Emperor Energy Ltd (ASX:EMP) continues to progress the Judith Gas Project offshore Victoria towards commercial production of gas in 2027 or earlier with the receipt of fully processed seismic data enhancing the certainty of interpretation.
The company’s objective at the project 40 kilometres offshore from Orbost Gas Plant in the Gippsland Basin is to establish a sales gas capacity of 80TJ (Terajoule) per day equivalent to 28PJ (Petajoule) per year over a minimum production period of 15 years.
The project requires drilling of a successful Judith-2 appraisal well in early 2023 to appraise and prove Gas Reserves and subsequently provide economic justification for gas field and processing plant development leading to targeted commercial production of sales gas in 2027 or earlier.
A project pre-feasibility study completed by gas pipeline company APA during 2020 provides a clear understanding of the infrastructure path and cost required to achieve commercial production.
Final processed 3D seismic data
Over the past three years, Emperor Energy has systematically analysed all available data from the Judith-1 Well (drilled in 1989) along with data from other nearby wells and previous seismic surveys across the area to define a large Prospective Resource and smaller Contingent Resource.
The company has now received the final fully processed version of high-resolution 3D seismic data from the multi-client 3D seismic survey completed in 2020 across the offshore Gippsland Basin by CGG.
Importantly, the final processed data provides a significant improvement from the preliminary ‘fast-track’ PSDM data previously received in mid-2021.
The new data provides improved seismic imaging, event coherency and positioning.
Seismic events and faults are imaged with much more clarity resulting in greater certainty of interpretation.
The improved clarity of seismic interpretation for both the Judith and Longtom reservoir sequences is seen in the composite seismic line shown in Figure 1 below.
Figure 1- Seismic cross-section showing amplitudes associated with the Judith and Longtom Gas Sands extending up-dip into the Judith Structure.
The continuation of amplitudes associated with these gas sands is seen to extend up-dip in the Judith structure to the proposed Judith-2 well site.
Kipper Sand and Golden Beach Formation play
Also of significance are strong AVO effects indicative of gas in both the Kipper Sand located higher in the sequence above the Judith Gas Sands and in additional sands associated with the Golden Beach Formation underlying the Kipper Sands.
These sands appear to extend across a greater area of Vic/P47 than the relatively small area of interest previously identified by interpretation of the ‘fast track’ seismic data earlier in 2021.
This is indicated in Figure 2 below which shows the AVO response for the Kipper Sand extending through to the proposed Judith-2 Well Site.
Figure 2 - AVO Response (Direct Hydrocarbon Indicator) for Kipper Gas Sand extending up-dip into the Judith Structure to the proposed Judith-2 Well site.
This potential is supported by recent additional petrophysical work conducted for Emperor using Judith-1 well data that suggests the presence of gas in these sands at Judith-1.
Resistivity logs were suppressed through the use of overweight drilling mud density causing formation damage around the well prior to logging.
Technical work to further define additional exploration / appraisal potential in these sequences is continuing.
This potential is considered significant due to the known higher porosities and permeabilities of the Kipper and Golden Beach formations in comparison to the underlying Judith Gas Sands.
Permit in good standing with low risk
The 100% Emperor Energy owned Vic/P47 Exploration Permit containing the Judith structure is in very good standing with the National Offshore Petroleum Titles Authority (NOPTA) with more than adequate permit term remaining to complete the Judith-2 Well.
Emperor Energy is progressing on schedule through the Permit Work Program and is now preparing to commence the approval process for the drilling of the Judith-2 Well.
This approval process is expected to commence in early 2022 and be completed by year end.