SGH Energy Pty Ltd seeks a farm-in partner for exploration permit WA-377-P, located in the Caswell Sub-basin, Browse Basin. The permit, which is operated by SGH with 100% interest, contains the Echuca Shoals gas discovery plus additional prospects. Equity in the permit is on offer in return for contributing towards drilling a commitment exploration well to a total well depth of ~4,000m TVDSS, in water depths of around 200 m. The first well is required by 22 September 2018.    Following a 12 month suspension and extension to allow for 3D seismic reprocessing, the permit is currently in permit year three of a five year term.Â  It is understood that the seismic reprocessing has further derisked the Schrodinger prospect through enhanced resolution, improved fault definition and reduced noise. Schrodinger is a stratigraphic trap targeting the Tithonian sands which were proven to contain gas by the Echuca Shoals-1 well drilled in 1983.Â  Schrodinger is estimated to contain 1.8 Tcf of gas in place. The permit also contains the Cooper Prospect which is estimated to contain 3 Tcf gas in place.     Background  SGH was granted a commitments change and validity extension on 13 December 2016 and again on 7 December 2017, which delays the commitment to drill an exploration well until 22 September 2018. The latest suspension facilitates SGH time to extend the work programme to include petrophysical studies and 100 sq km of seismic reprocessing and interpretation before moving towards drilling. The scheduled exploration well, which is forecasted to cost around AUD 20 million, could further appraise the Echuca Shoals gas field which was discovered in 1984, or target one of the two prospects identified. In December 2015, SGH reported that it was finalising drilling targets in preparation for drilling the first exploration well.  On 28 January 2010 the Western Australian Government approved the transfer of 34% interest from Shell Development (Australia) Pty Ltd to Nexus Energy, as it had opted to withdraw from the permit, leaving Nexus with 100% interest. Nexus announced that the potential gas in place at the Echuca Shoals field within the permit is approximately 2 Tcf, with studies indicating the presence of a potential further 2 Tcf of gas in place. 3D seismic was acquired over the north east of the permit. One exploration well is known to have been drilled over the permit since it was awarded in March 2006. Fossetmaker 1, drilled in August 2007, was P&A after it encountered gas shows.   Nexus Energy first offered equity in the permit in 2010 and the company has since been taken over by SGH on 31 December 2014.    WA-377-P covers an area of 334 sq km and is 100% owned by SGH Energy WA377P Pty Ltd (a Seven Group Holdings subsidiary company).
SGH Energy Pty Ltd seeks a farm-in partner for exploration permit WA-377-P, located in the Caswell Sub-basin, Browse Basin. The permit, which is operated by SGH with 100% interest, contains the Echuca Shoals gas discovery plus additional prospects. 