Las Vegas, US-based Cheetah Oil & Gas Ltd said that one of its key assets in Papua New Guinea, #246, holds an estimated 2.6 trillion cubic feet (tcf) of natural gas reserves.
The company said the reserves estimate was provided by an independent expert, Australia’s 3D-GEO, which recently completed a comprehensive evaluation of some of Cheetah’s extensive land position in Papua New Guinea.
Cheetah said: “This ongoing process has now resulted in a greater understanding of the oil and gas potential of property #246. As further reported on November 17, the company has also applied to the Papua New Guinea Department of Petroleum and Energy for a Petroleum Retention License for property #246.”
Cheetah said it will file on form 8K with the Securities and Exchange Commission, a complete copy of the 3D-GEO evaluation report, and is in the process of updating its website with the evaluation report.
3D-GEO’s evaluation of property #246 concludes that “Seismic interpretation, stratigraphic analysis and seven structural cross sections have allowed mapping at top Mesozoic or top Miocene reservoir level of the Kuru undeveloped discovery, five leads and four more potential leads. Total unrisked mean gas-in-place for all leads and plays is 2.6 tcf.”
According to Cheetah, 3D-GEO’s report concluded that #246 has proven total unrisked mean gas-in-place for all leads and plays of 2.6 tcf. The undrilled Middletown Culmination has mean, unrisked gas in place of 0.75 tcf gas with an upside of 1.4 tcf gas.
“Sustained and commercial gas flow rates are not assured from the Kuru wells which have not been tested,” it added.
Garth Braun, Cheetah’s chairman and CEO, said: “We are obviously very excited about this evaluation of our property #246. We also know that, traditionally, oil and gas companies make every effort to keep this kind of detailed information locked-up and away from competitors. However, in this instance we felt theinformation is fundamentally material for our shareholder’s understanding of our company and we value our shareholder’s rights as our top priority.”
Chief geologist Jack Sari said: “3D-GEO’s estimate of total unrisked mean gas-in-place for all leads and plays at 2.6 Trillion Cubic Feet exceeded our own internal expectations for property 246. As we analyse and interpret the data on our various properties we are gaining a stronger appreciation of the potential hydrocarbon-bearing capacities of these properties.”
Petroleum Prospecting License #246 is held by Scotia Petroleum Inc, a 100%-owned subsidiary of Cheetah Oil & Gas. Cheetah expects to receive additional 3D-GEO reports on properties #245 and #249 in the weeks to come.
Cheetah Oil & Gas Ltd is evaluating and exploring for energy resources on its five 100%-owned and operated PPL’s of approximately 8.3 million acres, as well as its 97.5% farm-in interest in two PPL’s of another 3.9 million acres, making this total of 12.2 million acres the largest land position of its kind in Papua New Guinea.