002.
MOUNT JEWELL PROJECT (WSA 100%) Nickel
A conceptual mining study of the GSP nickel sulphide deposit prepared by an independent consultant has indicated that a small underground mining operation may be viable. Further drilling is required to confirm existing high grade intersections and test for extensions to the deposit. An initial three hole diamond drilling program is scheduled to commence on 5 June.
PLUMRIDGE PROJECT (WSA 100%) Platinum, Palladium
A State Deed for Grant of Mining Tenements was executed by the 12 members of the Wongutha native title claimant group. This Deed and an Aboriginal Heritage Survey report, which cleared the Plumridge project for exploration, have been lodged with the Department of Minerals and Energy. This should enable the central exploration licences at Plumridge to be granted at an early date.
NEW PROJECTS Nickel
Western Areas is currently evaluating opportunities that fit the company strategy to acquire advanced nickel sulphide exploration projects and bring nickel resources into production.
Woodside Petroleum Ltd, Operator of the Mauritania, Area B Joint Venture, reports that the Scarabeo 7 drilling rig arrived at the Courbine-1 location on 26 May 2001 and is currently preparing to spud.
The Courbine-1 well is located offshore Mauritania in 1220 metres of water. Planned total depth is 4,000 metres.
Following the significant gas discovery in the Thylacine-1 exploration well, Woodside Energy Ltd is now drilling the Geographe-1 wildcat well in permit VIC/P43, about 55 kilometres south of Port Campbell in the Otway Basin.
The Ocean Bounty drilling rig spudded the Geographe-1 well, about 15 kilometres north of Thylacine-1 at 02:45 hours EST today.
Woodside Energy Ltd, operator of the North West Shelf Venture, has awarded A$485 million in contracts for the North West Shelf Train 4 expansion project on the Burrup Peninsula, Western Australia.
Further contracts are expected to be awarded over the next six months, including contracts for civil engineering works. These works will see in 2003 a peak of 2000 workers in Karratha undertaking the expansion.
CHAIRMAN'S ADDRESS - ANNUAL GENERAL MEETING
........................On the exploration and appraisal front, the results of recent activities ATP 620P and 632P in the Chinchilla–Miles area of Queensland have been very encouraging. Five wells in the Argyle Field in (ATP 620P) have been completed as producing coal bed methane gas wells. Further evaluation work and economic studies are being conducted by Queensland Gas Company (QGC), the operator of the project. Potential markets are being assessed with a view to establishing a cash flow as soon as possible. Berwyndale #2 is currently at a depth of 102 metres. Berwyndale #1 has been suspended as a potential gas producer.
Further encouragement has been gained from the second potential coal bed methane gas discovery in the Berwyndale #1 well in ATP632P some 16 kms to the northwest of the Argyle Field. An appraisal well, Berwyndale#2, is now being drilled by QGC, and is currently at a depth of 102 metres. This well is expected to obtain detailed core information through the prospective coal bed section. Hopefully this new find will open up the possibility for a second commercial development in this area.
These results are pleasing in that they emphasise the benefit of having access to freehold land at a time when most of our Queensland areas are inaccessible for exploration, due to the ongoing problems with Native Title.
Shareholders will be aware that after many months of frustrating delays we have been able to commence the long awaited drilling programme in Louisiana. The Icon Victory Financial # 1 well spudded on the 1st of May and by 22nd May had reached a depth of 2218 metres (7277 ft), just above the anticipated main productive zone with strong indications of hydrocarbons from mud gas samples.
RE: DRILLING MCNAMARA PARK-1 WELL,
PEL 72, OTWAY BASIN, SOUTH AUSTRALIA
Lakes Oil N.L. has been advised by Origin Energy Resources Limited, as Operator for the PEL 72 Joint Venture, that as at 9.00 am this morning the McNamara Park-1 well was at a depth of 1565 metres and drilling ahead.
RE: PROGRESS REPORT ON EAGLE NO. 1, EAGLE OIL POOL
DEVELOPMENT PROJECT, SAN JOAQUIN BASIN, CALIFORNIA, USA
Lakes Oil N.L. has been advised by Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, that the Eagle-1 well is drilling ahead at a depth of 3,750 metres.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252 – 4557 metres is programmed.
Eagle No. 1 will be the first well in the Eagle Oil Pool Development Project, a horizontal drilling project targeting potential recoverable reserves of up to 24 million barrels of oil and 62 billion cubic feet of gas.
RE: DRILLING MCNAMARA PARK-1 WELL,
PEL 72, OTWAY BASIN, SOUTH AUSTRALIA
Lakes Oil N.L. has been advised by Origin Energy Resources Limited, as Operator for the PEL 72 Joint Venture, that as at 9.30 am this morning the McNamara Park-1 well was at a depth of 1220 metres and drilling ahead.
RE: PROGRESS REPORT ON EAGLE NO. 1, EAGLE OIL POOL
DEVELOPMENT PROJECT, SAN JOAQUIN BASIN, CALIFORNIA, USA
Lakes Oil N.L. has been advised by Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, that the Eagle-1 well is drilling ahead at a depth of 3,678 metres.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252 – 4557 metres is programmed.
Eagle No. 1 will be the first well in the Eagle Oil Pool Development Project, a horizontal drilling project targeting potential recoverable reserves of up to 24 million barrels of oil and 62 billion cubic feet of gas.
RE: DRILLING MCNAMARA PARK-1 WELL,
PEL 72, OTWAY BASIN, SOUTH AUSTRALIA
Lakes Oil N.L. has been advised by Origin Energy Resources Limited, as Operator for the PEL 72 Joint Venture, that as at 9.00 am this morning the McNamara Park-1 well was at a depth of 550 metres and preparing to run in the hole and drill ahead.
RE: PROGRESS REPORT ON EAGLE NO. 1, EAGLE OIL POOL
DEVELOPMENT PROJECT, SAN JOAQUIN BASIN, CALIFORNIA, USA
Lakes Oil N.L. has been advised by Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, that the Eagle-1 well is drilling ahead at a depth of 3,598 metres.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252 – 4557 metres is programmed.
Eagle No. 1 will be the first well in the Eagle Oil Pool Development Project, a horizontal drilling project targeting potential recoverable reserves of up to 24 million barrels of oil and 62 billion cubic feet of gas.
QUEENSLAND GAS COMPANY COMPLETES ABERDEEN No. 1
The Directors of Queensland Gas Company Limited (QGC) are pleased to announce that the company’s thirteenth well Aberdeen No. 1 has been completed as a potential coalbed methane producer. Aberdeen No 1 intersected 28.6 metres of coal within the seams of the upper Walloon Coal Measures.
Testing of the well during drilling produced good gas shows and water production of 2,410 barrels per day. These results are typical of the initial flows from coal bed methane wells drilled in the Powder River Basin in the USA. After dewatering, these wells produce significant gas flow rates.
Coals in the Macalister seam encountered in this well have been under-reamed to enhance production potential.
The well is now shut in awaiting equipment to be set up for production testing. It is anticipated that production testing will commence in July.
This well earns QGC a 50% interest in the Walloon Coal Measures in the area of Authority to Prospect 621P.
Heron advised that the current Goongarrie Nickel Project RC drilling at the Pamela Jean Zone is returning intercepts of Nickel Laterite mineralisation which significantly exceed any previously announced results. Of interest, drill-holes GSRC 907 and 912 have reached depths of 124 metres, stopping in high grade ore (2.25% Ni and 1.93% Ni respectively):
GSRC 907 89m at 1.19% Ni and 0.13% Co from 35m, stopped in ore
GSRC 912 86m at 1.23% Ni and 0.08% Co from 38m, stopped in ore
The Pamela Jean Zone mineralisation as drilled to date has a N-S strike length of 840m from 68,840N to 69,680N, and is open both to the north and south. The width of mineralisation at a 1% Ni cut-off is 160-480m, typically 240m. Additional mineralised zones occur to the west, but are not yet closed off by drilling. The mineralisation is closed off to the east, with a barren un-weathered competent basalt.
Most significantly, from 69,520N to 69,680N, the mineralisation at a 1% Ni cut-off extends to vertical depths of 90-124m, termed the "Pamela Jean Deeps". At a 1% Ni cut-off, the "Deeps" currently has a 160m N-S strike length (open to the north), and is 80m wide.
Hillcrest has entered into an agreement to purchase 100% of the Munni Munni Extended Platinum Project. The Munni Munni Extended Platinum Project is located 60km south of Karratha in Western Australia's Pilbara region and is contiguous to the Helix Resources NL Munni Munni Platinum Group Metals Project.
The Munni Munni Extended Platinum Project ("the Hillcrest Project") incorporates four tenements comprising ELA's 47/1033 (Munni Munni), 47/1032 (Radio Hill South), 47/1031 (North Whundo) and 47/1020 (East Well).
The most prospective tenement in the Hillcrest Project area is ELA 47/1033 (Munni Munni), which further encloses on the west, north and east of the Elizabeth Hill silver mine while ELA 47/1032 borders the sulphide nickel-copper deposit at Radio Hill being mined by Titan Resources NL.
Mosaic Oil released the net un-risked reserve potential of its assets in the south-western area of the Surat Basin of Queensland.
The net un-risked reserve potential of Mosaic's 40 mapped prospects in this area is approximately 200 billion cubic feet of gas and ten million barrels of oil and condensate.
The un-risked reserves figures released today do not include the proven, probable and possible oil and gas reserves that lie within producing Queensland fields. These proven, probable and possible oil and gas reserves presently on Mosaic's books are 40 billion cubic feet of gas and 600,000 barrels of oil.
Novus announced that it has been awarded a further two exploration blocks in Oman. Blocks 15 and 47 lie approximately 100 kilometres southwest of Muscat and south of the Jebel Akhbar Range (see map for exact location). The two blocks cover an area of approximately 10,000 square kilometres or 2.5 million acres. Novus is now a Major holder of acreage in Oman, all of which targets the Northern Arabian Peninsula gas-condensate play. This play has been established and identified through Novus' exploration, both on and offshore, around the Musandam Peninsula.
Novus will assume operatorship of the two blocks, with a 100% interest. Initial work commitments in the block will include geological mapping and 2D seismic reprocessing and acquisition.
Depending on the results of these studies, a well may subsequently be drilled.
Rio Tinto has received approval from the NSW Government for a new mining lease for Peak Gold Mines. The lease will allow Peak Gold to develop a new open cut mine - to be called the New Cobar Open Cut mine - five kilometers north of the existing underground mine, near Cobar in central New South Wales.
Development of the new lease will give Peak Gold access to about 800,000 tonnes of ore, grading four grammes per tonne gold, over the next four years.
The lease, together with the development of the New Occidental underground mine, will extend the life of Peak Gold's operations to 2007. Ore reserves at the existing Peak Gold mine will be depleted in 2002.
Kennecott Utah Copper Corporation (KUC) will start to suspend operations at its North Concentrator Plant on or about June 1. Associated rail haulage operations will also be curtailed. The curtailment will impact about 235 hourly and salaried employees, and will reduce KUC's annual ore production by about 18 percent. Worker Adjustment and Retraining Notification Act notices were issued on May 25 announcing the curtailment.
Sun wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
The well is currently directionally drilling ahead to 3,598 metres.
Good progress has been made over the weekend.
The Eagle development is targeting a now recognised stratigraphic trap containing 24 million barrels of oil and 62 billion cubic feet of gas (P10 recoverable estimates) in the Upper and Lower Gatchell Sandstone. In 1986, the Mary Bellocchi #1 well on the trap flowed 223 barrels of 42deg API oil per day with 0.82 million cubic feet of gas per day before excessive water and migration of fines interfered with the flow of hydrocarbons. It is thought horizontal drilling technology, not available in the mid 1980s, should solve the well engineering problems that occurred in completion and testing of this vertical well and importantly result in a 3 to 4 fold increase in oil and gas flow rates, that is 750 to 1000 barrels of oil per day with 2.4 to 3.2 million cubic feet of gas per day.
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is drilling ahead at a depth of 3,598 metres.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252 - 4557 metres is programmed.
Woodside Energy Ltd, Shell Development (Australia) Pty Ltd and QNI Pty Ltd have signed an exclusive letter of intent (LoI) specifying key commercial terms for the supply of natural gas from the Woodside operated Sunrise Gas Project in the Timor Sea, to QNI's Yabulu nickel and cobalt refinery located at Townsville.
The LoI proposes gas supply over a twenty-year period, commencing at 12.5 petajoules per annum and potentially increasing to 19 petajoules per annum within the first two years. The gas would be used for power generation and process feedstock, providing QNI with a long-term secure and clean energy source capable of supporting future expansion at the refinery.
RE: COMMENCEMENT OF DRILLING MCNAMARA PARK-1 WELL,
PEL 72, OTWAY BASIN, SOUTH AUSTRALIA
Lakes Oil N.L. has been advised by Origin Energy Resources Limited, as Operator for the PEL 72 Joint Venture, that the McNamara Park-1 well spudded at 3.00 am this morning and as at 8.15 am this morning was drilling ahead at a depth of 93 metres.
Interest Holders in PEL 72 and the McNamara Park-1 well are:
| Lakes Oil N.L. | 15.00% |
| Victoria Petroleum NL | 25.25% (Operator) |
| First Australian Resources NL | 15.00% |
| Sun Resources NL | 10.00% (Reducing to 7.5% on exercise of back in rights on payout on production) |
RE: PROGRESS REPORT ON EAGLE NO. 1, EAGLE OIL POOL
DEVELOPMENT PROJECT, SAN JOAQUIN BASIN, CALIFORNIA, USA
Lakes Oil N.L. has been advised by Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, that the Eagle-1 well is at a depth of 3,493 metres, and running in the hole with a milling assembly to clear out an obstruction in the sidetrack window.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252 – 4557 metres is programmed.
Eagle No. 1 will be the first well in the Eagle Oil Pool Development Project, a horizontal drilling project targeting potential recoverable reserves of up to 24 million barrels of oil and 62 billion cubic feet of gas.
Pan Australian is also pleased to announce that drilling has commenced at the Hawkwood Project where trenching has discovered significant bedrock intersections of palladium and platinum.
Riverina Project - Assay Results
Significant drill hole intersection assay results for Reverse Circulation and Geotechnical Diamond Drilling recently completed at the Riverina Project are presented in table 1 and table 2 below.
TABLE 1 - FIRST HIT PROSPECT - SIGNIFICANT DRILL HOLE INTERSECTION ASSAY RESULTS
HOLE ID FROM (m) TO (m) ASSAY (g/t Au) INTERSECTION (g/t Au)
FHD001 59.32 59.47 1.17
59.47 59.7 8.80
59.7 59.78 16.80
59.78 60.2 120.00
60.2 60.73 1.15 1.41m @ 38.69 g/t
FHD002 215.98 216.48 0.16 0.5m @ 0.16 g/t
FHD003 132.60 132.91 20.70
132.91 133.05 3.01
133.05 133.35 3.50
133.35 133.85 48.00
133.85 134.43 23.85
134.43 134.91 2.24
134.91 135.04 8.78 2.44m @ 19.65 g/t
141.8 142.43 3.65 0.63m @ 3.65 g/t
TABLE 2 - RIVERINA PROSPECT - SIGNIFICANT DRILL HOLE INTERSECTION ASSAY RESULTS
HOLE ID FROM (m) TO (m) ASSAY (g/t Au) INTERSECTION (g/t Au
BRV20 227 228 3.70 1m @ 3.70 g/t
249 250 1.86
250 251 1.07 2m @ 1.46 g/t
RV21 68 69 1.10 1m @ 1.10 g/t
280.5 281 5.38 0.5m @ 5.38 g/t
BRV22 105 110 14 5m @ 14 g/t
(composite sample
individual 1m assays
are pending)
BRV24 219 220 12.10 1m @ 12.10 g/t
266 266.5 3.39 0.5m @ 3.39 g/t
BRV25 208.45 208.73 2.73 0.28m @ 2.73 g/t
Cue Energy Resources Limited (Cue) advises that at 6am on 25 May 2001 the Oyong-1 well in the Sampang PSC offshore East Java, was at 902 metres after setting 11 3/4" casing at 818 metres. The well is programmed to a total depth of 2,271 metres with drilling expected to take 30 days on a dry hole basis.
AGD Mining, operator of the Costerfield Exploration Joint Venture, has completed two holes of a 21-hole drilling program aimed at evaluating a potential multi-veined narrow, high grade gold and antimony deposit at Costerfield, Victoria.
Costerfield is a 50/50 joint venture between L-Tel Corporation Ltd and Deepgreen Minerals Corporation Ltd.
Results to date are up to expectations. The best result obtained so far was in hole DDMH002 where an 88cm interval on the east reef assayed 43.1 g/t gold and 20.5% antimony. DDMH002 is 40m south of a government borehole sunk in 1978, which returned 30cm high grade gold and antimony from a 1m mineralised intersection on the same reef as the mineralisation encountered in DDMH002.
A major drilling programme is on schedule to commence at the Bynoe tantalite project next week. A total of 68 RC holes and 22 aircore holes are planned for the further testing and resource definition of these mineralised pegmatites.
In the last two months, following the cessation of the wet season, work involved in preparing drill targets has included 1,550 metres of excavated trenching to expose pegmatites and the collection of several hundred vertical channel samples have been submitted to Amdel Laboratories in Adelaide for assay.
The Company regards this as an important project and has already reported the signing of a Heads of Agreement to raise $3,000,000 for the testing and acquisition of all leases within the project.
Woleebee No 01, a coal seam methane exploration core hole, is situated approximately 100 metres west of Roma 04, latitude 26 deg, 15 min 01.78 sec south, longitude 149 deg, 50 min 15.09 sec east.
The well was spudded at 08:00 hours on May 10, 2001. 168mm surface casing was set at 97.0 metres RT. The well reached a total depth of 617 Metres RT, at 06:30 hours, on May 19, 2001. At 06:00 hours today the rig was attempting to retreive the remainder of stuck drill pipe from the well. Progress for the week was 221 metres.
A drill stem test was performed over the interval, 273 to 288 metres RT, and 369 to 384 meters, recovering formation water in both tests.
The primary targets of the well are the Upper Juandah coal measures. Proposed total cored depth of the well is 330 metres RT.
Sun Resources NL ("Sun") wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
The well is currently at a depth of 3,493 metres and running a milling assembly to clear out an obstruction in the side track window to drill ahead in formation from 3,493 metres.
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is at a depth of 3,493 metres, and running in the hole with a milling assembly to clear out an obstruction in the sidetrack window.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252 - 4557 metres is programmed.
RE: LAKES ABOUT TO COMMENCE DRILLING MCNAMARA PARK-1 ,
PEL 72, OTWAY BASIN, SOUTH AUSTRALIA
The upcoming McNamara Park-1 well, due to spud tomorrow (25th) will mark another milestone in Lakes Oil N.L. ("Lakes") exploration effort in the South Australian portion of the Otway Basin.
McNamara Park-1 is an exploration well targeting the Waarre Formation, and has a target size of up to 173 BCF (recoverable gas). Drilling to a total depth of 2040 metres is expected to take up to 15 days.
Lakes has a 7.5% interest in the well, but an estimated 18% interest in the McNamara Park structure as a whole, since this feature lies partly within PEL 57, where Lakes holds a 40% interest. Lakes also holds a 40% interest in the Mulcrest structure, a separate prospect with potential for up to 93 BCF (recoverable gas) located updip on the same structural nose as that on which the McNamara Park feature is located, and wholly within PEL 57.
Interest Holders in PEL 72 and the McNamara Park-1 well are:
| Lakes Oil N.L. | 7.5.0% |
| Victoria Petroleum NL | 5.0% |
| Essential Resources Limited | 25.0% |
| Origin Energy Resources Limited | 62.5% |
Amity Oil has received formal approval to drill the Whicher Range-5 well from the Western Australian Department of Minerals and Energy.
The Whicher Range-5 well is a gasfield appraisal well, programmed to a depth of 4,300 metres and located west of the shut in Whicher Range-1 and 4 gas wells. The Whicher Range-5 well will test the ability of the Permian age sandstone reservoir rock to produce gas at commercial rates, by air drilling the reservoir to minimise reservoir damage (loss of permeability) during drilling.
Further to Carnarvon Petroleum NL's recently announced oil discovery at the Wichian Buri-N1 (WB-N1) well in the SW1A Concession in Central Thailand, the company advises that the next well, WB-N2, is expected to spud imminently.
The new well is located approximately 400m southwest of WB-N1 and 1.3 kilometres north of the Wichian Buri field producing wells WB-1 and WB-A1. WB-N2 is an appraisal well designed to test the productive F-Sandstone package in a down-dip position from WB-N1 to confirm the extent of the newly discovered accumulation. The well should also help confirm direct communication between the currently producing part of the Wichian Buri field and the northern accumulation.
CityView Corporation Limited anticipates that its joint venture with PT Medco Energy Corporation TBK ("Medco"), a large and highly regarded petroleum conglomerate, will commence drilling operations in July on the Indonesian petroleum areas held by the joint venture.
Initially, the drilling will be in the Sebaya and Karasan target areas within the Madura Block, followed by drilling of the Pidawan prospect in the Simenggaris Block.
The first well to be drilled at Sebaya will be to the relatively shallow depth of 1,230 metres, which Medco estimates should contain approximately fifty million barrels of recoverable oil from two separate formations. As quoted in the report in The Analyst Energy Review of 3 May 2001 - "based on an in situ price of US$3 a barrel this well should earn CityView approximately A$10 million (US$5 million) dollars after tax."
The company has recently completed a drilling program at the BIG MAG/TAG area located near Greenvale in north Queensland.
The program comprised 17 holes for 792 metres air core (average depth 47m) at Big Mag (BHP JV EPM 12123) and 24 holes of air core/RC at Tag (Glengarry EPM 12399) for 746m (average depth 31m).
The program at Big Mag was designed to further test magnetic anomalies under cover depth of 2-15m - previous RAB drilling (average depth 33m) by Glengarry had returned some encouraging results in the weathered bedrock from 20-40m depth. The recent air core holes were drilled to test down to fresh bedrock at 50-60m. Most of the air core holes intersected fresh bedrock but were unable to penetrate deeper due to the hardness of the bedrock and high water flows. However a number of holes intersected sheeted quartz veins in altered pyritic rock types including mafics, ultramafics and granite. Generally metal values increased with depth with values up to 5m @ 570 ppm Cu at the bottom of hole. The source of the magnetic anomalies has not yet been intersected at depth.
At the Tag Prospect, located about 5 km NE of Big Mag, the drilling was designed to test part of a Cu soil anomaly (+100 ppm Cu) that is located over outcropping and sub-cropping mafics, skams and meta-sediments, The drilling results were very encouraging with anomalous Cu mineralisation returned in over 50% of the holes drilled.
The best intercepts are outlined below:
TAGAC04 10m @ 0.16% Cu from 5m (EOH 19m)
TAGRC17 24m @ 0.15% Cu from 0m (EOH 31m)
TAGRC18 2m @ 0.63% Cu from 18m
4m @ 0.15% Cu from 30m (EOH 34m)
TAGRC20 10m @ 0.29% Cu from 18m (EOH 34m)
TAGRC21 20m @ 0.21% Cu from 10m (EOH 40m)
TAGRC23 4m @ 0.22% Cu from 10m (EOH 31m)
These results are particularly encouraging since the Cu soil anomaly has only been partly tested at shallow depth and because previous drilling by Pancontinental (average depth 50m from 15 RC holes) at
the Bottletree Prospect returned intervals of 50m @ 0.37% Cu and 64m @ 0.32% Cu. Bottletree is located 1.5 km to the NE of Tag and lies within Glengarry's EPM 12399 Application.
The Scarabeo-7 drilling rig is preparing to move from Chinguetti-1 to the Courbine-1 location. In announcing the planned commencement of this second exploration well, offshore Mauritania, Hardman would like to congratulate Woodside, as Operator of the Joint Venture, on the outstanding success of the first well, Chinguetti-1. This oil discovery demonstrates for the first time that a fully functioning petroleum system exists in this large deep water basin. This result represents a major step towards proving up a new petroleum province.
Skardon River Independent Resource Update
WELL NAME: IDT-20
PDL 2
Oil Search reports that the IDT-20 well, a development well in the Kutubu oil project, has been perforated and completed for production.
The Parker 226 rig was released from site at 24:00 hours on 21 May 2001. IDT-20 is the first well of the PNG Highlands northern area 6 well programme for Rig 226 and was completed having successfully drilled the well on prognosis. The well was designed to recover undrained oil in the Main Block Toro reservoir and is expected to add materially to production of the Kutubu field further mitigating the natural decline.
Oil Search's interest in the IDT-20 well is 27.14%. Other participants are Chevron (19.38%), Orogen Minerals Limited (25.44%), ExxonMobil (11.61%), Pet Res (Kutubu) (6.75%) and Merlin/Mitsubishi (9.69%).
Following completion of activity at IDT-20, the Parker 226 rig will drill the Moran-6 well in PDL 5.
WELL NAME: MORAN-6
PDL 5
Oil Search reports that the Moran-6 well, an appraisal/development well in the Moran Central oil field, is expected to spud in early June, following the current rig move from IDT-20. Completion of the rig move is expected to take approximately 10 days, subject to weather.
The Moran-6 well is located in PDL 5 and will be drilled from the Moran-4 well pad. The well will be deviated to a bottom hole location approximately 1.5 kilometres north west of Moran-4 having a planned total measured depth of 4,090 metres.
This well is targeted as a downdip producer and will also provide information on the possible extension of the field to the north west. Significantly, the well will add some 7-10,000 bopd to the existing EWT production.
Moran-6 is the first of a 3 well drilling programme, which is being undertaken as part of the Moran Central Development. Further development drilling will be undertaken on the Moran field in late 2001.
Oil Search's interest in the Moran-6 well is currently 52.50%. The other participant is ExxonMobil (47.50%). The PNG Government has an option to acquire, or be carried for, up to 22.5% interest in PDL 5, which is currently subject to regulatory process.
Following completion of activities at Moran, the PPL 138 Joint Venture will drill the Bakari-1 well. The Bakari structure is located on trend, and immediately north-west, of the Moran Central oil field.
Recent seismic acquisition on this prospect has defined a robust structure and reduced exploration risk. Potential recoverable reserves in this feature are in excess of 200 million barrels of oil.
PacMin has added to its resources and exploration landholding at its Carosue Dam gold mine through the acquisition from Goldfields Limited ("Goldfields") of a majority 62% interest in the Keith-Kilkenny Joint Venture.
The Keith-Kilkenny Joint Venture contains an extensive exploration tenement package immediately adjacent to PacMin's Carosue Dam mine, including the Old Plough Dam Project which comprises the high-grade Twin Peaks and Monty's Dam resources. Extensive drill testing and studies completed by the Keith-Kilkenny Joint Venture partners have indicated a high conversion rate of these resources to reserves when treated at PacMin's nearby Carosue Dam mill.
The consideration payable by PacMin comprises A$5 million cash in staged payments related to the commencement of mining, plus a royalty of A$10 per ounce once production exceeds 160,000 ounces from the acquired tenements.
Sun wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
Repairs to the track on the top drive have been made and at 1600 hours EST, USA, the MWD GR steerable motor and PDC bit are back in the hole to drill ahead in formation from 3,493 metres.
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 well is at a depth of 3,493 metres, and running in the hole with the steerable bit assembly.
The well will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252 - 4557 metres is programmed.
GATEWAY MINING NL ANNOUNCES ENCOURAGING INITIAL DRILLING RESULTS AT ITS COWRA GOLD PROJECT IN NEW SOUTH WALES
Gateway Mining NL announces initial drilling results from a 1,500 metre (15 angled holes x 100 metres) reverse circulation drilling program being conducted at its Cowra Project (EL5514) located in the prospective Lachlan Fold Belt, New South Wales.
Drilling is testing the Nasdaq prospect where the company has identified gold-skarn mineralisation in exploration work to date. Four drilling traverses are testing the target zone of which one traverse is complete and one other has been partly drilled.
The company has only completed the first five holes due to the breakdown of the drilling rig. Drilling will commence again shortly.
The company wishes to report the following results.
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Hardman has signed an agreement to purchase the Woodada Gas Field from Phoenix Energy Pty Limited ("Phoenix"), a subsidiary of the Griffin Group.
The Woodada Field is located 280 kilometres north of Perth, Western Australia and is approximately 15 kilometres inland from the coast. The field is connected via the Parmelia pipeline to sales customers in the Perth area.
Total consideration to be paid to Phoenix is AU$3.0 million for 100% equity in the project, plus a contingent payment of up to AU$400,000 for adjustments and additional work to be undertaken by Phoenix. The purchase includes the two production licences (PL4 and PL5), the gas treatment plant and associated equipment, and the existing gas sales contracts and CMS pipeline access contract. Settlement date for the transaction is expected to be 25 June 2001 at which time Hardman will assume management of all field operations.
Mosaic released details of its re-entry/re-completion program in the Silver Springs area of South-East Queensland. There are 10 wells included in the program, all of them 100 per cent owned by Mosaic.
Work on the re-entry program to date indicates eight wells should increase oil and gas reserves.
Only one well entry has failed, while one is still to be re-entered.
Sun Resources NL ("Sun") wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
Milling operations through casing at 3,493 metres completed for a total of 5.5 metres (18 feet) drilled outside of window into formation. Pulled out of hole with mill assembly to repair track on top drive. MWD GR steerable motor and PDC bit is to be picked up to drill ahead in formation from 3,493 metres.
Further to the outstanding drilling results from Hole 7931 released on the 18th May, Union Capital Limited ("Union") advises that another major zinc intersection has been located in adjacent drilling on the southern end of the Black Hill Area at Mehdiabad in Central Iran.
Assay results from Hole 8001 intersected 154 metres of sulphide and oxide mineralisation from a depth of 100 metres, including 77 metres of zinc oxide at 3% zinc and a further 77 metres of zinc sulphide at 7.7% zinc. This hole was inclined at 70deg from the collar position of vertical Hole 7931 and the mineralisation was truncated by the Black Hill Fault.
Designed to test mineralisation extensions, Hole 8001 intersected the sulphide zone 50-70 metres to the west of Hole 7931 and the assay results confirm the continuity of similar grades for a width of at least 50-70 metres.
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 horizontal drilling project spudded at 0100 hours on 22nd May 2001 California Pacific Daylight Time and has drilled ahead in the sidetrack hole to 3,493 metres.
The sidetrack will be drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252 - 4557 metres is programmed. The drilling operation is expected to take 21 days from spud.
PROGRESS REPORT ON DRILLING OPERATIONS IN LOUISIANA USA
Icon reports that drilling operations in Icon Victory Financial No.1 well in Louisiana have reached a depth of 7277 feet in the Frio Formation. The well is just above the anticipated sandstone main pay PUD sections and has encountered a problem over a suspected fault above this zone. The problem has caused the drill pipe to stick endangering down hole operations.
As a consequence, a decision has been taken to come up the hole and sidetrack around the zone which is continuing to give trouble. A cement plug will be set and the sidetrack hole should be back to the main PUD objective in 3 to 4 days.
This delay is regretted but this kind of problem is common in the Gulf Coast in Louisiana and is handled routinely in drilling salt domes.
Icon expects no serious problems or further delays in the drilling of the sidetrack and will position the sidetrack path away from the problem zone using a down hole steering motor.
The gas shows encountered have continued in the mud with the highest being recorded at 1700 units to total gas with C4 (butane) comprising 60% of the gas. This type of response on the gas metering equipment usually indicates the presence of oil.
RE: FARMIN AGREEMENT
MCNAMARA PARK , PEL 72, OTWAY BASIN, SOUTH AUSTRALIA
Lakes Oil N.L. ("Lakes") advises that it has today reached an agreement with Origin Energy Resources Limited whereby Lakes will earn a 7.5% direct interest in PEL 72 by contributing to the cost of the McNamara Park-1 well, due to spud later this week.
Lakes already has a 40% interest in the 1/3 rd portion of McNamara Park structure which lies in PEL 57, (refer accompanying map). The net result of this farmin is that Lakes will now have a beneficial deemed interest of approximately 18.3% in the McNamara Park structure as currently mapped.
Lakes considers a successful well at McNamara Park would also significantly upgrade the potential of the Mulcrest prospect, a separate closure which lies at the crest of the same structural nose that defines the McNamara Park feature. Lakes has a 40% interest in this prospect which lies wholly within PEL 57.
RE: PROGRESS REPORT ON EAGLE NO. 1, EAGLE OIL POOL
DEVELOPMENT PROJECT, SAN JOAQUIN BASIN, CALIFORNIA, USA
Lakes Oil N.L. has been advised by Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, that the Eagle-1 horizontal drilling project is now preparing to sidetrack and has run in the hole with drill pipe and sidetrack whipstock.
The sidetrack will be commenced at 3490 metres and drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252 – 4557 metres is programmed. The drilling operation is expected to take 21 days.
Eagle No. 1 will be the first well in the Eagle Oil Pool Development Project, a horizontal drilling project targeting potential recoverable reserves of up to 24 million barrels of oil and 62 billion cubic feet of gas.
ASX participants and equities in the Eagle Oil/Gas Development are as follows:
| Lakes Oil N.L. | 15.00% |
| Victoria Petroleum NL | 25.25% (Operator) |
| First Australian Resources NL | 15.00% |
| Sun Resources NL | 10.00% (Reducing to 7.5% on exercise of back in rights on payout on production) |
NEW ZEALAND - PEP38719, TARANAKI BASIN, BLIGH INTEREST: 5.00%
The Kauri-1 exploration well is currently drilling ahead in 12(1/4)" hole, at a depth of 1670 metres.
Kauri-1 will be drilled to a total depth of 4500 metres to evaluate the Tariki sandstone, Rimu limestone and Cretaceous sandstone reservoirs within upper and lower thrust blocks in the large Kauri structure. The well is expected to take 40-45 days to reach total depth.
NEW ZEALAND - PML38141, TARANAKI BASIN, BLIGH INTEREST: 1.62%
The Te-Popo-1 well is currently drilling ahead in 8 (1/2)" hole at a depth of 2069 metres. The well is being drilled to evaluate the north-eastern extent of the Tikorangi reservoir in the Waihapa-Ngaere field, in which Bligh holds a 1.62% interest through its 50% owned subsidiary, Bligh Oil & Minerals (NZ) Ltd.
UNITED STATES- BAYOU CHOCTAW PROJECT, LOUISIANA, VICTORY FINANCIAL LEASE. BLIGH INTEREST; 22.50%
The Icon Victory Financial No 1 well has been drilled to a depth of 7277 feet, and 10(3/4)" surface casing set at approximately 2500 feet. At a depth of 7248 feet, the well encountered significant hydrocarbon shows, associated with an overpressured 2 foot zone, which is either a thin sand or a fault zone. The zone lies 200-300 feet above the secondary objectives of the well, which is the productive sands of the Marg Idi, Marg Howeii and Cib. Hazz formations, in which most of the 23 pay zones of the Bayou Choctaw field lie. The VFL 1 well was intended to target 8-10 of these zones for completion, to recover undrained oil updip of the historical production, at depths in the interval from 7400 feet to 8200 feet.
Independent engineering study credits the VFL 1 location with proved undeveloped recoverable reserves in excess of 750,000 barrels of oil at these levels. Once casing has been set at around 8300 feet, it is intended that the well be drilled to test for substantial oil and gas reserves in the probable and possible categories in the deeper Marg Tex and Bol Mex formations, which are the primary objective, at depths of 9000-10,000 feet.
The attempt to control the excess pressure associated with the 2 foot zone has caused differential sticking of the drill pipe at total depth of 7277 feet. As a result, it has been decided that the optimum course of action lies in backing off the drill string, setting a cement plug immediately under surface casing at 2500 feet, and sidetracking the well. This process has been initiated, and it is anticipated that drilling will recommence in 3-4 days. While unfortunate, the problem is not uncommon in the South Louisiana salt basin. It will, however, involve additional expenditure in order to re-drill the well to target depth.
The VFL 1 is located on approximately 500 acres of leasehold controlled by Icon Oil NL and Bayou Choctaw Inc on the north flank of the dome, in which Bligh is earning a 22.50% interest. Following completion of the VFL 1, Bligh intends to propose the drilling of the Wilberts 93 well, located on the west flank of the salt dome, on 1523 acres of leasehold in which Bligh is the operator and controls 83.33% working interest. Under the terms of the agreement between Bligh and Icon/BCI, Icon/BCI have the right to earn an additional 23.33% interest in Bligh's Wilberts lease, such that the interest will ultimately be shared 60-40. 10-20 proved undeveloped locations, most with deep gas potential, have been identified on our joint holdings in the area. The VFL 1 is the first of a comprehensive program of wells to be drilled over the coming two years.
Nickel explorer Bullion Minerals Limited (ASX: BLN) confirms that further to the media release on Thursday 3 May 2001 the RC/Diamond drilling programme to test the very strong nickel sulphide target at Mt Day will commence tomorrow. The nickel anomaly is contained within the Mt Day Joint Venture tenements at Lake Johnston in Western Australia. The RC/Diamond drilling programme should provide a definite assessment of the exciting target as a consequence of further downhole EM Survey.
Dioro and its Mungari East joint venture partner Mines and Resources Australia Pty Ltd (MRA) have reached agreement on a substantial and comprehensive program of drilling and evaluation for the 5 month period ending September 2001 budgeted to cost $1.8 million (Dioro share $880,000). A resource re-estimation is in progress and drilling is expected to re-commence by the end of May. The program will be managed by MRA.
HIGHLIGHTS OF NEW PROGRAM
The program allows for the balanced advancement of the project on a number of fronts:
The program provides for a total of 15,700 metres of drilling, including 9,100 metres of combined aircore and RC drilling and 6,600 metres of diamond core drilling.
The Chinguetti-1 exploration well, located offshore Mauritania, is in the process of being plugged and abandoned. This is being done in such a way that it can be re-entered at a later date for testing if required.
The reason for the Chinguetti-1 well being plugged and abandoned without drill stem testing is the current unavailability worldwide of suitable drill stem equipment for this well.
Further analysis of pressure data obtained during wireline logging has confirmed the presence in the primary objective of a gross oil column of 90 metres and that no oil/water contact has been identified.
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Eagle-1 horizontal drilling project is now preparing to sidetrack and has run in the hole with drill pipe and sidetrack whipstock.
The sidetrack will be commenced at 3490 metres and drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252 - 4557 metres is programmed. The drilling operation is expected to take 21 days.
Eagle No 1 will be the first well in the Eagle Oil Pool Development Project, a horizontal drilling project targeting potential recoverable reserves of up to 24 million barrels of oil and 62 billion cubic feet of gas.
MAURITANIA, AREA B CHINGUETTI-1
Woodside Petroleum Ltd, Operator of the Mauritania, Area B Joint Venture, reports that further analysis of pressure data from the Chinguetti-1 exploration well, located offshore Mauritania, has confirmed the presence, in the primary objective, of a gross oil column of 90 metres.
Using a wireline sampling tool, 4 oil samples were recovered from the primary objective sandstones and 3 gas samples were recovered from the secondary objective sandstones. These are currently being transported for laboratory analysis.
As planned, the well is now in the process of being plugged and abandoned. This is being done in such a way that it can be re-entered at a later time for testing, if required.
Upon the plugging and abandoning of Chinguetti-1, the Scarabeo 7 drilling rig will move directly to the Courbine-1 location, also in Area B.
Woodside's interest in Area B is 35%. Other participants are British Borneo International Limited (ENI/AGIP) (35%), Hardman Petroleum (Mauritania) Pty Ltd (18.6%), Fusion Oil and Gas NL (6.0%), Planet Oil (Mauritania) Limited (3.0%), Elixir Corporation Pty Ltd (2.4%).
WA-28-P PLANAIRE-1
Woodside Petroleum Ltd, Operator of the WA-28-P Joint Venture, reports that the Planaire-1 exploration well located in the Carnarvon Basin was plugged and abandoned on 20 May 2001.
Woodside's interest in WA-28-P is 16.7%. Other participants each with a 16.7% share, are BHP Petroleum (North West Shelf) Pty Ltd, Japan Australia LNG (MIMI) Pty Ltd, Chevron Australia Pty Ltd, Shell Development (Australia) Proprietary Limited and BP Developments Australia Pty Ltd.
WA-4-L MAIA-1
Woodside Petroleum Ltd, Operator of the WA-4-L Joint Venture, reports that the Maia-1 exploration well located in the Carnarvon Basin was spudded on 22 May 2001.
The Ocean General rig is drilling the well. The location is approximately 5 kilometres north-northeast of the Hermes Oil Field. Water depth at the location is 134 metres and planned total depth is 3187 metres.
All reported depths (except water depth) are referenced to the rig rotary table.
The beneficial interests in a Maia discovery are Woodside at 40%, and Japan Australia LNG (MIMI) Pty Ltd, Chevron Australia Pty Ltd and Shell Development (Australia) Proprietary Limited at 20% each.
New Project Acquisition
Toka Tindung Gold Project – North Sulawesi, Indonesia
The Company is pleased to announce that it has entered into a Heads of Agreement with Aurora Gold Ltd to acquire its 85% interest in the Toka Tindung Gold Project in North Sulawesi, Indonesia. The remaining 15% of the Project is held by the Austindo Group of Indonesia.
Under the Heads of Agreement, which is subject to due diligence, the Company will pay Aurora Gold a gross royalty equating to 1.7% of gold contained in dore and a 1.7% NSR on any gold and copper in concentrate capped at an aggregate of 1.5 million ounces of gold produced and sold. No other consideration is payable to Aurora Gold.
The Toka Tindung Gold Project comprises a number of epithermal deposits in the Minahasa district, located 35 km NE of Manado, the provincial capital of North Sulawesi. The main deposit is a broad zone of gold bearing quartz veins and stockworks hosted in silicified volcaniclastic rocks. The mineralised system has a north-south strike length exceeding 1.7 km and is up to 200 m wide. The rest of the tenements surrounding the deposits are also considered prospective for further discoveries.
Aurora Gold has previously announced an in situ Mineral Resource for the immediate Toka Tindung Project area of 14 million tonnes grading 3.2 g/t Au and 8 g/t Ag. This equates to approximately 1.5 million ounces of contained gold.
Aurora Gold has completed feasibility studies on the Project, which envisaged milling 1.5 mtpa, but placed the Project on care and maintenance in September 1999.
The Company acknowledges the issues encountered by Aurora Gold with the Project. These include the presence of small scale mining activities in parts of the tenement area, away from the main Toka Tindung deposit, the environmental issues and challenges associated with those activities, and uncertainties attaching to the introduction of regional autonomy. Nevertheless at this stage the Company believes that these difficulties can be managed with the Company having access to its major shareholder’s Indonesian knowledge and operating expertise.
Upon successful completion, the acquisition of Toka Tindung when added to the Company’s existing resource base at Cibaliung would significantly enhance Austindo Resource Corporation’s overall mineral inventory, and represent a major step towards achieving gold producer status.
Acclaim has reached agreement with the Traditional Owners of the area covered by its Exploration Licence 69/535 at Wingellina and their representatives on the Ngaanyatjarra Land Council on the terms of an Exploration Agreement entitling the Company to have access to and explore within the Licence area.
The Company is presently awaiting the results of a detailed interpretation of the recently completed EM survey in order to define a comprehensive RC drilling program
A 3rd phase drilling programme comprising 80 RC holes totalling approximately 2,500m has commenced at the Wonarah phosphate deposit, located 240km east of Tennant Creek in the Northern Territory. The programme will include infill and step-out drilling within the western part of the Joint Venture's tenements.
An Inferred Mineral Resource of 115 million tonnes grading 22% phosphate (P(2)0(5)) (using a 15% P(2)0(5) cut-off grade), has been estimated by joint venture partner, Rio Tinto, for a 23sqkm area within the southern portion of the Wonarah phosphate deposit.
Beneficiation test work on the phosphate ore to date is encouraging and shows potential for the production of an acceptable fertiliser product. Further information on the resource statement is available from the Company's March 2001, Quarterly Report.
Rio Tinto has earned 80% in the project having spent a total of $1.4m in exploration and will now free carry AKD's 20% interest in the project through to a decision to mine or by spending $10 million in expenditure, whichever comes earlier.
Cue Energy Resources Limited (Cue) advises that at 6am on 18 May 2001 the Oyong-1 well in the Sampang PSG offshore East Java, was at 667 metres after setting 13(3/8)" casing at 500 metres.
The well is programmed to a total depth of 2,271 metres with drilling expected to take 30 days on a dry hole basis.
Novus Petroleum Limited, through a subsidiary, has signed an agreement with BNP Petroleum Corporation (BNP) of Texas to earn a 30% working interest in the Padre Island Project Area close to Corpus Christi in Southern Texas. This proven, hydrocarbon-producing area is part of the Gulf of Mexico Basin. The agreement will lead to high-impact exploration drilling activity, as well as lower-risk in-fill drilling on established but currently shut-in fields. The first well, La Playa-1, is currently expected to spud in third quarter 2001.
Woleebee No 01, a coal seam methane exploration core hole, is situated approximately 100 metres west of Roma 04, latitude 26 deg 15 min, 01.78 sec south, longitude 149 deg 50 min 15.09 sec east. The well was spudded at 08:00 hours on May 10, 2001. At 06:00 hours today the rig was drilling ahead at a depth of 396 metres RT 168 mm surface casing was set at 97.0 metres RT. Progress for the week was 396 metres.
A drill stem test was performed over the interval, 273 to 288 metres RT, and 369 to 384 meters, recovering formation water in both tests.
The primary targets of the well are the upper Juandah coal measures.
Proposed total cored depth of the well is 330 metres RT.
Origin Energy Resources Limited, as Operator for T/30P, provides the following progress report for the drilling of the Thylacine 1 well in the offshore Otway Basin, Tasmania.
Thylacine 1 is currently drilling ahead at a depth of 2340mRT after encountering gas indications in interbedded sands and shales over a gross interval of 260m. A core was cut over the interval 2165mRT to 2201mRT with good recovery. The forward plan is to drill ahead to a depth of 2695mRT and then conduct a wireline evaluation program. The significance of the gas shows cannot be assessed until this program has been undertaken.
Santos Limited, as Operator for PEP 154 is pleased to announce its fifth gas discovery in the Victorian section of the Otway Basin in 2001.
The exploration wildcat well Naylor 1 has intersected a potential 84 metre gross gas column in the Cretaceous Waarre Sandstone over the interval 2028 metres to 2112 metres.
Wireline logs are currently being evaluated and indications are of at least 30 metres net of gas pay. After completion of wireline logs Naylor 1 will be cased and suspended as a future gas producer. The well reached a total depth of 2157 metres.
Woodside Energy Ltd, the Operator of the Legendre Venture in which Santos has a 22.56% interest, reported on 18 May 2001 that initial oil production from the Ocean Legend production facility commenced on 17 May 2001 from the first well. Production is predicted to steadily increase over the next couple of months to a maximum 50,000 barrels a day once the drilling program is completed.
Maple-Brown Abbott Limited decreased its relevant interest in Santos Limited on 15/05/2001, from 50,899,747 ordinary shares (8.32%) to 44,496,426 ordinary shares (7.26%).
Sun wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
The latest advice from the operator is that the Nabors rig #473 will complete rigging up and commence operations early weekend. Cutting the window in the casing will commence at 3490 metres for a subsequent sidetrack to target reservoir at a measured depth of 4577 metres. A horizontal well bore of up to 300 metres will then be drilled within the target reservoir for testing.
Union advised that a major intersection of zinc mineralisation, 200 metres south of the previously drilled resource area, has been located in Hole 7931 at the Mehdiabad Project in Iran. The assay results from this hole indicate 221 metres of mineralisation, including 82 metres at 2.7% zinc and 139 metres at 8.5% zinc.
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Nabors Rig #473 was moved onto the Eagle location on 8th May and is continuing rigging-up operations.
The commencement of drilling of Eagle-1, via a sidetrack in the original 1986 well bore, is forecast to commence early next week.
Woodside Energy Ltd, operator of the Legendre Venture, advised that initial oil production from the offshore production facility, Ocean Legend, has commenced.
The Ocean Legend is located over the Legendre North and Legendre South oil fields in Production Licence WA-20-L, about 100 kilometres north of the Burrup Peninsula and about 35 kilometres south-east of the Wanaea-Cossack oil fields.
Hook-up, testing and commissioning activities commenced on 15 January 2001 with the arrival of the Ocean Legend on site. Initial oil production was achieved on 17 May after completion of the first development well. Production is now planned to increase steadily as the remaining three wells are progressively completed
The estimated final cost of the Legendre oil fields development remains within the forecast budget of A$110 million. The fields are expected to have a maximum production of 50,000 barrels a day and a life of between three to eight years.
Commonwealth Bank of Australia became a substantial shareholder in Woodside Petroleum Limited on 16/05/2001 with a relevant interest in the issued share capital of 33,978,533 ordinary shares (5.10%).
ACTIVITY REPORT- US DRILLING OPERATIONS
Icon Energy reports that Icon/BCI Victory # 1 in Louisiana USA has reached a depth of 7,228 feet as at 4.00 pm Wednesday 16 May 2001 (United States Central Time).
The well penetrated the top of the Frio Formation at 7,065 ft close to prognosis. At this depth strong hydrocarbon shows of methane were recorded with values up to 90 units on the mud logging gas detector against a background of 10 – 15 units. The shows were observed over an interval of 60 ft in limestone.
At 7,228 ft the first sandstone was penetrated below the limestone and gas shows increased to 1,200 units. Conditioning and raising of the mud weight was required over this interval and the well is about to drill ahead following the raising of the mud weight to 10.2 pounds per gallon to maintain the hole in good condition.
These mud log shows will be further evaluated when the electric logs have been recorded in the well.
SNAPPER RESOURCE ESTIMATE CONFIRMS DEPOSIT AS ANOTHER MAJOR MINERAL SANDS DISCOVERY IN THE NEW SOUTH WALES PORTION OF THE MURRAY BASIN
BeMaX Resources NL ("BeMaX") announces an Inferred Resource of 104 million tonnes at an average grade of 4.8% heavy minerals ("HM") for the BIP Joint Venture's Snapper Deposit, located approximately 10km south-west of the Ginkgo Deposit in the northern Murray Basin (Figure 1). This discovery, which contains a resource of approximately 5 million tonnes of HM, significantly enhances the development and exploration potential of area.
The Ginkgo Deposit, which is located 120 km north of Mildura, is one of the largest single coarse-grained heavy mineral deposits in the Murray Basin. The BIP Joint Venture (BeMaX 75% and Operator, Probo Mining Pty Ltd 25%) is currently conducting a $6 million Feasibility Study on the Ginkgo Deposit following the positive outcome of an extensive Pre-Feasibility Study.
BeMaX estimates, on the basis of the recent drilling (18,045m), that the Snapper Deposit consists of an Inferred Resource of 104 million tonnes at an average grade of 4.8% heavy minerals ("HM") based on a 1% HM cut-off (approximately 5 million tonnes of contained HM). This estimate understates the total size of the deposit as it excludes a portion of the deposit (possibly 10-15%) that lies outside the BIP JV's Exploration Licence 5474. The Snapper resource is considerably higher grade than the Ginkgo resource (Indicated Resource 252 million tonnes at 2.8% HM at 1% cut-off)
WMC to explore for Nickel sulphides at Cullen’s Gunbarrel Project, WA
The Directors of Cullen Resources (CUL) are pleased to announce that a Heads of Agreement has been signed between Cullen Exploration Pty Ltd (Cullen) and WMC Resources Ltd (WMC) which gives WMC the exclusive right to form a Joint Venture on Cullen’s 100% owned tenements (E53/535, 568, 818, 837) at Gunbarrel in the north east Yilgarn of WA to explore for nickel sulphide deposits. The main commercial terms of the Joint Venture are as follows:
KEMPFIELD SILVER-BARITE PROJECT
McCARRON ZONE PROVIDES INCREASED LEAD, ZINC AND GOLD
WITH SILVER AND BARITE
GCR recorded further positive results from the recent drilling programme at its 100%-owned Kempfield silver-barite project near Blayney, NSW. Kempfield hosts significant silver, barite, lead and zinc resources along a 3 km strike length in Silurian Volcanics.
The 1,607m programme comprised 19 reverse circulation percussion (RC) holes, numbered GKF93 to GKF111. The programme consisted of infill drilling aimed at increasing the reliability of the resources in the McCarron, Mather and Quarry zones and extending the zones along strike.
Most of the holes intersected broad widths of mineralisation including narrower widths of higher-grade lead, zinc and silver mineralisation.
COMMENTS:
Five of the eight holes returned significant intersections starting from surface.
Hole GKF107 produced an intersection of gold mineralisation starting from surface comprising 60m at 0.4 g/t gold, including 6m at 1.04 g/t gold.
Holes GKF106 and 108 both intersected 2m at over 21% combined lead-zinc, with 170 g/t silver and 360 g/t silver respectively. An attempt will be made to intersect these higher-grade intersections up-plunge, closer to surface.
Six of the eight holes intersected over 4% combined lead-zinc.
The drilling in the McCarron and Mather zones, in the southwest portion of the Kempfield project, was successful in producing:
Revised resource calculations are underway. These calculations will be used for the pre-feasibility study presently being conducted for GCR by consultants Resource Management Group Pty Ltd. who recently completed the scoping study for Kempfield, indicating robust economic results.
The increased contents of zinc, lead and gold in holes GKF106 to GKF111 should improve the economic capability of the project and eliminate or substantially reduce the dependence on sales of barite concentrate for the viability of the project. For instance, hole GKF108 contains a 16m intercept (approx. 12m true width) averaging 117 g/t silver, 4.91% lead, 3.65% zinc, and 0.39g/t gold which at present prices has a net smelter return value of approximately $85 per tonne.
PROSPECTUS
Macarthur Coal is an Australian resources company developing a new generation of coal assets in Queensland’s Bowen Basin.
This Prospectus offers 39 million Shares for subscription at $1.00 per Share to raise $39 million, which on listing, will represent approximately 30.4% of the issued capital of the Company.
The Offer is fully underwritten by ABN AMRO Morgans Corporate Limited.
Naylor-1 has reached a total depth of 2157 metres. Gas shows were encountered during drilling in the Waare Sandstone. These shows are currently being evaluated further by wireline logs.
Centamin wishes to announce the continuation of significant assays highlighting the probability of this new high grade zone developing into a very rich 'ounces to the tonne' large deposit.
New assays from hole SDDH173 on the same section 10400N have returned:
6m @ 15.49g/t Au (298m - 304m) containing 3m @ 28.8g/t Au (301m - 304m)
This intersection is within a 48m mineralised length (256m - 304m) which also contains 1m @ 26.8g/t (278m - 279m). This hole is approximately 150m east of SDDH169 and 30 deg down dip of the previous intersection of 14.25m @ 94.43g/t.
Hardman Resources NL reports that the Chinguetti-1 exploration well, offshore Mauritania, is currently running wireline logs after reaching a total depth of 2,620 metres.
The well has intersected several oil bearing sandstones in the primary objective over a gross hydrocarbon interval of 86 metres. A shallower secondary objective contains gas bearing sandstones over a 7 metre interval.
The wireline logging and evaluation programme is continuing. Further information on the well results and the future programme will be reported at the completion of wireline logging in the next few days.
The suspension of trading in the securities of Hardman Resources NL will be lifted immediately, following the receipt of an announcement concerning preliminary results of wireline log evaluation at the Chinguetti-1 well, offshore Mauritania.
Highlands Pacific has resumed full ownership of the high grade Kainantu gold project. Due to a reassessment of its corporate strategy Nippon Mining has agreed to withdraw from the joint venture.
Origin Energy Resources Limited, as Operator for T/30P, provides the following progress report for the drilling of the Thylacine 1 well in the offshore Otway Basin, Tasmania.
Thylacine 1, which was spudded on 5 May 2001, has been drilled to a depth of 2165mRT. As at 15 May preparations are being made to cut core after encountering gas shows in the primary objective Waarre Formation. At this point of time it is too early to comment on the significance of these gas shows.
Thylacine 1 is being drilled using the Ocean Bounty semi submersible drilling rig and is planned to be drilled to a depth of at least 2390 mRT. The well is located in Tasmanian offshore exploration permit T/30P, approximately 70 kilometres from the Victorian coastline off Port Campbell.
Woodside Petroleum Ltd, Operator of the Mauritania, Area B Joint Venture, reports that the Chinguetti-1 exploration well, located in offshore Mauritania, is currently running wireline logs after reaching a total depth of 2620 metres.
The well has intersected several oil bearing sandstones in the primary objective over a gross hydrocarbon interval of 86 metres. A shallower secondary objective contains gas bearing sandstones over a 7 metre interval. The logging and evaluation program is continuing.
Woodside's interest in Area B is 35%. Other participants are British Borneo International Limited (ENI/AGIP) (35%), Hardman Petroleum (Mauritania) Pty Ltd (18.6%), Fusion Oil & Gas NL (6.0%), Planet Oil (Mauritania) Limited (3.0%), Elixir Corporation Pty Ltd (2.4%).
NEW ZEALAND - PEP38719, TARANAKI BASIN, BLIGH INTEREST: 5.00%
The Kauri-1 exploration well spudded on 3 May 16" hole was drilled to 1233 metres and surface casing set at 1232 metres. The current operation is preparing to drill ahead in 12(1/4)" hole.
Further to Carnarvon's recently announced oil discovery at the Wichian Buri- N1 (WB-N1) well in the SWIA Concession in Central Thailand, the company advises that preparations are presently underway at the site of the next well, WB-N2, to allow drilling to commence on or about 18th May.
The new well is located approximately 500m southwest of WB-N1 and 1.5 kilometres north of the Wichian Buri field producing wells WB-1 and WB-A1. WB-N2 is an appraisal well designed to test the productive F-Sandstone package in a down-dip position from WB-N1 to confirm the extent of the newly discovered accumulation. The well should also help confirm direct communication between the currently producing part of the Wichian Buri field and the northern accumulation.
EAST COAST MINERALS NL (ECM) 70% - LEGEND MINING LTD (LEG) 30%
GEOPHYSICAL AND AERIAL PHOTOGRAPHIC SURVEYS
Aerial magnetic, radiometric and multispectral surveys were flown over the Joint Venture tenements by Fugro Aerial Surveys.
The surveys included a complete coverage of Mining Leases M47/340, 341, 342 & 343 and Exploration licence E47/587 (Mining licence applications M47/414 & 415).
The combination of geophysics and photography will provide information on geological, structural and lithological mapping. It is expected that interpretation of the surveys will provide well-defined targets for platinum, platinoids, silver and copper/nickel deposits on the Munni Munni areas owned by the Joint Venture.
Survey results and photographs are expected in three weeks.
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Nabors Rig #473 was moved onto the Eagle location on 8th May and is continuing rigging-up operations.
The commencement of drilling of Eagle-1, via a sidetrack in the original 1986 well bore, is forecast to commence later this week.
ACTIVITY REPORT- US DRILLING OPERATIONS
Icon Energy Limited reports that Icon/BCI Victory No.1 is drilling ahead at 6630 feet as at 5 pm, (US Time), Monday, May 14, 2001.
The well drifted off to about 10 degrees and a down hole mud motor was fitted to the bottom hole assembly to bring it back towards a vertical hole. The deviation is now less than 2 degrees which is excellent in this area. Drilling has been slow in the soft sediments but this was expected. The well is expected to be in the first of the oil sands in the next few days.
The well is located in the Atchafalaya Swamp 8 miles southwest of the city of Baton Rouge in Louisiana. The well is being drilled to 12,500 feet on the Bayou Choctaw salt dome with the Frio sandstones as the primary objective.
The well is a development well located to intersect known oil producing horizons. It will be deepened to new untested zones after setting casing over these oil zones prior to drilling ahead into the high pressured section.
Icon Energy is the Operator of the well.
Recently listed oil and gas explorer Essential Petroleum Resources Limited expects it will begin drilling its first exploration well - McNamara Park No 1 on 24 May 2001.
The exploration well is located 15 kilometres west of Mt Gambier in the South Australian section of the Otway Basin. Targeting a new gas prospect, McNamara Park No 1 could be brought on stream quickly to service the shortfall in energy markets in South Australia and Victoria.
The primary target zone is at a depth of 1892 metres, which Essential Petroleum and its partners expect to reach about a week after the spud or drilling commencement date.
The Company has successfully completed 2466 metres of reverse Circulation (RC) drilling in 43 holes at the Violet, Pioneer and Colreavy Prospects.
High grade intersections have been returned from the Violet Prospect
- best intercept of 2.5m at 35.83 g/t gold - and Pioneer Prospect -
best intercept of 3.0m at 32.97 g/t gold (both with a 3 g/t cut off).
The work confirms continuity of high grade mineralisation to depth at both prospects.
Sun wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
The latest advice from the field is that the Nabors rig #473 is still continuing to rig-up and should commence well operations later in the week. The current programme of drilling and production testing will take 31 days.
The Directors of Tawana Resources would like to advise the results of a detailed gravity survey recently conducted over the "Gem Grid" Flinders Island Diamond Project. A gravity anomaly has been located in the eastern sector of the "Gem Grid" (measuring 1.2km by 1.2km on the northwest side of the Island) within the Exploration License 2577. Interpretation of the data has revealed a gravity low anomaly coincidental with the already defined kimberlitic indicator mineral anomaly.
This gravity anomaly is approximately 600m long by 200m wide (12 Ha) in size and generally oval in shape. Weathered kimberlite would be expected to be less dense than granite and therefore produce a gravity low anomaly.
To date the Company has recovered a full suite of diamond indicator minerals, including G10 pyropic garnets, in the confined "Gem Grid" area. The mineral grains show minimal signs of wear due to transportation. This has indicated the presence of kimberlite nearby.
Further analysis of these indicator minerals shows they fall well within the "diamond inclusion field" and the exceptionally high concentrations of kimberlite minerals are usually found only over kimberlites.
Chemical data for the indicator minerals strongly suggest the host kimberlite has diamond-bearing potential. A follow up drill program is expected to commence in August 2001.
Victoria Petroleum NL, as Operator for the Eagle Project Joint Venture, advises that the Nabors Rig #473 was moved onto the Eagle location on 8th May and is currently rigging-up.
The commencement of drilling of Eagle-1, via a sidetrack in the original 1986 well bore, is forecast to commence later this week.
The sidetrack will be commenced at 3490 metres and drilled to a measured depth of 4557 metres. A horizontal well bore of up to 300 metres in length between 4252 - 4557 metres is programmed. The drilling operation is expected to take 21 days.
DAIRI ZINC/LEAD PROJECT
- HIGH GRADE RESULTS
Project Interests:
- FUTURE DRILLING
IAX
80%
PT Aneka Tambang
20%
Herald's 71% owned subsidiary, International Annax Ventures Inc. (IAX) reports as follows:
Anjing Hitam Sector
Assay results are available for hole SOP 47D, with a high grade intercept of 4.1m @ 20.6% Zn & 11.2% Pb obtained at the SE portion of the Anjing Hitam zone.
Hole SOP 48D, targeting the SW continuation of the Anjing Hitam zone, failed to intersect significant mineralisation. The hole deviated to the SW.
The drilling deviation problems encountered in the last few holes at this southern end have resulted in the decision to curtail drilling at Anjing Hitam for the time being, at least until a downhole EM survey has been carried out to try and trace more accurately the trend of mineralisation. Drilling will now concentrate concurrently on two other very prospective locations, namely the Bongkaras sector and the Lae Jehe sector.
Amadeus, through its 100% owned USA subsidiary,Amadeus Petroleum Inc. has executed a contract with Dallas Texas based Gruy LLC to acquire a 20% working interest in an oil exploration project located in Iberville Parish, Louisiana.
The lease-hold area consists of approximately 1,000 acres of leases and seismic options, in and around the town of Addis.
Amadeus has contracted to spend $US125,000 on surveying, permitting, shooting, processing and interpretation of 22 miles of 2-D seismic over the Addis Prospect.
Australian Heritage Group Limited (AHT) is very pleased to announce that West Musgrave Mining Limited, has been successful in its dispute with WMC Resources Ltd (WMC) in relation to interests in tenements in the West Musgrave region, Western Australian.
West Musgrave Mining Limited is the 100% owner of highly prospective exploration tenements in the remote West Musgrave region, immediately adjacent to recent WMC discoveries. These tenements are approximately 1,300 kilometres northeast of Perth (WMM tenements). WMC had previously claimed an interest in the WMM tenements arising from an alleged joint venture agreement with West Musgrave Mining Limited. An expedited hearing was due to commence in the Supreme Court of Western Australia on Monday 14 May 2001.
WMC has agreed that it has no claim to, or interest in the WMM tenements and consistent with this, the court action will be dismissed.
Diamond Rose has been advised by BHP, Manager of the Upper Beta Creek Joint Venture, of its planned work programme for this coming field season at Upper Beta Creek.
The work programme is due to commence on 19 May.
As access is still largely restricted, the initial work will be carried out with helicopter support.
The first phase of the work programme is planned to accurately locate and properly define the best DIGHEM and Falcon gravity targets on the ground using geophysics. The target selection is based on re-processing and interpretation of all the DIGHEM data and integration of these interpretations with other data available to BHP for the project.
Gindalbie has commenced development of the Minjar Gold project.
Gindalbie purchased the Minjar Gold Project for $2.5 million 18 months ago. Since purchasing the project a bankable feasibility study has been completed and $9.5 M in project finance has been secured towards the project capital requirements of $10.1 million. An additional $1 million in working capital was raised from private investors by way of a Convertible Note repayable within two years.
Austral Coal will move quickly to fast track expansion of its Tahmoor mine following finalisation of an independent bankable feasibility study by International Mining Consultants (IMC) confirming the mine's world class potential with a valuation of more than $163 million.
The seven-month IMC study reported that development of Austral Coal's Tahmoor North and Bargo resources would:
The Naylor-1 exploration well in PEP 154, Otway Basin, Victoria, spudded at 1000 hours on May 9, 2001.
Naylor-1 will be drilled in PEP 154, 40 kilometres southeast of Warrnambool in an area neighbouring commercial producing gas fields around Port Campbell. The well is located approximately 3 km to the northeast of the recent Croft-1 gas discovery and will target the Cretaceous aged Waarre Sandstone at a depth of approximately 2,060 metres.
The well has a planned total depth of 2,191 metres.
Very encouraging exploration results prompted Bendigo to commission Australian Mining Consultants (AMC) and C L Smith and Associates Pty Ltd to undertake a Conceptual Study for the New Bendigo Gold Project.
They used the geological declarations in the Exploration Strategy document and made what are considered sensible and defensible engineering assumptions in developing the conceptual life of mine plan for New Bendigo.
The Conceptual Study indicates the New Bendigo as a long life, low cost, world-class gold producer with a mine life in excess of 25 years, with an optimum production rate of 400,000 - 500,000 ounces of gold per annum at a cash cost of between A$150-200 per ounce (US$75-100).
The authors of the study formed the view "that subject to ongoing exploration success, there is a strong probability that the New Bendigo mine will be developed along the lines generally portrayed in the Conceptual Study and it has the potential to become a major producer at a competitive cost per ounce".
Lilyvale No.03, the last well of a three well coal seam methane exploration coring programme, is situated approximately 5 kilometres south-south-west of GSQ Emerald NS 44, latitude 23 deg. 20 min. 43.13 sec. south, longitude 148 deg. 18 min. 02.96 sec. east. The well was spudded at 16:50 hours on April 11, 2001. 168mm surface casing was set at 96.8 metres R.T. A total depth of 441.31 metres was reached at 16:00 hours, on April 26, 2001. Progress for the week was nil metres.
The well is currently capped and suspended, awaiting plug and abandonment.
Talinga No 1, a coal seam methane exploration core hole, is situated approximately 200 metres north of ML33, Latitude 26 deg, 53 min, 03.00 sec, south, longitude 150 deg, 24 min, 48.00 sec, east. The well was spudded at 09:00 hours on 27/04/2001. 168mm surface casing was set at 91.0 metres RT. The well reached a total depth of 486 metres and was plugged and abandoned. Progress for the week was 213 metres.
Origin Energy Resources Limited, as Operator for T/30P, provides the following progress report for the drilling of the Thylacine 1 well in the offshore Otway Basin, Tasmania.
Thylacine 1, which was spudded on 5 May 2001, is currently drilling ahead in 12(1/4)" hole. At 8am on 10 May it was at a depth of 1652 mRT. (All reported depths are referenced to the rig rotary table (RT), which is 25 metres above the lowest astronomical tide (LAT)).
PORTMAN ANNOUNCES EXPANSION OF KOOLYANOBBING RESOURCE BASE AS TRIGGER FOR NORTHERN EXPANSION
West Oil announced that it has been granted a 12 month extension to its work obligations on its 50% owned AC/P26 permit in the Timor Sea.
West Oil and its 50% partner Indo-Pacific have been granted the extension to acquire 200 km of 2D seismic to better define the potential 270 million barrel Rossini Prospect. While most of the permit is covered by 3D seismic the Rossini Prospect in the east of the permit is only partially covered.
Conquest announced it is now free to commence exploration on its Lower Smoke Creek tenement, adjacent to the Argyle Diamond Mine, following successful negotiations with the Miriuwung Gajerrong Family Heritage Council and consequent granting of the Heritage Survey.
The initial exploration will include a drilling and sampling program to test for the lamproitic and diamond potential on a number of magnetic targets identified in a high-resolution aeromagnetic survey flown earlier in the year.
The Oyong-1 well in the Sampang PSC offshore East Java, spudded on 5 May 2001. At 6am on 8 May 2001, the well was at 348 metres and the BOP was being run; 30" casing was set at 146 metres and 20" casing at 344 metres. Prior to spudding Oyong-1 an 8(1/2)" pilot hole was drilled to 350 metres.
Pilbara announceD that Inmet Mining Corporation (Inmet), who are in joint venture with Pilbara at the Teutonic Bore copper, zinc, silver project in Western Australia, have notified Pilbara of their intention to commence diamond drilling of a number of 'EM conductors' outlined in the recent "Deep EM" survey at Teutonic Bore.
Drilling is proposed to commence during May 2001.
Sun wishes to update shareholders on development operations on the Eagle Oil/Gas Development, San Joaquin Basin, California, USA.
The latest advice from the field is that the Nabors rig #473 has moved onto the location on Tuesday 8th May, 2001 (USA W.S.T.) and following rig up, installing the BOPs and after picking up 15,000 feet of drill pipe should commence cutting a window in the casing at 11,400 feet by Saturday 12th May, 2001 to drill a directional well to the target reservoir. The current programme of drilling and production testing will take 31 days.
Drilling Report-Operations in Louisiana USA
Icon Energy Limited reports that Icon/BCI Victory No.1 is drilling ahead at 3600 feet as at 5 pm Monday 7 May 2001 (USA Time). Surface casing has been set at 2500 feet and cemented in place. The blow out preventors have been put in place and tested to the required pressures.
The well is on schedule and no problems have been encountered with the drilling.
The well is located in the Atchafalaya Swamp 8 miles southwest of the city of Baton Rouge in Louisiana. The well is being drilled to 12,500 feet on the Bayou Choctaw salt dome with the Frio sandstones as the primary objectives. These sands were laid down by the Mississippi River system 25 to 30 million years ago.
The well is a development well targeted towards the oil producing zones in the old oilfield. The well will be deepened to intersect new horizon never before drilled on the dome. At these new levels the pressures will be high which is the reason they were not drilled in the 1940’s when the initial field was discovered.
The Kauri-1 exploration well spudded on 3 May, and is currently at a depth of 687 metres in 16" hole, drilling ahead to surface casing point.
The Kauri-1 exploration well will be drilled to a total depth of 4500 metres to evaluate the Tariki sandstone, the Rimu limestone and Cretaceous sandstone reservoirs within upper and lower thrust blocks in the large Kauri structure. The Kauri structure is situated immediately south of the Rimu structure, extending in part offshore.
The Tariki sandstone and Rimu limestone reservoirs flowed oil and gas in the Rimu structure. It is prognosed that these reservoirs will be intersected approximately 200-400 metres high to their intersections in the Rimu wells. It is considered likely that the Rimu and Kauri structures could be laterally continuous, and the Kauri well has the potential to lift the reserve potential of the trend into the range of 100-150 million barrels of oil equivalent.
Cue advised that the Oyong-1 well in the Sampang PSC offshore East Java, spudded on 5 May 2001. At 6am on 8 May 2001, the well was at 348 metres and the BOP was being run; 30" casing was set at 146 metres and 20" casing at 344 metres. Prior to spudding Oyong-1 an 8(1/2)" pilot hole was drilled to 350 metres.
Production pipe has been run in the SL 328 No 7 well after well logs confirmed earlier gas shows in the 5520 and 5800 sands as being productive. A work-over rig will now be contracted to complete the well as a gas producer with first gas production into the existing Columbia pipeline system expected to commence during June.
The 5520 sand has 33% porosity and 10 feet of gas between 5,496 and 5,506 feet. This sand is a strong water drive reservoir and has exhibited excellent recoveries in area down-dip wells averaging between 1.7 and 2.4 billion cubic feet of gas per well.
The 5800 gas sand contains a 30% porosity stringer in the middle of a 10 foot sand and does not have a water contact. If the sand is stratigraphic it could hold good reserves.
The well reached a total measured depth of 12,300 feet (approximately 11,025 feet - true vertical depth). Logs confirm that the deeper sands were drilled on prognosis however hydrocarbons were not present in the lower fault dependant sands.
ATP564P
The Directors of Molopo Australia NL wish to announce that the Lilyvale 3 well reached a total depth of 441 metres and intersected 3.8 metres of net coal. The coal core is currently undergoing desorption testing to measure gas content and composition, and drill stem testing data is being analysed to indicate permeability.
Lilyvale 3 was the last well of a three well coalbed methane exploration coring programme. The first two wells were Lilyvale 1 and Oak Park 1. Analysis of all three wells is underway.
Molopo is earning a 50% interest ATP564P from the Operator, Oil Company of Australia Limited, who last made an ASX announcement regarding ATP564P on May 3rd 2001.
PEL426
The Molopo Tullymorgan 1 well was drilled to 279 metres before the hole was lost. The Operator, Pacific Power, has advised that the re-drill, Molopo Tullymorgan 1A, has reached a depth of 278 metres. The target depth of the well is 1,050 metres. The cost of the re-drill will be substantially borne by the drilling contractor.
Molopo is earning a 62.82% interest in PEL426 & PEL13.
Novus Petroleum Limited, advises that the PQ-5 exploration well on the Najwat Najem North prospect, Qatar has been plugged and abandoned.
PQ-5 was drilled to test a separate closed structure to the north of the existing Najwat Najem discovery. The well was spudded on Monday, 26 March 2001.
Thylacine 1 was spudded at 03:00 EST on 5 May 2001. The Thylacine 1 well is located in Tasmanian offshore exploration permit T/30P, approximately 70 kilometres from the Victorian coastline off Port Campbell.
Woodside Petroleum Ltd, Operator of the Mauritania, Area B Joint Venture, reports that the Chinguetti-1 exploration well, located offshore Mauritania, is re-running the marine riser and blow out preventers after making repairs to the blow out preventers.
HIGHLIGHTS - MARCH QUARTER
HIGHLIGHTS - MARCH QUARTER :
Hawkwood Project returns higher grade Palladium and Platinum bedrock intersections
The completion of assaying of one metre channel samples from Trench TR1/01 has confirmed the presence of significant intersections of palladium (Pd) and platinum (Pt) mineralisation in layered gabbroic bedrock.
Trenching in April at the Hawkwood Project in SouthEast Queensland (Figure 1) identified a continuous platinoid group metal bedrock intersection of 35m @ 0.23 g/t Pd and 0.18 g/t Pt (0.41g/t Pd + Pt) using five metre interval composite channel samples (refer to 1 May ASX Announcement).
The subsequent assaying of the individual one metre channel samples from the 35m intersection has defined the following 13 metre wide higher grade zone containing two separate one metre zones:-
| Interval |
Cut-Off Grade |
Grade |
Combined Grade (Pd + Pt) |
| 13m |
0.5 g/t Pd + Pt |
0.35g/t Pd & 0.33g/t Pt |
0.68 g/t |
| 1m |
0.5 g/t Pd + Pt |
0.42g/t Pd & 0.64g/t Pt |
1.06 g/t |
| 1m |
0.5 g/t Pd + Pt |
0.68g/t Pd & 0.70g/t Pt |
1.38 g/t |
All of the above intersections are from one metre channel sample intervals in the base of a two metre deep trench. The base of this trench (TR1/01) was in weathered gabbroic igneous rock displaying distinct layering, which is assumed to be primary in style and to control the location and distribution of the mineralisation.
The one metre channel sample assay intervals reported above are outstanding values in that they represent significant gold equivalent intersections at today's metal prices including:-
| Interval |
Cut-Off Grade |
Grade |
| 13m |
0.5 g/t Pd + Pt |
1.7 g/t Au |
| 1m |
0.5 g/t Pd + Pt |
3.5 g/t Au |
The palladium-platinum intersections will be drill investigated during May to define the immediate true width and inclination of the host gabbroic layering. This essential information will indicate the initial resource potential.
Eagle Bay, as Operator of VIC/P41, advised that Northright-1 reached a total depth of 391m RT at 2:30 hours EST on 29 April 2001. The reservoir target the Latrobe sandstone was encountered but failed to contain significant hydrocarbons and was water bearing. The well is currently being plugged and abandoned prior to pulling anchors for the releasing the rig.
Lavers-1 has reached a total depth of 1,627 metres. Operation at 0600 hours on Wednesday 2 May was running wireline logs. Gas shows were encountered over an approximate 10 metre gross interval at the top Waarre Sandstone. These will be further evaluated by wireline logs.
PARTICIPANTS IN LAVERS-1 ARE:
Beach Petroleum NL 10%
Santos Ltd 90%
The Wichian Buri-N1 (WB-N1) well in the SW1A Concession in Central Thailand, of which Carnarvon has a 40% interest, recovered oil on test and is being prepared for an extended production test. Oil produced during the production test will be sold. This discovery significantly upgrades reserves for the oil producing Wichian Buri field.
The WB-Nl well was perforated over the interval 921 to 963m. To this point in time, 35 bbl of oil has been swabbed to surface. The well is being readied for an extended production test on pump to maximise clean-up.
Further to Carnarvon Petroleum NL's recently announced oil discovery from the Wichian Buri-N1 (WB-N1) well in the SW1A Concession in Central Thailand, the company advises that oil and gas shows were also observed at other stratigraphic levels in the well. The most prospective of these is a large interval from 675 to 725 metres.
Drilling Update - New High Grade Zone at Sukari
Assays from diamond drill hole SDDH172, drilled on line 10,425N indicate that the new zone discovered in drill hole SDDH169 (LINE 10,400N) is continuous and maintains a high grade.
Hole 172 is generally mineralised over its total length with a significant mineralised section of 25m between 260m - 285m. This contains two intersections of 12m @ 2.20g/t (260-272m) including 5m @ 3.17g/t and 3m @ 124.43g/t [4.0oz] (282-285m).
This new high grade intersection is approximately 60m east (and down dip) and 37m north of the high grade intersection reported in hole 169. Drilling is continuing and further assays from surrounding drill holes are expected shortly.
Centamin has submitted a comprehensive report to the Egyptian Government and applied for a Declaration of Discovery for the Amun Zone in the Sukari Project. It is expected that this will be granted and will give the Company tenure of title, covered by a Mining Lease with renewable terms to thirty years.
Results for the final holes from the recently completed drilling program at the Mungari East project conducted by Mines and Resources Australia Pty Ltd on behalf of the joint venture.
INTERSECTION HIGHLIGHTS
NORTHERN ZONE
15 metres @ 11.58g/t from 319 metres depth (inc 1m @ 48.70g/t & 1m @ 109.56g/t)
11 metres @ 12.56g/t from 92 metres depth (inc 5m @ 24.22g/t)
3 metres @ 20.21g/t from 288 metres depth
1 metre @ 14.94g/t from 336 metres depth
3 metres @ 9.59g/t from 86 metres depth
8 metres @ 5.07g/t from 298 metres dept
CENTRAL ZONE
3 metres @ 11.24g/t from 227 metres depth
5 metres @ 4.87g/t from 233 metres depth
12 metres @ 4.75g/t from 106 metres depth
14 metres @ 2.26g/t from 142 metres depth
These results are the last from the recent highly successful program of drilling at Frog's Leg. The Northern and Central mineralised zones remain 'open' below current drilling levels. It should be noted that the two lowest intersections in hole MERC 216D (3 metres @ 11.24g/t and 5 metres @ 4.87g/t) appear to be associated with a new mineralised horizon lying to the east of the contract zone. Shallower holes on the same drill section did not test this horizon.
The current review of the geological model will be followed by a re-estimation of resources by the joint venture operator that will include results from recent drilling program.
The Department of Minerals and Energy ("DME") has today granted Mining Leases at Heron's Goongarrie Nickel Project. This enables Heron to commence mining operations at Goongarrie.
The five granted Mining Leases cover an area of 2,034 hectares, and are able to provide high grade ore feed to nickel laterite processing operations for a significant operating life. The granted Mining Leases also provide sufficient area for infrastructure including waste dumps.
Of Heron's Inferred - Indicated Mineral Resource inventory of 180 million tonne at 1.05% Ni and 0.08% Co, approximately 54% or 96 million tonne is now held on granted Mining Leases and is available for mining.
Michelago has applied for a 77 unit (approximately 218 square km) exploration licence over ground considered to be prospective for gold and base metal mineralisation located near the township of Springdale, east of Temora in New South Wales.
The application area hosts a number of historical gold mines (no longer producing) and recent airborne geophysical studies have identified several prominent magnetic anomalies, which warrant detailed assessment. Literature and data review on the area will commence shortly.
Michelago has commenced a programme of mineral acquisitions (fresh applications or selective joint ventures) in order to increase its exposure to prospective exploration ground. The Company is also continuing its' ongoing review of new investment opportunities.
Rimfire have been advised by Independent Diamond Laboratories (IDL) that following examination of the plus 2 mm fraction of concentrate from the bulk sample at Tom and Jerry (Exploration Licence 5641, NSW) one diamond of 0.265 carats has been recovered.
Rimfire are conducting methodical exploration for the primary source of diamonds in the Bingara - Copeton area. Current exploration focus is on the Nareens anomely in Exploration Licence 5602, NSW and the Tom and Jerry anomaly in Exploration Licence 5641, NSW.
Activity Update
APPRAISAL DRILLING
UK ONSHORE: ESKDALE-13, LICENCE PEDL002 (ROC: 5% free carried)
The Kirkham Abbey Limestone, one of the reservoir targets for this well, has now been tested and flowed water. The test results are currently being reviewed and an evaluation of the other target zones of the well is being considered. The well has been temporarily suspended until the end of the bird nesting season in September 2001 and operations are expected to recommence at that time.
UK NORTH SEA: 22/2a-11y CHESTNUT OIL FIELD, LICENCE P354 (ROC: 14.875% carried)
At 0600 hours local time on 3 May 2001, the rig was running into the hole with a drilling assembly to commence drilling through the casing shoe. The forward programme is to drill a near horizontal section of approximately 750 metres through the Nauchlan reservoir sand.
Striker has entered into a heads of agreement with AKD Limited to earn a 70% interest in AKD's Seppelt Range tenements covering approximately 495 square kilometers. The tenements adjoin Striker Resources NL's ('Striker') Beta Creek and Casuarina diamond projects in the North Kimberley Diamond Province
The terms of the joint venture are as follows: -
a) $20,000 reimbursement upon execution of a formal agreement,
b) Expenditure of $1,500,000 over a three year period with a minimum expenditure before September 2002 of $300,000.
c) Striker will have exclusive marketing rights of any production from the tenements.
A contract has been awarded to Quality Drilling of Johannesburg for the drilling of the Perdevlei kimberlite K1 and Eendrag Prospect.
The drill program will be more extensive than forecast in the Prospectus but for the same expense of A$200,000. 34 percussion holes of 203 millimeter diameter are to be drilled to 150meter depth plus 4 airflush core holes to 150m depth.
Drilling is planned to commence on 21 May 2001.
The drilling objective at Perdevlei is to upgrade the resource estimate from between 1,300,000 - 2,100,000 carats inferred to a defined measured resource and to gather additional geotechnical information on the kimberlite pipe for future mining.
The drilling objective at the Eendrag Prospect, situated lkm from Perdevlei, is to establish whether the coincident magnetic and indicator mineral anomaly is caused by kimberlite.
An exclusive tenement application has been submitted covering a cluster of 5 diamond-bearing kimberlites. These kimberlites are located outside Australia and have been successfully developed to an early stage of diamond production.
YARDARINO (4 MAY 2001)
Yardarino has entered into a Farmout Agreement with BHP Minerals Pty Ltd in respect to Yardarino's Black Hills Project (formally known as the Brownlow Project) located approximately 90kms northeast of Adelaide.
Under the terms of the Agreement, BHP have the right to earn up to 70% equity in the project by funding a total of $1.5m towards exploration expenditure.
Significant Intercepts at the
Hawkwood Palladium and Platinum Project
A trench – channel sampling program has confirmed the presence of wide zones of significant palladium (Pd) and platinum (Pt) mineralisation at the Hawkwood Project:
The Hawkwood Project is located in the Mundubbera district of Southeast Queensland some 230 kilometres northwest of Brisbane and 180 kilometres west of Bundaberg. It is covered by EPM 10299, which is held 100% by Pan Australian and encloses 150 square kilometres of a gabbro intrusive complex.
Icon Energy Limited announces that Icon/BCI Victory No. 1 commenced drilling in Louisiana at 4:45 pm on May 1 2001.
The well is located on the Victory Financial Lease of the northern flank of Bayou Choctaw salt dome, 8 miles southwest of the city of Baton Rouge, Louisiana. The well is the first of a series of development wells targeting the Frio sandstones and will be drilled to a depth of between 10,500 and 12,500 feet (3200-3800 metres) depending on the geology encountered.
The primary targets are the producing sands of the Marg Idi through Marg Tex sedimentary units which are located around 9000 feet (2750 metres) These sands total eleven in number contain oil and gas classified as PUD (Proven Undeveloped) reserves in wells drilled down dip from the drilling location. The identification of these PUD reserves was made possible through the interpretation of "high tech" 3D (three-dimensional) seismic data acquired within the past 5 years. Icon's interest was purchased under an agreement signed between Icon Oil US LLC and Bayou Choctaw Inc.
Icon/BCI Victory No.1 is to be drilled below the known PUD reserves to intersect the sand section never before penetrated on the Bayou Choctaw salt dome. These sands while productive in wells located away from the salt dome were not drilled in the 1940's when the original oilfield was developed because of problems associated with high pressures in the sediments. Modern drilling technology and equipment allows these zones to be drilled routinely to day. These deeper zones are expected to have a proclivity for gas but this gas is likely to be accompanied by high condensate/gas ratios. Because these deeper zones have not been drilled on the dome no firm reserve estimates can be attributed to the sands and they remain classified as exploration potential reserves only. The potential for these deeper reserves are far higher than the shallow PUD reserves but carry a higher drilling risk.
The recent placement made by Icon to raise a further $1.7 million in capital was necessary because of the collapse of the Australian dollar against the US dollar and the soaring cost of drilling equipment and supplies in the US as drilling activity accelerated over the past six months.
Icon will release weekly drilling progress reports each Tuesday and special reports will be made in addition to these regular reports as required under the Australian Stock Exchange listing rules. All reports will be posted promptly on the website at
Bligh Petroleum Inc has agreed to join Icon and its joint venture partner in the well and will acquire an interest in the Victory Financial lease under this agreement.
Partners in the well are:-
| Icon Oil US LLC (Operator) |
47.5% |
| Bayou Choctaw Inc |
20.0% |
| Bligh Petroleum Inc et al |
32.5% |
Note: Icon Oil US LLC is a wholly subsidiary of Icon Energy Limited of Australia.
HIGHLIGHTS - MARCH QUARTERLY REPORT1. CORPORATEMinotaur Resources ended the Quarter with approximately $1,770,000 in cash and joint venture contributions receivable. 2. EXPLORATIONMOUNT WOODS JOINT VENTURE |
BEACONSFIELD GOLD (30 APRIL 2001)
HIGHLIGHTS - Activities Report for the Quarter ended 31 March 2001
ALKANE ENTERS INTO MEMORANDUM OF UNDERSTANDING WITH MAJOR INTERNATIONAL METALS GROUP
Alkane and its wholly owned subsidiary Australian Zirconia Ltd (AZL) have entered into a Memorandum of Understanding (MOU) with a major international metals processing and marketing group comprising Kawatetsu Mining Co Ltd (KMC) and Itochu Corporation (IC), collectively known as KMI. The MOU grants KMI the option to acquire equity in AZL and assist with the development of the Dubbo Zirconia Project (DZP).
HIGHLIGHTS - QUARTERLY REPORT TO 31 MARCH, 2001
EXPLORATION
QUARTERLY REPORT TO 31 MARCH, 2001
KEY POINTS :DAIRI PROJECT
BATU BESI PROJECT
COOLGARDIE PROJECT
SANDSTONE PROJECT - GOLD
|
EXPLORATION REPORT
Following the successful flows of methane gas from the Argyle 1 and 2 wells, three follow up wells were drilled to define the Argyle gas field and the potential for commercial development. Argyle 3, 4 and 5 were drilled and all have been completed as producing gas wells. Further testing is required as part of the initial feasibility stage to determine how many wells need to be drilled and to conduct several engineering and geological studies to prove the size of the reserves. Potential markets for the gas will be canvassed during this feasibility phase. Icon has just released its Annual Report which outlines the methane gas potential.
Native title issues continue to be a problem with exploration in Queensland suspended in all of Icon’s areas where freehold land is not available.
In Louisiana, permits to drill the first deep well, Icon Victory Financial No1 were obtained and site construction contracts let to prepare the drilling location. A total of 2.1 acres had to be cleared and filled in the swamp land. The drilling rig is on location and expected to begin drilling in the first week of May 2001.
When drilling commences in the United States, weekly drilling updates will be reported to the Australian Stock Exchange as per the Listing Rules requirements. Shareholders who do not have access to these ASX releases can refer to Icon’s website for the latest report. Icon’s website address is www.iconoil.com
Special releases will be made if encouraging shows of oil or gas are encountered as soon as communication will allow.
Louisiana is an oil and gas development opportunity and in line with the Board of Management aim to limit pure exploration and concentrate on projects with significant cash flows with upside potential.
The Queensland coal bed methane discovery at Argyle in the Surat Basin is developing into a similar development project.
SUMMARY - MARCH QUARTER
Queensland Gas Company (QGC) engaged in a high level of activity during the Quarter:
The results of the technical appraisal show good permeability and the presence of gas across QGC's acreage portfolio in the Walloon Coals of southern Queensland. On the basis of these results, the Company considers that it has identified a number of areas with excellent potential for early CBM development.
QGC has noted strong demand for additional supplies of gas in South East Queensland and a growing recognition amongst gas buyers that CBM is a reliable source of supply.
The Company is now planning a program to gather the data required for the design of the first development project. The main focus of this program will be on coring to measure reservoir characteristics and pump testing to measure gas recovery. This work will be carried out at locations identified during exploration drilling.
CRACOW DRILL RESULT
A further significant result has been received from drilling on the Crown Structure at Cracow.
A diamond core hole CBK030 has recorded 18.25m @ 31gAu/t. Details of the intersection are as follows:
| CBK030 | 4.0 metres @ 9.1gAu/t |
[488.6 - 492.6 metres downhole] |
|
||
| 1.0 metre @ 1.9gAu/t |
[500 - 501 metres downhole] |
|
| 1.8 metres @ 5.6gAu/t |
[503.4 - 505.2 metres downhole] |
|
| 18.25 metres @ 31gAu/t |
[510.1 - 528.35 metres downhole] |
|
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CBK030 was collared on local grid 5800mN. The intersection is located approximately 200m north of the intersection of CBK027 (22.7m @ 15gAu/t), as previously reported and subsequently detailed in the March quarterly report.
Two drill rigs are continuing work on the Crown Structure.
DRILLING REPORT-BERWYNDALE No. 1- ATP632P
Berwyndale No. 1 has been completed as a potential coalbed methane producer. Berwyndale No 1 intersected 19.49 metres of coal within the seams of the upper Walloon Coal Measures.
Testing of the well during drilling produced gas at a rate of more than 12 000 cubic feet per day (approximately 340 cubic metres per day) and water production of 1370 barrels per day. These results are typical of the initial flows from coal bed methane wells drilled in the Powder River Basin in the USA. After dewatering, these wells produce significant gas flow rates.
Coals in the Macalister seam have been under-reamed to enhance production potential.
The well is now shut in awaiting equipment to be set up for production testing.
Queensland Gas Co Ltd (QGC) as operator has earned 30% interest in the Walloon Coal Measures in the area of Authority to Prospect 632Pby completing this well.
A second well, to be drilled at a later date, will increase QGC’s interest to 50%.
Participants in ATP 632P will now be:
| Icon Energy Limited | 70.0% |
| Queensland Gas Company Limited | 30.0% |
Wonarah Phospate Deposit NT - An Inferred Mineral Resource of 115 million tonnes grading 22% phosphate (P(2)O(5)), (using a 15% P(2)O(5) cut-off grade), has been estimated by joint venture partner, Rio Tinto, for a 23sqkms area within the southern portion of the Wonarah phosphate deposit, 240km east of Tennant Creek in Northern Territory. Beneficiation test work on the phosphate ore to date is encouraging and shows potential for the production of an acceptable fertiliser product.
Lavers-1 exploration well in PEP 154, Otway Basin, Victoria, spudded at 11:00 hours on April 26, 2001.
Lavers-1 will be drilled in PEP 154, 40 kilometres southeast of Warrnambool in an area neighbouring commercial producing gas fields around Port Campbell. The well is located approximately 2 km to the northwest of the recent McIntee-1 gas discovery and will target the Cretaceous aged Waarre Sandstone at a depth of approximately 1,500 metres.
The well has a planned total depth of 1,570 metres.
HIGHLIGHTS - MARCH QUARTER :
CORPORATE
At 6 am 26th April 2001, the Anggur-2 well in the Sampang PSC offshore East Java, Indonesia, was at a depth of 409 metres. 30" casing was set at 156 metres. On 23rd April 2001 the well flowed in an uncontrolled manner while drilling 26" hole at 409 metres, without a riser. In accordance with safety procedures the drill pipe was severed and the drilling vessel moved off location. There was no damage to the drilling rig or injury to any personnel involved. The flow has subsequently diminished.
Dioro reported further encouraging results from the ongoing drilling program at the Mungari East project being conducted by Mines and Resources Australia Pty Ltd on behalf of the joint venture.
INTERSECTION HIGHLIGHTS
DIAMOND DRILLING
Drilling of Northright-1
Eagle Bay, as Operator of VIC/P41, advised that in the report period to 24:00 hrs Eastern Standard Time April 26, 2001, the following operations were achieved at the well. The 36" surface hole was drilled to 154m RT and the 30" conductor casing was successfully set at 153m RT in this hole section. Following this, the 12(1/4)" intermediate hole section was drilled to 250m RT with returns to the sea floor. At 24:00 hours on April 26, 2001 the intermediate 9(5/8)" casing was being run in the hole in preparation for connecting the Blow Out Preventers and Marine Riser, to enable drilling the 8(1/2)" section hole through the wells target zones and to the final total depth.
A rock formation sample recovered from the 12(1/4)" drill bit was described by the wellsite geologist as "glauconitic siltstone which is firm and sticky". Such a formation should represent a good upper seal to hydrocarbons. Seal had previously been assessed as the highest risk aspect with regard to the discovery of oil at Northright.
The Prospecting Permit Application and the Permission to Remove Diamonds for the proposed acquisition of the Diamond Project at Kimberley in South Africa has now been approved.
The approvals were achieved in less than three months requiring acceptance of the Environmental Management Programme and Exploration Programme by the Kimberley Office of the Department of Minerals and Energy. Ministerial approval in Pretoria and all necessary approvals from four other Government bodies have also been finalised.
Mosaic has an interest in a large prospect being drilled by Woodside Petroleum and its partners in WA 28P as 50% of the structure is in a permit (WA 208P) where Mosaic has indicated it will increase its interest (presently 5%) upon Mobil's written withdrawal from the permit.
Planaire 1 is being drilled on a large 300 sq kilometre structure lying 10 kms south of the Wanea oilfield. The Planaire structure is approximately 50% in WA208P. Mosaic is not prepared at this point of time to make any statement about possible recoverable reserves in such a large structure.
Highlights - March Quarter
Telfer -
Gold and Base Metals
Review of all data acquired to date underway.
Deep diamond and R.C. drilling planned.
Lort -
Gold and Nickel
Conclusion of Native Title negotiations allows for commencement of exploration.
Perrinvale -
Gold and Basemetals
First pass rock chip sampling produces anomalous results.
Tsumkwe, Namibia -
Diamonds
Further encouraging kimberlitic indicator minerals recovered indicating a proximal source.
Pilbara announced that Inmet Mining Corporation (Inmet), who are in joint venture with Pilbara at the Teutonic Bore copper, zinc, silver project in Western Australia, have notified Pilbara of their intention to commence diamond drilling of a number of 'EM conductors' outlined in the recent "Deep EM" survey at Teutonic Bore. Drilling is proposed to commence during May 2001.
QUEENSLAND GAS COMPANY’S ABERDEEN NO. 1 WELL SPUDS
The Directors of Queensland Gas Company Limited (QGC) are pleased to announce that the company’s thirteenth well, Aberdeen No. 1 spudded at 1715 hours on Wednesday 25 April 2001.
The well is located approximately 30 kilometres southeast of the township of Tara in the Surat Basin in Queensland, and approximately 63 kilometres southeast of QGC’s Argyle field.
Aberdeen No. 1 is programmed to be drilled to a total depth of approximately 610 metres and is located within Authority to Prospect for Petroleum No. 621P. This well is the second of a two well program which will earn QGC a 50% interest in the Walloon Coal Measures in Authority to Prospect No. 632P.
Interests in the Walloon Coal Measures in ATP 632P when QGC earns its 50% will be:
| Queensland Gas Company Limited | = | 50% |
| Bobwyns Pty Ltd | = | 50% |
QUEENSLAND GAS COMPANY COMPLETES BERWYNDALE No. 1
The Directors of Queensland Gas Company Limited (QGC) are pleased to announce that the company’s twelfth well Berwyndale No. 1 has been completed as a potential coalbed methane producer. Berwyndale No 1 intersected 19.49 metres of coal within the seams of the upper Walloon Coal Measures.
Testing of the well during drilling produced gas at a rate of more than 12 000 cubic feet per day (approximately 340 cubic metres per day) and water production of 1370 barrels per day. These results are typical of the initial flows from coal bed methane wells drilled in the Powder River Basin in the USA. After dewatering, these wells produce significant gas flow rates.
Coals in the Macalister seam have been under-reamed to enhance production potential.
The well is now shut in awaiting equipment to be set up for production testing.
This well earns QGC a 30% interest in the Walloon Coal Measures in the area of Authority to Prospect 632P. A second well, to be drilled at a later date, will increase QGC’s interest to 50%.
Participants in ATP 632P will now be:
| Queensland Gas Company Limited | = | 30% |
| Icon Energy Limited | = | 70% |
The South Junction mine, adjacent to the Bluebird mill, was last mined in 1998. This was a high-grade open pit operation. A detailed review of historic exploration and mining data identified the potential for additional ore from various lodes within the pit. Recent confirmatory drilling has produced substantial results including 23m @ 41.5 g/t, 12m @ 16.1 g/t, 22m @ 8.2 g/t and 10m @ 13.2 g/t.
HIGHLIGHTS - MARCH QUARTER :
Further encouraging assay results have been returned from another seven diamond hoes drilled during the pre-feasibility program currently underway at the Mehdiabad Zinc Project in Central Iran.
Significant sulphide Zn-Pb and overlying oxide mineralization has been intersected on the southern margin and to the south off the currently identified resource along the major Black Hill Fault (holes 7931, 8001, 8005 - see attached plan). Assay results are awaited. Any intervals in excess of the current 4% Zn or 4% Pb cut-offs, will add significantly to the resource totals.
Thick, shallow oxide mineralization has been intersected in the north of the East Ridge area. Assays received for two of these intersections (holes 7912, 7916) are encouraging.
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CRACOW
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FARMIN TO KINGFISHER PROSPECT
SAN JOAQUIN BASIN, CALIFORNIA, USA
Lakes Oil N.L. ("Lakes") wishes to announce that is has signed an agreement to farm into the Kingfisher Prospect to be drilled in California, USA scheduled to commence in June 2001.
Lakes will have an initial working interest in the Kingfisher Prospect of 10%, reducing to a 7.5% interest after payback.
This well is scheduled to be drilled immediately after the "Eagle" re-entry well expected to begin 1 May 2001.
The Anggur-2 well in the Sampang PSC offshore East Java, spudded on 21 April 2001.
LAKE LONG FIELD, LAFOURCHE PARISH, SOUTH LOUISIANA STATE LEASE 328 NO 7 WELL
The SL 328 No 7 well, a test of the NW Segment Prospect, commenced drilling on 15 April 2001 and is presently drilling ahead at 6,694 feet after running surface casing to 3,000 feet.
Gas shows have been recorded on mud logs while drilling the 5520 and 5800 sands, the first of thirteen Miocene zones that will be evaluated by this planned deviated well.
Gas readings increased from 20 units to 240 units in the 5520 sand reaching a maximum of 335 units in the 5800 sand. A well drilled in 1949 intersected 15 feet of gas bearing sands at the 5,520-foot sand interval. These sands were not produced at the time due to low gas prices, however, their existence considerably reduces the commercial risk in the No 7 well.
Kagara Zinc Limited (ASX: KZL) is ready to push the button on the development of its Mt Garnet Zinc Project in North Queensland later this year after completing a feasibility study which confirmed the viability of an integrated development with an initial mine life of nine years.
A project go-ahead in that timeframe will enable the Perth-based Company to make the key transition to zinc producer during the first half of 2002, following a nine-month project construction period.
The feasibility study concluded that the Project would generate approximately $105 million life-of-mine cash flow from the Mt Garnet, Surveyor and Dry River South Deposits - with significant additional cash flow likely to be generated from remaining resources at the Balcooma zinc deposit, Balcooma copper deposit and the King Vol deposit.
Mt Garnet, which will be the site for a centrally located treatment facility, and King Vol were part of Kagara's original IPO. Surveyor and Dry River South are part of the Balcooma Project, 120 kilometres to the south-west, which was acquired last year from Lachlan Resources NL.
Kagara's Executive Chairman, Mr Kim Robinson, said the feasibility study was based on a base case production scenario and did not take into account upside from processing additional known resources at Balcooma or the potential for additional exploration success in the region.
Woodside Petroleum Ltd, Operator of the Mauritania, Area B Joint Venture, reports that the Chinguetti-1 exploration well was preparing to drill a 12(1/4) inch hole after setting 17(1/2) inch casing at a depth 1677 metres.
Bligh advised that preparations have commenced for the drilling of the Makino-1 exploratory well in PEP 38728, Taranaki Basin, New Zealand. The Makino-1 will test a structural closure on trend with and immediately north of the Rimu oil and gas field, in which Bligh holds a 5% interest.
The Operator of the Wildara Joint Venture, Forrestania Gold NL, a wholly owned subsidiary of LionOre Mining International Ltd, (a Toronto listed company) has completed the Air Core programme referred to in the release to the ASX of 18 April 2001. The programme, which consisted of three lines of four holes drilled as scissor holes (in the opposite direction to previous drilling) 20 metres apart was designed to further test the Snapper prospect.
Broad widths of oxide gold mineralisation occurred in 5 holes but the drilling did not intercept further rich gold values similar to those returned from the initial Rotary Air Blast drilling programme, the results of which were released on April 4th 2001.
Victoria Petroleum NL wishes to advise that its wholly owned US subsidiary Victoria Petroleum Inc had executed a drilling contract with Nabors Drilling USA, Inc to use Nabors Rig #473 to drill the Eagle No 1 Horizontal well and the following Kingfisher No 1.
Victoria Petroleum, Inc is the Operator for the Eagle Oil Pool Development Drilling Project.
The Nabors #473 rig will move onto the Eagle No 1 location on April 30, 2001 with drilling operations planned to commence on May 2, 2001.
Eagle No 1 will be the first well in the Eagle Oil Pool Development Project, a horizontal drilling project targeting potential recoverable reserves of up to 24 million barrels of oil and 62 billion cubic feet of gas.
OVERVIEW - MARCH QUARTER:
Cibaliung Project - West Java, Indonesia
Advanced Exploration
Prospect Evaluation
Corporate - Australia
Expenditure
CRACOW DISCOVERY
A significant discovery near the Royal Shoot (390,000 ounces @ 11gAu/t) has been made by the Cracow Joint Venture. A diamond core hole collared on local grid northing 5600 recorded the following:
CBK027 22.7m @ 15gAu/t between 438m and 460.7m downhole,
including 0.75m @ 250gAu/t.
The intersection is 800m northwest of the Royal Shoot and is approximately 420m below surface. It appears to be on the same quartz vein structure as other holes drilled recently, which returned the following:
| Grid Northing |
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| CBK009 | 6 metres @ 5.2 gAu/t |
[172 - 178 metres downhole] |
5700 |
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CBK012 |
8.35 metres @ 2.3 gAu/t |
[268.65 - 277 metres downhole] |
5800 |
CBK021 |
18.9 metres @ 4.3gAu/t |
[420 - 438.9 metres downhole] |
5800 |
and 5 metres @ 3.4gAu/t [443 - 448 metres downhole] |
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These results are confirmation of the potential for further high-grade shoots to occur in proximity to the Royal Shoot. The joint venture in which Sedimentary holds a 30% interest, has focused its current program of exploration on seeking such shoots, now has two rigs working on site.
A plan and section will be included in the March quarter report to be released to the ASX next week.
TARANAKI BASIN, BLIGH INTEREST 5.00%
Rimu A-3 has been logged and 5(1/2)" casing run to a depth of 3675 metres. Efforts to recover the stuck drilling tools were unsuccessful.
Wireline logs have confirmed approximately 25 metres of oil bearing pay in the Upper Tariki sands. The well will be completed for production testing of the upper Tariki sandstone zone, following which Parker rig 246 will be moved to the Kauri location for the drilling of the Kauri-1 exploratory well. Production testing of the upper Tariki sandstone in both the Rumu A2 and A3 wells will be carried out utilising the ODE workover rig.
The SW1A Joint Venturers, Pacific Tiger Energy (60%) and Carnarvon Petroleum (40%), announce that as of late on 18 April 2001 the Wichian Buri-North-1 (WB-N1) well was at a total depth of 1,007m and running casing in preparation for production testing.
The well was deepened below the planned total depth of 966m because of encouraging hydrocarbon shows. Unfortunately the wireline logging tool became stuck in the hole precluding acquisition of quantitative logs over the objective section. The tool has now been successfully recovered but hole condition precluded re-running the tool to improve the log quality.
The SW1A Joint Venturers believe that the hydrocarbon shows encountered while drilling provide sufficient encouragement to justify production testing of at least one and possibly two intervals.
Good gas shows up to 12 percent with C1 to C5 readings, fluorescence and cut were obtained over the interval 922 to 1,007m where significant mud losses were also encountered. This interval is interpreted as the F and G sands and was the primary target of the well. The F sands are oil productive at the WB-1 and WB-A1 wells some 1-(1/2) kms to the south.
Initial Production Testing at Downlands East No 1 in the Surat Basin Queensland has been completed and the results indicate a new field gas discovery. Proven and probable recoverable gas reserves of 3.3 Billion cubic feet (BCF) and proven, probable and possible recoverable gas reserves of 6.6 BCF have been estimated.
Mosaic anticipates together with the current workover program at Silver Springs to double Company gas production within the next four months.
Reserves have been calculated by a Qualified Petroleum Engineer with over 15 years experience in the industry who is a member of the Canadian Council of Professional Engineers (CCPE).
Mosaic holds a 71.153% in Downlands East.
Another gas discovery has been made in the onshore Otway Basin.
Commercially viable quantities of natural gas have been discovered by the Croft-1 well drilled by Beach Petroleum NL and Santos Limited southeast of Warrnambool.
The discovery has been described as "a double bonus" for Beach Petroleum by the Company's Chief Executive, Mr Reg Nelson.
"When completed and connected, the well, in combination with McIntee-1, is expected to bring about 2 million cubic feet of gas per day, total net gas volumes attributable to Beach from discoveries in the region so far this year," Mr Nelson said.
Progress Drilling Rep-Chinguetti-1 Offshore Mauritania - Current depth 1,460 metres. Completed connecting Blow Out Preventers (BOPs) to 20 inch (508mm) casing. Running in hole to commence drilling 17(1/2) inch (445mm) hole.
The Directors of IGM wish to report that the company is reviewing two gold mining projects in Malaysia and Indonesia respectively, with a view to acquiring a major interest in one or both.
Firstly, the Board is pleased to advise that the company has entered into a Memorandum of Understanding with Malaysian company, Sumber Lubuk Sdn Bhd, operator of the Lubuk Mandi Opencut Gold Mine in Marang, Terengganu to investigate the acquisition of not less than a 50% interest in the mine, which is currently in production.
The second project, which the company has actively pursued, is the North Lanut Project of PT Newmont Mongondow Mining (Newmont) at Kotamobagu in the central portion of North Sulawesi at Kotamobagu.
IGM has lodged a proposal with in principal details of its offer to acquire the Heap Leach Project, which involves a Contract of Work (COW) covering 119,300 ha on which US$6.9 million has been spent to the end of September 2000.
Lilyvale No 3, the last well of a three well coal seam methane exploration coring programme, is situated approximately 5 kilometres south-south-west of GSQ Emerald NS 44, latitude 23 deg 20 min 43.13 sec south, longitude 148 deg 18 min 02.96 sec east. The well was spudded at 16:50 hours on April 11, 2001. At 06:00 hours today the rig was at a depth of 97 metres RT and waiting on cement to set around the surface casing. 168mm surface casing was set at 96.8 metres RT. Progress for the week was 97 metres.
The primary targets of the well are the coals of the German Creek Formation proposed total depth of the well is 468 metres RT.
Victoria Petroleum NL wishes to advise that Tri-Valley Oil & Gas Co announced on Wednesday April 17, 2001 that a significant gas field may have been discovered by Sunrise-Mayel No 1, 9 kilometres east of Victoria Petroleum NL and partners' Kingfisher Prospect.
The Tri-Valley Oil & Gas Co release indicates significant in-place gas potential of up to 3 TCF for the Monterey/McClure formation following the recent drilling of the Sunrise-Mayel No 1 well.
AWE advised on behalf of its a wholly owned subsidiary AWE Argentina Pty Limited that operations at the Los Barreales-1 well in CNQ-16 in the Neuquen Basin, Argentina are evaluating the shows previously observed in the Quintuco Formation .
As at 2000 hrs on 17 April, the well had drilled to a total depth of 3280m and wireline logs had been run. Only minor shows were recorded in the deeper primary objective and it is interpreted to be water bearing. Progress for the week was 415m.
The 'Lilyvale 3' coalbed methane exploration core hole was spudded on April 17th.
The well is located in the northern section of ATP564P in Queensland's Bowen Basin.
This is the last of five coalbed methane holes being drilled by Molopo and its 50% joint venture partner, Oil Company of Australia, in ATP564P. Two coalbed methane production test holes in the southern section of ATP564P have been drilled and await fracture stimulation.
Molopo will report preliminary results from all five holes as they become available.
Santos Limited, as Operator for PEP 154 is pleased to announce its third new field discovery in the Victorian section of the Otway Basin in 2001.
The exploration wildcat well Croft 1 has intersected a 60 metres gross gas column in the Cretaceous Waarre Sandstone over the interval 2025 metres to 2085 metres. Wireline logs are currently being evaluated and indications are of 34 metres net gas pay. After completion of wireline logs Croft 1 will be cased and suspended as a future gas producer. The well reached a total depth of 2529 metres.
Linda-2 Discovery Update - Since the last report dated 17 April 2001, a wireline logging programme has been completed and hydrocarbon samples/pressure data collected from numerous locations over the intersected column.
This data demonstrates that a 40.5 metre hydrocarbon column was intersected comprising gas and condensate (ie light oil). A gas-water contact was intersected at a depth of 2,773.5 metres MD.
Indications of oil shows reported previously are now interpreted to be due to the wet (condensate/light oil) nature of the hydrocarbons encountered.
Resource Estimate for Trilogy Deposit
An Indicated Resource estimate of 4.30 million tonnes containing 52,500 tonnes of copper metal, 149,000 ounces of gold, 7.76 million ounces of silver, 76,400 tonnes of lead metal and 51,500 tonnes of zinc metal. This equates approximately to a 7g/t gold equivalent resource grade at current metal prices and exchange rates.
The resource comprises:
- A sulphide copper-gold-silver resource to a vertical depth of 200m of 3.55 million tonnes at 1.48% copper, 0.97g/t gold and 46g/t silver.
- Within the copper-gold-silver sulphide resource, 940,000 tonnes of the contained tonnes also contain 7.04% lead and 4.86% zinc.
- An additional 120,000 tonnes of lead-zinc mineralisation at 8.66% lead, 5.02% zinc and 113g/t silver outside the copper-gold-silver resource envelope.
- An oxide gold resource of 380,000 tonnes at 2.85g/t gold and 75g/t silver.
- An oxide silver resource of 240,000 tonnes at 148g/t silver and 0.51g/t gold.
Of the total resource, about 95% is less than 150 metres from surface.
Significant potential exists to increase the size of the resource by additional drilling along strike to the north and down dip between 100m and 200m vertical depth.
Victoria Petroleum NL wishes to advise that Participation Letter Agreements subject to relevant board approvals have been entered into in principle with Sun Resources NL, Lakes Oil NL and private American interests to fund the drilling of Kingfisher No 1 on the Kingfisher Prospect in June 2001, immediately following the completion of drilling operations at the Eagle No 1 horizontal well in the Eagle Oil Pool Development Project, planned to commence May 1, 2001.
The Kingfisher Prospect is a multiple target structural trap defined by seismic and well control and modelled off similar oil and gas field producing horizon analogues in the San Joaquin Basin with cumulative reserves of 740 million barrels of oil and 1.8 trillion cubic feet of gas.
Kingfisher Prospect Calfiornia USA
Lakes Oil NL ("Lakes") wishes to announce it is currently negotiating a 10% interest in the Kingfisher well to be drilled by Victoria Petroleum NL in the San Joaquin Basin, California, USA.
Subject to funding, it is proposed that Lakes will take a 10% interest in the well which has the potential to recover up to 25 Million BBLs and 189 BCF of gas should oil or gas be present.
The operator proposes to drill this well immediately after the completion of the forth coming "Eagle" well, in which Lakes has a 15% interest. Eagle is expected to begin re-entry at the end of April, beginning of May.
These wells are located in the highly prospective San Joaquin Basin and with the high price of gas currently being paid in California the results will be awaited with some interest.
Alcaston has appointed Craig Mackay to the position of Exploration Manager, based in Melbourne.
He will hold responsibility for the company's existing exploration projects for diamonds, base metals and gold in Victoria and Western Australia as well as new exploration project acquisition and generation throughout Australia.
Australasian Gold Mines finalised its new tantalum venture with US-based electronics giant KEMET Corporation, settling the $14.6 million transaction to establish the Perth-based Company as a significant force in the global tantalum business.
The settlement marks the launch of Tantalum Australia, a newly established joint venture company in which KEMET has injected $10 million to acquire a 50% interest alongside Australasian, and the completion of a $4.6 million placement by Australasian to KEMET. It follows shareholder approval for the transaction, which was obtained earlier this week.
Tantalum Australia will own and fund the development of Australasian's existing tantalum assets in Australia and seek new project opportunities on a global basis.
Australasian's placement to KEMET is of 18.29 million shares at $0.25 per share, giving it a 10% fully diluted stake in the Company.
Australian Sandstone Industries announced that it has successfully entered into an agreement to supply a minimum 1,200 cubic metres of sandstone dimensional blocks and approximately 4,000 square metres of sandstone slabs to one of the largest stone factories in Taiwan within next 12 months. This value of this agreement is worth over $1.2 million in total.
This new agreement will add onto the already strong demand for ASI sandstone products from other Asia Pacific countries such as Mainland China, Singapore and Japan, which further confirms ASI leadership in supplying sandstone products to the region.
DRILLING PROGRAM
ASI has engaged Amberland Exploration to start drilling within the Exploration Permit for Mining (EPM No 11005), which occupies an area of some 3.3 km x 1.85 km with the current mining lease ML 50016 (ASI's Montgomery Quarry) situated adjacent to the Northern border of EPM 11005.
The purpose of this drilling program is to identify and prove the potentially significant quantity of high-grade quality sandstone reserves that have not been confirmed previously in the area covered by EPM No 11005.
The samples collected from the drilling program will be tested and analysed by Professor Jochen Kassan from Whistler Research (a Sedimentology Consulting firm), who will present a comprehensive report within 2 months, from the completion of drilling, to conclude the drilling results and define the proven or probable reserves around the area.
Beach reports that Croft-1, in the Otway Basin Exploration Permit PEP 154, has reached a total depth of 2,529 metres. The operation at 0600 hours (EST) on 17 April, 2001 was pulling out of hole prior to running a drill stem test in the Eumerella Formation.
Preliminary interpretation of wireline logs indicate a net hydrocarbon column within the Waarre Sandstone of approximately 35 metres. Gas shows were also encountered while drilling through the Eumerella Formation and will be further evaluated by the forthcoming drill stem test.
Following completion of the drill stem test, it is planned to case Croft-1 for future completion as a gas production well. The drilling rig will then move to the Lavers-1 location, approximately 7km to the northeast of Croft.
The Anggur Utara-1 well is being plugged and abandoned after running logs at a total depth of 1110 metres. These logs and those run earlier at a depth of 800 metres indicate that there are no gas zones
of commercial significance in the well.
After plugging and abandoning Anggur Utara-1 the drilling vessel will move to drill Anggur-2, a replacement well for Anggur-1.
Progress drilling rep for Chinguetti-1 Offshore Mauritania
PROGRESS (LAST 4 DAYS):
Completed cementing of 20 inch (508mm) casing at 1,460 metres depth.
Detected fault in Blow Out Preventers ("BOPs") and undertook repairs. Made up drill string in preparation for drilling 17(1/2) inch (445mm) hole. Commenced running BOP to connect to 20 inch casing.
CURRENT OPERATION:
Continue running BOPs. (1400 hours WST 16 April 2001)
Third Quarter Activities Report
ARTHUR RIVER/BERYL HILL PROSPECT
The Company can earn up to a 100% interest in the Arthur River/Beryl Hill Prospect. During the quarter the Company collected 63 twenty-kilogram samples from fifty-seven trenches excavated across creeks at a nominal spacing of eighty meters. The samples are being concentrated by Nagrom and assayed by SGS for tantalum, niobium and tin. Results are expected early in the next quarter. Previously some 1.5 tonnes of tantalite has been recovered by limited alluvial processing on a portion of one creek.
The Company is actively seeking an alluvial plant in the expectation that the bulk sampling will return commercial tantalite grades.
PILGANGOORA
The company has entered into an agreement with Prima Resources NL and Fieldcorp Pty Ltd for the acquisition of the Pilgangoora tantalite tailings deposits, gravity separation plant and associated camp facilities, which are located 100kms southeast of Port Hedland in Western Australia. The agreement is conditional upon:
1. Applications for General Purpose leases G45/258, 45/259, 45/260 and 45/261 being approved and granted;
2. The approval by the Department of Minerals and Energy of a mining plan for the treatment of the tailings and
3. The approval of the Minister of Minerals and Energy in Western Australia for the transfer of the tenements to Kanowna Lights Limited.
The Company through Auger drilling and bulk sampling has established that there is an estimated 400,000 BCM of treatable sands that contain an estimated 42,000 lbs of Ta(2)O(5). Between 1947 and the present, the Pilgangoora deposits have produced an estimated 190 tonnes of tantalite.
Progress Report - Linda-2 Discovery - As at 6.00am today, the well has drilled ahead to 2,927 metres measured depth ("MD").
The top of the Biggada sandstone was intersected at a depth of 2,734 metres MD. High gas readings were observed on intersecting the top of the reservoir similar to those recorded in the Linda-1 discovery well. A total of 81 metres of Biggada sandstone was intersected with the base of the reservoir tagged at 2,815 metres MD.
Cores were cut over a 77 metre interval from 2,738 metres MD to 2,815 metres MD to enable detailed analysis of the reservoir interval. Oil and gas shows were recorded throughout the cored reservoir interval and strong oil shows with up to 100% fluorescence were recorded between 2,782 metres MD and 2,796 metres MD.
FORWARD PLAN
Wireline logs (including pressure analysis and fluid sampling) will be run to evaluate the nature of the hydrocarbon shows and determine reservoir properties.
Following analysis of the logs a decision will be made whether to flow test the well.
Reserves estimate-Simpson/Sth Plato/Gibson oil discoveries
The operator of the Harriet Joint Venture, Apache Energy Limited, has released its reserve estimate for the recent Simpson, South Plato and Gibson oil discoveries made in January and February this year.
The proven and probable reserves estimates are:
OIL GAS TOTAL
(mmbbls) (PJ) (mmboe)
Simpson, South Plato & Gibson 24.5 4.8 25.4
This Operator's reserve estimates have been reviewed by Mark Pogson who is a competent person (as defined by the ASX) to make a statement on reserves.
TAP COMMENT
The abovementioned reserves are determined from the recent well program, namely Tanami-4, Tanami-5, Simpson-1, Simpson-2, Gibson-1 and South Plato-1, with four of those five wells being successful.
The additional reserves continue to demonstrate the prospectivity of the Harriet fields. Prior to these wells being drilled, the remaining Harriet oil and condensate field proven and probable reserves were approximately 13 mmbbls and this has now increased to approximately 37.5 mmbls, a 188% increase. Further, in Tap's opinion, the Simpson-2 well was likely drilled or little off structure and accordingly there is scope for yet more reserves to be added in due course.
The drilling program was based on reprocessed 3D seismic, which has also identified numerous other prospects in the proximity for drilling in the near future.
Tap anticipates that Simpson development will produce first oil in the fourth quarter of this year at a rate of in excess of 20,000 bbl/d with the Gibson and South Plato fields being tied in early 2002.
These discoveries are high value oil, due to the proximity of the Varanus Island production hub (the Simpson Field is only two kilometres away).
MAURITANIA, AREA B
CHINGUETTI-1
Woodside Petroleum Ltd, Operator of the Mauritania, Area B Joint Venture, reports that the Chinguetti-1 exploration well, located offshore Mauritania, was today completing the running of the marine riser and blow out preventers, after setting 20 inch casing at a depth 1452 metres.
All reported depths are referenced to the rig rotary table.
Woodside's interest in Area B is 35%. Other participants are British Borneo International Limited (ENI/AGIP) (35%), Hardman Petroleum (Mauritania) Pty Ltd (18.6 %), Fusion Oil and Gas NL (6.0%), Planet Oil (Mauritania) Limited (3.0%), Elixir Corporation Pty Ltd (2.4%).
WA-270-P
TAYRA-1
Woodside Petroleum Ltd, Operator of the WA-270-P Joint Venture, reports that the Tayra-1 well reached a total depth of 2907 metres on 17 April 2001.
No hydrocarbons were encountered and the well is currently being prepared to be plugged and abandoned.
All reported depths are referenced to the rig rotary table.
Woodside's interest in WA-270-P is 80%. The other participant is Mobil Australia Resources Company Pty Ltd (20%).
Latest assays received for the Khanong copper resource drilling continue to report outstanding results. Wide thicknesses of near surface high grade copper mineralisation further high light the world class potential of the deposit.
Some of the better results from the latest 26 holes (KHN093-KHN118) include:
* KHN093 50m @ 5.8% Cu from 25m
* KHN094 41m @ 8.1% Cu from 23m
* KHN097 26m @ 8.5% Cu from 19m
* KHNl0l 28m @ 6.8% Cu from 39m
* KHN105 71m @ 4.2% Cu from 14m
* KHN106 24m @ 3.7% Cu from 61m
* KHN116 38m @ 6.9% Cu from 39m
Including 21m @ 11.2% Cu from 54m
* KHNl17 15m @ 12.6% Cu from 46m
All holes are vertical RC (reverse circulation) except hole KHN094 which is RC angled - 80/160. Mineralised intervals approximates true thickness. Ore grade copper assay technique is total digest, flame AAS; grades are weighted averages of 1 metre sample intervals using a 0.5% lower cut and no top cut.
These result confirm the existence of westerly extensions to the high grade chalcocite and oxide copper zones which were previously interpreted to be closed off.
HIGHLIGHTS - THIRD QUARTER
PRODUCTION
EXPLORATION
SELWYN TWIN RIDGES PROJECT
GCR Acquires Adelong Gold Project
GCR today announced it had entered into an agreement with Orchid Capital Limited (Orchid) to purchase Orchid's 100%-owned subsidiary Challenger NL (Challenger). On completion of the purchase, Challenger will own all the assets comprising the Adelong Gold Project including the mining lease, exploration licence, security bonds, freehold land, buildings, and the mining and processing equipment.
The Adelong Gold Project has indicated and inferred resources totalling 1.3 million tonnes at 2.9 grams per tonne gold for a contained 121,000 ounces of gold. The resources include those contained in the Challenger and Challenger Extended zones which collectively contain 796,000 tonnes at 3.0 g/t gold for 76,800 ounces of gold. The Challenger and Challenger Extended resources lie within a granted mining lease and 328,000 tonnes at 2.8 g/t have been drilled out to indicated resource status. GCR aims to establish a viable mining operation based on these resources in the near future and much of the equipment and infrastructure necessary to commence mining is already on site.
The purchase price for Challenger will be six million GCR shares plus $50,000 cash. $50,000 has been paid to Orchid as a deposit on the purchase. Of the six million shares, five million will be issued on transfer to GCR of the shares in Challenger and one million when the ILUA (Indigenous Land Use Agreement) with the Walgalu and Wiradjuri people is transferred from Orchid to a GCR-owned Challenger.
BEMAX TO START TRIAL MINING AT GINKGO
AS STAGE 2 DRILLING AT SNAPPER IS FINALISED
SNAPPER RESOURCE ESTIMATE EXPECTED BY MID-MAY
Feasibility work is gathering pace on Queensland based mineral sands group, BeMaX Resources NL’s (ASX: BMX) Ginkgo deposit in the Murray Basin, with a major bulk sampling program set to commence shortly. At the same time, the company announced that it was on track to announce a resource estimate for its promising new Snapper discovery.
BeMaX announced today (Tuesday) that all statutory approvals had been received to commence excavation of a trial pit to remove 145,000 bank cubic metres of material and extract a 100-tonne bulk sample of mineralised sands as part of the Company’s Ginkgo Feasibility Study.
This includes recently concluded negotiations with native title claimants representing the Barkandji people to enable the trial pit to proceed.
BeMaX is in the throes of a $6 million bankable feasibility study of the 252 million tonne Ginkgo deposit, which it expects will form the basis of a significant mineral sands mining and processing operation.
DAIRI ZINC/LEAD PROJECT |
Project Interests: | |
EXCELLENT PRELIMINARY DRILL RESULTS |
IAX | 80% |
| PT Aneka Tambang | 20% |
Herald's 71% owned subsidiary, International Annax Ventures Inc. (IAX) reports as follows:
Diamond drill hole SOP46D, the first hole of the 2001 program at the Dairi Project's Anjing Hitam zinc-lead zone, has obtained a massive sulphide intersection over an interval of 15.31 metres. Based on comparison to massive sulphide intersections in 21 previously drilled holes within the Anjing Hitam zone, the grade of the hole SOP46D is visually estimated to be in the order of 20-25% combined zinc and lead. Assays are awaited.
| Hole |
North |
East |
Dip/ Azimuth (mag.) |
From (m) |
To (m) |
Width (m) |
Zinc + Lead (%) |
Description |
| SOP46D |
9475 |
5255 |
82º/069º |
385.34 |
400.65 |
15.31 |
Not yet assayed |
MMH |
MMH = Main Mineralised Horizon
Drill stem deviation, often experienced in deep drilling, has resulted in the intercept being made only about 30 metres NE of a massive sulphide intersection in hole SOP43D which assayed 13.2% zinc and 7.7% lead over an 8.8 metre interval.
Drill hole SOP47D has commenced from the same site as hole SOP46D, and has been aligned to attempt to intersect the massive sulphide target zone at about 100 metres grid east.
The new regional autonomy system introduced into Indonesia as of 1 January 2001, appears to be working well, with excellent support and co-operation being forthcoming from the Dairi Regent (Bupati).
HIGHLIGHTS - MARCH QUARTER :
Acclaim announced that it has entered into an agreement granting a first right of refusal over the 40% equity interest in Hinckley Range Pty Ltd that it does not currently own. Hinckley Range Pty Ltd is the holder of the Wingellina Nickel/Cobalt Project.
The consideration for the grant of the first right of refusal, which is for a period of 6 months, is $240,000 payable in monthly instalments over a five month period.
NEW ZEALAND - PEP38719, Taranaki Basin, Bligh Interest: 5.00%
Bligh reports that the Rimu A-3 is at a depth of 3900m. The current operation is fishing stuck drilling tools, prior to drilling ahead to evaluate the lower Tariki section.
Centamin Egypt Limited announced the results of assays from the new high grade zone, intersected by Hole SDDH169 in the footwall of the main AMUN Zone orebody at the Sukari Gold Project in Egypt.
This new high grade zone is significant in that after a review of all holes drilled to date, it shows that all previous holes have stopped in the footwall short of the new zone. Drilling is now focussed on testing the continuity of this zone, both north and south. The close spaced drilling (25m) over the 600m long AMUN main zone has proven up consistency and continuity of the mineralisation. It is expected that this new zone will behave in a similar fashion and will extend all along the footwall of the AMUN main zone.
Woodside Petroleum Ltd, Operator of the Mauritania, Area B Joint Venture, reports that the Chinguetti-1 exploration well, located offshore Mauritania, was spudded on 8 April 2001. The well is currently drilling in a 26 inch hole at a depth of 1309 metres.
GRANT OF MINING LEASE
TWIN HILLS SILVER DEPOSIT, TEXAS, QUEENSLAND
Macmin Ltd has been advised by the Department of Natural Resources and Mines that Mining Lease 50161 was approved and subsequently granted by the Governor in Council on 5 April 2001.
The lease covers 399.7 hectares of freehold land over the Twin Hills silver deposit in southeast Queensland. The term of the lease is 15 years.
As announced on 23 March 2001, negotiations are advancing with BankWest for financing of the construction component of the mine development. A recently completed Feasibility Study outlined a staged development of the reserves and resources. Mining will be via an open pit with agglomerated heap leach and dump leach techniques being used to extract the silver and gold from the ore.
The granting of the lease signals a significant milestone in the evolution of the company as it moves toward becoming a silver producer.
Beach announced encouraging gas shows from the Croft-1 well in the Victorian section of the Otway Basin.
The exploration wildcat well Croft-1 has intersected good gas shows in the Cretaceous Waarre Sandstone over the interval 2,014m to 2,114m.
The Croft-1 well is located approximately 7km to the south of the recent McIntee-1 gas discovery.
The Chinguetti-1 well will test the prospect now named Khede (formerly referred to as Lead 1). This consists of stacked Tertiary sandstone targets draped over a salt diapir in a water depth of 791 metres. The primary target is interpreted at an approximate depth of 2,365 to 2,500 metres. Proposed total depth (TD) is 2,620 metres.
Note: All reported depths (except water depth) are referenced to the rig rotary table.
Progress 72 hours): Complete setting anchors. Drilling of 12(1/4) inch (311mm) pilot hole commenced on 6 April 2001. Pilot hole drilled to 1,460 metres without incident. Moved rig approx 70 metres to primary well location. Spud Chinguetti-1 well on 8 April 2001. Drill 36 inch (914mm) hole to 886 metres.
Current Operation:
(1400 hours WST 8 April 2001) Pulling out of hole to run and cement 30 inch (762mm) casing.
Geology & Hydrocarbon Shows: No geological data to be reported due to joint venture confidentiality. Hydrocarbon shows will only be reported after wireline logs have been run and evaluated for that hole size section.
Forward Programme: Run and cement 30 inch(762mm) casing at approx 886 metres. Drill 26 inch (660mm) to approx 1,455 metres, run and cement 20 inch (508mm) casing.
The latest update of the company's coalbed methane (CBM) drilling operations in Queensland and NSW.
ATP564P, BOWEN BASIN, QUEENSLAND
The "Mungi # 1" CBM production test well was spudded on April 6th. The well is situated in the southern portion of ATP564P in Queensland's Bowen Basin.
The "Mungi # 1" well is being drilled within 2km of the existing Gladstone gas pipeline.
Molopo is earning a 50% interest in Authority to Prospect 564P, with an option to earn a 50% interest in the undeveloped northern portion of the adjoining Production Lease 94.
PEL426, CLARENCE MORETON BASIN, NORTHERN NSW
The "Molopo Tullymorgan 1" CBM exploration core hole, was spudded on April 8th and should reach target depth of 1,050 metres in approximately 4 weeks. The well is located near Grafton in northern NSW.
This hole is targeting CBM in the Walloon Coal Measures and conventional gas in the quartz sandstones of the underlying Koukandowie Formation. Molopo is earning a 61.82% participating interest in PEL 426 and the adjoining PEL 13 by funding its pro-rata 61.82% share of the fully cored hole.
Commencement of drilling of Pancontinentals 38.22% Waingaromia 2 exploration well has been delayed to late April/early May from the planned spud date of late March/early April. The operator of the joint venture, Indo-Pacific Energy (NZ) Limited has advised that the unseasonal rains in the region has delayed site preparation and road access works.
The Kyle Oil Field, located in Block 29/2c in the UK North Sea, commenced production at 2.30am on Saturday 7 April 2001 (UK time). Production is expected to stabilise at a rate in excess of 16,000 BOPD (net ROC: >2,000 BOPD). The oil is being processed, together with oil production from the Curlew Field, by the Maersk Curlew Floating Production Storage and Off-loading (FSPO) facility which is located approximately 18 km to the south of Kyle. Gas will be transported through the SEGAL system. Initial Kyle production is from two wells and the Joint Venture plans to drill a further one or two wells during the balance of 2001.
BHP has completed the processing of the data from the Falcon Airborne Gravity ("Falcon") survey flown over Thundelarra's Phillips Range diamond project in the Central Kimberley of Western Australia. The survey covered approximately 144 square kilometres of the 925 square kilometre project area.
The Falcon data was integrated with all other geophysical datasets and in the order of 50 anomalies have been identified for ground verification. Confirmed high priority targets will be drill tested. One of these occurs in the vicinity of the unexplained Taurus indicator anomaly, an area covered by 5-10 metres of transported sands and stream deposits.
The Falcon survey has clearly defined both the Aries Kimberlite and the A4 kimberlite discovered by Thundelarra during the 2000 field season and highlights the real possibility that a "cluster" of diamondiferous kimberlite pipes may be present.
BHP has advised Thundelarra that they are currently designing an exploration program and that exploration activities will begin towards the end of April 2001 and drilling of the priority anomalies is scheduled to commence during May, weather and access permitting.
Activity Up-date
USA
Icon announces that the deep drilling rig contracted from Grey Wolf, Louisiana will move onto the Victory Financial # 1 location the week beginning 23rd April, 2001. This has been brought forward several weeks and the shallow drilling due to commence in April will be delayed a few weeks. The drilling operation is so complex that it is difficult to start both programmes simultaneously. The Victory Financial # 1 location preparation is well advanced and will be completed in time for the rig arrival. A further announcement will be made when the rig is released from the well presently being drilled for another operator.
AUSTRALIA
In Queensland, Argyle # 4 has been completed as a gas producer in ATP 620P. This is the last of the five wells drilled in the area which have proven the presence of gas in all wells. An evaluation programme and feasibility study is now under way. The rig commenced drilling Berwyndale # 1 in ATP 632P where Icon holds a 50% working interest in the permit with Queensland Gas Company. QGC will operate the drilling programme under the farmout agreement with Icon, wherein QGC will drill the first of two wells in the permit to earn a 50% working interest at no cost to Icon.
Berwyndale #1 is located approximately 16 kilometres northwest of Argyle #1 and 17 kilometres southwest of the township of Miles.
Interests in this well are:-
| Icon Energy Limited | 50.0% |
| Queensland Gas Company Limited | 50.0% (Operator) |
BHP announced that it was the high bidder on 12 blocks in the Outer Continental Shelf Central Gulf of Mexico Lease Sale 178. The sale was held by the Minerals Management Service (MMS), a bureau of the US Department of the Interior, on 28 March 2001.
Completion of the sale is expected in the next 90 days pending bid review and approval by the MMS. At the close of the auction BHP submitted winning bids valued at approximately US$6.1 million, or nearly US$512,000 per block.
When the sale is finalised, the Company will purchase a 100 per cent working interest in Green Canyon Blocks 554, 555, 567, 568, 600, 665, 666, 752, 753, and 797, where water depths range from 3,887 feet to 5,311 feet.
Additional, excellent gold and silver assays have been received from the company's ongoing gold development program in South Korea. The exploration team has been successful in outlining a low-sulphidation, epithermal vein system with a cumulative strike length of at least 3.2 kilometres that remains open along strike. Reconnaissance drilling has encountered strong gold and silver intercepts up to 200 metres below the surface, indicating that excellent potential exists to project high-grade mineralization to at least this depth. An aggressive drilling and trenching program is underway to expand the discovery along strike and down-dip, and to begin infill drilling to define a resource in the more strongly mineralized zones of the system.
1. APPRAISAL DRILLING
1.1 UK ONSHORE: ESKDALE-13: (ROC: 5% FREE CARRIED)
As of 5 April 2001, (UK time), the Eskdale-13 appraisal well in PEDL 002 was at a revised total depth of 2056 metres. 4(1/2) inch casing liner has been run with the intention of testing the Kirkham Abbey Limestone.
1.2 UK NORTH SEA: CHESTNUT OIL FIELD (ROC: 14.875% CARRIED)
As of 5 April 2001, (UK time), the Chestnut Field appraisal well, 22/2A-11 (sidetrack), in UK North Sea licence P 354, had reached a depth of 2970 meters and again encountered Nauchlan reservoir sand. Forward programme is to run and cement a 9(5/8) inch casing liner at the current depth prior to drilling on into the reservoir.
2. DEVELOPMENT
2.1 UK NORTH SEA: KYLE OIL FIELD (ROC: 12.5%)
Final preparations are continuing for the start of full-scale oil production from the Kyle Field via the Curlew Field's floating production facilities. There have been minor schedule delays, primarily related to weather, and first oil is now expected to flow in the next few days.
3. SEISMIC
3.1 EQUATORIAL GUINEA: RIO MUNI BASIN (ROC: 80% AND TECHNICAL PARTNER)
The 100% ROC-funded, 1380 sq km, 3D seismic survey in Blocks H15 and H16 in the deep water offshore Equatorial Guinea was completed on 30 March.
Victoria Petroleum NL has been advised by Tri-Star Energy Co, the Operator for the ATP 333P Joint Venture, that the Nyanda-2 exploration well is currently drilling ahead at a depth of 129 metres.
The company's joint venture partner has withdrawn from any further participation in the exploration Joint Venture E53/354 and continues to manage and fund exploration on E53/355.
Bendigo Mining plans to commence gold production in the fourth quarter next year. The Stage One rate of production is expected to be 250,000 tonnes per annum to produce 90-100,000 ounces gold annually. Bendigo plans subsequently to ramp up production in two further stages to reach an annual production rate of 1.2 million tonnes per annum to be producing 400-500,000 ounces gold annually by 2007.
Bendigo plans to source Stage One production from reefs within the immediate vicinity of the Swan Decline on the Sheepshead and Deborah anticlines. Exploration drilling of these anticlines from the decline has so far located eight reefs in four ribbons beneath historic workings. Drilling in seven of the reefs continues to return grade and width data regarded as indicative of the historic grades on the Sheepshead and Deborah, which produced 650,000 ounces at a recovered grade of 13g/t.
At 6 am on 5 April 2001, Anggur Utara-1 in the Sampang PSC, offshore East Java Indonesia, was at a depth of 550 metres and running intermediate wire line logs.
Participants in the Sampang PSC are:
Santos (Sampang) Pty Ltd 45%(Operator) Coastal Indonesia Sampang Ltd40% Cue Sampang Pty Ltd 15%
Billiton Exploration Australia Pty Ltd has exercised its right to fund further drilling at the Mount Gunson Copper Project by initiating the Mount Gunson Joint Venture, effective from 9 April 2001.
A new phase of drilling for Olympic Dam-style mineralisation along the promising 10 kilometre Elaine Zone geophysical anomaly is scheduled to commence shortly after Easter.
Exploration core holes "Lilyvale 1" and "Oak Park 1", located in the northern section of ATP564P, have been drilled to target depth. Gas content determination and permeability analysis is currently being undertaken.
Exploration core hole "Lilyvale 3" is expected to spud within the next 7 days.
The two production test holes at Mungi and Harcourt in the southern section of ATP564P, located near PL94 where Molopo's farm-in partner, Oil Company of Australia Limited has already established a commercial coalbed methane ("CBM") operation, are expected to spud later in April 2001.
Molopo is earning a 50% interest in Authority to Prospect 564P. with an option to earn a 50% interest in the undeveloped northern portion of the adjoining Production Lease 94.
PacMin announced significant drilling results on its Wilson Creek Joint Venture tenements located approximately 50 kilometres north of PacMin's Tarmoola gold mine near Leonora in Western Australia.
The Wilson Creek Joint Venture is between PacMin and the Wildara Joint Venture partners, LionOre Mining International Limited (60%) and Dalrymple Resources NL (40%). The Wildara Joint Venture partners are presently earning a 51% interest in the Wilson Creek Joint Venture tenements, and the new results form part of the earn-in regional exploration program along the Thunderbox trend approximately seven kilometres south of the Thunderbox gold deposit.
Reconnaissance rotary air blast ("RAB") drilling has been completed on traverses up to 1,200 metres apart with significant gold mineralisation intersections realised in three consecutive drill holes, each 80 metres apart.
The mineralisation is located in the oxide zone spanning an on-line width of 160-200 metres. All three holes ended in oxide mineralisation, before blade refusal, so it is not possible at this stage to estimate true widths and configuration of the mineralised zone. Further drilling is planned to the north and south to follow up on the intersections and to establish the size and significance of the mineralised zone.
Victoria Petroleum NL has been advised by Tri-Star Energy Co, the Operator for the ATP 333P Joint Venture, that the Nyanda-2 exploration well spudded on 3rd April, 2001 and is currently at a depth of 12 metres. Surface casing has been set and BOP's are being installed prior to drilling ahead.
Nyanda-2 is located on the southern flank of the Reids Dome anticline, south of the Reids Dome-1 gas discovery well.
The Reids Dome anticline is considered to have the potential to contain up to 300 BCF of gas.
QUEENSLAND GAS COMPANY’S LAWTON NO. 1 WELL SPUDS
The Directors of Queensland Gas Company Limited (QGC) are pleased to announce that the company’s eleventh well, Lawton No. 1 spudded at 0915 hours on Friday 30 March 2001.
The well is located approximately 15 kilometres south of the township of Wandoan in the Surat Basin in Queensland, and approximately 85 kilometres northwest of QGC’s Argyle field.
Lawton No. 1 is programmed to a total depth of approximately 375 metres and is located within Authority to Prospect for Petroleum No. 695P. This well is the second of a two well program to earn QGC a 60% interest in the Walloon Coal Measures in the overlapping Petroleum Lease application 171. At 1700 hours on 4 April 2001 the well had set 6 5/8" casing at 129 metres and was preparing to drill 6" hole.
Interests in the Walloon Coal Measures in PLA 171 when QGC earns its 60% will be:
| Queensland Gas Company Limited | = | 60% |
| Roma Petroleum NL | = | 32% |
| Victoria Petroleum NL | = | 8% |
Progress Drilling Rep for Chinguetti-1 Offshore Mauritania
The Scarabeo-7 semi-submersible drilling rig arrived at the Chinguetti-1 well location on 3 April 2001 and is currently setting anchors.
When the rig has completed setting anchors it will commence drilling the pilot hole at Chinguetti-1 expected to be on 6 April 2001.
Projected drilling time for the Chinguetti well (P50, most likely case) is 40 days.
Letter to Shareholders: Company Update
WE ARE AT AN EXCITING PHASE AND WILL LIFT OUR TEMPO IN COMING MONTHS BY:
Exploration for Platinum and Palladium – Hawkwood Project
Pan Australian is pleased to announce that it will commence exploration for platinum and palladium at its wholly owned Hawkwood Project in Southeast Queensland.
Previous channel sampling from a costean identified a 40 metre wide zone of mineralisation with the following peak interval:
In the light of recent increases in the price of both of these precious metals these initial results are outstanding representing 9 metres at 3.0 g/t and 4 metres at 4.0 g/t in gold equivalent terms.
The Company has commenced preparations for a channel sampling program to confirm the previous results and to gauge the extent of the anomaly.
The Hawkwood Project is located in the Mundubbera District of Southeast Queensland, 280 km northwest of Brisbane and 180 km west of Bundaberg (Figure 1).
The property is secured by a single exploration licence (EPM 10299) covering the whole 150 square kilometres of the Hawkwood Gabbro intrusive complex, one of the numerous precious metal bearing intrusions of the Triassic aged Rawbelle Batholith, which is part of the New England Fold Belt.
Exploration at Hawkwood, although originally acquired by Pan Australian in 1996 for its platinum group metal potential, has focused on the Project’s base metal potential through a joint venture with Rio Tinto and a recent review of the iron potential of the large magnetite deposits within the Project area.
The platinum and palladium mineralisation detected by the sampling of the original costean was not followed up.
During this period, the Company’s understanding of the regional and structural geology has substantially improved by the re-logging of drill core from a 1968 program conducted by the Queensland Department of Mines to evaluate the magnetite potential and re-evaluation of geophysical data.
This work defined the principal layering of the Hawkwood Gabbro and hence the potential strike and continuity of any platinum and palladium rich layers within the intrusion.
This month, Pan Australian will commence a detailed field sampling program to confirm the results from the earlier channel sample and then step-out trenching to gauge its strike and continuity before drill testing the true width, grade and attitude of the mineralisation at a shallow depth.
The present data-base on the strong magmatic layering within the Hawkwood Gabbro, its extensive anomalous platinum and palladium background geochemistry and the mineralisation intersected by costeaning, clearly indicate that the Project has the potential to host a platinum-palladium deposit.
Whilst Pan Australian remains focused on progressing the Feasibility Study at the Puthep Copper Project in Thailand and the evaluation of the projects within the Phu Bia Contract Area in Laos, the Company will continue to seek additional value from its Australian portfolio of projects.
Tsumkwe Diamond Project, Namibia
(The Company has earned 55% with the right to earn 75%)
The Company wishes to announce that it has recovered 9 chrome spinel (chromite) grains from a single grid loam sample number NN 375 in the Tsumkwe diamond project area.
Sample NN 375 is located in an area not previously sampled by the Company, south of 3 other kimberlitic garnet anomalies previously reported on. The grains were recovered from a 29.2 kg field loam sample which was subsequently processed by heavy liquid (TBE) at SGS Mineral Services in Springs, South Africa. The resultant mineral concentrate was then sorted and optically classified by Microsearch (Pty) Limited in Gaberone, Botswana.
In total 4 chromites were recovered from the +1.0 mm to -2.0 mm size fraction and 5 chromites with 3 pyrope garnets were recovered from the +0.425 mm to -1.0 mm size fraction in sample NN 375. The composition of the chromite grains was further determined with the aid of the electron microprobe at the Council for Geosciences in Pretoria, South Africa.
As a result of this work the 9 chromite grains have been classified by Microsearch (Pty) Ltd as high magnesium type (>8wt%MgO), mantle-derived, euhedral to subhedral xenocrysts which fall in the range 0.35wt% to 0.52wt%Ti02 and 48wt% to 50.5wt%Cr203.
As there is no record of chromite having been discovered from previous exploration in this area, the discovery of these grains with 3 pyrope garnets in such a discrete location is seen by the Company as very encouraging in the search for kimberlites. Previous exploration by the Company has already discovered numerous kimberlitic garnets and one unabraded macrodiamond (recovered from the +1.0 m to -2.0 mm size fraction) from loam sampling in the project area.
Follow-up loam sampling (8 samples) and geological mapping has been undertaken in the vicinity of NN 375 to further determine the significance of the chromite grains.
Drilling which was scheduled to commence in March has been postponed due to the late onset of seasonal rain in northeast Namibia but is now expected to commence prior to Easter.
Australian Worldwide Exploration Limited advises on behalf of its a wholly owned subsidiary AWE (Argentina) Pty Limited that the Los Barreales-1 well in CNQ-16 in the Neuquen Basin, Argentina is drilling ahead to the primary objective
As at 2000 hrs on 3 April, the well was drilling ahead at 2351m, having set intermediate casing at 1812m. Hydrocarbon shows were observed in the secondary objective at 1900m and these will be evaluated when the well reaches total depth, proposed at 3400m.
The Los Barreales prospect has the potential to hold approximately 33 million barrels of recoverable oil-equivalent on an unrisked basis.
Drilling Activity & Project Status Report
NEW ZEALAND - PEP38719, TARANAKI BASIN, BLIGH INTEREST: 5.00%
Bligh Oil & Minerals NL reports that the Rimu A-3 has encountered hydrocarbon shows in the Upper Tariki sandstone at a total vertical depth of 3,551 metres. This is approximately 45 metres updip to the Upper Tariki zone in the Rimu-Al well. Full diameter cores have been cut over a 49 metre interval of the Upper Tariki Sandstone, which appears similar to the same, Upper Tariki section in the Rimu-A1 and Rimu-A2 wells. It is anticipated that the Rimu-A3 well will take another 30 days to be drilled to a total depth of 4,800 metres, as it is also targeting the Upper Rimu limestone, the Lower Tariki sandstone and the Lower Rimu limestone. Following the drilling of the Rimu-A3, the drilling rig will be moved to drill an exploration well on the Kauri prospect.
Extended production testing has begun from the Rimu discovery in New Zealand. Production began April 1, 2001 with an initial flow rate from the Rimu-B2 of 658 barrels of oil per day, 5.2 million cubic feet of gas per day and no water with a flowing tubing pressure of 2,459 pounds per square inch absolute on a 20/64-inch choke. It is anticipated that production rates will gradually be increased within several days but will be limited to 1,000 barrels of oil per day due to capacity constraints of the currently available production testing equipment. The Rimu-B1 well is also ready for production, and if additional test equipment becomes available, production levels will likely be increased. During this initial production period, the oil will be sold while the natural gas will be flared at the location.
Centamin announced that drilling on the AMUN zone at the Sukari Gold Project in Egypt has intersected a new high grade zone in the footwall of the main zone. The new high grade zone occurs in a 10m wide porphyry unit within the footwall tuffs and previous drilling did not reach this zone.
The geologists at Sukari have reported disseminated visible gold in drill core from hole No SDDH169. This hole intersected the main mineralised zone as part of the infill and upgrading programme, then continued on into the footwall. The length of the new mineralised intersection is approximately 7m (243m-250m).
Jubileeannounced the completion of a feasibility study on the development of the Cosmos Deeps underground nickel mine. This study has confirmed the viability of developing the Cosmos Deeps deposit via a decline from the western side of the Cosmos open pit. Jubilee is now proceeding with finalising an appropriate financing package.
The Cosmos Deeps Ore Reserve has been calculated as:
520,000 tonnes at 7.2% nickel (approximately 37,400 tonnes of contained nickel).
The study plans for annual throughput of 150,000 tonnes of ore, to produce 50,000 tonnes of concentrate containing 10,000 tonnes of nickel, for a period of at least 3.5 years.
Underground mine development will commence in late 2001 and will take approximately 22 months to complete. Ore production is scheduled to commence in August 2003, reaching full production in September 2003. This will enable a smooth transition from open pit ore to underground ore. The Cosmos open pit is currently scheduled to operate until July 2003, with ore treatment continuing until August 2003.
Kimberley Diamond Company plans to commission a $9.2 million, first-stage development of its newly acquired Ellendale Diamond Project in Western Australia in December after completing a pre-feasibility study which has indicated it will generate more than $56 million in revenue over a 15-month period.
The Stage One development will involve the establishment of a 750,000-tonne per annum processing plant adjacent to Ellendale Pipe 9 as the first step in a longer-term exploration and development campaign for the Ellendale Project - Australia's richest undeveloped diamond field.
The first stage will include exploration to identify the lamproitic source for the Terrace 5 diamonds on Kimberley's adjacent Blina Project. The subsequent Stages Two and Three, which at this stage extend until at least 2010, involve evaluation of broader surface enrichment zones at Ellendale, evaluation of the Blina alluvial deposits, exploration for new lamproite pipes and development and mining of the deeper primary resources of the Ellendale pipes.
The study concludes that this first-stage project will generate more than $56 million in revenue over its 15-month life, achieve payback of capital just six months after commissioning and yield $23.1 million in net cash flow after allowing for royalty payments, operating costs and repayment of capital.
WA-208-P
DELILAH-1
Woodside Petroleum Ltd, Operator of the WA-208-P Joint Venture, reports that the Delilah-1 exploration well located on the North West Shelf in the Dampier Sub-basin was plugged and abandoned at a depth of 2857 metres on 31 March 2001.
All reported depths are referenced to the rig rotary table.
Woodside's interest in Delilah-1 is 29.5%, Santos Offshore Pty Ltd 20.0%, Mobil Australia Resources Company Pty Limited 33.0%, Agip Australia Limited 12.5% and Mosaic Oil NL 5.0%.
MAURITANIA, AREA B
CHINGUETTI-1
Woodside Petroleum Ltd, Operator of the Mauritania, Area B Joint Venture, reports that the Chinguetti-1 exploration well, located off-shore Mauritania, is expected to be on location within the next 24 hours.
The Scarabeo 7 drill rig will drill the well and is now in Mauritanian waters. The well location is approximately 95 kilometres southwest of Nouakchott. Water depth at the location is 791 metres. Planned total depth is 2600 metres.
All reported depths (except water depth) are referenced to the rig rotary table.
Woodside's interest in Area B is 35%. Other participants are British Borneo International Limited (ENI/AGIP) (35%), Hardman Petroleum (Mauritania) Pty Ltd (18.6%), Fusion Oil and Gas NL (6.0%), Planet Oil (Mauritania) Limited (3.0%), Elixir Corporation Pty Ltd
WA-270-P
GREY RABBIT 1
Woodside Petroleum Ltd, Operator of the WA-270-P Joint Venture, reports that the Grey Rabbit-1 exploration well located in the Carnarvon Basin was spudded at 10:30 hrs WST on 1 April, 2001. The current operation is preparing to run 9 5/8 inch casing and the current depth is 1810 metres.
The Ocean General rig is drilling the well. The location is approximately 990 kilometres north of Karratha. Water depth at the location is 303 metres. Planned total depth for the well is 2512 metres.
All reported depths (except water depth) are referenced to the rig rotary table.
Woodside's interest in WA-270-P is 80%. The other participant is Mobil Australia Resources Company Pty Ltd (20%).
Exploration News - February 2001
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