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ANNUAL REPORT FOR ATP 683P
FROM MARCH 1, 2005 TO FEBRUARY 28, 2006
Arrow Energy NL
Arrow Energy NLACN 078 521 936
Level 13, 10 Eagle Street BRISBANE QLD 4000GPO Box 5262, BRISBANE QLD 4001
Telephone: 61-7-3105 3400 Facsimile: 61-7-3105 3401 Email: [email protected]
CONTENTS
1.0 INTRODUCTION 1
1.1 Location & infrastructure 1
1.2 Tenure history 1
1.3 Exploration concept 1
2.0 REGIONAL GEOLOGY 2
2.1 Paleozoic basement 2
2.2 Bowen Basin 3
2.3 Jurassic-Cretaceous basins 4
2.4 Surat Basin 5
2.5 Structure 7
3.0 PREVIOUS EXPLORATION 8
3.1 Philips Petroleum 11
3.2 Amalgamated Petroleum 12
3.3 Others 13
4.0 ARROW EXPLORATION 14
4.1 CSG exploration 14
4.2 Conventional prospectivity 15
FIGURES
1 Location & infrastructure
2 Tenure blocks
3 Regional structure
4 Geology
5 Wells
6 CSG prospectivity
7 Conventional prospectivity
TABLES
1 Surat & Bowen Basin stratigraphy
2 Walloons stratigraphy
3
1.0 INTRODUCTION
1.1 Location & Infrastructure
ATP 683P is located east of Brisbane is bounded by the towns of Oakey and Pittsworth to the east, Dalby to the north and Millmerran to the south as illustrated in Fig 1.
The eastern boundary of the ATP is a two hour drive west of Brisbane on the Warrego Highway, which is the main transport route from Brisbane into inland Queensland and the Northern Territory.
The permit is crossed by the highway and serviced by rail links. The Roma-Brisbane gas pipeline follows much of the length of the highway, and the Moonie oil pipeline extends to the south (Fig 1).
1.2 Tenure details
ATP 683P was granted as a competitive tender on March 1, 2000 to Arrow Energy NL (100%) for a period of 4 years, and has now been renewed for a further 4 year term ending 29 February 2008.
The permit originally comprised 112 blocks, and after periodic relinquishments required by the permit conditions, now comprises 43 blocks (Fig 2).
1.3 Exploration summary
The primary play in the permit is coal bed methane gas in the Jurassic aged Walloon Coal Measures. Other plays include conventional oil and gas potential in the Jurassic aged Precipice and Hutton sandstones.
Arrow acquired a regional/detailed seismic survey as part of its year 1 work program and drilled 2 CSG wells in Year 2. Further drilling to evaluate the CSG resource was carried out in Year 3 (7 wells), Year 4 (8 wells), and Year 5 (10 wells). In the current reporting year, Year 6 of the original term, intensive production drilling continued at Tipton, with a view to achieving gas sales by late 2006. However all drilling occurred within PL198, which having been granted is now reported separately.
No drilling took place within the reporting year, however a program of wells has been planned to investigate whether low gas values in Carn Brea-1 are typical of the eastern parts of the permit.
00"
LEYBURN 45'151°
00'
00"
Ⓧ
$
$
$DALBY
-27° 15' 00"
$ Main Trunk Roma-Brisbane HPHP Gas Pipeline
Ⓧ ACLAND
Ⓧ Ⓧ$ $ⓍⓍ$Ⓧ$Ⓧ$ $ Ⓧ
JONDARYAN
Ⓧ ⓍⓍ OAKEY
$ⓍⓍ
-27° 30' 00" PL 194
Ⓧ Ⓧ$Ⓧ
CECIL P$LAINSⓍ
$
$Ⓧ
Moonie Oil Pipeline
ⓍPITTSWORTH
-27° 45' 00"
$ $
MILLMERRANARROW ENERGY NL
Ⓧ
-28° 00' 00"
ATP 683P LOCATION &
INFRASTRUCTURE
$ Arrow CSG well
$ Petroleu
m well
151°
15'
00"
151°
30'
00"
Z:\arrow\683\MapInfo\ 24 April 2006 FIG 1
2678 2679 2680
2750 2751 2752 2753
-27° 15' 00"
2822 2823 2824 2825
2894 2895 2896 2897 2898
2966 2967 2968 2969 2970 2971
-27° 30' 00" PL 198
3038 3039 3040 3041 3042 3043
3110 3111 3112 3113 3114
3182 3183 3184 3185
-27° 45' 00"
3254 3255
3326 3327
ARROW ENERGY NL
-28° 00' 00"
3398 3399ATP 683P BLOCKS
0 5
KILOMETRES
10 15
Z:\arrow\683\MapInfo
24 April 2006
151°
00'
00"
151°
15'
00"
FIG 2
2.0 REGIONAL GEOLOGY
2.1 Paleozoic basement
South East Queensland consists of several fault bounded basement blocks and exotic terranes of late Paleozoic age, intruded by Permian and Triassic granitoid plutons and covered by Triassic to Jurassic and Tertiary intra-cratonic sedimentary basins (Fig 3). These rocks form part of the New England and Yarrol Orogens.
The present day New England Orogen extends for 1500 km from Newcastle to Bowen, and is bounded to the west by the Hunter-Mooki-Goondiwindi Fault System. This fault system is interrupted by the northeast striking Undulla Fault, and re- commences northwards as the Burunga Fault.
From the Cambrian Eastern Australia was an active plate margin, although the present tectonic pattern dates principally from the Devonian. During early Devonian to Carboniferous times the region was dominated by a westward dipping subduction zone with a forearc basin (Tamworth and Yarrol Belts) bounded to the west by a volcanic arc (Connor-Auburn Arch) and to the east by an accretionary wedge (Coffs Harbour, Beenleigh and South D’Aguilar Blocks).
These accretionary wedges are sub-parallel to the present coast line and aligned approximately north-south. The Beenleigh, D’Aguilar and Coffs harbour blocks consist of deformed and metamorphosed turbidite sequences and minor deep sea floor basalt and chert of late Paleozoic age.
Cessation of subduction at the end of the Carboniferous was followed by orogenic deformation and accretion of exotic terranes during the Permian and Triassic. From the Permian to mid Triassic Eastern Australia was part of a convergent plate margin system related to the coalescence of the constituent parts of Gondwana.
The Gympie block accreted to the Yarrol Orogen in mid Triassic times, accompanied by initiation of the Ipswich Basin. The process of orogeny and accretion was accompanied by significant strike slip displacement, possibly of the order of hundreds of kilometers in the Permian-Carboniferous, and tens of kilometers in the Triassic.
Subduction ceased in the Late Carboniferous and re-commenced in the east from the Permian to Triassic, with Mesozoic basin development forming in a back arc setting. Mesozoic basins are en-echelon in arrangement, and formed as depressions genetically related to the twisting of the New England Orogen into two coupled oroclines (Texas Orocline and Coffs Harbour Orocline).
To the east of the present day Moonie Fault Paleozoic basement is represented by the late Carboniferous Camboon Andesite and Kuttung Volcanics, known collectively as the Kuttung Formation. This is in turn underlain by the metamorphosed Devonian Timbury Hills Formation. To the east are found the Neranleigh-Fernvale Beds.
2
Bowen Basin
YARRAMANYARRAMAN
BLOCKBLOCK ESK
GYMPIEGYMPIE BLOCKBLOCK
NORTH
MARYBOROUGHMARYBOROUGH BASINBASIN
Surat
TROUGH
D'AGUILAD'AGUILARR NAMBOUR
BASIN
SuratBasin
'Kumbarilla
Ridge'
Horrane
TroughGatton
Arch
BLOCK
SOUTH D'AGUILAR
BLOCK
IPSWICH BASIN
ATP 683P
Basin
Swan Ck Anticline
Laidley Sub-basin
South
Moreton
Anticline
Logan
Sub-basin
Arrow Energy NL SEQ Regional Structure
Tertiary basin
Carboniferous
Permian
Pluton
Triassic
Great Artesian Basin
Bowen Basin0 10 20 30 40
TEXAS
BLOCKNEWNEW
ENGLANDENGLAND
BATHOLITHBATHOLITH
SILVERWOOD BLOCK
EMU CK BLOCK
Clarence
Moreton
Basin24 April 2006 Fig 3 KILOMETRES DRAKE
BLOCK
Trou
ghTa
room
These strata have been assumed to be the same age in Arrow stratigraphy (Table 1).
2.2 Bowen Basin (Permian-Triassic )
Tectonically Eastern Australia evolved orogenically from a subduction to cratonic environment by the late Triassic. The earliest rocks of the Bowen-Gunnedah-Sydney Basin (referred to here as the Bowen Basin) are early Permian volcaniclastic marine sediments deposited in an extensional phase in the Denison Trough, Taroom Trough, Gympie Basin and Esk Trough. Subsidence was rapid in fault bounded grabens and half grabens, although sediments may have deposited under relatively shallow conditions.
Early Permian extension was terminated by compression of a late Permian orogeny, followed by intrusion during Triassic extension and a shift to non marine (alluvial and lacustrine) conditions.
Passive thermal subsidence commenced in the mid Permian marked by a widespread marine transgression. Sediment supply from the now inactive volcanic eastern margin decreased, and sedimentation was dominantly clastic with some carbonates.
In the late Permian a belt of fold-thrust mountains developed on the eastern margin. This mountain belt moved progressively westwards, incorporating the older foreland basin. Sedimentation changed diachronously from uniform sheets of marine sediment to syntectonic detritus marked by slumps, debris and turbidity flow deposits representative of an unstable shelf environment.
From the late Permian to mid Triassic the Bowen Basin subsided as a foreland basin (Hunter-Bowen event), while intra-cratonic basins to the west (such as the Galilee Basin) also subsided. On the east margin a resurgent volcanic arc developed, with volcanic sediment deposited to the west and south in alluvial fans. Volcanogenic clastic deposits formed the Baralaba Coal Measures within the Taroom Trough, late Permian age equivalents of the Rangal Coal Measures and Bandanna Formation to the north.
The main locus of deposition was the axial north-south oriented Taroom Trough, and the Denison Trough to the north of the ramp-like Comet Ridge. The basin was asymmetric, with greater sediment thickness on the mountainous eastern overthrust margin within the Taroom Trough, thinning markedly to the west.
The eastern volcanic arc supplied the bulk of sediment to the Bowen Basin, although periodic uplift of cratonic rocks to the west provided influxes of quartzose sediments. Alluvial and lacustrine deposits of the Rewan, Clematis and Moolayember Formations deposited in the early to mid Triassic over a very wide area, and the Rewan and Moolayember sequences can be traced through the Cecil Plains
3
TOO
GO
OLA
WA
H
GR
OU
P
IPS
WIC
H
CO
AL
ME
AS
UR
ES
Ma Palyn. STAGE SURAT (BOWEN) BASIN CLARENCE-MORETON BASIN
-100
-110
APK6
APK5
Cenomanian
Albian
Denison Trough Roma Shelf Taroom Trough Eastern Surat/Esk Trough Tarong Basin Ipswich Basin NSW
-120
-130
-140
-150
-160
-170
-180
-190
-200
-210
APK4
APK3
APK2
APK1
APJ6
APJ5
APJ4
APJ3
APJ2
APJ1
APT5
Aptian
Barremian
Hauterivian
Valanginian
Berriasian
Tithonian
Kimmeridgian Oxfordian
Callovian
Bathonian
Bajocian
Aalenian
Toarcian
Pliensbachian
Sinemurian
Hettangian Rhaetian
Norian
Wallumbilla Formation
Bungil Formation
Mooga Sandstone
Orallo Formation
Gubberamunda Sandstone
Westbourne Formation Springbok Sandstone
Walloon Coal Measures
Hutton Sandstone
Westgrove Ironstone MemberEvergreen Shale
Boxvale Sand
Basal Evergreen Sandstone ('56-4 Sand')
Precipice Sandstone
Moonie '58-0' sandRaceview Fm equivalent
Grafton Formation
Kangaroo Ck Sandstone
Maclean Sst
Transitional unit
Koukandowie FormationHeifer Ck Sst
oolite marker
Gatton Sandstone MaMa Ck Sst
Calamia Member
Ripley Road Sandstone
Helidon Sand
AAAAbbbeeerrrrdddaaarrrreee///L/LLaaayyytttotoonnnsss
RRRRaaaannnnggggeee
CCCCooommgglllolomomeerrrraaatttetee
Blackstone Fm
-220
-230
APT4
APT3
Carnian
Ladinian Moolayember Formation Snake Ck Mudstone Neara Volcanics
Tarong Beds Tivoli Fm
Kholo sub Gp
-240 Anisian Clematis/Showgrounds Sandstone Bryden Fm - Esk Beds
-250
-260
APT2
APT1APP6
APP5
Olenekian Induan
Tartarian
Kazanian
Rewan Formation
Blackwater (Kianga, Bandanna Fm) Black Alley Shale Mantuan Productus Beds Peawaddy Fm Catherine/Early Storms Sst Ingelara Freitag Fm
Cabawin Fm 'Red Beds'
-270
-280
APP4
APP3
CapitanianWordian Roadian
Kungurian
Artinskian
Aldebaran Sandstone
Cattle Creek Fm
Back Ck Group
Buffel Formation
Cressbrook Ck - Northbrook Beds
-290
-300
-310
-320
-330
-340
-350
APP2
APP1
APC4
APC3
APC2
APC1
Sakmarian
Asselian
GzhelianKasimovian
Moscovian
Bashkirian
Serpukhovian
Visean
Tournaisian
Reids Dome Beds
Timbury Hills Formation
Camboon Volcanics
Kuttung Fm
(Buaraba Mst-Marumba Beds)
New England Orogen metasediments
CR
ETA
CEO
US
EA
RLY
CA
RB
ON
IFER
OU
SPE
RM
IAN
MID
DLE
TRIA
SSIC
JUR
ASS
ICM
IDD
LEM
ISS
ISS
IPP
IAN
PE
NN
SY
LVA
NIA
NE
AR
LYLA
TEE
AR
LYM
IDD
LELA
TELA
TEE
AR
LY
INJU
NE
C
RE
EK
G
RO
UP
MA
RB
UR
G S
UB
GR
OU
P
NY
MB
OID
A C
M
CH
ILLI
NG
HA
M
VO
LCA
NIC
S
Exo
n's
cycl
esC
ycle
1C
ycle
2C
ycle
4C
ycle
5C
ycle
6C
ycle
3
TABLE 1 STRATIGRAPHY
depression and as far east as the Esk Trough. Alluvial fan material within the Rewan Formation and quartzose sand sheets of the Clematis Group derived from uplift to the west.
Sediment flow was along a meridonial southward flowing drainage system which at times was swamped by a lake to form sealing units such as the Snake Creek Mudstone. Sediment flow was likely affected by eustatic changes, and at times supply outstripped the capacity of the basin and sediment flowed into the adjacent Galilee and Cooper Basins.
Towards the end of the Hunter-Bowen event in the mid to late Triassic, deformation was accompanied by westward thrusting and formation of high angle reverse faults by reactivation of earlier extensional faults. The resulting uplift brought about an end to deposition, although a late Triassic extension formed a number of small rift and half graben structures such as the Ipswich and Tarong Basins. Many of these basins contain significant coal seams interbedded with dominantly volcaniclastic rocks. They formed within mountainous terrain and often feature coarse alluvial and colluvial sediments.
The Cecil Plains Depression (also known as the Horrane Trough) is generally considered to belong to this last extensional phase. It could however on the basis of seismic interpretation be much older and possibly dates to the earliest extensional phase of the Bowen Basin. Similarities of age and lithology suggest the Cecil Plains Depression is likely to represent a downfaulted erosional remnant of the Bowen Basin proper rather than a geologically distinct structure.
2.3 Jurassic-Cretaceous Basins
Great Artesian Basin
A very large intra-cratonic basin complex known as the Great Artesian Basin developed over most of Eastern Australia from the latest Triassic/earliest Jurassic. The Basin formed by a process of passive thermal relaxation over a very large area, coincident with the opening of the Tasman/Coral Sea in the late Cretaceous.
The Great Artesian Basin comprises within Queensland the Surat and Eromanga Basins, and is syn-depositional with adjacent basins including the Mulgildie, Nambour, and Clarence-Moreton Basins. The divisions between basins are based in some cases on underlying structural features, such as the Nebine Ridge separating the Surat Basin from the Eromanga Basin to the west, and the Kumbarilla Ridge which has in recent years been said (on suspect grounds) to separate the Clarence- Moreton and Surat Basins. Basins such as the Nambour Basin and Mulgildie Basin are erosional remnants of a formerly continuous basin.
The entire basin complex represents a giant river and lake system that at one time drained to the east through the northern part of the Clarence-Moreton Basin, via a
4
choke point termed the ‘Toowoomba Strait’. The Strait was formerly a broad synclinal valley which breached the barrier of the elevated Texas Block to the south and the Yarraman Block to the north, before being filled by Miocene basalts and subsequently eroded to form the modern reversed topography.
A series of six fining upward cycles related to eustatic sea level change have been identified by past workers. Units form a thick layer cake stratigraphy that is only lightly deformed and can be traced over great distances across several basins. The earlier sequences are alluvial and lacustrine, although with the progressive inundation of Gondwana in the Cretaceous the rocks become marine in character.
2.4 Surat Basin
ATP 683P is situated within the Surat Basin, a large intracratonic sag structure which extends over 43,000 km2 through southern Queensland into NSW. It forms part of the Great Artesian Basin complex and unconformably overlies the Bowen Basin. The Surat Basin is flanked by the Nebine Ridge to the west and Toowoomba Strait to the east, and is stripped to the north where the Bowen Basin is exposed at surface. An axial syncline, the Mimosa Syncline contains the thickest sediments and appears to be at least in part syn-depositional. This syncline is superimposed on a deep seated crustal feature, the Taroom Trough.
The earliest sediments of the Surat Basin may be a late Triassic lacustrine phase equivalent to the Raceview Formation of the Clarence Moreton Basin. These sediments are significantly more deformed than the overlying Jurassic rocks, however they post-date recognised Bowen Basin sequences. It has been suggested that this unit could represent a separate eustatic cycle.
As occurred during deposition of the earlier Bowen Basin, periodic uplift of cratonic rocks to the west supplied quartzose sand sheets which formed reservoir rock units such as the Precipice, Hutton, and Boxvale Sandstones. However, the dominant sediment supply was from volcanic highlands to the east.
Cycle 1
The earliest accepted Surat Basin unit is the Precipice Sandstone, which dates from the latest Triassic/early Jurassic, and forms an extensive thick braided sand sheet. This is overlain by meander and swamp deposits of the Evergreen Formation, which together with the Precipice forms a single fining upwards eustatic cycle (Cycle 1). The Evergreen Shale often contains a basal sand unit and an intermediate sand member (Boxvale Sandstone) as well as an oolite horizon that can be correlated with a similar horizon in the age equivalent Marburg Formation in the adjacent Clarence Moreton Basin.
5
Cycle 2
Overlying Cycle 1 is the Hutton Sandstone which forms the basal section of cycle 2. The fining upwards meander/back swamp phase of Cycle 2 is represented by the mid-Jurassic Walloon Coal Measures (Table 2), which may be subdivided into an upper (Juandah) and lower (Taroom) coal sequence, separated by the erosive Tangalooma Sandstone.
The Taroom sequence contains often very thick seams up to 20m aggregate thickness, which have been further divided into 3 seams by some workers.
The Juandah sequence is divided up into the Argyle, Iona, Wambo, Macalister, and Kogan seams. Individual coal seams cannot be correlated with certainty for any distance, but seam packages can be traced over several tens or even hundreds of kilometers. Each seam represents a fining upwards cycle with a basal sand unit, and may incorporate smaller sub-cycles. This repetition of similar units can make correlation extremely difficult where a recognisable feature such as the Hutton or Tangalooma Sandstone is not logged within a bore.
The overall thickness of the Walloons is remarkably consistent, averaging 420-440 m thick, although individual seam packages can vary in thickness. To the south of Kogan the overlying Cretaceous Springbok Sandstone becomes erosive, progressively removing the Juandah seams. Generally complete sequences appear to exist within ATP 683P.
The Walloon coals were laid down in a highly seasonal polar climate, and are derived from higher plant material which deposited in back swamp environments in what appears to have been a giant meander system analogous to the modern River Ob in Siberia. The perhydrous nature of the coals and their structure and permeability has made them particularly suitable for gas formation and retention.
Cycle 3
The late Jurassic erosive Springbok Sandstone progressively removed the underlying Walloon sequence to the south. This forms the basal part of Cycle 3 and is overlain by labile sediments and minor coals of the Westbourne Formation.
Cycle 4-6
Cycle 4 comprises the late Jurassic to early Cretaceous Gubberamunda Sandstone, which formed in a braided to meander environment and is overlain by the fossil wood bearing Orallo Formation. The Orallo Formation contains thin high ash coals. Cycle5 is early Cretaceous in age and consists of the Mooga Sandstone and Bungil Formation. The upper parts of the cycle reflect marine transgression from the east. Cycle 6 is made up of the Wallumbilla Formation and reflects the regression of the Cretaceous sea with a sequence progressing from neritic to estaurine and fluvial.
6
MID
JU
RA
SSIC
CA
LLO
VIA
N -
BA
JOC
IAN
(AA
LEN
IAN
?) 1
61.2
-171
.8
Ma
EROMANGA BASIN SURAT BASIN(incl Cecil Plains)
CLARENCE MORETON BASIN
ADORI SANDSTONE
BIRKHEAD FORMATION
JUA
ND
AH
SE
QU
ENC
E
SPRINGBOK SANDSTONE
KOGAN SEAM
MACALISTER SEAM
KUMBARILLA BEDS GRAFTON FM
KANGAROO CK SST
MIAD SANDSTONE
WAMBO SEAM
IONA SEAM
ARGYLE SEAM
WAMBO SEAM
IONA SEAM
ARGYLE SEAM
TANGALOOMA SANDSTONE
A SEAM
B SEAM TAROOM SEAMC SEAM
TANGALOOMA SANDSTONE
A SEAM
B SEAM TAROOM SEAMC SEAM D SEAM
TAR
OO
M S
EQU
ENC
E
EUROMBAH SANDSTONE EUROMBAH SANDSTONE
UNDIFFERENTIATED
300-500m SECTION TRANSITIONAL TO
MARBURG FM(restricted to east of
Ipswich Fault?)
HUTTON SANDSTONE HUTTON SANDSTONE MARBURG (KOUKANDOWIE SST)
Table 2 WALLOON COAL MEASURES STRATIGRAPHY
Cycle 6 is the last sequence to be preserved and dates from the early Cretaceous. Compression with uplift and tilting of the Surat Basin to the south followed, with opening of the Tasman/Coral Sea commencing some 10 Ma later.
2.6 Structure
Structure within the tenement is controlled by a dominant series of parallel north- south trending structures, with a secondary northwest fabric. The principal fold is the north-south trending Cecil Plains Anticline. This structure lies on the uplifted side of the Horrane Trough, and is bounded to the east by the Horrane Fault. Downthrown sediments of the Horrane trough dip west in a half graben to a depth of approximately 2200 metres (estimated from AGSO regional seismic line 84-14).
North-south trending folds on the western uplifted block include the Kumbarilla Ridge and possible sub-parallel folds weakly visible in seismic but about which there is no borehole information. The Horrane Trough sediments appear to be folded by a structure sub-parallel to the Cecil Plains Anticline, indicating compression post-dates a rifting phase associated with half graben formation. Compression is possibly of Miocene age.
Integration of seismic and well stratigraphy suggests the Cecil Plains Anticline is flanked by a parallel or perhaps en echelon structure which dips to the south before reversing to dip to the north beyond the Tipton - Cecil Plains area. Intersection of this structure with a northwest trending fabric has generated culminations detected in seismic.
7
3.0 PREVIOUS EXPLORATION
A total of 7 petroleum wells were drilled by previous explorers within the area of the present permit (Fig 4). Results are described below.
Well name Year Permit CompanyCecil Plains-1 1964 ATP 71P Phillips
PetroleumCecil Plains West-1 1965 ATP 71P Phillips
PetroleumTipton-1 1965 ATP 71P Phillips
PetroleumMillmerran-1 1965 ATP 71P Phillips
PetroleumYarrala-1 1965 ATP 71P Phillips
PetroleumCecil Plains South-1 1966 ATP 71P Phillips
PetroleumHorrane-1 1970 ATP 159P Amalgamated
Petroleum
3.1 Phillips Sunray
During the oil search of the late 1950’s-early 1960’s Union Oil explored the area to the west of the Kumbarilla Ridge, while the Phillips Sunray consortium explored in the east, within the area now held under ATP 683P.
Union Oil had economic success with the 1961 discovery of the Moonie oil field, while Phillips Sunray drilled a number of wells all of which were commercial failures.
Based on single fold seismic shot over the western flank of the current permit a total of 6 wells were drilled between 1963 and 1965, all without encountering significant hydrocarbons.
The lack of success may be attributable in part to the single fold seismic of the day which generated spurious structures, and was described by later explorers as of ‘minimal interpretive use’. This is not entirely the case as much of the data clearly shows the Walloon coals, and can provide valid structural information, although TWT times are doubtful. The Broadwater Lead generated by re-interpretation of anaolg seismic was confirmed in Arrow’s 2000 vibroseis survey, and general structural data appears to be accurate.
8
"00 ' 04° 151
TWP
4A
PLAINVIEW 1
CECIL PLAINS WEST 1
KOGAN NORTH 25KOGAN NORTH 10
K
OGAN NORTH 13DAANDINE
5DAANDINE 3DAANDINE 17
DAANDINE 16
YARRALA 1
(DALBY) 20
BROADWATER 1
-27°20' 00"TIPTON WEST 4
LONG SWAMP 1
T
WP 8TIPTON 1
TIPTON WEST 1
TIPTON WEST 3CARN BREA 1
JONDARYAN 1
MEENAWARRA 2
MEENAWARRA1 CECIL PLAINS 1
HORRANE 1MOUNT HAYSTACK 1
CECIL PLAINS SOUTH 1
RIVER ROAD 1
-27°40' 00"
GLENBURNIE 1
NANGWAY 1STATION CREEK 1
MILLMERRAN 1
ZIG ZAG 1
BORA CREEK 1
-28°00' 00"ATP 683P
EXISTING CSG
& PETROLEUM WELLS
Z:\arrow\683\MapInfo 24 April 2006
151°
00' 0
0"
151°
20' 0
0"
FIG 4
3.1.1 Cecil Plains-1
depth Fm Rt T SP F Rwa Rw ºF Sw3780’ Evergreen 80 75 -20 0.15 36 2.2 2.5sp 118 >1003830’ ‘58-0’ sand 75 80 -15 0.18 25 3.0 4.7dst 118 >1004198’ Raceview 70 73 -30 0.14 41 1.7 1.3sp 122 874245’ Raceview 145 65 -20 0.07 162 0.9 >5.0sp 122 >100
This well was drilled on an Evergreen closure which came in low to prognosis. Arrow work indicates the well was not drilled on closure, and was sited to the east of the Horrane Fault.
A single DST of the Moonie ‘58-0’ sand was made 7’ below the top of the main porous interval, indicating it to be water saturated.
The SP trace for the well is unusually flat. A weak to moderate SP deflection accompanied by high resistivity in the Raceview/Aberdare equivalent unit at 4190’- 4250’ displays no porosity in the microlog. Coal partings are reported in the text but the sonic log does not show any coal. The formation is interpreted to be possibly gas bearing at 4200’, but water productive and tight.
This is the only well to be drilled in the Horrane half graben. It penetrated the Raceview/Aberdare unit, and terminated in Triassic rocks equivalent to the Moolayember and Rewan Formations. Regional seismic indicates about 600m of section remained to the graben floor, which may consist of Permian formation. If this is an upper Permian sequence it will have source potential.
3.1.2 Cecil Plains West-1
depth Fm Rt T SP F Rwa Rw ºF Sw1724’ Hutton 32 85 -20 0.22 17 1.9 3.0sp 100 >1001920’ Hutton 36 90 -20 0.26 12 3.0 2.9sp 102 982200’ Hutton 35 85 -20 0.22 17 2.1 2.8sp 107 >1002295’ Hutton 25 95 -20 0.30 9 2.8 2.8sp 107 1003100’ ‘58-0’ sand 50 80 -30 0.18 25 2.0 2.9dst 120 >100
This well was sited on a plunging anticline without apparent closure, the second western anticline interpreted by Arrow. Reservoir sands in the Evergreen and Precipice Formations were targeted.
Log analysis indicates all reservoir sands are water saturated. A DST of the Precipice Sandstone obtained a water rise, with no hydrocarbons.
9
3.1.3 Tipton-1
depth Fm Rt T SP F Rwa Rw ºF Sw2005’ Hutton 60 83 -15 0.20 20 3.0 3.8 103 >1002380’ Hutton 50 80 -15 0.18 25 2.0 3.6 109 >1002540’ Evergreen 48 65 -15 0.07 165 0.3 3.5 110 >1003248’ Evergreen 70 75 -15 0.15 36 1.9 2.6 120 >1003362’ ‘58-0’ sand 70 75 -30 0.15 36 1.9 2.6 123 >1003370’ ‘58-0’ sand 40 78 -37.5 0.17 28 1.4 2.6 123 >100
This well was drilled to test reservoir Evergreen and Precipice sands in a north trending anticlinal fold (the Cecil Plains Anticline), encountering significant gas associated with Walloon coals, and water saturated sands.
Log interpretation shows a number of sandy zones within the Hutton and Evergreen are water saturated, although there are gas kicks up to 1%. A gas kick at ~2900’ is associated with tight formation, with no porosity developed in the microlog.
The porous and permeable Moonie sand was encountered at 3360-3625’ (1024- 1105m). A DST was carried out over the interval 3307-3352’, and despite testing an apparently tight shale immediately overlying the ‘58-0’ sand still obtained a 600’ water rise. The Rw obtained from this test was used to calculate that the ‘58-0’ sand is water saturated. However the SP log shows Rw 1.1 in the ‘58-0’ sand giving water saturation of 75%. The water return was slightly gassy, analysed at 75.4% methane and 0.5% ethane.
This well seems on the basis of recent seismic not to have been drilled within closure. For a sealing rock to have produced a water rise under DST indicates water has entered the tool from the permeable unit 8’ below. Thus the Precipice here is likely to be water saturated.
3.1.4 Yarrala-1
depth Fm Rt T SP F Rwa Rw ºF Sw1600’ Hutton 27 90 -20 0.26 12 2.3 5.0sp 97 >1002545’ Evergreen 28 77 -42 0.16 32 0.9 2.8sp 110 >1002570’ ‘58-0’ sand 8 112 -15 0.42 5 1.6 >5.0sp 110 >1002580’ ‘58-0’ sand 17 77 -53 0.16 32 0.5 0.7sp 111 >1002600’ ‘58-0’ sand 13 78 -55 0.17 28 0.5 0.9dst 111 >1002800’ Raceview 45 89 -50 0.25 13 3.5 1.2dst 114 59
Yarrala-1 is unusual in that it seems to be the only well drilled on closure. Altogether 6 DST’s were run, the best result being gassy water rises in the Precipice and Raceview equivalent formation.
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Only the lower part of the Moonie ‘58-0’ equivalent sand was tested. A core was taken from this section, and a single sidewall collected from a basal shale beneath the sand unit but neither contained hydrocarbons.
A thin gas sand may be present between 2792’-2806’ (4.8m) in Aberdare/Raceview equivalent formation. The gamma and sonic logs suggest a clean sand with maximum porosity at 2800’.
A DST, which included the interval, gave a gassy water rise but no flow to surface. The DST curve is illegible so formation damage cannot be determined from the fiche. The base of the sand was cored from 2800’-2848’ and was described as a very coarse sand grading into shale.
Assuming the Raceview equivalent reservoir is in fact about 3m thick (as indicated by gamma) closure in the order of 4km2 exists at the Evergreen level.
3.1.5 Milmerran-1
depth Fm Rt T SP F Rwa Rw ºF Sw1245’ Hutton 25 92 -10 0.27 11 2.2 5.0sp 91 >1001315’ Hutton 13 100 0 0.33 7 1.7 >5sp 92 >1001380’ Hutton 37 85 -10 0.22 16 2.3 5.0sp 93 >1001490’ Hutton 43 72 -10 0.12 56 0.8 5.0sp 94 >1001785’ Evergreen 25 80 -15 0.18 25 1.0 3.8sp 98 >1001890’ Evergreen 55 65 -10 0.07 165 0.3 5.0sp 100 >1001900’ granite 100 58 -18 0.02 2025 0.05 3.0sp 100 >100
The primary target of this well was the updip pinchout of the Precipice Sandstone against the Texas High. The Precipice section was absent, with Evergreen Formation sitting directly on carboniferous basement, thus the well was drilled beyond the pinchout edge. A DST was conducted within the Hutton. There were no hydrocarbon shows.
This was a tight hole with no significant porosity developed in the microlog. Sands within the Hutton are tight and water logged, and well interpretation results suggest high shale contents.
3.1.6 Cecil Plains South-1
depth Fm Rt T SP F Rwa Rw ºF Sw1670’ Hutton 33 88 -20 0.24 14 2.4 >5sp 100 >1001770’ Hutton 40 90 -20 0.25 13 3.1 >5sp 101 >1002970’ Evergreen 50 83 -35 0.21 18 2.7 2.8dst 119 1002980’ ‘58-0’ sand 60 85 -38 0.22 17 3.6 2.8dst 119 893230’ Raceview 70 77 -30 0.16 31 2.3 4.0sp 123 >100
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This well collared on the flanks of a south plunging nose and is not within closure. The primary target was the southward updip pinchout of the Precipice Sandstone, which was present in Cecil Plains West-1 to the north but absent in Millmerran-1. The well encountered a full section (210’) of the Moonie sand.
Several porous zones in the Hutton lack resistivity or SP deflection indicating they are water logged with salty water, and were not tested.
The ‘58-0’ sand starts at 2969’ and is 206’ (62m) thick. Hydrocarbons may occur between 2974’-2986’ in a 3.6m sand bed between shale layers, but the section is predicted to be water productive. The top part of the unit was tested by a DST over the interval 2969-3034’ which produced mud and fresh water. Up to 0.2% methane occurred throughout the porous sand intercept, with higher values at bit change and core retrieval.
This well was not drilled on structure and encountered a full Precipice section. This suggests an updip pinchout edge lies between this well and Millmerran-1.
3.2 Amalgamated Petroleum
Amalgamated shot some experimental multifold seismic and drilled a well (Horrane No.1) in 1971 which was intended to test the reservoir and source rock potential of suspected Ipswich Coal Measure equivalents encountered in several wells (now thought to be Raceview Formation equivalents), but instead encountered volcanic basement.
Data compilation shows Horrane-1 was drilled on the upthrown side of the Cecil Plains Fault, and did not test the prospective half graben sediments.
3.2.1 Horrane-1
depth Fm Rt T SP F Rwa Rw ºF Sw2734’ Evergreen 25 76 -32 0.15 36 0.7 2.2sp 113 >100
Horrane-1 was drilled on an interpreted horst block. The well bottomed in basement volcanics (described as Triassic Neara Volcanics equivalents in the well completion report) rather than the hoped for Esk Trough sequence of the Clarence Moreton Basin.
A ragged negative deflection in the SP trace is coincident with small gas kick of 1- 1.5% methane in the Evergreen Shale. Interpretation suggests the zone is probably
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shaly and/or water saturated. There is no microlog; the gamma indicates sandstone with silt interbeds.
A full Precipice Sandstone section was encountered but no other significant zones were found, and no tests were made.
3.3 Other explorers
The Cecil Plains area was subsequently held by Queensland Petroleum, Sun Oil, Alpha Resources, Brisbane Petroleum, Stirling Resources and Anulka (for coal bed methane) but no further work on the ground was reported.
The Clarence-Moreton basin was subjected to a comprehensive study published by AGSO in 1996, which included shooting some deep seismic across the tender area to determine the sub-basin structure (O’Brien & Wells). The deep crustal focus of this seismic limited its use for interpreting the Mesozoic section but it does delineate the half graben structure of the Horrane Trough and its possibly coaly sediment package, allowing an estimate of depth.
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4.0 ARROW EXPLORATION
Arrow carried out a vibroseis seismic survey over the tenement in 2000, the results of which have previously been submitted. This work tended to confirm interpretation of the old analog seismic, and delineated existing and new leads.
The focus then shifted to CSG when it became apparent that the perhydrous nature of the Walloon Coals made them particularly suitable to host methane resources (Fig 5).
4.1 CSG exploration (Fig 6)
To date Arrow has drilled a total of 8 wells that remain within the present area of the permit, excluding those drilled within PL198 (note most wells do not penetrate an entire Walloon CM section):
Bore easting northing level asl
total depth
start date end date Net coal
Bora Creek-1 318604 6906569 439.6 253.0 19-Sep-01 27-Sep-01 7.8River Road-1 324924 6944112 361.3 363.0 20-Oct-01 24-Nov-01 21.4Carn Brea-1 334709 6964421 355.5 395.7 01-Aug-02 16-Aug-02 23.7Meenawarra-1 318740 6952676 371.7 416.7 23-Nov-02 07-Dec-02 17.6Glenburnie-1 317242 6933820 397.0 491.0 17-Dec-02 20-Jan-03 20.3Meenawarra-2 317449 6954596 361.0 425.0 08-Oct-03 18-Oct-03 21.6Meenawarra-3 319859 6954437 358.0 460.4 21-Oct-03 21-Jun-04 20.3Plainview-1 323644 6969572 345.8 432.6 28-Mar-04 15-May-04 18.54
Plotting of total coal thickness contours based on petroleum and CSG wells and to a lesser extent on coal and water bore records indicates that a southeast trending belt of maximum coal thickness extends into the permit from the west into the area of the Cecil Plains Depression, from which another belt of relatively thick coals extends to the southwest (Fig 3). The belts of coal have a distinct linearity and change direction at a right angle, suggesting fault control of drainages at the time of deposition.
Within the permit a fairway of coals situated between 200-500m below surface offers the optimal balance between gas content and drilling cost. Coals above 200m may be (but are not always) degassed. Coals below 500m may have higher gas contents but drilling costs rise sharply. Below a certain depth cleating development is impaired by increasing pressure and gas contents may reduce.
The Tipton field is being brought into production within PL198. This has tended to monopolise available rigs, with the result that exploration of remaining areas within ATP 683 has been delayed, including an additional pilot plant planned for Meenawarra.
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ATP 683P RELINQUISHMENT 1:250,000 PUBLISHED GEOLOGYTm Main Range Volcanics Jw Walloon Coal Measures Jbm Marburg FormationDCr Paleozoic basement
Z:\arrow\683\MapInfo24 April 2006 FIG 5
0 5 10 15 20
KILOMETRES
FIG 2
ARROW ENERGY NL ATP 683P
CSG PROSPECTIVITYNet aggregate coal thickness & base Walloons
depth below surface
Z:\arrow\683\MapInfo24 April 2006 FIG 6
YARRALA 1
-27°15' 00"
(DALBY) 20
-300
-200
0-100
-400
TIPTON
1
-600
-500
2.5-5m
ATP 746P-27°30' 00"
CECIL PLAINS 1
15-20m 10-15m 5-10m
CECIL PLAINS WEST 1HORRANE 1
25-30m20-25m
-27°45' 00"
STATION CREEK 1
>30m?
CECIL PLAINS SOUTH 1
MILLMERRAN 1
CSG fairway coals 200-500m below surface
CSG well
Petroleum well
30m+25-30m
20-25m15-20m10-15m5-10m2.5-5m
-28°00' 00"
FLOWED FREE GAS 84,000 CFD
0
151°
00' 0
0"
151°
15' 0
0"
4.2 Conventional prospectivity (Fig 7)
4.2.1 Trap
Analysis of old analog seismic and modern (2000) Arrow vibroseis data revealed a number of apparent 4 way dip closures at the Precipice Sandstone level, some of which require further seismic.
Two structures were tested or partially tested by earlier petroleum wells, with the reservoir typically water saturated and few indications of hydrocarbons (a gassy water rise in Yarralla-1 being the best show).
The updip pinchout edge of the Precipice Sandstone against the Texas High must lie between Cecil Plains South-1 and Millmerran-1. Drilling on the western edge of the Cecil Plains Anticline is the most favourable site for stratigraphic traps. Such traps are considerably more likely to have escaped the water flushing that is prevalent in this part of the basin.
4.2.2 Source
Seismic sections through the Horrane Trough show bright reflectors which may be Permian coal. These are presently up to 2200m deep, however as Vr shows marginal maturity within the known part of the section, hydrocarbon generation and expulsion may have taken place within the unexplored basal 600m of trough sediments.
4.2.3 Charge
As at Moonie, expelled hydrocarbons may have migrated along faults into the porous and permeable Precipice Sandstone, Boxvale Sandstone, or Hutton Sandstone reservoirs.
4.2.4 Seal
The Evergreen Shale seals the porous and permeable Precipice Sandstone, and appears to have a claystone base equivalent to the Calmia seal in the basal Marburg Sub-group of the Clarence Moreton Basin.
The Boxvale Sandstone is sealed intraformationally. The Hutton Sandstone is sealed by the Walloon Coal Measures, although there are sand units within the basal Eurombah section of the Walloons CM.
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TIPTON 1
YARRALA 1YARRALA LEAD
(DALBY) 20
-27 ° 1 5 ' 0 0 "
TIPTON LEAD
CECIL PLAINS SOUTH
1
CECIL PLAINS WEST
BROADWATER
1 5
1
° 0
0 '
0 0
"
1 5
1
° 1
5 '
0 0
"
GULLY LEAD
CARN BREA LEAD
CECIL PLAINS LEAD
2000 Arrow seismic
-28 ° 0 0 ' 0
0 "
top Hutton
(wells/analog
seismic)
top Hutton (analog sesimic only)
leads (2000 seismic)
pinchout play
A
T
P
6
8
3
P
CONVENTIONAL PROSPECTIVITY
Z:\arrow\683\MapInfo
24 April 2006
FIG 7
4.2.5 Reservoir
The principal reservoir is the Precipice Sandstone which is 80-90m thick over the Cecil Plains Depression, but pinches out on the flanks of highs to the north and south. These highs are likely to mirror paleo-relief. The Precipice Sandstone is likely to be absent wherever low hills of >100m relief exist. Its existence east of the Horrane Fault is known from Cecil Plains-1, and also the Beef City Bore near Toowoomba, so it can be presumed to underlie virtually all of the permit.
4.2.6 Arrow conventional exploration
The Broadwater Gully lead was tested in 2002 by Tipton West-1 (now in PL 198) to the Hutton Sandstone reservoir to look for a potential free gas accumulation. There was no gas reading on the detector so a DST was not run. The more prospective Precipice Sandstone reservoir at greater depth was not reached at the time, however the Grassdale Bore drilled by URS Australia in 2006 as part of feedlot development reached the Precipice Sandstone without encountering any indications of oil or gas.
Attempts to inspect the unwashed samples in storage with a UV lamp were unsuccessful; however one sample from the Boxvale Sandstone had a fleeting petroliferous odor. The wellsite geologist was aware of the location near a structural culmination but reported no signs of oil slicks or stains other than the usual contamination from lubricating materials.
The URS well is of interest because although drilled close to an existing petroleum well, a comprehensive suite of modern electrical logs was run. A 78m thick clean Precipice Sandstone sheet was encountered from 1023m depth, with a few minor interbeds of shale. The corresponding intercept in Tipton-1 was 1025m.
The Precipice reservoir becomes more resistive and has greater SP negative deflection towards the base of the bed. There seems to be a reasonable seal at the top of the section. Throughout the Precipice sand there is considerable separation of the short and long resistivity curves, the only section of the well where this is as prominent.
A sand identified as the Boxvale Sand was intersected at 915m, but is tight and dirty on the logs. A sand at 880m is an alternative pick, as it is slightly cleaner and has a small SP deflection indicating water content and therefore porosity.
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