“It has long been known that the Emperor Subgroup contains hydrocarbons in the Gippsland Basin,” BSOC told the Australian Stock Exchange yesterday.
“However, recognition of the commercial potential of these resources has been limited due to the low permeability of the sandstones and the lack of a successful flow test.”
BSOC said the Longtom-3 result showed that the use of modern 3D seismic can identify gas-bearing reservoirs in the Emperor Subgroup.
“With the application of advanced drilling techniques, these reservoirs can produce gas at high flow rates,” it said.
The company said it would now re-assess its Vic/P47 and Vic/P42 permits in the Emperor Subgroup play fairway in light of the result at Longtom-3, which last week flowed 77 million cubic feet of gas per day on a second production test.
In terms of exploration potential, it said it has interests in three Gippsland permits, covering both the northern and southern margins of the basin, where the Emperor Subgroup is present at “attractive” depths.
