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Miani 1

This article should be considered part of a technical demonstration and not financial advice. Stockle does not guarantee the accuracy of any information on this site.

May 18, 2019


This article should be considered part of a technical demonstration and not financial advice. Stockle does not guarantee the accuracy of any information on this site.

The Canning is a vast and largely underexplored basin. When it comes to proven plays we only have the Ungani Trend dolomite on the southern flank of the Fitzroy Trough and the more traditional sandstone reservoirs at Sundown, Lloyd etc on the northern flank.

When a new play type is proposed it’s considered a normal part of unlocking the petroleum geology of such a region and a respectable undertaking. However, the specific area the Miani (previously Hot Dog) prospect is situated in is already a production license and quite highly explored being close to the West Terrace and Sundown fields. A new play concept in this light can seem a bit optimistic, and potentially not much more than gleaning something from a work commitment that otherwise wouldn’t make the drilling plan. That we’ve had in recent years Oil Basins Limited touting a new concept nearby at Backreef-1 and headlining potential reserves from particularly risky stratigraphic traps in the area probably hasn’t helped.

By the end of this article I hope you will be convinced this is isn’t the case.

Let’s rewind to 2010.

Buru is flush with capital from a great farm out to Mitsubishi, they’ve completed the Bunda 3D seismic and are probing EP 129 with some relatively safe exploration relying on the nearology of the only producing fields in the Canning at the time.

Not much is remembered these days of Fairwell-1 and Leander-1 as they were both unsuccessful and unexciting even at the time with their small ~1mmbbl barrel targets. However, buried in 7 years of announcements is this little gem from the Leander duster announcement:

“The Leander-1st1 well is being suspended for possible re-entry and sidetrack to test an interpreted hydrothermal dolomite anomaly some 500m to the west of the current well location.

This is a prospect Buru have wanted to explore for almost a decade now but have only recently decided to tease us with specific details about.

So let’s look at HTD. It’s probable that hydrothermal processes contributed to the existing Ungani Dolomite reservoirs as HTD is linked to Mississippi Valley Type Zinc and Lead Deposits of which Ungani Dolomite has long been considered an example of. The same magnesium rich fluids forced laterally into limestone by overlying shale is considered to have created the Lennard Shelf MVT region in the northern part of the same trough.

An actual HTD play is a specific trap type within such a region. Ungani and other prospects are  largely regional highs and fault/dip closed structures that just happen to have dolomite reservoirs. In fact pre-drill Ungani was considered to be a sandstone gas reservoir much like Yulleroo.

A HTD play looks for seismically definable telltale signs of HTD action. These signs include deep faults that connect a prospect with basal brines, wrench fault systems and sags indicating collapse features. In isolation these indicators may be interesting. Where hydrothermal processes are considered endemic however such signs must be considered as possibly of HTD origin.

Miani’s seismic clearly shows deep faulting and obvious sag. Hydrothermal processes are considered so endemic to the region that in 2008 prior to any conventional drilling by Buru, Iain Copp of Good Earth Consulting said the following of the Miani (Blina) area:

“The western Lennard Shelf (Blina field area) is also a highly prospective area for HTD reservoirs for several reasons. Firstly, the area comprises a series of intersecting faults with transtensional wrench structures. Secondly, it is close to the Lennard Shelf MVT district and likely received the same hydrothermal fluid pulse. Thirdly, it has demonstrated oil production from a fractured dolomite close to a faulted platform margin within a wrench system. And lastly, most importantly, wells such as Blina-2 intersected significant sulphides (marcasite and pyrite) with classic textures common in MVT deposits — sulphides riming clasts that ‘float’ in calcite filled voids, typical of solution collapse breccias. Reassessing the western Lennard Shelf with regards an HTD origin or diagenetic modification is therefore important given these primary structural and diagenetic features.”

A full year before the Bunda 3D survey was complete that delineated the Hot Dog HTD anomaly, Iain was predicting the area as one of the most prospective in Australia.

He goes on to say “If an HTD play proves valid for the Canning Basin, then previous exploration strategies will need to be reassessed based on current HTD models. For example, off-crestal positions in structural lows (sags) will be prospective and are unlikely to have been previously drilled (though nearby dry, crestal positions may have been — in the Ladyfern and Albion–Scipio fields, for example, dry wells occur alongside the gas producers within sags).”

This neatly describes Miani’s off crestal sag 500m away from Leander-1’s crestal drill into tight limestone.

Now let’s look at Leander-1. Designed as a test of the Anderson sandstone, Buru thankfully drilled much deeper hoping that the Nullara might hold something of interest which gave us a good reading of the Laurel Formation just above it.

At the time Buru stated: “Fair to good hydrocarbon shows were encountered in the carbonates of the Laurel section but there does not appear to be significant reservoir development associated with these shows. The well is currently drilling in the Yellowdrum Formation with minor hydrocarbon shows.”

So we have good hydrocarbon shows but no reservoir in a crestal position above a sag with a potential brecciated HTD collapse zone reservoir.

In one of the main areas in Australia where HTD are predicted.

This isn’t just a new concept trying to rake over old ground with a work commitment drill. It’s shaping up to be an answer to a decade old geological prediction. And with a P50 of 22mmbbl and P10 of 45mmbbl it’s certainly an answer worth getting.

Contact your financial advisor or broker and discuss with them any exposure to Miani you would like and any strategies such as buying early before spud or dollar cost averaging you want to use to minimise the large risks inherent in investing in oil exploration or simply to discuss aspects of the project as Stockle.com cannot guarantee the assumptions or research used to arrive at these valuations.

Stockle.com is currently in beta and looking for investment to increase the type of projects it can value and the company announcements the platform can interpret. As a Nevada Corporation we’re also looking for partners in countries such as Australia Canada and the UK to operate locally in the financial services industry. Email [email protected] if you’re interested in our whitepaper and learning more.


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