Mineral Resources Limited (ASX: MIN) has announced maiden resources for the Lockyer gas project and the Erregulla oil project, both located on Exploration Permits 368 and 426 about 300km north of Perth.
These two exploration permits are part of MinRes’ 100%-owned onshore Perth Basin oil and gas acreage, which has been the subject of extensive exploration investment since the Lockyer Deep-1 (LD-1) discovery by MinRes in 2021.
Lockyer gas project
- Maiden 2C contingent gas resource of 435 petajoule sales gas, with 3.3 million barrels associated condensate. Total current 2C contingent gas resource is 76 million barrels of oil equivalent.
- Current total 2U prospective gas resource of 1,420 billion cubic feet and a risked 2U of 487 Bcf across 14 Kingia Sandstone prospects and leads.
The Lockyer gas project is comprised of two gas pools – Lockyer and North Erregulla – mapped over more than 18km2 and occupying three graticular blocks in EP 368 and two graticular blocks in EP 426.
The Lockyer gas project has now been proven through successful drilling across a six-well program, including a Perth Basin record flow test at the Lockyer-5 Sidetrack-1 well.
The 435 PJ 2C contingent gas resource indicates it is one of the largest onshore gas discoveries in Western Australia, with significant exploration upside across the two exploration permits that could total up to 1.4 trillion cubic feet of gas.
Planning for the development of the Lockyer gas project is well progressed and approvals have been submitted for a Central Processing Facility with a production capacity of up to 250 terajoules per day.
In response to inbound queries from a number of domestic and global parties, MinRes is reviewing development and partnering opportunities related to EP 368 and EP 426. As part of this review, MinRes will assess joint venture partnerships, as well as full or partial sale options. MinRes is also considering development financing options through infrastructure funding partners, as noted in April 2024.
MinRes will only consider opportunities that realise greater value for shareholders than what MinRes considers it can achieve through its standalone delivery plans. The company expects to provide an update by the end of the calendar year.
Erregulla oil project
- Maiden total 2C contingent oil resource is 31.6 MMboe.
The 31.6 MMboe 2C contingent oil resource confirms one of the largest onshore oil discoveries in Western Australia since the discovery of oil on Barrow Island in 1964, with further exploration upside.
Opportunities to commercialise the Erregulla oil project will be considered alongside the review of options for the Lockyer gas project. Options for consideration include separate ownership and development plans for the two assets.
“Our Perth Basin conventional oil and gas discoveries are among the largest onshore finds in Western Australia, with significant upside on these two exploration permits alone,” MinRes managing director Chris Ellison said.
“Developing these resources provides MinRes with yet another option to grow shareholder value through our portfolio of commodities located in the world’s best resources jurisdiction.
“With the commissioning of our new exploration rig, we are just getting started and the Energy division is firming up targets on the largest acreage holding in the highly prospective Perth and Carnarvon basins.
“Developing the Perth Basin remains subject to sensible WA Government domestic gas policy, and MinRes will consider all development and partnership options to maximise value from our exploration success.”
