Exoma Confirms End of 2012 Field Programme

Exoma Energy has now completed the Galilee Joint Venture’s 2012 drilling program in Central Queensland.  The program was designed to appraise conventional oil, coal seam gas (CSG) and shale oil and gas potential within the Eromanga/Galilee Basin tenements, the company said. 

In particular, the exploration of the unconventional targets (the CSG and shale oil/gas), was designed as a regional program to collect geological and geochemical data to measure the distribution of the resources across very large areas.

Under the original program, Exoma was to drill between 12-14 wells. However, due to unexpected winter rain delays, number of wells was reduced to 12.

The 2012 conventional oil test, Katherine West-1, encountered oil shows, however the oil intervals were not producible.  “Additional conventional oil prospects identified in ATP 999P are presently being evaluated against the results of Katherine-1 and Katherine West-1 for discussion with our co-venturer, CNOOC, for possible inclusion in a 2013 drilling program,” Exoma said in a statement put on its website.

Unlike conventional oil and gas exploration which directly tests the resources, exploration for CSG and shale oil and gas requires extended laboratory testing of rock samples to measure the hydrocarbon content and other geotechnical characteristics that determine whether commercial production is likely to be achieved. 

With such large areas under permit, one of the many challenges faced by Exoma is to gather detailed geotechnical data from a number of diverse locations in order to determine whether the characteristics are uniform over a broad area or whether they vary significantly.

This data set progressively becomes available as tests are completed and Exoma expects to receive the final results in early 2013. Exoma will then be in a position to further consider the results of the 2012 program and will provide additional market updates as conclusions are drawn from these important studies. 

CNOOC is earning a 50% interest in the five permits that make up the Galilee joint venture by providing the first $50 million of joint venture expenditures.