TEE to kick off 2D seismic program in QLD this month.
Our domestic gas exploration Investment Top End Energy (ASX: TEE) just secured key land access agreement for its QLD gas project.
TEE now has all of the permitting completed and can start its 2D seismic data acquisition program.
The seismic contractor expects to be on site in late June 2023 with the program expected to be completed in July.
TEE’s QLD project already has an independently verified prospective resource of 715 bcf (billion cubic feet) on a gross mean unrisked basis.
The 2D seismic program is being run to infill existing data and improve TEE’s chance of success when it gets on the ground and drills a well.
Infilling data just means that TEE will be adding to all of the existing data available on the project - this is usually when a company runs seismic surveys over parts of the project where seismic hasn't been done before.
TEE expects to make a decision on the drill program after the seismic surveys are complete with a well targeted for H1 2024.
In today’s announcement TEE also confirmed it would look to conduct a process to farm-down its ownership in the project if the company does commit to a drilling program.
Overall, we like TEE’s approach where the company is doing all of the background work, maturing a high risk, high reward drill target.
The more work TEE does, the more attractive a drilling event it becomes, both from a risk perspective and from a potential farm-in partners perspective.
More on TEE’s QLD gas project:
TEE’s prospective resource sits inside just one of three prospects at the company’s QLD project. The three targets are as follows:
- Prospective Area 1: This area holds TEE’s 715Bcf prospective resource and will be the focus of the new 2D seismic program. TEE is ultimately looking to see if the existing formations that host the nearby proven Gilmore gas field may extend into TEE’s grounds.
- Prospective Area 2: This prospect needs additional 2D seismic data to firm it up as a potential drilling target.
- Prospective Area 3: This is a possible extension of the Adavale Basin to the east. This prospect also requires more 2D seismic data to firm up a potential drilling target.
What’s next for TEE?
In the short term our focus for TEE is on the follow:
Permitting in the NT 🔄
With the native title approval secured, we want to see TEE’s high priority EP 258 application granted.
Once granted, this would mark the first exploration permit (EP) granted in the Northern Territory since 2015.
Seismic data acquisition program in Queensland 🔲
Today, TEE secured key land access agreements which means the company is cleared to start its 120km 2D seismic acquisition program.
The seismic contractors expect to be on site in late June 2023 with the program expected to be completed in July.
