22 May 2012drilling progress report▼ Bad
Backreef-1 test delayed again: rig downtime and a difficult cement plug, now drilled out, push the start to 24 May, from about 20 May.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
16 May 2012drilling progress report● Neutral
All regulator approvals for the Backreef-1 test are received. The rig is expected on site 17 May, with testing from about 20 May. The joint venture is shown as 80% Oil Basins and 20% Green Rock, subject to stakeholder approvals.
16 May 2012drilling progress report● Neutral
Green Rock re-lodges Oil Basins' 16 May Backreef-1 test update. No new information.
7 May 2012drilling scheduled▼ Bad
Backreef-1 test timetable: rig-up 15 May, testing 17–20 May, subject to approvals. Budget now about $1.8m, up from $900k, because two zones will be tested and camp costs rose. Dry results would lead to more seismic.
1 May 2012farm in farm out completion▲ GoodMajor
Green Rock exercised its option for 20% of the Backreef Area and Oil Basins has received $2.5m. This resolves the 30 April election: Oil Basins keeps 80% and funds the next work. It adds to the $1.1m option fee paid on 2 April.
1 May 2012farm in farm out completion▲ Good
Green Rock says it exercised its option and paid $2.5m for a 20% interest in the Backreef Area, via a share sale agreement for an Oil Basins subsidiary. Duplicates Oil Basins' own release of the same day.
26 Apr 2012drilling progress report▼ Bad
Road works to Backreef-1 hit difficult ground when a contractor's dozer bogged. Site works now finish the week of 4 May, pushing the production test to around the week of 15 May from the planned 1 May start, pending last stakeholder approvals.
16 Apr 2012drilling progress report● Neutral
Green Rock re-lodges Oil Basins' 13 April site preparation notice, noting its own funding commitments of at least $3.22m. No new information.
13 Apr 2012drilling progress report● Neutral
Test paperwork was lodged with stakeholders on 12 April. Site clearing starts the following week ahead of ADS Rig 2 arriving around 1 May, still subject to formal stakeholder approval. Continues the Backreef-1 production test preparations.
12 Apr 2012farm in farm out agreement▲ Good
Green Rock says it has firm commitments for at least $3.22m, enabling it to exercise the Backreef option by 30 April 2012. This supports the farm-in funding, though completion still depends on Green Rock paying by that date.
2 Apr 2012farm in farm out agreement▲ GoodMajor
Oil Basins signed a Heads of Agreement for Green Rock to farm into up to 20% of the Backreef Area for up to $3.6m, with a $1.1m non-refundable option payment. This is the first Backreef farm-in; Oil Basins would keep 80% and operatorship.
2 Apr 2012farm in farm out agreement▲ Good
Green Rock Energy announces its side of the Heads of Agreement with Oil Basins: an option to acquire up to 20% of the Backreef Area for up to $3.6m. Duplicates Oil Basins' own release of the same day.
16 Jan 2012resource reserve update● Neutral
Re-release of the RPS Backreef Area prospective resources work, now with slides. RPS's own log review finds 12.1m net pay in Backreef-1 versus Weatherford's 39.2m, an acknowledged ambiguity. Production test now planned for first half 2012.
23 Nov 2011resource reserve update▲ GoodMajor
Independent RPS review estimates the Backreef Area could hold 45.6-117 MMbbl undiscovered oil in place across eight leads, with a mean prospective resource of 20.6 MMbbl. Four leads could exceed Blina field. These are unrisked leads, not discoveries, and 2D seismic is sparse.
26 Oct 2011resource reserve update▲ GoodMajor
A scoping study suggests Cyrano could be developed through extended well tests for about US$30m risked capital, with breakeven in 12 months. The company says reserves might rise from about 1.5 MMbbl 2C to 2.0-4.0 MMbbl 2P. Subject to reservoir risk; no booking made.
18 Oct 2011drilling scheduled▼ BadMajor
The Backreef-1 production test is postponed to about late April 2012 because of early wet-season rains and delayed stakeholder consents. Farm-out talks were shelved after being ended in early October 2011. The second well is still due by 31 October 2012.
30 Aug 2011drilling scheduled▲ GoodMajor
Oil Basins plans a cased-hole production test of Backreef-1 around 21 October 2011, conditional on funding, a workover rig MOU and regulator approval. It says the new oil play may cover about 40-60 sq km but gives no resource estimate.
1 Apr 2011resource reserve update▲ GoodMajor
RPS Energy's independent evaluation lifts Cyrano oil in place (R3, 100% owned) to P50 10.13 MMbbl (P90 5.42, P10 18.19) from the earlier 4.36 MMbbl. The directors call it a major upgrade; recovery factors still need improving to matter.
29 Nov 2010resource reserve update▲ GoodMajor
Weatherford's log assessment of Backreef-1 estimates about 39.2m of possible net oil pay in the 915-965m zone, but only about 3.9m of risked unstimulated moveable oil. The company calls it a potential new oil play; no contingent resource is yet established, and testing is targeted for late Q2 2011.
23 Nov 2010farm in farm out completion▲ GoodMajor
Backreef-1 reached 1,500m by the deadline, so Oil Basins has earned its interest, and will issue 2 million shares to Backreef Oil to take its beneficial interest in the Backreef Area to 100%. This lifts the stake from the 90% earned earlier.
1 Nov 2010drilling result● NeutralMajor
Backreef-1 was deepened to 1,800m, then plugged back and cased and suspended at 1,155m. Logs suggested a possible 77m gross oil column (917-994m), but only three valid pressure tests were obtained in the zones of interest, so reservoir quality remained in doubt.
28 Oct 2010drilling progress report● Neutral
Backreef-1 reached a revised total depth of 1,800m on 27 October, as approved by the WA regulator, and electric logging began on 28 October. Results will be released once logs are analysed.
25 Oct 2010drilling progress report▲ GoodMajor
Backreef-1 reached 1,500m on 24 October, meeting the farm-in condition, so Oil Basins now earns 90% beneficial interest and operatorship (subject to consents). Patchy oil fluorescence was seen in the Lower Laurel and Yellow Drum Equivalent; to be assessed by logs. TD revised to 1,650m.
22 Oct 2010drilling progress report● Neutral
Backreef-1 drilled from 744m to 963m with the 8.5-inch bit, with formation tops running close to prediction. Drilling ahead toward the 1,500m farm-in deadline of 31 October. No new hydrocarbon result reported.
21 Oct 2010drilling progress report● Neutral
Blowout preventers were tested by 20 October and Backreef-1 resumed drilling with the 8.5-inch bit at 744m around 7:30am on 21 October. No new geological result.
18 Oct 2010drilling progress report● Neutral
About 250mm of rain cost 46 hours; casing was cemented at 742.7m on 18 October. Drilling is expected to resume around 20 October after blowout preventer and pressure testing.
14 Oct 2010drilling progress report▼ Bad
Backreef-1 was deepened to 741m to find a suitable casing point and is preparing to run casing. Heavy rain has damaged the access road and may delay operations.
12 Oct 2010drilling spud● NeutralMajor
Backreef-1 spudded at 2:30pm on 11 October and was at 204m by the next morning, drilling ahead in the Noonkanbah Formation. No coals were seen in the Liveringa Formation.
11 Oct 2010drilling scheduled● Neutral
DMP approved drilling on 8 October and Backreef-1 is due to spud on 12 October. Cost estimate has risen to about $2.9m dry hole ($3.3m success) from $1.9m, due to higher mobilisation and service costs. Target is Clanmeyer sands near 1,500m.
22 Sept 2010drilling scheduled▲ Good
Oil Basins signs the drilling contract with Hunt Energy for Rig 3, which is being mobilised from the Amadeus Basin. Backreef-1 is expected to spud around 6 October 2010, with about 10 days to reach 1,600m.