PHUN: Beetaloo Basin History

Though currently not urgently of Interest as there is important progress on Mako and Buckskin expected in the short term, we are catching up with FO's recent acquisition of Acreage in PHUN's Beetaloo Basin Project in Australia (read more...). Here is a small summary on PHUN's progress so far gathered from official PHUN Newsreleases:

August 29, 2006
Australian Seismic Program
As part of the work program commitment under the existing exploration permits, a 700 kilometer 2D seismic study is being conducted in the Beetaloo Basin. To date, 250 kilometers have been recorded. The program is expected to finish in the fourth quarter of 2006. Future plans are to drill a number of wells in the second and third quarter of 2007 to test prospects developed by this seismic program.

September 25, 2006
Australia
A 600 kilometer (360 mile) 2D seismic data collection program commenced in June on the Company’s Australia acreage. Approximately 350km (210 miles) of the data collection is now completed. The 2D seismic study is being conducted in the Beetaloo Basin on portions of Exploration permits 76, 98, 99 and 117. This activity fulfills part of the license requirements for holding the seven million net acre property in which the Company owns an undivided 50% working interest. The Company, on behalf of itself and its joint venture partner, recently applied for an additional 1,000,000 net acres. The seismic program is designed to provide data that will help the Company identify drill sites for an eight-well drilling program that it is targeted for 2007. The Company’s initial analysis indicates the Beetaloo Basin may be an under-explored frontier basin which the Company’s geologist’s studies are showing positive indication of commercial potential in one or more multiple conventional oil and gas formations. The basin is located approximately 500 kilometers south of Darwin, and includes infrastructure in the form of national highways, railroad tracks, and a gas pipeline.

October 31, 2006
Australia
A 686 kilometer (426 mile) 2D seismic data collection program commenced in July 2006 on the Company’s Australia acreage. Approximately 612 kilometers (380 miles) of the data collection is now completed and we expect to complete the remaining program (74 kilometers) before November 10th. The 2D seismic study is being conducted in the Beetaloo Basin on portions of Exploration Permits 76, 98, 99 and 117. The initial processing of the new data and the reprocessing of the 2D seismic have been provided to an independent consultant for review. Along with the seismic data, the consultant was supplied with core data from wells that were previously drilled along with open hole drill stem test data from four wells previously drilled. Based on two of the potential identified leads, the independent consultant estimates there are 1.4 billion to 2.3 billion barrels of oil in place and 0.6 Tcf to 1.3 Tcf associated gas in place. In addition, there is the potential of non-conventional recoverable gas resource of up to 30 Tcf.

Garry Lavold, President and Chief Operating Officer, states, “We are pleased that our operating plan is being successfully implemented, including gas production and revenues from these operations. Also, the heavy oil program has advanced from the planning stages to a field work program, and the Australian project is showing potential as both a light crude oil field and a natural gas field.” The Company is presently evaluating additional mineral acreage positions to complement and/or expand areas it is currently developing.


November 28, 2006
Australia
The Company has completed its Acquisition of 686 kilometers (426 miles) of 2D seismic data in the Beetaloo Basin, Northern Territory. Data are currently being processed along with the reprocessing of the data that were acquired about 15 years ago. Interpretation of these data and subsequent mapping of the basin has started with the objective of developing at least eight well locations for a drilling program to start in the second quarter of 2007.

The Company has calibrated petrophysical evaluations on six of the previously drilled wells in the basin with core examinations and field work, and as a result of such analysis, the Company believes there is a likelihood of both conventional and unconventional oil and gas resources.

The Company is negotiating agreements with two Australian drilling companies to provide rigs for both the shallower conventional oil plays (35 gravity oil) and the deeper unconventional fractured shales and basin centered gas accumulations. The permitting process for both drilling and land is ongoing to ensure a second quarter 2007 commencement of the drilling activities.

Garry Lavold, President and Chief Operating Officer, states, “The drilling program in Colorado is showing positive results, the Montana heavy oil program is providing the necessary data for planning our 2007 operations, and the Australia program continues to look promising as additional data are received. We are excited to report that our progress is meeting or exceeding our planned objectives.”

February 8, 2007
Australia:
PetroHunter has processed 700 kilometers of newly acquired 2D seismic data and has completed the reprocessing of 1000 kilometers of existing 2D seismic data. Interpretation and mapping of the geologic and geophysical data are ongoing with the goal of delineating initial drilling locations in the next month. Petrophysical work on all of the previously drilled wells has also been completed.

PetroHunter is currently negotiating with drilling companies, oilfield contractors and suppliers, and intends to commence its drilling program this summer. Further, the Company is working on plans to build a drilling yard in the project area. If the Company is successful in these efforts over the next several weeks, PetroHunter plans to drill at least eight wells in 2007 to test a number of play concepts.

May 25, 2007
Beetaloo Basin
Sweetpea Corporation Pty Ltd. (“Sweetpea”), a wholly owned subsidiary of PetroHunter Energy Corporation, has signed a Letter of Intent with Century Resources for a drilling rig for the drilling program in the Beetaloo Basin in the Northern Territory of Australia. The rig is expected to arrive in the basin early in the third calendar quarter. Extensive geologic and geophysical work has identified seven initial well locations. The wells have been staked, and construction of drilling pads and access roads are being scheduled. Based on our 2D seismic data field acquisition program completed in 2006, several additional well locations are currently being developed for the first phase of drilling.

Sweetpea currently holds four exploration permits covering approximately seven million acres within the basin, and has applied for another 1.5 million acres under two additional exploration permits.


October 6, 2008
Australia -- Potentially Significant Log and Oil Shows in the Beetaloo Basin Project

As announced in 2007, PetroHunter drilled its Shenandoah #1 well (the "Well") on one of its Exploration Permits in the Northern Territory, Australia. In 2008, the Company engaged NuTech Energy Alliance to further analyze the logs from the Well, and to run a shale model, using recent North American oil productive fractured shale analogs. The preliminary results of the NuTech analysis for shales at approximately 3,000-foot depth indicate an estimated initial production rate of several hundred barrels a day (assuming a horizontal well), and a 3-year recovery of 70,000 barrels per well.