The Longtom Upper prospect is located in VIC/L29 along the northern margin of the Gippsland Basin. This directly overlies the Longtom gas field in a younger reservoir section which has not yet been intersected by any of the existing Longtom wells. The prospect is defined by a seismic amplitude anomaly on 3D data very similar in characteristics to the anomalies which have been used to delineate the thin gas charged sands within the Longtom field itself.

 

The prospect is interpreted to extend over an area of approximately 13 km² and could be as thick as 40 metres in certain areas. The resource potential of the sand is 175 Bcf and will be tested by a well to be drilled in the June quarter of 2008. If successful, the discovery would be ideally located to be integrated into the Longtom field infrastructure at modest additional cost.

 

 

The Grayling gas discovery lies approximately 7 kilometres south of Longtom-1. The economic potential of the Grayling gas accumulation is now under evaluation. The field's proximity to the Longtom gas project infrastructure should provide a low cost development option for the resource.