WHL Energy: Encouraging results of La Bella seismic survey

Australian energy company WHL Energy Limited has provided an update on the interpretation of data obtained from the La Bella 3D seismic survey acquired in the Otway Basin permit VIC/P67 (WHL 40% and AWE 60%), offshore Victoria, Australia, in late 2013.

While further state-of-the-art and more detailed interpretation studies still need to be completed, initial results are encouraging, with highlights including:

*Preliminary evaluation of an initial Fast Track Volume in the near La Bella area confirms the La Bella gas/condensate field and adjacent exploration prospects to generally be as previously interpreted;

* Stacked amplitude anomalies high-grade the previously identified Ferrier and Mylius features, and
* Preliminary mapping corroborates other previously mapped prospects, although additional work remains to be done.

In addition to the initial FTV, a further Intermediate Volume (IV) has been generated and received by WHL Energy. The data quality from the IV, which is an interim Pre-Stack Time Migration processed sub-volume (PreSTM), is a significant improvement over the previous version, and provides confidence that a high quality seismic data set will be delivered with full broadband PreSTM processing. This fully processed PreSTM volume package is on target to be delivered in late July.

Interpretation of IV is ongoing and a range of additional geophysical, geological and reservoir engineering studies are also in progress as these will allow for a more accurate and reliable evaluation of La Bella Field and the nearby prospects. The initial phases of well planning have also now started.

WHL Energy Managing Director, David Rowbottam, said: “The Company is encouraged by the preliminary results and looks forward to providing a further update on the assessment of La Bella and the near field prospects in May.”

Background

WHL Energy was Operator for the 867 km2 La Bella 3D survey that was successfully completed within budget in mid-December 2013. The seismic data was acquired by CGG’s state-of-the-art vessel “CGG Viking II” utilising CGG’s broadband seismic surveying technology.
On 3 September 2013, WHL Energy executed a binding farm-out agreement with AWE Limited (AWE). Under the terms of the farm-out agreement, AWE is earning a 60% participating interest in VIC/P67 by funding 75% of the cost of the La Bella 3D seismic survey up to a cost cap of US$9.0m.

AWE has the right following the 3D seismic phase to take over operatorship of VIC/P67 and continue at the 60% participating interest or to assign part or all of its equity back to WHL Energy. On 18 September 2013, an Option Agreement was signed with Tap Oil Limited, under which TAP has agreed to pay up to a maximum US$2.95 million for an option to acquire an initial 10% participating interest in VIC/P67. Following the execution of the Seismic Option, TAP may continue in the Permit at 10% participating interest, increase their holding to 15% by funding 20% of the first
exploration well cost, or exit the Permit and return their interest to WHL.