Merlinleigh Project

Size:                 5,500km² (1.36 million gross acres)
Ownership:    100% New Standard Energy
Operator:        New Standard Onshore Pty Ltd
Targets:          Conventional reservoirs and shale & tight gas formations
Location:        Onshore Carnarvon Basin, Western Australia. (150km north east of Carnarvon)

The Merlinleigh Project acreage is located immediately adjacent to the Dampier to Bunbury Natural Gas Pipeline and lies between the intensive energy demand areas of Western Australia’s Pilbara and Mid West, providing both infrastructure and marketing options for the company.

New Standard is focussed on finding the gas to meet the growing demand from the domestic Western Australian market. The Company’s exploration team has identified a highly prospective shale gas opportunity in addition to several prospective conventional targets within the Merlinleigh Project’s acreage.

The project is likely to predominantly comprise of gas with the possibility of liquid hydrocarbons being present across portions of the acreage.

In August 2012, New Standard advised that it had successfully converted its Merlinleigh Special Prospecting Authority acreage to granted exploration permits after securing native title agreements with the local Traditional Owners and executing all necessary agreements and State Deeds with both the Traditional Owners and Western Australian Department of Mines and Petroleum. The execution of these documents triggered an offer for the grant of two exploration permits from the DMP which New Standard formally accepted via its wholly owned subsidiary New Standard Onshore Pty Ltd.

Merlinleigh Project area

The orange shaded area illustrated (to the left), highlights the major zone of focus for potential shale resources covering acreage of approximately 1,100km². This area is a more focused area (within the greater envelope of mature source rocks shaded in grey) that in New Standard’s opinion, contains gas-mature source rocks in the early Permian that are prospective for hosting an attractive regional resource play.