Zydeco Gas Project
Dual conventional oil and gas and coal seam gas prospectivity in an established petroleum province
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Zydeco Gas Project – Gulf Coast Basin, USA
Summary
The Zydeco Project is located in the highly prospective Gulf Coast Basin, an onshore Mesozoic-Cenozoic, marginal sag basin containing more than 15km of sedimentary fill. The Project has a total of 325.3 acres of mineral leases secured located in the Acadia Parish, Louisiana, USA.
The Project comprises the development of a discovered gas/condensate field and exploration of a deeper reservoir defined by 3D seismic. Appraisal targets to the east (Zydeco East) have also been identified comprising the same stacked reservoir sands is the Zydeco Project.
Drilling and development is low cost and low risk, targeting first production and cashflow by 2026/2027. Revenues from the project will support subsequent phases of drilling in the area including Zydeco East and the delivery of growth opportunities within the USA. The project provides GLL the springboard to grow using cashflow and positions GLL to start its path towards creating a mid-sized US exploration, development and production business.
Proximity to the Texas gas pipeline together with ease of access from highway and parish roads, facilities mobilisation of the drilling rig and installation of production facilities. The project will comprise gas and condensate separation facilities, dehydration, condensate storage, trucking facilities, and a gas spurline to a tie-in point at the Texas gas pipeline less then 1 mile from the Zydeco field.
Figure 1: Type of local rig which will be used for the development and exploration
Figure 1: Type of local rig which will be used for the development and exploration
Low development costs, quick production time
The zydeco Gas Project has a low development cost of ~A$7.4m and gas production could come on stream inside of 6 months if drilling commences in 2 months.
"Transformative project with high impact cashflow generation "
Opportunities
Known growth opportunities can be readily secured which could transform GLL into a US-focused mid-tier oil and gas producer.
A highly experienced and capable team that can fully develop the project’s blue-sky potential and create value for shareholders.
Advanced project
Significant work has been undertaken to date, as the Zydeco Gas Project is 3D covered with appraisal and near-field exploration wells drill-ready.
Existing infrastructure
Short 1.6km gas spur line to the Texas Gas Pipeline, and a condensate stripping and truck loading facility.
Readily accessible with existing sealed roads and gravel tracks.
Low risk development
The Zydeco Gas Project, Louisiana, USA is a low-risk development and appraisal of a proven gas & condensate field.
Delivers value
Using relatively conservative assumptions, the Zydeco Project delivers significant positive attributes, including:
- Project NPV 10: A$18.8m
- Payback: 12 months
- EBITDA Yr 1: A$9.2m
- NCF Yr 1: A$7.5m
Advanced Project
Significant work has been undertaken to date, as the Zydeco Gas Project is 3D covered with appraisal and near-field exploration wells drill-ready.
Existing infrastructure
Short 1.6km gas spur line to the Texas Gas Pipeline, and a condensate stripping and truck loading facility.
Readily accessible with existing sealed roads and gravel tracks.
Low risk development
The Zydeco Gas Project, Louisiana, USA is a low-risk development and appraisal of a proven gas & condensate field.
Delivers Value
Using relatively conservative assumptions, the Zydeco Project delivers significant positive attributes, including:
- Project NPV 10: A$18.8m
- Payback: 12 months
- EBITDA Yr 1: A$9.2m
- NCF Yr 1: A$7.5m
Geology
Multiple play-levels are proven productive throughout the basin, particularly within the Cenozoic succession where stacked pay is common and reservoir quality is typically very good. The basin is extensively explored with extensive 3D seismic coverage.
Within the project 2 reservoirs are capable of being drilled with a single well and subsequently put on production:
Upper Tweedle Fm. – The Upper Tweedle Fm. is proven productive at near offset fields Indigo Min (2km south) and Frey (8km east). The reservoir was previously drilled on the structure in 1950, by The MacCabees et al #1 well, which intersected gas in the Upper Tweedle Fm but never produced from that interval, instead completing, and producing from a shallower oil reservoir. The Zydeco-1 well will re-drill the Upper Tweedle Fm for production.
Lower Tweedle Fm. – The Lower Tweedle Fm. is also proven productive at near offset fields). The reservoir lies below the MacCabees et al #1 well TD and therefore remains untested on the structure. Zydeco-1 will drill deeper to also test the HC potential of the Lower Tweedle Fm. reservoir.
Figure 3: Schematic of reservoirs and potential extension to the east
CONTACT
5/420 Bagot Road
Subiaco WA 6008
PO Box 839
West Perth WA 6872
P +61 (0)7 3177 9970