braveheart-cornea funding, page-2

Braveheart Joint Venture – WA-332-P and WA-333-P


In the first three year term of these permits, the Joint Venture obtained available open file reports and basic 2D and 3D seismic data acquired by the earlier efforts of previous explorers. We also acquired reprocessed 2D seismic data. The pre-existing 2D seismic data sets have been integrated with the acquisition and processing by the Joint Venture of the Braveheart 2D seismic survey of approximately 1,949 line km of new 2D seismic survey over these permits. This survey has recently been infilled with a further 490 kms of 2D seismic. The Braveheart Joint Venture elected to enter a second three year permit term in which it has planned for the drilling of Braveheart 1 in WA-333-P.


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On April 3, 2009 the Browse Joint Venture was granted an 18-months suspension and extension of Year 5 of permit WA-332-P and WA-333-P in order to acquire further new infill 2D seismic survey over potential leads in WA-332-P and to secure a drilling vessel. Year 5 of WA-332-P ends March 31, 2010. Further extensions may be necessary.


On April 3, 2009 the Browse Joint Venture was also granted a 12-month suspension and extension of Year 5 of the WA-333-P permit in order to allow additional time for the drilling of the Braveheart-1 well in WA-333-P. The Joint Venture has entered into a contract with a drilling vessel management company, as a result of which a well is expected to be drilled on the Braveheart feature in late 2009. Year-5 of WA-333-P ends on March 31, 2010.


The participants in each of the WA-332-P and WA-333-P permits have formed new 100% owned subsidiary companies and transferred their respective interests in the Braveheart Joint Venture to such wholly owned subsidiaries. Alpha incorporated Braveheart Oil & Gas Pty Ltd as a wholly owned subsidiary to which it has assigned its residual 17% interest in each of these Permits. The Joint Venture adopted the new name of the “Braveheart Joint Venture” and entered into a new joint venture operating agreement on 21 October 2009 and confirmed the appointment of Hawkestone Oil Pty Ltd (a subsidiary of Exoil Limited) as operator.


The participants had previously farmed out a further 12.5% interest in the Braveheart Permits to Gascorp Australia Pty Ltd in return for that company meeting all of the costs for the planning services of Australian Drilling Associates Pty Ltd in the lead up to drilling Braveheart-1.


Interests in the Braveheart Joint Venture permits at the end of the quarter were:


Braveheart Resources Pty Ltd (subsidiary of Exoil Limited) 25.375%
Braveheart Petroleum Pty Ltd (subsidiary of Batavia Oil & Gas Pty Ltd) 25.375%
Browse Petroleum Pty Ltd (subsidiary of Gascorp Australia Pty Ltd) 27.500%
Braveheart Oil & Gas Pty Ltd (subsidiary of Australia Oil & Gas Corporation) 14.500%
Braveheart Energy Pty Ltd (subsidiary of Goldsborough Limited) 7.250%


Through Hawkestone, the participants in the Joint Venture contracted the services of Australian Drilling Associates Pty Ltd to provide project management support the conduct of Braveheart-1 drilling operations and has gained access to one drilling slot in a group sponsored multi-well drilling program utilising the semi-submersible drilling rig, the Songa Venus. The drilling slot is to be used for the drilling of the Braveheart 1 well, anticipated in late 2009.


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The Braveheart prospect is now drill-ready, subject to obtaining of all final government, environment and permit-related approvals. The Braveheart prospect is a postulated strategraphic trap covering an area of more than 300 kms², with scope for large prospective resources potential. The feature was delineated through AVO analysis and is in a water depth of about 125m, with the target at 2200m.


The Braveheart Prospect reservoir target is submarine fan sandstones. The target was first defined on the Braveheart 2D seismic acquired in 2005/6 and further confirmed on the Braveheart Infill 2D seismic acquired in 2008. It comprises a prominent amplitude anomaly that was shown to possess an amplitude versus offset (AVO) anomaly, suggestive of (but not definitive of) the presence of hydrocarbons. This high amplitude area corresponds to the thickest part of the interpreted isopach, which is estimated to represent 32m of potential reservoir sandstone.


A large amount of AVO analysis and testing over a considerable time was performed on the seismic data. While not conclusive, a possible hydrocarbon content can be inferred from the AVO response. Particularly encouraging was that the AVO response terminated at the same two-way-time at both the top and the bottom of the sedimentary unit, suggestive of a common hydrocarbon-water contact but, again, not definitive