ASX/MEDIA RELEASE

16 July 2018

Update on Tesorillo Project, Spain

Petrel Energy Limited (ASX:PRL) is pleased to provide an update on the Tesorillo Project, a high impact onshore opportunity in Cadiz Spain with short timelines to production, funded by AIM listed Prospex Oil and Gas Plc ("Prospex") (AIM:PXOG). Prospex will increase its interest to 15% in the Tesorillo Project by funding the upcoming magnetotelluric programme and ultimately to 49.9% for funding a total of €3.8m including the drilling of a well targeting the Almarchal-1 discovery drilled in 1956.

Operations

The operator at Tesorillo, Tarba Energia (previously called Schuepbach Energy Espania), has notified the Company that the relevant contracts to carry out a passive Magnetotelluric ('MT') survey on the licence area have now been awarded to GeoProSys and GeoGnosia. With all preparatory work nearing completion and mobilisation ongoing, the Tesorillo 2018 MT survey is due to commence in the near-term, as soon as access to the land can be gained once this year's exceptionally late harvesting season in Southern Spain ends. In addition to historic seismic survey data, the MT survey will help evaluate the subsurface geology of the permit area and test for resistivity as a further indication of the presence of hydrocarbons. It is expected that after MT data acquisition is completed, subsequent processing and interpretation phases will follow, with final results expected late 2018.

In tandem with the MT survey, structural fieldwork mapping and analysis will be shortly initiated with the support of the University of Granada. This applied geoscience analysis will be complementary to the subsurface knowledge gained via the MT survey. In addition, technical discussions with potential drilling and completion contractors are at an advanced stage as part of the ongoing well permitting and approvals process initiated at Ministry level.

Following receipt of the required approvals and support from the local authorities, an environment impact assessment (EIA) has been commissioned. As part of this process, relevant surveys over the Tesorillo permit are currently being carried out by a well-recognised environment consultancy group from Seville.

Managing Director, Mr David Casey, said "we are very pleased to have commenced mobilisation and preparations for the MT programme which represents a significant turning point for the Tesorillo project and essentially the start of processes and approvals to see a well drilled in 2019."

He went on to say that "it is exciting to be moving forward in Spain again and particularly with a company keenly focused on what the Tesorillo Project upside represents for its shareholders".

For further information contact:

David Casey - Managing Director Phone +61 2 9254 9000

Planned MT programme on Tesorillo

What is Magnetotelluric Surveying

Magnetotelluric (MT) surveying is a geophysical method of imaging the subsurface by measuring natural variations of electrical and magnetic fields at the earth's surface. The technique maps resistivity variations in the subsurface where resistive bodies may be indicative of favourable locations for hydrocarbon accumulation. The low frequency, deep-sensing nature of MT surveying makes the method ideal for mapping gross structure and stratigraphy. MT surveys are therefore useful ahead of seismic techniques which generally provide more detailed information.

Petrel and Prospex are using MT data as an inexpensive way to evaluate the subsurface geology of the licence area and test for resistivity, as a further indicator of the presence of hydrocarbons.

Tesorillo Project

Link to March 2018 Project Update

Attachments

  • Original document
  • Permalink

Disclaimer

Petrel Energy Limited published this content on 16 July 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 15 July 2018 23:09:03 UTC