Annual report for the period 1 September 2007 to 1 September 2008

Abstract

EL's 25596 25599 were applied for by Dunmarra Energy Pty Ltd on the basis of coal? being struck during drilling of a water bore. However, laboratory testing showed that the material is a primary bitumen, specifically a grahamite. The material is closely related to gilsonite and would be marketed similarly. For simplicity, the material will be referred to as bitumen of the Sturt Plateau Bitumen (SPB) project. Although there are no real Australian analogues although there are significant international analogues, mainly in Utah, USA. It is difficult to determine the potential size of bitumen deposits on the Sturt Plateau due to very limited drilling data, however the following factors are encouraging: - In analogous deposits in the Uinta Basin, Utah, some gilsonite dykes have been traced laterally for up to 65 km; - The likely source of the Sturt Plateau hydrocarbons are organic rich units within the very laterally extensive Roper Group; - The Antrim Plateau Volcanics, as both an impediment to vertical migration and a host for bitumen, are laterally persistent in the subsurface covering 300,000 km2 across northern Australia; - The thickness of the bitumen intersected in the discovery bore appears likely to be in the order of 3 m although coring is required to confirm this; - An experienced local groundwater driller stated that bitumen drawn from the discovery bore was very similar to material encountered in a bore approximately 80 km to the south-south-west of the discovery bore; and - It would not be expected that large deposits would have been previously recognised in this area due to sparse exploration data. The depth of the material in the discovery bore location suggests that open cut mining might be feasible, however the nature of the bitumen material means that alternative, non-conventional extraction techniques such as stream assisted gravity drainage might be also be possible and enable potential development of likely deeper deposits (at the base of the Antrim Plateau Volcanics) elsewhere on the Sturt Plateau.