Pilot Energy Ltd reported in June 2016 that it is seeking a partner to assist in the work programme for EP 416 and EP 480, located onshore in the Perth Basin. Pilot acquired 60% interest and operatorship in both exploration permits from Empire Oil & Gas in February 2016. Up to 35% interest could be available in return for financial support in upcoming geological and geotechnical studies along with the exploration drilling.    Pilot considers the gas potential across the two permits at over 750 Bcf from coalbed source rocks. Two structural crests within Permian aged formations have been identified. Three-way dip closure of the anticlinal structures has been calculated at between 130 and 240 sq km and fault bond to the west. An additional closure at the Triassic level has also been mapped. Spanning the two potential reservoir depths, the Leschenault Prospect was originally estimated to contain 290 Bcf within the Permian Sue Sand Group and 435 Bcf in the Triassic Lesueur Sands (prospective resources, best estimate recoverable). However, in January 2017, Pilot reported that reinterpretation of data indicates a larger structure. RISC has independently verified prospective resources up to 1.6 Tcf gas.    Pilot considers the structural closure of the prospects to be very positive and well defined with low entry costs and a local interest in gas supplies from the Alcoa alumina plant and several mine sites.     Pilot considers the main geological risk of the Leschenault Prospect is the cross-faulted seals. There is uncertainty as to whether the western bounding fault has sealing capacity. This risk shall be further assessed with a AUD 100,000 geochemical survey which was approved by the DMP on 30 November 2016 and commenced in Q2 2018. The survey will attempt to identify anomalies due to micro-seepage of the hydrocarbons from depth. The surface location of the fault will also be assessed to determine if gas seepage is occurring through the fault system.  Pilot reported in July 2018 that land access issues were delaying the geochemical survey over the conventional Leschenault prospect. It is perceived by Pilot that the Western Australia fracking ban announcement in September 2017 has impacted landowner collaboration. On 6 July 2018, both licences were suspended for a two-year period and extended by two years to allow for a resolution of the land access issues to complete the geochemical survey. It also defers exploration drilling by the same period.  On 3 March 2016 Pilot suspended EP 416 by three months, providing additional time to complete the interpretation of airborne geophysical survey data acquired during 2015. The suspension followed previous suspensions dating back to the commencement of the fifth term in 2010. The airborne survey in EP 416, comprising 1,233 km geophysical survey data, cost AUD 174,360 and replaced the commitment to drill the first planned well in the permit during 2016. The Geological Survey of Western Australia drilled the Harvey 1 well in 2012 to test the stratigraphy within the north of EP 416. The well was drilled to a depth of 2,945 m and was deemed a dry hole.   On 30 November 2016 Pilot altered the work commitments for EP 480.Â  The requirement to conduct a 50 km 2D seismic survey was removed which was previously scheduled for Term 2 between 2013 and 2017. The second term had been extended to allow additional time to farm-down its interest prior to the survey commitment. Pilot opted to keep the 1,938 sq km airborne geophysical survey which is estimated to cost AUD 273,995.   On 6 October 2016, Pilot successfully renewed EP 416 as the final condition of its farm-in deal with Empire Oil and Gas. With permit now renewed, all conditions of the deal were satisfied and Pilot paid Empire the final interest transfer instalment of AUD 150,000. Under the terms of the agreement, Pilot Energy earnt 60% interest in the permits and assumed operatorship, with Empire retaining a 40% interest. Pilot Energy agreed to pay Empire a sum of AUD 450,000 in three instalments, which was subject to several government approvals being obtained prior to 31 March 2016. Empire was to be free carried through the first two years of work commitment expenditure, with the exclusion of any field based operations. The companies entered into the farm out agreement on 1 September 2015.Â  Subsequently, Empire Oil and Gas went into voluntary administration in September 2017 and its interests in EP 416 were taken over in November 2017 by Mineral Resources Ltd.    EP 416 and EP 480 cover a total of approximately 1,600 sq km along the coastline for the south Perth Basin. Pilot Energy is seeking to farm-down its interest prior to committing to the forthcoming drilling programme in 20121/22 to test the Leschenault Prospect which is estimated to cost AUD 4.5 million. Participants in the permit are: Pilot Energy Ltd (60% interest + operator) and Mineral Resources Ltd (40% interest).     Parties interested in the opportunities should contact:  Conrad Todd, Director. Email: CTodd@PilotEnergy.com.au    Iain Smith, Managing Director. Email: ISmith@PilotEnergy.com.au
Pilot Energy Ltd reported in June 2016 that it is seeking a partner to assist in the work programme for EP 416 and EP 480, located onshore in the Perth Basin. Pilot acquired 60% interest and operatorship in both exploration permits from Empire Oil & Gas in February 2016. 