|Thursday, 22 May 2003Tim Treadgold|
The most interesting of the residual Australian assets is a 73.78% stake in EP408, an onshore tenement which incorporates the Whicher Range gasfield in the south-west of Western Australia.
Potentially a major gas producer, Whicher suffers from the problem of a tightly-packed Permian-age sandstone. The estimated 4 trillion cubic feet of gas in the structure, a size which rivals most North West Shelf gas discoveries, will not flow without special drilling and extraction techniques. Finding the correct way of getting the gas out is an ongoing challenge for which Amity is seeking a joint venture partner in drilling Which Range No.5 utilising a system known as under-balanced drilling.
While the Whicher Range project moves ahead, the most exciting developments are in Turkey. "I think we're making progress in explaining the attractions of Turkey," said Amity's executive director and co-founder, Peter Allchurch. "As with all foreign work, there have been a number of issues to master, such as understanding how the local market works. That's why having TPAO as a JV partner has been so valuable."
Allchurch says the drilling program for 2003, which is focused on the Gocerler JV area, would also include drilling in other permit areas, most of which are currently 100%-owned but will most probably be farmed-out to lower the risk profile. "We've shot 2D seismic on a group of tenements and should complete that work by the end of February," he said. "A large number of leads and prospects have already been identified, and we hope to be drilling in the Adana region by May."
"Work in the Gocerler area this year started with the two appraisal wells (No.4 and No.5 which are testing the potential of the original discovery) and will move to an exploration well later. From first look at the 3D seismic we've shot it appears that we have a number of magnificent structures for future drilling."
After the appraisal wells, Amity moves on to more ambitious drilling with the ultimate program partly determined by success and the need to test any discoveries. This phase of the work will add a touch of blue-sky investment appeal to a company which has what every resource business dreams of, cash in the bank, rising revenue, and more drilling targets than can be hit in a year. With those assets, Australian investors are going to find it increasingly hard to ignore Amity's Turkish delights.
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