COOPER EROMANGA BASIN, OVERVIEW

The Company has now received notification from the Department of Natural Resources and Mines (“DNRM”) that the transfer of these titles to Key is now complete. The Company is continuing its geological studies over the Cooper Eromanga Basin assets in anticipation of discussions pertaining to the future work programs of all ATP’s and is planning to formalise the work programs for the terms of the ATP’s this quarter. The Company has been following the protocols of the Queensland Gas Supply and Demand Action Plan and following discussions with DNRM, Key has been also working with the Department of State Development on ways to fast track development of any future gas discoveries and development in areas which are not environmentally sensitive. Key also plans to discuss the possibility of making application for the Collaborative Drilling Initiative to receive a grant to potentially drill in the underexplored area in ATP 924 where Key has mapped the potential for both Triassic and Permian gas potential. The same formation rocks will also be the target of pilot wells with Real Energy to the east in its Tamarama basin centred gas play and Key has been examining whether mob and de-mob can be shared with Real or other Operators in 2018.

The Company has also commenced preliminary assessment of nearby infrastructure and commercial offtake arrangements. Potential offtake routes and joint venture participation of drilling of conventional gas will be the focus of the next quarter as the title work program commitments are formalised.

Eligible activities can include:
  • Deployment of new technologies or techniques to lift existing and new well productivity;
  • The opening of new gas pilot and/or production or exploration wells that are either in proximity to existing gas infrastructure or can demonstrate a path to market;
  • Better utilisation of existing or the establishment of new gas processing, storage and transport facilities; and
  • Design, construction and engineering activities directly related to bringing forward new gas supply.

The Company has also commenced preliminary assessment of nearby infrastructure and commercial offtake arrangements. Potential offtake routes and joint venture participation of drilling of conventional gas will be the focus of the next quarter as the title work program commitments are formalised.