I 360001 I qb-~q&+q I I I OIL and GAS I In• I I TASMANIA I MICROFILMED I FICHE No.OI4-IS3 -54- I A Company Profile I of I GREAT SOUTH LAND MINERALS PTY LTD ACN 068 650 386 I 12 Newcastle Street Battery Point 7004 I AMG REFERENCE POINTS ADDED January 1997 I This Profile is for informative purposes only. Under no circumstances is il 10 be used or considered as an offer 10 seU, or a solicitation of any offer to buy any security. The directors of Greal South Land Minerals PIL do nol represenl thaI it I is accurate or complete and such information should not be relied upon as such. In particular, il is not intended that this documenl be treated as a prospectus for the purpose ofissuing shares or raising funds. No responsibility or liability is accepted for any third party relying on the whole I or any part of its contents, nor for damage howsoever caused, arising out of the I use thereofby any such third party. I 360002 Exploration Licences in the Tasmanian Basin 10:, e~ .by. reat Sou.th 'l:art.d .Mineral,s P'!L , • • A",C; 51..°00013, S't-2.oooo rJ Flr'lc; 'tb oOOO £ S3~OoOO ;J o 50 km ~.,....., o 30 miles Shittim #1 Older rocks Jericho #1 D Bruny Island Tasmanian Basin (Generalised) DEL 1/88 AMG REFERENCE POINTS ADDED D EL9/95 Scm D EL21/95 • Under request '97102·21 D E.A. SR Not available for mining exploration I 2 360003 I GREAT SOUTH LAND MINERALS PrY LTD (GSM) I The formation oftbe company Great South Land Minerals Pty Ltd was fonned by a group ofpeople interested I in oil exploration in the Tasmanaian Basin. In 1995 the company acquired an existing oil exploration licence and shortly after took out two further I exploration licences. It has accelerated previous drilling programs by financing the completion ofan existing hole, the drilling oftwo further exploration holes and the collection of I a large amount ofgeological data. Details ofits discoveries are contained later in this document. I Company details are on p21 ofthis section. I The Exploration Licences The three exploration licences are EL 1/88, EL 9/95 and EL 21/95. I (Note that EA SR 1995 has been excluded from exploration). The above licences cover an area considered to have economic potential for oil I and gas and cover over 70% ofthe accessible part ofthe Tasmanian Basin. I Tbe Prospectivity of tbe Tasmanian Basin Mr Robert Young, a world authority on oil and gas exploration based in Texas, has reviewed the company's work and data and compiled a report. I Dated March 1996, the report concludes that: • "all ofthis builds a good case for finding commercial oil and gas in I the Basin..."; • "work to date has certainly established a play for oil and gas..."; and • "a core hole program to evaluate the Basin and explore for I hydrocarbons can be designed. The economic factors for the area are very attractive and would sustain the costs ofsuch a program." I Mr Gerald Came has reviewed the results ofthe company's current drilling program at Shittirn #1 on Brony Island, during which quantities ofgas and I condensate were discovered. In a letter to the company, dated January 1997, he notes that: • the recent well was being drilled to evaluate unknown stratigraphy I • the shows are significant and demonstrate that gas, condensate and oil have been generated in the Shittirn area • the identification ofgas, condensate and oil (and helium and hydrogen) at I Shittim lB provides considerable optimism towards the future ofthe onshore petroleum industry in Tasmania. I ;1 360004 Drilling for Oil in Tasmania Bruny Island 1916 360005 I 4 I I A BRIEF HISTORY OF EXPLORATION Early Work I The story ofoil and gas exploration in Tasmania has been a patchy one, dating from 1915 to the present time. I From 1915 to 1939, and again in the 1960's, several holes were drilled in Tasmania in the search for oil and gas. I However, most ofthe holes were drilled in the north ofthe State, and not in what is now currently referred to prospectively as the Tasmanian Basin. I Most ofthe holes were shallow, due to the limitation in drilling techniques and equipment (see pictures opposite) and the site and location ofthe exploration I was often based on inadequate geological data. I Bruny Island One ofthe most encouraging prospects occurred in 1929 when a report from I the State Government's Director ofMines Macintosh Reid stated what appeared to be reliable occurrences ofoil being present at a place called I Johnson's Well on Brony Island. In that year the Tasmanian Oil Company drilled a hole at Johnson's Well and it is reported that amounts ofoil were discovered at about 30 metres depth. I However, the company collapsed with the stock market crash later that year and no further drilling work was done on that site until 1995. I Recent exploration activity I Prior to 1984 very little research on the oil and gas potential ofTasmania was carried out. I From 1984 onwards Conga Oil Pty Ltd, from 1988 Condor Oil Pty Ltd and subsequently from 1995 Great South Land Minerals Pty Ltd continued oil and gas exploration onshore in Tasmania, initiated a program ofgeological I research, and have now proven that the State is a prospective oil and gas I province (see ppl2,14). This positive finding has been confirmed successively in reports by three independent consulting petroleum geologists. They are Gerry Carne (1992, I 1996, 1997), Jack Mulready (1995), and Bob Young (1996). I I 360006 Cooking in the "Kitchen" oil gas well well tar Seeps oil seep -1.0 km Trap Migration Path -2.0km Kitchen -3.0 km I 6 360007 I I Oil and Gas Exploration - A General Description Oil and gas is fonned from kerogen, an organically rich material which was I deposited mainly in marine sediments millions ofyears ago. Common source rocks are shales and limestones. I Oil is produced when these source rocks are heated (due to burial) to around BO°C and gas is produced once these source rocks are heated to over 170°C. I The diagrammatic representation opposite depicts the source rocks as being in a "kitchen" from which the oil and gas migrates upwards to be held in a I reservoir rock. Reservoir rocks need to have high porosity and penneability. • Porosity means the oil and gas is held in large pores and spaces within the I rock • Permeability indicates that there is an interconnection ofthe pores which I allows the oil and gas to pass through the rock and thus be removed. I Sandstones make good reservoir rocks. The oil and gas is contained in these reservoir rocks by a seal. I A seal is fonned when rocks overlying the reservoir have low porosities and penneabilities, thereby trapping the oil and gas. I Shales and dolerites make good seals. Ifthe seal is broken, by for example subsequent earthquake activity, oil and gas I can bleed to the surface as seeps. I The three elements for the production ofoil and gas I i.e. source rocks reservoir rocks I good seals I are known to be present in Tasmania I A number ofseeps have been reported in Tasmania and may suggest the presence ofcommercial quantities ofoil and gas in the Tasmanian Basin. I I 360008 Tasmanian oil & gas seeps, drill holes and tars • • •t o 50 km ~.,.~ o 30 milp.~ Scm ulcer man lasmanlan Basin Tasmanian Basin • Tar Permian sourced tar • Oil seeps from Permian outcrop *t Drill holes oil shows Oil seeps t Drill holes gas shows Gas seeps ® • J Drill holes - oil shows 0 Reported seeps - unverified or in doubt unverified or in doubt 360009 I 8 I I Seeps For many years sightings ofoil and tar seeps have been recorded in Tasmania. Over 120 seeps have been reported so far, many from around the perimeter of I the Tasmanian Basin. Some ofthese sightings are more reliable than others, but a number have been verified by geologists (see figure opposite). I Some ofthese tar seeps are now museum specimens, whilst others have been collected recently in the field. Samples have been geochemicallyanalysed and compared with likely source rocks. The tests confirm that there are at least I three likely source rocks that exist deep within the Tasmanian Basin. I Source rocks I These source rocks are the Gordon Limestone (Ordovician), formed over 450 million years ago, the Quamby Formation (permian) and the Tasmanite oil I shale, within it, both formed around 250 million years ago. A map included later in this presentation shows the level ofheating experienced over time by these source rocks. This shows that the older Gordon Limestone I appears to be in the oil window in the south and central parts ofthe Tasmanian Basin, and in the gas window in the north ofthe Basin. I The younger Permian rocks ofthe Quamby Formation also appear to be in the oil window and, in some parts, the gas window over most ofthe Tasmanian I Basin The third source rock (the Tasmanite oil shale) is remarkably rich in organics which may constitute upwards of25% ofit. It appears to have entered the oil I and gas window somewhere between 100 and 200 million years ago and is potentially a source oflarge reserves. I I Reservoirs The next element in considering oil and gas potential is the existence of I reservoir rocks. Potential reservoir rocks exist within the licence boundaries.