MEC Resources has received geochemical support for a potential exploration well within PEP11 in the offshore Sydney Basin.
The new geochemical report reviewed the hydrocarbon analysis performed on sediment samples obtained within PEP11 during 2010. The 2010 geochemical investigation utilized a proprietary commercial hydrocarbon adsorption and laboratory analysis technique to assess the levels of naturally occurring hydrocarbons in the seabed sediment samples. A new report investigating a review of this analysis has just been received.
The report supports that the area surrounding the proposed drilling site on the Baleen Prospect appears best for hydrocarbon influence relative to background samples. Conclusions were that thegeochemical data acquired in 2010 supports the identification of reliable backgrounds and also primary hydrocarbon influence locations, despite active gas seeps which appear ubiquitous throughout the area of interest; and the Baleen Prospect appears to hold a higher probability of success than other prospects.
Importantly, a recent review of more than 850 wildcat wells – all drilled after geochemical surveys – finds that 79% of wells drilled in positive anomalies resulted in commercial oil and gas discoveries.
PEP11 is held 85% and operated by Asset Energy, a wholly owned subsidiary of Advent Energy, an investee entity of MEC Resources. Bounty Oil & Gas holds the remaining 15% of PEP11.