PEL88 (Bandanna 50%)
This permit is located in the northeast corner of South Australia covering the northern margin of the Cooper Basin. It is a large permit of 4987 km2 located approximately 175 km north of Moomba. The Permian subcrop edge traverses the southern portion of the block, a geological feature which appears elsewhere to coincide with vertical migration of oil from the underlying Permian sediments into the overlying Eromanga Basin sediments. A full Cretaceous and Jurassic Eromanga Basin section lies within the permit. The oil potential of the southernmost portion of this permit is demonstrated by the presence of the James Oil Field which is encompassed by the permit. PEL 88 is positioned where it is likely to be exposed to oil migrating through mature Permian source/reservoir units that subcrop along the southeastern portion of the permit.
Prior to a 5 year permit renewal in May 2008 the current PEL 88 joint venture had drilled three wells in the permit. Eucalyptus-1 in September 2003, Kitson-1 in May 2005 and Geordie-1 in February 2006. All three wells were plugged and abandoned as dry holes, although Eucalyptus-1 had some encouraging oil and gas shows in the Hutton and Tinchoo formations.
The previous operator, Cooper Energy, had presented an interpretation report which identified one drillable prospect located in the eastern edge of the permit. In addition twelve leads were identified two of which are considered strong. Further work is required to firm these into drillable targets. Objectives in the permit are sandstone reservoirs located in the Birkhead, Hutton, Poolowanna and Tinchoo Formations. The Poolowanna and Birkhead Formations are the most prospective with oil being produced at the nearby James field. The primary targets to date have been low relief four-way dip closures and faulted closed anticlines. Oil is interpreted to have been generated within the Patchawarra Formation shales and coals and migrated out of the deeper basin regions – locally referred to as the Patchawarra Trough, onto the basement highs and ridges. The Permit is well located to receive hydrocarbons expelled from the adjacent Patchawarra Trough, although exposure to hydrocarbon charge in the central and northern portions of the Permit requires longer distance migration.
Currently Victoria Petroleum, which holds the remaining 50%, is operator.