TEE identifies multiple stacked oil & gas targets in QLD

Our domestic gas exploration Investment Top End Energy (ASX: TEE) just put out preliminary results from its 2D seismic acquisition program at its QLD gas project.

The 2D seismic is all precursor work for a drill program which TEE expects to complete in 2024.

Here are our key takeaways from the preliminary results:

1) Confirmed the presence of the large coolibah structure.

Seismic data confirmed the big Coolibah structure which holds TEE’s existing Independently verified prospective resource of 715 billion cubic feet.

2) Multiple stacked targets that could be tested with a future well.

After reviewing all of the seismic data & historical results from a nearby well (Mt Morris-1) TEE has put together a model for the project showing multiple stacked targets.

At a very high level - stacked targets are good news because when it comes time to drill, TEE would have multiple targets from which a potential discovery could be made.

Effectively multiple rolls of the dice in the same drilling program.

The initial results from the seismic showed ~6 stacked targets.

3) Farm-down being considered..

We also noticed TEE mention it would “consider a potential farm-down” of the project ahead of any drill program to minimise the cost to TEE.

TEE currently owns 100% of the project so it is in a good position to negotiate with farm-in parties.

Here’s the details on TEE’s QLD gas project

TEE’s project has an existing Independently verified prospective resource of 715 billion cubic feet on a gross mean unrisked basis.

There is a chance the 2D seismic results lead to an increase in the prospective resource.

Project sits near a proven gas field - TEE’s project sits nearby the Gilmore gas field, with its drill program TEE will be looking to see if the same formations that host Gilmore extend into TEE’s ground.

TEE’s QLD asset already has historical 2D seismic data - the new 2D seismic data is being used to infill existing data and improve TEE’s chance of success when it gets on the ground and drills a well.

What’s next for TEE?

Permitting in the NT 🔄

With the native title approval secured, we want to see TEE’s high priority EP 258 application granted.

Once granted, this would mark the first exploration permit (EP) granted in the Northern Territory since 2015.

See our late TEE note on the NT project here.

2D Seismic program in Queensland 🔄

Final results from the 2D seismic program are expected toward the end of this quarter.

After that we expect to see TEE firm up where it would want to drill and the timing for any future well.