JV Partners Strike Energy and Warrego Energy Announce Major Gas Discovery

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THE BOWSER: The Strike Energy (ASX: STX) and Warrego Energy (ASX: WGO) Joint Venture announced a timely gas discovery that should provide plenty of discussion at the upcoming RIU Good Oil Conference.

The Strike-Warrego Joint Venture announced it has made a, “significant gas discovery”.

The discover is in the Kingia sandstone and was discovered as part of the JV’s West Erregulla-2 drilling campaign.

Logging While Drilling tools confirmed the presence of a thick hydrocarbon bearing zone in the Kingia sandstone at the West Erregulla-2 well.

Elevated mud gas readings were observed whilst drilling.

The logs confirmed the well encountered a total Kingia sandstone of 117 metres with a gross column of 97m and a confirmed net pay of 41m using a 10 per cent cut-off.

The Kingia formation was encountered at 4,753m with gas on rock showing a gross gas column of at least 97m.

The lower section from 4,790m onwards is made up of several high-quality large units of clean sand with thick blocky porosity development.

This 67m section, which has high gas saturation throughout, is interpreted to have net pay of 41m and an average porosity of 14.3 per cent with peaks of up to 19 per cent.

Importantly, the well has not encountered a gas water contact in the Kingia formation which, along with the excellent reservoir quality, is consistent with the seismic amplitude model that supports the interpreted field boundaries.

Strike Energy is the operator and the holder of a 50 per cent interest and Warrego Energy the holder of the other 50 per cent.

Strike completed drilling through the Kingia sandstone encountering the Bit Basher shale.

At the time of announcement drilling had reached to depth of 4,895m where the well is yet to encounter the High Cliff sands.

Strike indicated it will continue drilling through to a nominal final depth of 5,200m at the top of the Holmwood Shale.

This will be followed by wireline logging, side wall coring, casing and running of a production completion followed by a flow test.

“This is truly an exceptional outcome,” Strike Energy managing director Stuart Nicholls said.

“The Kingia results at West Erregulla have exceeded Strike’s highest expectations and indicate a significant discovery that appears to have higher reservoir quality than the Waitsia gas field.

“With West Erregulla-2 now being one of the deepest wells ever drilled onshore Australia and finding such excellent quality sandstone reservoirs, the subsurface paradigms of the Perth Basin are shifting.

“Strike believes it has unveiled a new conventional gas fairway, with these initial results validating our geological model.

“With gas discoveries in the Wagina and now the Kingia sandstones the West Erregulla campaign is company-changing for Strike.

“With the well drilling ahead to the High Cliff sandstones which show an even better anomaly than the Kingia at West Erregulla, the chance of adding a further material discovery looks promising.”

Strike’s excitement was duplicated by that of its JV partner Warrgo Energy with its Group CEO & managing director Dennis Donald declaring the discovery had exceeded its pre-drill expectations for the Kingia and substantially upgraded the company’s view of the West Erregulla gas fields as a whole.

“Our interpretation of analogous Waitsia field data and the seismic amplitude model gave us confidence that West Erregulla-2 would yield results, even though the target formations are substantially deeper,” Donlad said.

“The net pay of 41 metres is significantly thicker than analogues in the Waitsia field and underlines the potential of West Erregulla and EP469 to become an important future source of gas production in Western Australia.

“Drilling will continue through the Bit Basher Shale before intersecting the second primary target, the High Cliff Sandstones.

“For Warrego Energy, the discovery of a substantial, high quality conventional reservoir in the Kingia at West Erregulla is the culmination of 12 years of research, planning, investment and exploration activity in the North Perth Basin.

“The scale is material and has the potential to convert the fields from exploration to production assets in short order.”

The WE-2 well spudded in early June and a conventional gas discovery in the Wagina Sandstone was announced to the ASX on 1 August 2019.

The well will be drilled to a nominal total depth of 5,200 m at the top of the Holmwood Shale, followed by wireline logging and coring before being completed for production and flow testing.

According to Warrego’s announcement further analysis and evaluation of well data and subsequent test results are required before an initial estimate of Resources can be prepared.

The company said the intent is to subsequently flow test the discovered fields in the West Erregulla well.

 

 

Peel Mining Resumes Wagga Tank-Southern Nights Drilling

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THE DRILL SERGEANT: Peel Mining (ASX: PEX) has resumed drilling at the company’s 100 per cent-owned Wagga Tank-Southern Nights project, south of Cobar in western New South Wales.

Peel Mining has two multi-purpose (RC/diamond) drill rigs on site to commence drilling.

The company recently declared a maiden Indicated and Inferred Mineral Resource Estimate (MRE) for Wagga Tank-Southern Nights of 3.8 million tonnes at 5.5 per cent zinc, 2.1 per cent lead, 75 grams per tonne silver, 0.27 per cent copper and 0.31g/t gold for 9.2 per cent zinc equivalent.

Peel explained the drilling program will comprise approximately 10,000m of RC and diamond drilling and is designed to continue to progress the Wagga Tank-Southern Nights project towards development.

“Drilling will primarily target higher grade areas of Inferred Resource with the aim of increasing confidence in these areas by converting further mineralisation to Indicated Resource classification,” Peel Mining said in its ASX announcement.

The drilling will focus initially on Wagga Tank consisting infill drilling combined with drilling to confirm historical high-grade intercepts that the company considers presents a good opportunity to rapidly improve the scale and quality of the Wagga Tank Mineral Resource.

Further infill drilling at Southern Nights will target higher-grade Inferred Resources to continue to improve resource confidence along with step out drilling along strike and downdip of the main resource area, testing for extensions to grow the overall resource base.

“On completion of drilling, an updated Mineral Resource Estimate will be undertaken which will then form the basis of a formal Scoping Study,” Peel said.

“In the meantime, an internal Scoping Study, which is now underway, will be completed to aid with the formal study process.”

 

Email: info@peelmining.com.au

Web: www.peelmining.com.au

 

Metalicity Acquisition to Consolidate Kookynie Gold Project

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THE BOURSE WHISPERER: Metalicity (ASX: MCT) announced the acquisition of strategic tenure within the Kookynie area of Western Australia.

Metalicity declared the acquisition as a major step forward in regards to the company’s farm in agreement with Nex Metals Exploration’s Eastern Goldfields gold projects.

The new farm in activity by Metalicity, in the Kookynie and Yundamindra areas, is included and contributory towards its commitment of $5 million to earn 51 per cent of the above mentioned farm in agreement.

“The history of the Kookynie and Yundamindra areas is one of very fractured ownership,” Metalicity managing director Jason Livingstone said in the company’s announcement to the Australian Securities Exchange.

“That has been a significant block on effective exploration and development over the past few decades.

“This step taken by Metalicity ensures that we can explore and develop this project effectively to maximise its value.”

The acquisition involves tenement P40/1331 and has been acquired from a local prospector, Simon Gary Byrne.

P40/1331 is a live prospecting tenement purchased from the vendor for $10,000 upon transfer of the tenement to KYM Mining Pty Ltd, with a further $10,000, six months from the date of transfer, and a royalty of 1% NSR on the first 50,000 ounces of production that may potentially be sourced from within this area.

Web: www.metalicity.com.au

 

Blackstone Minerals Mobilises Second Drill Rig

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THE DRILL SERGEANT: Blackstone Minerals (ASX: BSX) has commenced a second phase of drilling with a second diamond drill rig mobilised at the company’s Ta Khoa nickel project in Northern Vietnam.

Blackstone Minerals announced its option to acquire a 90 per cent interest in the Ta Khoa nickel project in May 2019, since when it has commenced drilling and completed an initial IP survey.

Results from the IP survey indicated a strong correlation exists between high chargeability and high grade DSS and massive sulphide vein (MSV) mineralisation.

The company explained that the second drill rig has deeper drilling capabilities that will enable it to test the multiple new targets it has generated from the IP survey.

The initial shallow diamond drilling rig will continue to test the Ban Phuc disseminated sulphide (DSS) while the second rig has been mobilised to test the deeper targets throughout the project.

“We’re excited to be drilling our deeper targets generated from the recently completed IP survey at the Ta Khoa nickel project, we look forward to further consistent news flow from both drill rigs over the coming weeks,” Blackstone Mineral managing director Scott Williamson said in the company’s announcement to the Australian Securities Exchange.

“We remain well funded to test the multiple new targets generated from the maiden IP survey and continue to unlock the full potential of the extensive nickel sulphide system at Ta Khoa.”

 

Email: admin@blackstoneminerals.com.au

Web: www.blackstoneminerals.com.au

 

Meteoric Resources to Commence Novo Astro Drilling

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THE DRILL SERGEANT: Meteoric Resources (ASX: MEI) is set to commence drilling at the company’s Novo Astro project in Brazil.

The Novo Astro project is located approximately 30 kilometres to the east of the company’s Juruena gold project.

Meteroic Resources explained the Juruena project was previously subjected to intense drilling by several earlier explorers, while Novo Astro has only been explored by surface exploration works.

There has been no drilling of Novo Astro to test the gold grade and depth extent of the surface alteration and mineralisation that has been mapped and which returned high‐grade rock chips up to 290.13 grams per tonnes gold in the company’s current sampling program.

“Recent mapping at Novo Astro recognised thick zones of alteration and mineralisation within basement rocks that have been the target of extensive artisanal mining,” Meteoric Resources managing director Andrew Tunks said in the company’s announcement to the Australian Securities Exchange.

“Results from reconnaissance rock chip sampling confirm mineralisation at multiple targets, warranting immediate testing.

“A twenty‐one hole drilling program for 2,500 metres is planned, which will commence late September.

“The initial drill program will target the depth potential of significant gold mineralised structures that can be mapped and sampled in the extensive Garimpeiro workings across Novo Astro.

“To this end, four initial prospects have been defined for us to commence drilling.

“At the same time, planning is underway to commence geophysical programs across Novo Astro, initially these will include magnetics, which will assist in our structural interpretation and an Induced Polarisation (IP) survey which can be locate disseminated sulphides.

“The current round of rock chip sampling has confirmed the gold‐pyrite association and we feel that IP could provide an excellent tool to direct our drilling.”

 

Web: www.meteoric.com.au

 

Talisman Mining Enters Lucknow Gold Project Farm In

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THE BOURSE WHISPERER: Talisman Mining (ASX: TLM) has entered into a farm-in agreement (FIA) with privately-owned Lucknow Gold Limited in relation to the Lucknow gold project in New South Wales.

Talisman Mining’s wholly-owned subsidiary, Talisman B Pty Ltd, has entered into the FIA with Lucknow Gold.

Talisman will be manager of the exploration program throughout the earn-in period.

Talisman B has the right to earn up to a 70 per cent interest in the project, by spending a minimum of $1.5 million on exploration over four years and issuing $250,000 worth of Talisman shares to Lucknow Gold.

The Lucknow Goldfield is located within the Macquarie Arc in NSW, which hosts extensive gold and copper mineralisation including the Cadia-Ridgway (copper-gold) and McPhillamys (gold) deposits, as well as the Browns Creek (copper-gold), Forrest Reefs (gold) and Junction Reefs (gold) deposits.

Talisman Mining said the project still ranks highly amongst global high-grade gold mines despite there being very little modern exploration completed outside of the existing mine workings.

Talisman indicated it intends to undertake a program of geochemical surface sampling and mapping at the Lucknow project ahead of a drilling program to test for potential down plunge extensions of the high-grade gold ore shoots and repeat structures throughout the project area.

“There have been numerous recent examples in Australia of exciting new gold discoveries being made by using modern exploration techniques to target depth extensions in known goldfields,” Talisman Mining managing director Dan Madden said in the company’s announcement to the Australian Securities Exchange.

“Lucknow is one of the world’s highest-grade gold mining areas with reported mined gold grades in excess of 100 grams per tonne, so the potential value of any new areas of mineralisation that can be identified is clear.

“The farm-in agreement is consistent with Talisman’s approach towards business development targeting advanced exploration or project development opportunities in gold and base metals where we believe we can generate value for Talisman shareholders.

“Lucknow is located within the same broad area as our Lachlan copper-gold project and will enhance our exploration activities in this very prospective mining region.

“We look forward to commencing on ground exploration activities at Lucknow which are expected to begin late in the current quarter.”

 

Web: www.talismanmining.com.au

 

Triangle Energy Presenting at Good Oil 2019

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THE CONFERENCE CALLER: With a healthy cash flow coming from its dominant holding (78.75%) in the offshore Cliff Head project in Western Australia, Triangle Energy (ASX: TEG) has been able to chase further growth opportunities in the Perth Basin.

The company has its eye on the prospective Xanadu oil field and is now awaiting the results of a recently conducted 40 square kilometre 3D seismic program.

Located offshore about 270km south west from the WA coastal town of Dongara – and 14km south of the Cliff Head oil field – Xanadu is a joint venture between Triangle (45%) and Norwest Energy.

Triangle is also completing the necessary approvals for the onshore Mt Horner l7 production licence, in which it holds a 50 per cent interest with farm out agreement partner Key Petroleum.

The PL overlies the Allanooka Terrace in the North Perth Basin (and is adjacent to the prolific Dandaragan Trough).

So far, multiple “attic” locations for infill development wells have been identified.

The JV partners now anticipate conducting a 50sqkm 3D seismic survey and drilling at least two in-fill development wells as soon as possible.

Additionally, the WA-based Triangle is looking at another growth opportunity – this time in Queensland’s Bowen Basin via its 35.47 per cent interest in State Gas, 80 per cent owner of the prospective Reid Dome gas project.

In 2018, two wells – Primero West 1 and Nyanda-4 – were successfully drilled, with the 1200 metre deep Nyanda encountering 40.4m of net coal seams as well as 25m of separate carbonaceous shales and thinner coal seams.

During the June quarter Cliff Head generated revenues of $6.89 million for project operator Triangle – a $760,000 increase over the March period due to higher production.

 

 

Talon Petroleum Presenting at Good Oil 2019

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THE CONFERENCE CALLER: Being in the right address pretty much sums up Talon Petroleum’s (ASX: TDP) corporate strategy as it consolidates its presence in the UK North Sea.

During the June quarter the Perth-based company completed the acquisition of EnCounter Oil, giving it unfettered access to the highly prospective Skymoos and Rocket prospects.

Then, in late July, Talon announced two new developments regarding further holdings in the area.

First, it was granted (in a joint bid with ONE-Dyas E&P) a licence over Block 14/30b, wherein lies the Thelma, Louise and Buffalo prospects.

Best estimates for these targets are currently 29 million barrels of oil, 17mmbbl and 160 billion cubic feet of gas respectively.

Second, site survey activities over the proposed location of the Curlew-A appraisal well – in which Talon has a 10 per cent interest – was started on Block 29/7b by Corallian Energy.

Currently, Curlew-A’s gross 2C contingent resource for recoverable oil is 36.2mmbbl. According to Talon managing director Matt Worner, this acquisition was the company’s first piece of operational work since it established its UK North Sea strategy in 2018.

Moreover, it is deemed significant given it contains an estimated discovered resource of 39mmbbl and is close to nearby infrastructure.

Despite these developments, it’s the EnCounter acquisition which has arguably generated the most excitement amongst investors during 2019.

As it stands, Skymoos – which is a direct analogue to the Upper Jurassic Buzzard Field (the UK North Sea’s largest producing oil field) and is on trend with several developed oil and gas discoveries – has a best estimate prospective resources of 107mmbbl.

Meanwhile Rocket, with its potential resource of 27mmbbl, is a direct analogue to amplitude-supported oil fields to the north east.

 

 

Norwest Energy Presenting at Good Oil 2019

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THE CONFERENCE CALLER: Like other Perth Basin explorers, Norwest Energy (ASX: NEW) is reviewing the oil and gas prospectivity of its Western Australian onshore portfolio in light of the Waitsia gas discovery.

In particular, the company is approaching its 10.1 square kilometre Springy Creek oil prospect – which sits in the northern part of its EP368 Joint Venture (with Energy Resources) some 30km north east of Dongara – with renewed enthusiasm, and is now confident its geological chance of success is 25 per cent.

During July Norwest told the market that Waitsia, located 5km to the west of EP368, had “opened up an exciting new petroleum play within the basin by encountering a very significant hydrocarbon accumulation within the Lower Permian Kingia and High Cliff Sandstone formations”.

“The prospect offers significant potential for sizeable oil accumulations within both the Kingia and the High Cliff Sandstone formations which, based on well intersections in the wider region, are prognosed to incorporate thick, high-quality reservoir sand units at the prospect location at target depths of 2,470 metres and 2,570m respectively,” it said.

The greater Springy Creek structure, encompassing the southern and northern culminations, is an elongate north-south trending three-way dip closure with fault closure to the south.

Reservoirs within this structural feature could be sourced by oil migrating from the proven Kockatea Shale oil kitchen to the south. Furthermore, the prospect is situated within a structural setting comparable to that of the Mt. Horner oil field 15km to the west.

In terms of its Perth Basin offshore activities, Norwest – along with Triangle Energy (Global) – is conducting a 3D seismic survey of its Xanadu oil discovery 300km north of Perth.

Results for this work should available by October.

 

 

Pioneer Resources Advances Dome North Spodumene Drilling

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THE DRILL SERGEANT: Pioneer Resources (ASX: PIO) has commenced drilling at the Dome North spodumene target, located within the company’s 100 per cent-owned Pioneer Dome project in the Eastern Goldfields of Western Australia.

Pioneer Resources said the drilling had intersected pegmatites in all three holes it has drilled to dat at Dome North.

The drilling is targeting priority areas where outcropping spodumene has been mapped.

The first hole (PDRC263) hit an intersection of pegmatite from 175 metres downhole to end of hole at 311m.

The intersection was down dip of outcrop from where the company recently reported 17 rock chip samples producing spodumene assays between 1.65 per cent and 3.7 per cent lithium oxide (Li2O).

Two further holes (PDRC264, PDRC265) also returned healthy pegmatite intersections.

The company said the targeted drilling in and around the spodumene outcrops would continue with assay results anticipated to be available around October.

“The company’s emphasis on first principle exploration practices ha delivered an excellent priority target at the Dome North Area,” Pioneer Resources managing director David Crook said in the company’s announcement to the Australian Securities Exchange.

“We are excited with what has been observed in the first few drill holes and look forward to delivering results to the market as they become available.”

 

 

Web: www.pioresources.com.au