EPC 910 ‘Rathdowney’
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8th February 2010 Linc Energy Ltd Exploration Permit for Coal EPC 910 ‘Rathdowney’ Partial Relinquishment Report for the period ending 8th February 2010 Tenure Holder: Linc Energy Ltd Compiled by: Gregory Cochrane Submitted by: Linc Energy Ltd Date of report: 8th February 2010 Linc Energy Ltd 32 Edward St Brisbane QLD 4000 - GPO Box 1315 Brisbane QLD4001 Telephone: (07) 3229 0800 Facsimile: (07) 3229 6800 Email: [email protected] 8th February 2010 CONTENTS Statement of exploration philosophy & objectives 1 Introduction 2 Tenement Details ........................................................................................................... 2 Location and Access........................................................................................................ 2 Location and Access Relinquished Sub-Blocks 3 Climate, Topography and Land Use................................................................................ 3 Topography & Land Use Relinquished Sub-Blocks 3 Historic exploration ........................................................................................................ 4 Company Stratigraphic Drilling 4 Company Drilling For Petroleum 4 Company Drilling for Coal Seam Gas 5 Geology of the area 5 Work Completed 6 Program of activities statement 2009-2010................................................................... 6 Drilling and Exploration Program 2010-2011................................................................. 7 Exploration summary in Relinquished Area & Reason for Relinquishment ................... 7 RELINQUISHMENT OF SUB-BLOCKS 8 REHABILITATION DETAILS 8 Conclusion 8 References 10 Appendix Map A : EPC 910 ‘Rathdowney’ Location Map 11 Appendix Map B : EPC 910 ‘Rathdowney’ Partial Relinquishment Map 12 Appendix Map C: EPC 910 Historic Drilling Location & Topography Map 13 Linc Energy Ltd 32 Edward St Brisbane QLD 4000 - GPO Box 1315 Brisbane QLD4001 Telephone: (07) 3229 0800 Facsimile: (07) 3229 6800 Email: [email protected] 8 th February 2010 STATEMENT OF EXPLORATION PHILOSOPHY & OBJECTIVES Linc Energy Ltd is the holder of EPC 910, a tenement that was granted on 9th February 2005 and currently comprises 81 sub-blocks. EPC 910 is located approximately 40 km south of Ipswich, in the Clarence-Moreton Basin, approximately 1 hours drive from the city of Brisbane. The primary objective within EPC 910 is the understanding of the potential coal resource contained within the Ipswich Coal Measures and assessing its potential for underground coal gasification (UCG) and underground mining. Previous exploration has consisted mainly of the drilling of petroleum and coal seam gas wells, which whilst useful do not have sufficient coverage of the area to adequately define potential coal resources. Linc Energy’s planned exploration program will involve a wide spaced drilling investigation aimed at collaborating the historical drilling and evaluating the potential of any suitable coal resource for the UCG process and underground mining. EPC 910 Partial Relinquishment Report 2010 1 8th February 2010 INTRODUCTION Tenement Details Linc Energy Ltd is the holder of EPC 910. This tenement was granted on 9th February 2005 and originally comprised 160 sub-blocks. Previous relinquishment activities have reduced that number during this reporting period to 81 sub-blocks, the 2010 renewal relinquishment requires a further 50% (40) of the remaining sub- blocks to be relinquished by 8 th January 2010, leaving a tenement area of 41 sub- blocks. The relinquished sub-blocks are identified in red in Table 1, with the location of EPC 908 pre-relinquishment given in Appendix Map A and post-relinquishment in Appendix Map B . BIM BLOCK SUB-BLOCKS BRIS 3419 E, F, G , H, J, K, L, M , N, O, P, Q, R, S, T, U, V, W, X, Y, Z ARMI 35 A, B, C, D, E, F, G, H, J, K, L , M, N, O, P, R, S, T, U, W, X, Y, Z ARMI 107 A, B, C, D, E, F, G, H, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y, Z ARMI 179 A, B, C, D, F, G, H, J, L, M, N, O Table 1: Sub-Blocks of EPC 910 Rathdowney. N.B. Relinquished sub-blocks shown in red . Location and Access EPC 910 is located approximately 40 km south of Ipswich, in the Clarence- Moreton Basin of south east Queensland between the townships of Beaudesert and Boonah ( Appendix Map A). The Mount Lindesay Highways passes through the south of the tenement and allows quick access to Brisbane and the Gold Coast. The tenement is also bisected by State Railway services. EPC 910 Partial Relinquishment Report 2010 2 8th February 2010 EPC 910 is located within the Scenic Rim Regional Council, which was created following council amalgamation during March 2008. The Boonah Shire, Southern Beaudesert Shire and part of Ipswich City merged to create the new entity, covering more than 4250 sq kilometers with a population of approximately 35000 people. Beaudesert is the main regional centre with over 5000 residents (SRRC 2009). Location and Access Relinquished Sub-Blocks The relinquished sub-blocks comprise the western half of EPC 910 and are serviced by the Beaudesert-Boonah Road to the north and the Mount Lindesay Highway to the south. Climate, Topography and Land Use Long-term average annual rainfall trends are slightly above 900mm per year in the area around the EPC, with historical evidence showing heaviest rainfall generally occurring from November to March. Mean daily temperatures in Celsius, generally range within the low to mid-twenties, reflecting the sub-tropical nature of the region (BOM 2009). Topographic gradients within the tenement are highly variable. Much of the tenement is hilly with topographic highs of between 200 and 400 metres (ASL). Topographic lows of slightly below 100 metres occur within the southern section of the tenement. Much of the EPC area is used for agricultural pursuits which include cattle grazing and dairy farming. Native vegetation within the area is predominantly of the lush sub-tropical rainforest type. Topography & Land Use Relinquished Sub-Blocks Typical elevations within the relinquished area vary from ~63m ASL to ~351m ASL. The land use primarily is for purposes of agricultural pursuits which include cattle grazing and dairy farming. Most of the area is hilly and uncleared with a large degree of vegetation remaining, being a lush sub-tropical rainforest type. EPC 910 Partial Relinquishment Report 2010 3 8th February 2010 Historic exploration Historic information within the area (refer Appendix Map C), can be classified into 3 categories: 1. Company Stratigraphic Drilling. Total holes in tenure: 1 2. Company Drilling for Petroleum. Total holes in tenure: 2 3. Company Drilling for Coal Seam Gas: Total holes in tenure: 5 Company Stratigraphic Drilling 1 Company Stratigraphic drillhole has been drilled in the tenure. This was BHP BS001D, drilled in 1985. The hole was drilled to a Total Depth of 556.8 metres and reported 3 intersections that contained mainly dull coal with bright bands and coaly mudstone. Petrographic and coal quality analyses of BHP BS001D were conducted, on the three main coal intersections. This was done with the aim of evaluating the coking coal component of the samples. The analysis indicated that the coking coal fraction is a medium to high volatile, medium rank with possible medium coking properties. Company Drilling For Petroleum Two holes were drilled within the tenure for the purpose of determining the oil and gas potential of the area. In April, 1960 the Queensland American Oil Company drilled “The Overflow” No.1 to a depth of 912m and in February, 1982 Bridge Oil NL drilled Tamrookum Creek-1 to a depth of 1940m. “The Overflow” No.1, located in the north western portion of the tenure, intersected minor coal seams and stringers between 180 and 460 metres. Tamrookum Creek-1 which is located in the south eastern portion of the tenure, intersected coal seams and stringers at depths between 193 and 781m. Some of the seams, interpreted from geophysical logs, were of considerable thickness. EPC 910 Partial Relinquishment Report 2010 4 8th February 2010 Company Drilling for Coal Seam Gas A total of 5 wells were drilled in the tenure for the purpose of assessing the CSM potential of the area. Two wells were drilled in 1992 by Seamgas Enterprises Pty Ltd; Rathdowney-1 drilled to a depth of 534m and Rathdowney-2 to a depth of 822m. One well was drilled in early 1992 by Conoco Australia Pty Ltd; South Moreton-1 to a depth of 1052.5m. Two final wells were drilled in 2007 by Arrow Energy NL; Bush-1 to a depth of 634m and Mount Crumpet-1 to a depth of 476m. No other data is currently accessible for the 2 wells drilled by Arrow Energy. Rathdowney-1 and 2, are both located in the south east portion of the tenure in the vicinity of the Tamrookum Creek-1 well. Rathdowney-1 intersected no significant coal but did experience a gas show at a depth of 334 metres where a major fracture zone was intersected. Rathdowney-2 intersected a zone of interbedded coal and carbonaceous from 624 to 631 metres. A gas show was also intersected similar to that in Rathdowney-1. South Moreton-1 is located 2 kilometres west of Tamrookum Creek-1. Hand specimens recorded a net coal of 0.65 metres with the thickest seam being 0.17 metres. (Unknown 1996) GEOLOGY OF THE AREA The area is largely covered by a veneer of Middle to Early Jurassic Marburg Formation, which is the basal unit of the Jurassic sequence in this area. This unit is underlain by the Late Triassic Woogaroo subgroup, which in turn is underlain by the Ipswich Coal Measures, the target Formation in this area. The Ipswich Coal Measures lie within the Ipswich Basin and area that is still not entirely defined due to thickness of overlying cover. The Ipswich Basin is known to terminate to the west on EPC 910 at the West Ipswich Fault. The Ipswich Basin’s geology can be broadly divided into a lower volcanic sequence and an upper EPC 910 Partial Relinquishment Report 2010 5 8th February 2010 sedimentary sequence, which is the late Triassic Ipswich Coal Measures (Day et al.