Pilot Energy has boosted its WA Leander prospective gas resource by a whopping 250 per cent to an estimated 1116 billion cubic feet of gas and 18 million barrels of condensate.
The upgrade to the resource followed a detailed review of the company’s offset wells, including onshore exploration and appraisal wells, in addition to remapping of 2D seismic data.
Pilot’s WA-481-P permit, which covers the Leander gas prospect, is one of the biggest offshore exploration permits in Australia. It overlaps with the company’s G-12-AP Greenhouse Gas exploration permit.
Management believes the offshore petroleum system within WA-481-P shares similar characteristics with the onshore Dandaragan Trough and likens it to the prolific onshore Perth Basin gas discoveries of Waitsia, Erregulla and Lockyer Deep.
Pilot says the prospective Leander resources have the potential to supply it with sufficient gas for a minimum of 30 years to produce low-carbon ammonia at its Mid West Clean Energy project.
It expects to begin a formal farm-out process shortly to secure a partner capable of funding its planned near-term exploration activities.
The permit covers 8605 square kilometres across shallow waters off the WA coast, encompassing both the Dunsborough oil field and Frankland gas field. The permit area is well positioned adjacent to the onshore Perth Basin oil and gas discoveries on the Beagle Ridge and Dandaragan Trough.
Notably, a technical study in 2023 identified a material gas fairway in the offshore section of the Perth Basin that mirrored the Dandaragan Trough. The company’s technical personnel have since continued to advance and develop its subsurface modelling, resulting in the update to Leander’s resource.
Leander is 15 kilometres west of the existing Cliff Head oil platform and is the most advanced target within the WA-481-P area.
Pilot also has the Harrier and Hawk gas prospects immediately south of Leander, which provide it with additional, nearby exploration targets.
The company has the added luxury of three promising oil targets that sit southeast of Leander on the structural trend near the Cliff Head oil field and the Xanadu oil discovery, which encountered hydrocarbons when drilled in 2017.
The combined targets of Babbler, Brahminy and Cliff Head S-W are estimated to contain prospective oil resources totalling an estimated, recoverable 66M barrels.
The permit area also contains the Dunsborough contingent oil resource (2C) of 6M barrels and the Frankland contingent gas resource (2C) of 42B cubic feet of gas.
Pilot believes the expanded resource is likely to significantly increase interest from third parties when the company begins the farm-out process. It plans to target potential partners to help fund its upcoming Eureka 3D seismic survey and future drill programs.
Recently revised mapping of the reprocessed 2D seismic data set has resulted in a remapped structure at Leander, indicating a four-way dip trap or anticline, with an increased closure height, thickness and higher confidence level.
Access to open files has allowed Pilot to conduct a volume analysis on its targets following an extensive review of onshore gas wells, including Waitsia and Lockyer.
The analysis has supported the company’s working theory that there are three sandstone reservoirs.
The company believes the stacked sandstone formation has considerably improved the reservoir’s potential to trap and store hydrocarbons, increasing its possible target volumes.
Pilot’s boosted prospective gas resource may enable the company to bring some valuable dollars in the door from funding partners, reducing its future exploration costs and helping it to retain cash for other promising projects.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
