Offshore Sydney Basin (NSW) PEP 11

Advent Energy, through its wholly owned subsidiary Asset Energy Pty Ltd, is pursuing its option to increase its interest to 85% in cornerstone project PEP 11 - offshore Sydney Basin.  The offshore Sydney Basin contains all the elements seen in other producing world class structures.  The PEP11 permit covers 8,250 km2 on the doorstep of Australia's largest energy market and extensive gas infrastructure.  PEP11 covers a significant proportion of the offshore Sydney Basin, and also lays claim to being NSW's sole offshore petroleum exploration permit.  
 
The offshore Sydney Basin has seen numerous seismic and geophysical acquisition surveys since the middle of the 20th century.  However, an offshore petroleum exploration well has never been drilled into the Sydney Basin.  University, state and federal government bodies continue to research the continental shelf and slope of Australia's east coast margin.  Unfortunately, the majority of seismic data acquired in the region of PEP11 is old and of insufficient quality to assist greatly in the current exploration data compilation.  
 
Three programs of 'modern' 2D seismic data have been acquired over PEP11.  These include 1742 km in 1981, 603 km in 1991 in the 'Seaspray' survey by Santos & Ampolex, and 1460 km in 2004 by Advent's joint venture partner Bounty Oil & Gas.  Advent farmed into PEP11 in 2006 following the 2004 seismic acquisition and earned a 25% interest in the permit.  Advent has very recently reprocessed the 2004 seismic data and integrated with the 1981 and 1991 data - the integrity of the large scale structures has been retained and numerous direct hydrocarbon indications have been observed.
 
Advent assumed operatorship of PEP11 in 2008 and has since generated an extensive accumulation of data demonstrating an active hydrocarbon system in what is considered a proven petroleum basin.  Repeated LandSat observed sea surface slicks, inshore observed and sampled thermogenic hydrocarbon seepage, extensive historical shore hydrocarbon accumulations, very large pockmarks along the continental slope, echosounder and sub-bottom profile indications of gas, numerous hydrocarbon indications (anomalous AVO, HRDZ, gas chimneys, flat spots) observed in seismic data have considerably de-risked the exploration effort in PEP11.  The Sydney Basin is a proven hydrocarbon basin with excellent potential for the discovery of natural gas.  
 
The permit has recently been estimated to contain 13.2 trillion cubic feet (TCF) prospective recoverable gas resources (at the P50 or 'best estimate' level).

A pre-drilling site survey was completed on 3 June 2010 to map the seabed at four locations within PEP11. Subsequent processing of data has helped refine major prospects with multi-Tcf gas potential.
 
Advent has secured the semi-submersible drilling rig Ocean Patriot to drill the first well offshore NSW to evaluate a target of multi-TCF size. Drilling is expected to commence in approximately October 2010.  Advent has engaged Du-El Drilling Services to perform the drilling engineering, well construction and project management services.  The RPS Group have performed the environmental management consultancy services.  
 
This is an exciting period in the company's development. To put Advent's prospective resources in context, four TCF of natural gas could supply the entire NSW gas market for nearly twenty five years.  In addition, the successful discovery of a significant gas resource offshore NSW could have a considerable environmental benefit.  Replacing coal with natural gas for electricity generation can reduce carbon dioxide emissions by up to 50%.