Whicher Range, Perth Basin, Western Australia
The Whicher Range Project is located in the South Perth basin of Western Australia. The field was discovered by Union Oil Company (“Unocal”) in 1968. To date, a total of five wells have been drilled on the Whicher Range Structure. We have correlated each of these wells and interpret the gas bearing intervals in each well to be in the same stratigraphic interval. These five penetrations provide control to extrapolate the existence of natural gas across this large geologic structure. The discovery well encountered 581 feet of net natural gas pay over 1,844 feet of gross interval and was drill stem tested at a combined rate of 5.5 million cubic feet of natural gas per day from six intervals. The natural gas discovery was in the Sue Coal Measures sand, a tight sandstone of Permian age. Due to the lack of a market for natural gas at the time the well was drilled, Unocal did not develop the discovery.
The petroleum exploration permit EP 408 was renewed for a new exploration term of five (5) years commencing on September 24, 2020. The EP 408 Permit now consists of six (6) graticular blocks (428 square kilometers or 105,761 acres). GeoPetro had previously agreed to sell and transfer its interest in EP 408 to an unrelated party on June 20, 2007 for cash consideration and a Petroleum Sales Royalty Payment equal to 25% of the future annual earnings before interest, taxes, depreciation and amortization from the property interest. Specifically, the agreement provides that the Company will be paid consideration for the sale and transfer of its property interest as follows:
- initial cash consideration of $175,000 was received on November 19, 2007;
- a second cash payment of $175,000 upon a successful flow test of petroleum from a well located on the property interest. A successful flow test is defined for purposes of this agreement to be a test of at least 7 million standard cubic feet of natural gas for a continuous and uninterrupted 24 hour period (or an equivalent oil/condensate rate based on a conversion ratio of 6000 cubic feet of gas to a barrel of oil or condensate); and
- a Petroleum Sales Royalty Payment equal to 25% of the future annual earnings before interest, taxes, depreciation and amortization from the property interests up to a total amount of $2,200,000.
CalEnergy Resources (Australia) Limited, is the sole operator of the exploration permit EP408 which contains the discovered and undeveloped Whicher Range gas field.
- The Whicher Range-1 and Whicher Range-4 wells were decommissioned in 2019.
- A Rehabilitation Environment Plan has been accepted by the epartment of Mines, Industry Regulation and Safety (DMIRS).
- The Rehabilitation Environment Plan provides for the re-establishment of forest vegetation at the well sites.