The Cooper Basin Asset

Key points:

  • Near term exploration and appraisal
  • $42.5 million farm-in commitment for 52.5% operated interest
  • New Standard to operate Cooper Basin acreage
  • Manageable seismic commitments in 2014
  • East coast domestic and export gas demand attractive with multiple pathways to market

The Cooper Basin acquisition provides New Standard the opportunity to access one of the few remaining substantial acreage positions within the Cooper Basin. Adjacent to a producing petroleum system and pipeline infrastructure, PEL 570 has a combination of attractive components, which made the acreage so appealing to New Standard.

A large and rising east coast gas demand market, with multiple pathways to accessing that market, has triggered significant corporate activity in the Cooper Basin in the past two years.

Through the acquisition of PEL 570, New Standard has secured a 2,400 square kilometre foothold in the Basin with a relatively quick path to market for future exploration success.

Licence area PEL 570 is on trend of a proven, producing petroleum system and also pipeline infrastructure. It consists of five parts; two in the core of the Patchawarra trough and three located north of the Patchawarra trough. The Patchawarra trough is the source for the oil and liquids rich gas fields such as Tirrawarra, Fly Lake and Moorari fields, owned and operated by the Cooper Basin Joint Venture. These fields are located in the southern part of the trough and New Standard intends to target the Patchawarra tight gas sands.

PEL 570 acreage location within the Cooper Basin

PEL 570 acreage location within the Cooper Basin

In the northern part of the trough, oil and gas has been discovered at Flax, Juniper and Yarrow. The southern section of PEL 570 is also prospective for gas, being almost surrounded by gas fields including Bookabourdie, Crocus Verona, Cuttapirrie and Lamdina.

That part of the Basin has been found to contain little CO2 and possesses a higher liquids content, particularly in the northern region on the Basin.

The company is committed to conduct a seismic program in 2014, with exploration drilling sometime in 2015.


  • A$1.6 million cash upfront, A$1 million cash deferred over 10 months
  • 15 million New Standard shares (at 16c/share)
  • New Standard also assumes a debt of A$1.4 million for expenses to date (the Vendors also have the right to a New Standard Board position in the future)

Following completion of the acquisition, New Standard expects to work closely with Magnum Hunter to develop a comprehensive exploration program for PEL 570 and to assess future growth opportunities in Australia that are consistent with New Standard’s business strategy.

Magnum Hunter’s technical input will be invaluable in establishing the most effective exploration strategy for PEL 570 and the experience will no doubt add value and benefits for the development plans for the Canning and Carnarvon Basins.

Year of term of licenceMinimum work requirements
One500km2 3D full fold seismic
TwoDrill two wells
ThreeDrill one well
FourGeological and geophysical studies
FiveGeological and geophysical studies

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