The Bonaparte Basin is a frontier basin in the north of the Northern Territory, with a proven hydrocarbon system. Several large gas fields have been discovered offshore (undeveloped Contingent Resources of 2.7 Tcf in Petrel, Tern and Frigate) and the producing Black Tip field (2P 933 Bcf) supplies gas to Darwin.
The Bonaparte Basin covers an area of ~270,000 km2, of which around 20,000 km2 is onshore. The basin is structurally complex and consists of a number of platform areas and sub-basins.
Onshore the Weaber Gas Field (RL-1, Advent Energy 100%) and surface bitumen seeps provide direct evidence of a working petroleum system in the Keep Inlet Sub-Basin.
Vintage has executed a Sale and Purchase Agreement with Beach Petroleum (NT) Pty Ltd, dated 31 July 2018, to acquire 100% equity in EP 126 for a nil cash consideration. Vintage will take responsibility to plug and abandon the Cullen-1 well which was drilled to a TD of 3,325 mKB during 2014, prior to any ultimate surrender of the permit.
EP 126 is a large permit with an area of 6,716 km2 and provides a project with exposure to greater risk, greater reward and complements the portfolio. There are multiple play types, with potential for large volumes of gas and oil. Cullen-1 was drilled in 2014 with both oil and gas shows and was cased and suspended to be available as an option to test. EP 126 represents a low cost entry with excellent exploration potential.
EP 126 is in the later stages of its first term with an expiry date of 14 December, 2019, thereafter a renewal into the second term will require a 50% relinquishment. This can be satisfied by surrendering the lesser prospective portions.
The NT Government has recently announced as part of lifting the moratorium on hydraulic fracturing, that it will be introducing legislation specifying (amongst other things) exclusion zones in which fracture stimulation will not be permitted. As the Company does not presently plan to undertake fracture stimulation on EP 126, the Company does not anticipate any significant impact on its operations in the near term.
Vintage looks forward to working with the Northern Territory Government, local industry and the local communities to progress this exciting frontier exploration opportunity.