Senex Energy Farms into Planet Gas Cooper Basin Play
Planet Gas Limited has entered into a farm-in agreement with Senex Energy Limited in respect to PELA 514, located in South Australia.
Under the agreement, Senex will earn a 50% interest in the Northern Area of PELA 514 and a 70% interest in the Southern Area.
Planet was the successful tenderer for South Australia gazetted block CO2009-C in 2009, now known as PELA 514. The Company has held preferred tenderer status since that time and has been progressing Native Title processes.
PELA 514 is located in the northern Cooper Basin in South Australia, close to existing oil and gas infrastructure. The permit area comprises seventeen sub-blocks which are on trend with the highly prospective western flank play.
Under the executed agreement, Senex is to farm-in to PELA 514 in two separate areas and will assume Operatorship of the permit.
PELA 514 Northern Area
The Northern Area of PELA 514 adjoins Senex permits PEL 100, PEL 110 and PEL 90. The permit area includes Birkhead time structures capable of hosting Birkhead channel oil plays such as those discovered at Growler and Snatcher. Oil discoveries in permits neighbouring PELA 514 also support the potential for hydrocarbons in the area. Under the Farm-in Agreement, Senex has agreed to fund 100% of the cost of two wells to earn a 50% interest in the Northern Area.
PELA 514 Southern Area
The Southern Area of PELA 514 is highly prospective for unconventional gas, containing measures of coal, tight sands and shales.
Significant thicknesses of coal in the Patchawarra and Toolachee formations have been recorded from wells drilled adjacent to, and within, the PELA 514 permit boundaries. The Murteree shales unit of the REM Shales is also present in this part of the Patchawarra Trough.
Senex has agreed to fund 100% of the cost of a third well to earn a 70% interest in the Southern Area.
Ian Halstead Planet's CEO commented: "The Senex farm-in to the highly prospective PELA 514 is an excellent first step into the Cooper Basin for Planet. Alignment with Senex, a well established neighbouring Operator, will ensure early commercialisation of any discoveries there, and represents an excellent opportunity for early value addition for Planet's shareholders. We look forward to working with Senex in the exploration of this licence."
Source: Planet Gas