BOW ENERGY LIMITED - ASX: BOW

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Description

Bow Energy's primary business is the discovery and commercial production of oil and coal seam gas fields with projects in several of Australia’s producing Basins.

Blackwater CSG Field

The Blackwater CSG Field lies within the Comet block which is the central of the three Bowen Basin blocks and has an area of 974 km2. Adjacent tenements are operated by BG Group and Arrow Energy. The block is located between BG Group’s Atria CSG project to the west and Dingonose and Duckworth CSG prospects to the east. Bow is currently focusing on two areas within the Comet block, the Blackwater CSG Field and the Comet prospect. The Primary coal targets are the Rangal and Burngrove Coal Measures.

Norwich Park

The Norwich Park block has an area of 874 km2 with adjacent tenements operated by BG Group, Arrow Energy and Pure Energy (now BG Group). The Norwich Park block is on trend with Arrow’s Moranbah South Walker and Carborough CSG projects, which have produced gas from the Moranbah, Rangal and Fort Cooper Coal Measures. Bow plans to start up to a seven well exploration and appraisal drilling program in the Norwich Park block following the completion of the Comet Block drilling program. The targets are multiple coal measures including Moranbah, Rangal and Fort Cooper Coal Measures with the initial objective of increasing Bow’s current 3P reserves. The Bowen Basin is now recognised as having huge CSG resources with multiple coal measure targets and low associated water flow rates and is located in close proximity to planned LNG export facilities in Gladstone. Recent potential commercial gas flow rates in excess of 1 mmcfd have been reported by other Bowen Basin operators in areas adjacent to and on trend with our Bowen Basin CSG projects have been achieved by multilateral drilling methods or hydro-fraccing the coals. These excellent flow rates were from coals with permeabilities previously thought to be too low for commercial gas production.

Don Juan CSG (Bow 55% (through its wholly owned subsidiary Roma CBM Pty Ltd))

The Don Juan CSG Project is a Joint Venture between Bow (55%) and Victoria Petroleum NL (45%) involving two tenements ATP 771P and ATP 593P located in the western Surat Basin approximately 40 km north of Roma. Bow’s 55% ownership of the Don Juan CSG project is in the Walloon Coal Measures in both tenements. Exploration activities performed to date have included the drilling of eleven wells over the two tenements. Drilling results so far have indicated that the area with the highest potential is in the southern central part of ATP 771P licence area which is located northwest of the BG Group plc (BG Group) Lacerta project. Sunshine Gas (now part of the BG Group) has previously publicly announced gas reserves of 1,097 PJs of 3P reserves which includes 469 PJs of 2P reserves at its Lacerta project.

Gunyah Block CSG

The Gunyah block is located midway and along trend between Anglo Coal’s Moura/Dawson River and Santos’ Scotia/Peat major CSG project areas. Bow interprets the block has a similar geological setting to the Dawson River/Moura CSG areas. In the adjoining block to the north, Molopo announced a gas-in-place resource of 2.3 TCF for the greater Timmy area located 10 km from the Bow block boundary. The Isla-1 well, located near the northern boundary of the Bow block, intersected 32.1m net gassy coals with individual seams over 8 m thick. Immediately south of the block, exploration wells intersected 27 metres of coal and gas contents up to 15 m3 /tonne. The Gunyah block is subject to Native Title and Bow has started the Right To Negotiate (RTN) process with the Queensland Government. The permit can only be granted after agreement is reached with the Native Title claimants. Bow will be working towards resolution of Native Title in this block and aims to have this completed by the end of 2009.

Cooper-Eromanga Basin Oil

ATP 752P Barta Block (Bow 15% after farm-out completed) is in the Cooper-Eromanga Basin and contains the Cuisinier-1 Murta oil discovery, estimated by Santos, the operator, to begin production early third quarter 2009 at 200-300 BOPD. Bow’s share of the costs on one additional optional farm-out well, if drilled, and 3D seismic in the Barta Block will be met by joint venture partners under farm-out arrangements. A 103 km2 3D seismic program acquired over the greater Cuisinier structure was completed in May 2009. This may be followed by an appraisal and development drilling program designed to increase production from the oil field. ATP 752P Wompi Block (Bow 15% after farm-out completed) is located near the Tickalara-Jackson pipeline. The joint venture recently completed a 200 km2 3D seismic program. Near field exploration drilling targets may be chosen from this data and the Company’s share of the costs on up to four optional farm-out wells, if drilled, in this block will be met by joint venture partners under farm-out arrangements. The Company also has an inventory of prospects and leads in its Central Eromanga oil project areas.

Surat-Bowen Basin Oil

In the Surat-Bowen Basin in south central Queensland, the Company is producing oil at low rates from its 65% owned Rookwood Oil Field located in ATP 608P. Adjacent to this oil field, a 2D infill seismic acquisition program was completed in May 2009, as part of the Mosaic Oil NL (Mosaic) staged farmin program involving seismic acquisition and options available to Mosaic to drill additional earning wells in Bow’s southwest Surat tenements. This exploration program is aimed at finding new oil fields near to existing oil production.

Mine For

coal seam gas, oil, gas

Location of operation(s)

Queensland, Western Australia, New South Wales

Australian Basins

Carnarvon, Cooper, Eromanga, Surat, Bowen, Clarence, Moreton

Address

Level 5 , 60 Edward Street
BRISBANE, QLD, AUSTRALIA

Phone

(07) 3303 0675

Email

Website

http://www.bowenergy.com.au

Last Updated

3/05/2010