ATP 644 Clarence Moreton Basin Partial Relinquishment Report For
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B.N.G. Pty Ltd ACN 081 690 691 ATP 644 Clarence Moreton Basin Partial Relinquishment Report for the Areas Relinquished 27 September 2007 Brad Pinder Senior Geologist BNG Pty Ltd ACN 078 521 936 Level 13, 10 Eagle Street, Brisbane QLD 4000, Australia GPO Box 5262, Brisbane QLD 4001, Australia Telephone: 61-7-3105 3400 Facsimile: 61-7-3105 3401 Email: [email protected] 1.0 SUMMARY ...................................................................................................... 1 2.1 Location & infrastructure .............................................................................. 2 2.2 Tenure history .............................................................................................. 2 3.0 REGIONAL GEOLOGY................................................................................... 5 3.1 Paleozoic basement..................................................................................... 5 3.2 Ipswich Basin (Triassic)................................................................................ 6 3.3 Clarence-Moreton Basin (Jurassic) ............................................................ 10 4.0 PERMIT GEOLOGY ...................................................................................... 13 4.1 Structure..................................................................................................... 13 5.0 HYDROCARBON PROSPECTIVITY............................................................. 14 5.1 Past petroleum drilling................................................................................ 14 5.2 Arrow drilling .............................................................................................. 14 6.0 REFERENCES .............................................................................................. 15 Figure 1: Infrastructure in and around ATP 644P .............................................................. 3 Figure 2: Graticuar Blocks...................................................................................................... 4 Figure 3: Regional Geology ................................................................................................... 5 Figure 4: Structural elements of the Clarence-Moreton Basin (after Pinder, 2001)...... 7 Figure 5: Ipswich Basin Stratigraphic Section (from Pinder, 2004)................................. 9 Figure 6: Clarence-Moreton and Surat Basin Stratigraphic Section ............................. 12 1.0 SUMMARY ATP 644P is bounded to the west by the Ipswich Fault, and straddles the South Moreton Anticline and Logan Syncline. The permit is entirely underlain by Ipswich Coal Measures. Within the far northern and western parts of the tenement these late Triassic sediments are sufficiently close to the surface to be prospective for Coal Seam Gas (CSG). Although high gas contents have previously been found in Arrow/BNG testing of the Ipswich Coal Measures in Swanbank-2, until recently subsequent work has concentrated on the potential of the Jurassic Walloon Coal Measures. Jurassic sediments are preserved within the Logan Syncline, with a maximum depth to the base of the sequence of under 1000m. Arrow has drilled CSG wells Swanbank-1, Swanbank- 2/2R, Mt Lindesay-1, -3, -4, &-5, Mt Crumpet-1, Bush-1 and Innisplain-1 within the permit. The relinquished blocks were considered the least prospective for CSG exploration due to depth, topography, coal quality, and proximity to urban areas. No field work has been carried out by Arrow over the relinquished ground. - 2 - 2.0 INTRODUCTION 2.1 Location & infrastructure The relinquished part of ATP 644P extends south from the suburbs of Ipswich to the town of Rathdowney. The main Roma-Brisbane gas pipeline and the Moonie oil pipeline lie close to the northern boundary of the permit. The Brisbane-Sydney rail line bisects the permit, and the sealed Mt Lindesay highway passes along the eastern boundary. A network of sealed and unsealed roads provides access to much of the permit area. 2.2 Tenure history ATP 644P originally comprising 49 blocks was granted to BNG Pty Ltd (100%) on 1 November 1999. The permit was subsequently renewed over an area of 26 blocks, and expired on the 31st of October 2007. A renewal application has been submitted for 13 blocks. This report deals with the 6 blocks relinquished at this time. BNG Pty Ltd is a wholly owned subsidiary of Arrow Energy NL, a company listed on the Australian Stock Exchange. - 3 - Figure 1: Infrastructure in and around ATP 644P - 4 - Figure 2: Graticuar Blocks - 5 - 3.0 REGIONAL GEOLOGY ATP 644P overlies the Ipswich and Clarence-Moreton Basins. The permit covers the northern extent of the South Moreton Anticline and Logan Sub-Basin (Figure 3). Figure 3: Regional Geology 3.1 Paleozoic basement Southeast Queensland consists of several fault bounded basement blocks and exotic terranes of late Paleozoic age, intruded by Permian and Triassic granitoid plutons and covered by Triassic to Jurassic and Tertiary intra-cratonic sedimentary basins (Figure 3). These rocks form part of the New England and Yarrol Orogens. The present day New England Orogen extends for 1500 km from Newcastle to Bowen, and is bounded to the west by the Hunter-Mooki-Goondiwindi-Burunga Fault System (known in Southeast Queensland as the Moonie Fault). From the Cambrian Eastern Australia was an active plate margin, although the present tectonic pattern dates principally from the Devonian. During early Devonian to Carboniferous times the region was dominated by a westward dipping subduction zone with a forearc basin (Tamworth and Yarrol Belts) bounded to the west by a volcanic arc (Connor-Auburn Arch) and to the east by an accretionary wedge (Coffs Harbour, Beenleigh and South D’Aguilar Blocks). - 6 - These accretionary wedges are sub-parallel to the present coast line and aligned approximately north-south. The Beenleigh, D’Aguilar and Coffs harbour blocks consist of deformed and metamorphosed turbidite sequences and minor deep sea floor basalt and chert of late Paleozoic age. Cessation of subduction at the end of the Carboniferous was followed by orogenic deformation and accretion of exotic terranes during the Permian and Triassic. From the Permian to mid Triassic, Eastern Australia was part of a convergent plate margin system related to the coalescence of the constituent parts of Gondwana. The Gympie block accreted to the Yarrol Orogen in mid Triassic times, accompanied by initiation of the Ipswich Basin. The process of orogeny and accretion was accompanied by significant strike slip displacement, possibly of the order of hundreds of kilometers in the Permian-Carboniferous, and tens of kilometers in the Triassic. Subduction ceased in the Late Carboniferous and re-commenced in the east from the Permian to Triassic, with Mesozoic basin development forming in a back arc setting. Mesozoic basins are en-echelon in arrangement, and formed as depressions genetically related to the twisting of the New England Orogen into two coupled oroclines (Texas Orocline and Coffs Harbour Orocline). To the east of the present day Moonie Fault Paleozoic basement is represented by the late Carboniferous Camboon Andesite and Kuttung Volcanics, known collectively as the Kuttung Formation. This is in turn underlain by the metamorphosed Devonian Timbury Hills Formation. To the east are found the Neranleigh-Fernvale Beds. 3.2 Ipswich Basin (Triassic) The Ipswich Basin is poorly defined in the south and northeast due to younger cover, but probably extends from south of Yamba in New South Wales (Valja, 1996), north to Cape Moreton on Moreton Island (Hill & Tweedale, 1955), east offshore of Moreton Island, and west to Ipswich where the boundary is the West Ipswich Fault (Figure 4, 1974). The basin east of Brisbane is probably a small lobe extending northeast from the main basin (Day et al., 1974). The initial area of the basin may have been larger, but as only small outcrops remain in areas other than Ipswich, the true extent is unknown. The Ipswich Basin sequence is thought to correlate with the Red Cliff and Evans Head Coal Measures (Wells & O'Brien, 1994a). Whether or not these were deposited in one large basin or several smaller related basins has not been determined. It is possible that the Nymboida Coal Measures are correlatable with the Ipswich Coal Measures rather than the Esk Trough, but this is uncertain. The continuity of volcanic sequences between basins suggests that they were one (Smith et al., 1998), but different relationships with the Clarence-Moreton Basin units (conformable in the south, but with an angular unconformity in the north) may suggest that they are separate (Flint et al., 1976). The Ipswich Basin is age equivalent with the Tarong Basin, Horrane Trough, and several un- named depressions beneath the Cecil Plains Sub-basin (Day et al., 1974). These smaller basins were probably not connected with the Ipswich Basin. The Ipswich Coal Measures are dated as being Late Triassic, suggesting that deposition in the Ipswich Basin commenced after deposition in the Esk Trough and Bowen Basin had ceased (Day et al., 1974; Cranfield & Schwarzbock, 1976). There may however be older units beneath the basal volcanic - 7 - sequence that were deposited synchronously with the upper units of the Esk Trough (Korsch et al., 1989). Figure 4: Structural elements of the Clarence-Moreton Basin (after Pinder, 2001) - 8 - The Ipswich Basin sequence is generally divided into the lower volcanic sequence and the upper (Ipswich Coal Measures) sedimentary sequence. The lowest