A rig and other related equipments are being shipped to Tasmania this week for the drilling of Bellevue #1. Bellevue will be the first conventional petroleum exploration well at the Tasmanian oilfield to be drilled on a seismically defined structure. Empire Energy plans to complete this well before November 2008.
The drilling site at Bellevue is geologically and logistically advantaged and is at the overlap of three of the seismic lines that define the closure of the huge Bellevue Anticline. Empire Energy will spud in the Jurassic dolerite which provides a thick and effective regional seal. Under the dolerite, it is anticipated that eight potential reservoir formations will be intersected.
Mr Terence Kong Siu-tim, Executive Director of Genesis Energy, remarked: ¡§We are excited to learn that 150 meters of Early Permian Quamby Mudstone are expected beneath the Permian sands. The Quamby Formation contains the Tasmanite Oil Shale, which is the world standard for Type 1 kerogen and one of the richest oil source rocks in the world. It has been estimated that 14 identified structures on the license area of the Tasmanian oilfield may hold undiscovered prospective petroleum resources of between 535 million and 2.29 billion barrels.¡¨
Engineering planning is also currently ongoing for the next well, Thunderbolt #1, on a huge, independently verified, and seismically defined structure. With planning work almost complete, permission application will be submitted shortly.
The Tasmanian exploration license SEL 13/98 covers 15,410 square kilometers (3,807,894 acres) and most of the prospective parts of the Tasmania Basin on the Australian island state of Tasmania. Empire Energy has expended over AUD20 million on exploration onshore Tasmania and completed 1,350 kilometers of 2D seismic as well as substantial geochemistry and extensive gravity and magnetic surveys. Several stratigraphic wells have already been drilled.
Based on geochemical data, Australian government geologists estimated that the Tasmanite Oil Shale and the Quamby Formation at Tasmania Basin could generate 9.5 barrels per square meter or over 150 billion barrels of oil over the whole basin. Based on only 1% of this being recoverable, the Tasmanian oilfield still has a significant prospective resource of over 1 billion barrels.
Mr Kong said: ¡§Our negotiation with Empire Energy is progressing smoothly with due diligence scheduled to be completed in October. We look forward to commencing the joint operations which will enjoy the power of synergies of our respective expert teams, strong financial resources and extensive experiences in oil and gas across various markets.¡¨
Genesis Energy¡¦s participation in the oil and gas sector includes the operation of oil fields in Utah, the US, Shaanxi Province, and Inner Mongolia, the PRC. The company¡¦s joint venture negotiations with Empire Energy will represent its first investment in Australian oil and gas assets.
About Genesis Energy
Genesis Energy Holdings Limited (HKEx: 702) is an energy company with focus on oil and gas exploitation and operations. The Group is committed to building a diversified portfolio of oil and gas assets and operations with an aim to developing into one of the leading independent oil and gas businesses in Greater China. The Group currently operates oil and gas fields in the US and PRC.
About New Times
New Times Group Holdings Limited (HKEx: 166) is principally engaged in the business of property investment and development, oil and gas exploration and trading of zinc ore concentrate and zinc ingots. It intends to acquire about 60% interest of an oil and gas exploration license in Argentina.
About Empire Energy Issued by : Through :
Empire Energy is an international oil and gas exploration company, focusing on developing assets in one of the world¡¦s last virgin basins. The company is currently operating in Tasmania¡¦s central and northern basins.
Genesis Energy Holdings Limited
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