UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 10, 2006
AUSTRALIAN OIL & GAS CORPORATION
(Exact Name of Registrant as Specified in Charter)
Delaware 000-26721 84-1379164
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(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
2480 North Tolemac Way, Prescott, Arizona 86305
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (928) 778 1450
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2.below):
[_] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 8.01. Other Events
Grant of New Exploration Permit - AC/P39
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Australian Oil & Gas Corporation (AOGC) is please to advise that on May 3, 2006,
we were informed by the Designated Authority of the grant of petroleum
exploration permit AC/P39 for an initial 6-year term, effective from April 7,
2006. AC/P39 is within the Territory of Ashmore and Cartier Islands, an
Australian offshore territory. Our wholly owned subsidiary, Gascorp Inc, holds a
20% interest in the permit, with its affiliates; Natural Gas Corporation Pty Ltd
(40%) and Auralandia N.L. (40%), the designated Operator. Previously Gascorp
Inc., together with these affiliates had been granted petroleum exploration
permits AC/P33 and AC/P35, which are located adjacent to the west of AC/P39.
Gascorp Inc, holds a 20% interest in these permits, also.
Significant Project Area
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AC/P39, AC/P33 and AC/P35 create one unified project area and are located on the
eastern margin of the Vulcan Sub-basin; one of a number of proven petroliferous
sub-basins which together comprise the North West Shelf hydrocarbon province of
Australia.
AC/P39
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AC/P39 is located 600 km west of Darwin, immediately to the east of AC/P33 and
AC/P35. It comprises 11 graticular blocks, totalling approximately 920 km(2)
(2,273 acres). AC/P39 lies within 100 km of existing petroleum production
facilities and along the eastern elevated flank of a broad, deep and proven
hydrocarbon-generative basin. There have been five wells drilled in the area,
with two having oil and gas indications. In the first three years of the initial
6-year term of the AC/P39 permit, we plan to obtain a range of existing reports
and open file seismic data. In the third year, we plan to drill one exploration
well.
The seafloor in the area of AC/P39 is gently sloping from the southeast to the
northwest and lies in water depths mostly less than 200 metres. No reefs have
been surveyed within the release area.
Geologically, AC/P39 overlies the northern part of the Vulcan Sub-basin, where
the Mesozoic section thins eastwards from the deep Cartier Trough onto a series
of northeast-trending basement horst and graben blocks, the most prominent of
which is the Nome-Medusa Horst. It is flanked to the east by the broad, elevated
Londonderry High.
The Territory of Ashmore and Cartier Islands region contains producing and
decommissioned oil fields as well as oil and gas discoveries that are presently
undeveloped or in the process of being developed. These fields and discoveries
cover a large suite of structural and structural/stratigraphic play types, some
of which are all likely to be present in AC/P39.
Wells in AC/P39, AC/P35 and AC/P33 or Vicinity
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Five exploration wells have been drilled within AC/P39; Turnstone 1, ST1, Nome
1, Tancred 1, Medusa 1 and Capricious 1, none of which were declared as
discoveries. However, the Audacious (oil) and Oliver fields (oil and gas) are
located immediately to the south and west of the area, respectively.
Turnstone 1 ST1 (within AC/P39), drilled by Arco Australia Ltd in 1974 to test
Jurassic and Triassic sandstones within the northeast-trending Jabiru Horst,
encountered Tithonian, Early Jurassic and Late Triassic sands. It was terminated
at 2019 mRT. A minor gas show was encountered.
Nome 1 (within AC/P39) was drilled by BHP Petroleum Pty Ltd in 1986 to test
interpreted Early-Middle Jurassic sandstones underlying the Base Cretaceous
unconformity within the Nome-Medusa Horst Complex. This horst structure hosts
the Audacious oil discovery to the southwest, just beyond the boundary of
AC/P39. The horst is of Jurassic age with closure at the base Cretaceous level
provided by steep, bounding, northwest dipping, down-to-basin (i.e., Cartier
Trough) faults, and southeast dipping faults.
A re-appraisal of the Nome-Medusa Horst structural setting, using the PGS ONNIA
MC3D seismic dataset, indicates that Nome-1 missed a structurally higher section
within the targeted horst.
Oliver 1 ST1 is located in AC/P33, about 20 km due west of Nome 1, along the
elevated eastern flank of the Cartier Trough. It was drilled by BHP Petroleum
Pty Ltd in 1987/1988 to test Early-Middle Jurassic sandstones of the Plover
Formation underlying the Callovian unconformity and encountered deltaic to
marginal marine Early-Middle Jurassic and Fluvio-deltaic Late Triassic
sandstones, siltstones and claystones. It was terminated at 3400 mRT.
Oil and gas flowed on test from the Plover Formation. Fluid inclusion analysis
suggests that the Oliver structure contained a 200 MMBBL oil pool prior to
leakage/gas displacement in the late Neogene. Oliver ST1 is cased and suspended
as a potential future oil and gas producer with an estimated recoverable
resource of 21.4 MMBL of oil and 310 BCF of gas.
Tancred 1 (located in AC/P39) was drilled by BHP Petroleum Pty Ltd in 1988,
approximately 3 km east of Turnstone 1. It was drilled to test interpreted
Early-Middle Jurassic sandstones below the Base Cretaceous Unconformity
structured within the northeast-trending Jabiru Horst, which hosts the Jabiru
oil field to the southwest. The horst is of Jurassic age with closure at the
base Cretaceous level provided by steeply-dipping bounding faults. Sandstones of
the Late Jurassic Lower Vulcan Formation were intersected overlying sandstones
of the Late Triassic Nome Formation. The well was terminated at 1660 mRT in
sandstones and shales of the Challis Formation.
Medusa 1 (located in AC/P39) was drilled in 1994 by BHP Petroleum Pty Ltd to
test Jurassic Plover Formation and Late Triassic Nome Formation sediments in a
structure on the northeast-trending Nome-Medusa Horst Complex. This horst
structure hosts the Audacious oil discovery to the southwest, just beyond the
southern boundary of AC/P39. The horst is of Jurassic age, but the bounding
faults were reactivated in the Miocene. The well intersected claystones of the
Jamieson and Echuca Shoals formations overlying sandstones of the Middle
Jurassic Plover Formation and was terminated at 1958 mRT.
Good fluorescence shows were encountered in the sandstones of the Plover
Formation.
Kym 1 (to the south-west of AC/P39) was drilled in 1996 by Cultus Timor Sea Ltd
to test the Plover Formation within the Audacious horst block, the southwest
continuation of the Nome-Medusa Horst Complex. The well intersected sandstones
within the Plover Formation before being terminated at 2201 mRT.
While gas readings in the Plover Formation and overlying Echuca Shoals
Formation, coupled with evidence of oil charge, raised interest in the horst
structure, Kym 1 was interpreted to have drilled outside structural closure.
Capricious 1 (within AC/P39) was drilled in 2001 by OMV Australia Pty Ltd to
test Upper Vulcan/Plover Formation sediments in a tilted fault block set within
the regional Nome-Medusa Horst trend. It reached a TD of 1627 mRT.
Interpretative data from this well is confidential.
Audacious 1 is located in permit AC/P17, about 10 km southwest of AC/P39. It was
drilled by OMV Australia Pty Ltd in 2001, following improved seismic imaging
(i.e. using pre-stack depth migration) of the local horst structure and
re-evaluation of the hydrocarbon encountered in the Kym 1 well. Its primary
objective was to test sandstones in the Early-Middle Jurassic Plover Formation
structured within the southwestern continuation of the Nome-Medusa Horst
Complex. With the aid of the new seismic imaging Audacious 1 was located on the
crestal position of the horst, approximately 1 km southeast of Kym 1. It was
terminated at 2055 mRT. An oil column was intersected in Plover Formation
sandstones below the Intra-Valanginian unconformity. On testing it flowed at a
maximum rate of 9100 BOPD.
Katandra 1 is a recent discovery in Permit AC/P24, which is abuts the southern
section of AC/P39. Drilled by OMV Timor Sea Pty Ltd in late 2004, the well
intersected a 7 metres oil column in the Upper Vulcan Formation and is on trend
with the Jabiru oilfield.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AUSTRALIAN OIL & GAS CORPORATION
Date: May 10, 2006 By: /s/ E. Geoffrey Albers
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E. Geoffrey Albers
President