MEC RESOURCES LIMITED - Investor Presentation 2009

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23 November 2009

Companies Announcements Office Australian Securities Exchange Limited 10[th] Floor, 20 Bond Street SYDNEY NSW 2000

Dear Sir/Madam

Advent Energy Presentation 20:20 Investor Series, 23 November 2009, Sydney.

MEC Resources Ltd (ASX: MMR) advises that its investee entity Advent Energy Ltd is presenting today at the 20:20 Investor Series, Sydney.

A copy of the presentation is attached.

Yours faithfully,

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David Breeze Executive Director MEC Resources Ltd PO Box 317 North Perth WA 6906 Tel: +61 8 9328 8477

Media Enquiries: Bill Kemmery Fortbridge Consulting Tel: +61 2 9331 0655 Mobile: +61 400 122 449

Notes:

In accordance with ASX listing requirements, the geological information supplied in this report has been based on information provided by geologists who have had in excess of five years experience in their field of activity.

MEC is an exploration investment company and relies on the resource and ore reserve statements compiled by the companies in which it invests. All Mineral Resource and Reserve Statements have been previously published by the companies concerned. Summary data has been used. Please refer to relevant ASX releases for details and attribution. Unless otherwise stated all resource and reserve reporting complies with the relevant standards.

PO Box 317, North Perth, WA 6906 14 View Street, North Perth 6006, Western Australia T: +61 8 9328 8477 F: +61 8 9328 8733

MEC Resources Ltd

ACN 113 900 020

[email protected] www.mecresources.com.au

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20:20 Investor Series

Petroleum Exploration Permit (PEP11) Offshore Sydney Basin

23 November 2009

Offshore Sydney Basin : PEP11 Opportunity

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NSW/PEP 11 covers 8100+ sq km, 20 km from Australia’s largest energy market, excellent infrastructure
Permit Prospective Recoverable Resources estimated at up to 16.3 Tcf; mean = 7.5 Tcf
• Excellent analogies with world class producing fields • Active thermogenic hydrocarbon system demonstrated offshore
• Possible gas/condensate-charged Permian + Triassic reservoirs / excellent potential for gas & oil discovery
• Prospective resources and proximity to infrastructure infer potential for LNG; successful project could supply NSW/ACT gas market until 2060
• Advent – right to earn 85%; JV partner Bounty Oil & Gas reducing from 75% to 15%
• Robust Economics • Advanced negotiations for drilling rig, environmental approvals part complete and conceptual well engineering design complete

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Australian LNG	Australian LNG	Australian LNG	Australian LNG	Australian LNG	Australian LNG
Australian LNG

Operator	Project	Size	Production / Sales	$Export Value per year (ABARE 2008 data)	Life

W d id oo s e	Pl t u o	4 1 T f . c (+ 0.5 Tcf Xena)	3 25 3 75 Mt . - . pa LNG	$2 03 billi . on	15 years (+5 yr
					option)
Inpex	Ichthys	12.1 Tcf	8 Mtpa LNG 1.6 Mtpa LPG + condensate	$4.4 billion (LNG only)	40 years
Chevron	Goron	40Tcf	3 x 5 Mtatrains	$825 billion	60 ears
	g		p	.	y
Shell	Prelude	~5.4 Tcf +	3.6 Mtpa FLNG	$1.98 billion	25 years
			1.3 Mtpa Cond. 400 ktpa LPG	(LNG only)
Advent	PEP11	Up to 16.3 Tcf*
* Prospective exploration target only - yet to be discovered

Prospective exploration target only - yet to be discovered

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Offshore Sydney Basin – A Proven Petroleum Basin With Potential Huge Gas Reserve –
Prospective Recoverable Resources of 16.3 Tcf (P10) estimated for the Permit.
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Hydrocarbon Migration Model and Gippsland Basin
Offshore Gippsland
R eserves:
17.5 Tcf+
110 MMbbl+ (3.89 billion bbl produced)
Majority of Australia’s oil production
Zero production onshore
Gippsland
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Slope Failure, Gas Seepage, Major Hydrocarbon Province
Norway: 2 [nd] largest gas
5 [th] largest oil
(global exports)
Source: EIA and IEA
Slope Failure Production
Norway:
Ormen Sydney Basin Continental Margin
Lange
14 Tcf
Source: European Commission Slumps: over 28 cu. km
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Offshore Sydney Basin – Key Hydrocarbon Indications and Features
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Offshore Sydney Basin HRDZs and Geophysical Indications of Gas

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Offshore Sydney Basin – Comparable HRDZ with Australian O&G Fields.
Cornea, Browse
Skua and Swift, Bonaparte
Lord Howe Rise:
• 4.5 billion boe
• 98.5% methane
HRDZ
PEP11
Offshore Sydney Basin
“…sea floor spreading commenced at 65-70 million years before present resulting in the separation of the
Lord Howe Rise from the east coast of New South Wales (NSW Bureau of Mineral Resources)”
North Rankin, “a speculative estimate of petroleum resources within Australian jurisdiction on the Lord Howe Rise is
Carnarvon about 4.5 billion barrels of oil equivalent (Willcox & Symonds, 1997)”.
[Fred Kroh, Geoscience Australia]Otway “Ocean Drilling Program (ODP) Leg 164 recently drilled three locations on the crest of the Blake Ridge to assess the composition and amount of gas in its gas hydrate deposit (Paull et al, 1996). All gas recovered exceeded 98.5% methane.”North Rankin HRDZ Kingfish,Gippsland
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Offshore Sydney Basin: Swath Survey 2006
D. Schumacher: “Hydrocarbons seep in large concentrations in
basins actively generating hydrocarbons or that contain excellent
migration pathways”
Pockmark over 282,000m [3]
Image courtesy Ron Boyd,
University of Newcastle
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Geophysical Gas Indications
TOPAS Sub bottom profiles from SS10 / 2006
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Gulf of Mexico Source: Whelan, Marine & Petr Geol 2005 Gulf Coast transect: general schematic diagram of subsurface oil and gas flow consistent with geochemical , geological , and fluid flow modelling (from Whelan, Marine & Petr. Geol. 2005) Nearly all the important oil producing regions of the world were first discovered by surface oil and gas seeps (Hunt, 1981)

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Fluid Migration
Norway – Gullfaks South Field
Dome
Bright Spots
Bright Spots
Pull
Downs
• Apparent gas reservoired at intermediate (1.0 – 2.2 sec twt) depths
• Trap charge migration is not imaged
• Evidence of more active seepage at both flanks
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Offshore Sydney Basin – Observed Thermogenic Hydrocarbons
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Analysis of Inshore Gas Seepage from Offshore Sydney Basin
Repeated Hydrocarbon seep samples show a thermogenic source
-
Liquids component indicated -
Hydrocarbon Seep
Gas Analysis:
• Methane 90.69%
• Oxygen 1 . 58%
• Carbon Dioxide 4.12%
• Nitrogen 3.7%
“It is generally assumed that maturation and
migration began relatively early and hence early
structures are favoured as hydrocarbon traps”
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“It is generally assumed that maturation and migration began relatively early and hence early structures are favoured as hydrocarbon traps” (Stewart and Alder, 1995)

Offshore Sydney Basin – Stratigraphic Plays

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Offshore Sydney Basin : Amplitude Anomaly Along Continental Margin
2
1
B4-05
B4-13 B4-11
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Total Depth
B4 ‐ 15 Full Stack seismic data
CSIRO: “AVO analysis shows indication of
class III AVO classification. Class III AVO
anomaly generally stands for gas sands.”
“Soft” high amplitude
reflectors
B A
Fugro; John Cant Validation
Zones of interest
Line B4-15 Zones of Interest
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Offshore Sydney Basin : Brazilian Analogue for New Prospective Hydrocarbon Plays
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Offshore Sydney Basin – Gas Chimneys

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Hydrocarbon Reservoirs and Gas Chimney Models
Source: dGB Earth Sciences
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PEP11: Distribution of Gas Chimneys
B4-15
B4-16
B4-17
B4-18
B4-19
B4-20
B4-15 B4-16
B4-17 B4-18
J. Whelan: “seismic signals
are smeared to considerable
depth as a result of vigorous
gas seepage”
B4-19 B4-20
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Total Depth
Interval velocity profile from Fugro
B A
Zones of interest
Stacking velocities are 50% lower in highlighted area
Zones of Interest
Return to Contents
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Offshore Sydney Basin – Reverse Polarity Horizon (CSIRO)
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Offshore Sydney Basin – Historic Perspective
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Offshore Sydney Basin : Possible Trap Styles
1. Transpressional, wrench related structures
2. Overthrust traps on W margin of Offshore
Uplift, include 4 way dip closures
3. Mild basin inversion structures
4. Sub-thrust plays
along E edge of
Offshore Syncline 6. Stratigraphic /
from overthrusting structural+stratigraphic (e.g.
in W direction identified by AVO)
From Maung et al , � 1997 3805 km 2D seismic including 1460 km of new lines , and “The main source kitchen areas are in the deeper
Stephenson & Burch, 2004, acquired in 2005; parts of the Lake Macquarie Trough, Macdonald
Preliminary Evaluation of the Petroleum Potential of Australia’s Central Eastern Margin (GA12988 )� integrated for first time with 1991, 1981 seismic Trough, Offshore Syncline, and Newcastle Syncline” (Santos, 1987; Alder et al., 1998)
interpretation confirms Baleen structure and identifies
new Fish prospect. “Structural traps are believed to be widespread with Late Permian and Late Triassic anticlines and fault traps
combined with Tertiary rejuvenation of older
structures thought to be the major plays.” (Stewart and
5. Extensional, down to basin Alder, 1995)
margin normal fault bound blocks “It is generally assumed that maturation and migration began relatively early and hence early structures are
(E flank of Offshore Uplift) favoured as hydrocarbon traps” (Stewart and Alder,
1995)
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Offshore Sydney Basin : Surface E Side View From East to West
North Fish
South Fish Baleen Blue
Sei
Humpback
Orca
Large well timed structures with both four way dip and
fault closures
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Offshore Sydney Basin : Petroleum Association and Reservoir Model
Redox Anomaly
Gas Bubbles/Thermogenic
Hydrocarbon Seepage
Mound
Amplitude Anomaly
Gas Chimney
Flat Spot? Pockmark
HRDZ AVO
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Sydney Basin Stratigraphy

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Source Rocks ： Late Permian Coal Measures, mainly Greta and Tomago groups ；
Reservoir Rocks ： Fluvial Sandstone in Permian and Triassic
Seals ： Siltstone in Wandrawandian and Branxton group
Onshore: 8 wells - oil shows & 16 – oil + gas shows

NSW Dept of Mineral Resources:

“41% wells flowed gas on test”

“The Sydney Basin contains an active petroleum system”

“Potential source and seal sequences occur extensively…”

“Reservoir potential should increase to the east, in the offshore”

“Early Permian sands are likely to / have good initial primary porosity and permeability.”

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New South Wales : State of the Market (AGL, NSW Min. Exp. & Inv. Conf.)
NSW Government objective is for
future baseload power generation
to be gas fuelled – The Australian 19/11/2009
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Portfolio – Offshore Sydney Basin/PEP11 Market Dynamics
The LNG Industry’s historical
inflection point 2005
“LNG supplies only
2% of world energy”
– BRW June 2009
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Advent Energy Ltd

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CONFIDENTIAL
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Background
•Formed in 2004 as an unlisted oil and gas exploration and production company based in Perth, Western Australia

Key Personnel Mr Goh Hock – Chairman: Former President of Schlumberger Asia, and a Global Divisional President of Schlumberger during a 25 year career in the oil and gas industry that spans more than 10 countries in Asia, the Middle East, and Europe. Mr David Breeze – Executive Director: Extensive experience in transaction structuring, corporate advisory and funding for listed and unlisted companies. Mr Ding Gui Ming – Geology Advisory Panel Chair: Former Chinese Government Vice Minister. Previously the President of Daqing Oil and Head of Exploration for the China National Petroleum Company (CNPC). Last served as Commissioner of the China State Asset Administration Office.

•Has a portfolio of assets both onshore and offshore Australia that have had an estimated USD 126m spent on historic exploration
•Portfolio estimated P10 prospective recoverable resources of approximately 13 . 9 Tcf gas and 139 MMbbl oil/condensate Net to Advent , excluding additional corporate interests and newly determined hydrocarbon plays
•Secured an investment commitment from Talbot Group Holdings for AUD 7 million as part of equity issue of 55 million shares at AUD0.50 per share

Mr Seng Yap – Non ‐ executive Director: Former Executive Director of Daiwa Securities Australia Ltd. Worked in international oil and gas exploration projects across Asia, Australia and New Zealand during his career with Schlumberger Ltd.

•Provided BPH Ltd (ASX: BPH) exclusive option to acquire up to 19.4% of Advent on same terms as TGH
•Company currently held mainly by MEC Resources (81.84%) and Grandbridge Ltd (10.69%)

Mr Eng Hin Tan – Non ‐ executive Director: A private equity investor who previously worked with Schlumberger Oilfield Services in India, Brunei, Indonesia and Malaysia.

Mr Jim Dirstein – Geophysicist of 25 years and founder of consultancy Total Depth, providing advanced geophysical data interpretation technologies to the global O&G industry .

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Permit Inventory at a Glance
Permit Interest / Major Partner Basin
Prospective
Interest
PEP11 85% Bounty Oil & Gas Offshore Sydney
EP325 8.3% Strike Oil Exmouth
(Carnarvon)
EP386 100% Onshore Bonaparte
RL1 100% Onshore Bonaparte
PEL111 50% Victoria Petroleum Cooper
EP419 3% Royalty Exoma Energy Perth
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Mr Tim Berge – Professional Geoscientist. Internationally recognised Geophysicist with over 30 years experience. Numerous awards, honours and publications.

Mr Fred Kroh – Former Project Leader of Geophysical Processing and Data Access Project with Geoscience Australia.

Ms Deborah Ambrosini – CFO & Co Secretary: Corporate accountant with over 10 years experience in accounting and corporate development spanning the biotechnology, mining, IT communications and financial services sectors.

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Contributions Gratefully Acknowledged and References

Data, advice, review and technical contributions gratefully acknowledged •Jim Dirstein - -Total Depth - Principal Geophysical Consultant PTEM survey •Fred Kroh –Formerly Project Leader of Geophysical Processing and Data Access Project - Geoscience Australia •Tim Berge –Geophysical Consultant -

Publications

•AAPG Memoirs ”Hydrocarbon migration and its Near surface Migration”
•Judd A and Hovland M “Seabed Fluid Flow”
•Whelan J Marine Chemistry and Geochemistry, Woods Hole Oceanographic Institution “Dynamic gas driven petroleum systems” and Whelan J et al “Surface & subsurface manifestations of gas movement through a N-S transect of the Gulf of Mexico” •Government of NSW “New South Wales Petroleum Potential” •NSW Department of Mineral Resources
•Deet Schumacher -Terraliance
•Dan Orange
•Alder et al “Prospectivity of the Offshore Sydney Basin –A New Perspective“ •Frog Tech Pty Ltd •Aftenbladet Multimedia •The European Commission “The Deep Sea Frontier” •Aminzadeh, F., de Groot, P., Berge, T. et al “Determining Migration Pathway from seismically derived Gas“ •Geoscience Australia –Patchett.A and Langford. R.”New South Wales –Deep Saline Aquifer Storage Potential” •Geoscience Australia Glenn. K “Revealing the continental Shelf off New South Wales” •Aminzadeh F Connolly D and Ligtenberg H “Hydrocarbon Phase detection and other applications of Chimney Technology” •Dietmar Schumacher, Surface geochemical exploration for oil and gas: New life for an old technology Geo-Microbial Technologies, Ochelata, Oklahoma, U.S. The Leading Edge •Michael A. Abrams “Significance of hydrocarbon seepage relative to petroleum generation and entrapment” Marine & Petroleum Geology •AAPG Conference Geoffrey W O’Brien, Andrew Barrett, and Megan Lech .”Integrating 3D Seismic data and multiple, independent remote sensing technologies to constrain nearsurface Hydrocarbon Migration and Seepage Rates and Leakage Mechanisms on the North - western Australian Margin ” •Journal of Geophysical Research, The world’s most spectacular marine hydrocarbon seeps (Coal Oil Point, Santa Barbara Channel, California):
•Fred Aminzadeh •David Connolly
•Michael Abrams
•Professor Ron Boyd –Newcastle University
•Andrew Mayo –Macquarie Oil –
•Kriton Glenn –Geoscience Australia
Ben Clennel , Asrar Talukder and team (CSIRO Subsurface Prediction and Description ) •Geoff O’Brien –Formerly Geoscience Australia
•Ding Gui Ming –Principal Geological Consultant

•Associate Professor Jock Keene –Sydney University •Kevin Ruming - School of Environmental and Life Sciences University of Newcastle •BOS •Oil Hunters •Bounty Oil •RPS •BGP

•John Cant
•Marine & Petroleum Geology N. Rollet, GA Logan, JM Kennard, PE O’Brien, AT Jones, M Sexton Characterisation and correlation of active hydrocarbon seepage using geophysical data sets: An example from the tropical, carbonate Yampi Shelf, Northwest Australia •Daniel Lewis Orange The implications of Hydrocarbon seepage, gas migration and fluid overpressures to frontier exploration and geohazards
•Allan Williams -NPA
•Mike Rego – Aminex
•Tom Fontaine •Fugro
•Dietmar Schumacher AAPG Hedberg Conference Near Surface Hydrocarbon Migration; Mechanisms and seepage rates The Dynamic Nature of Hydrocarbon Microseepage: An Overview •O’Brien et al “Yampi Shelf Brows Basin –Northwest Shelf “ •Cowley R & O’Brien ”Identification and interpretation of leaking hydrocarbons using seismic data“ •Kroh F Reprocessing shows AVO potential for petroleum exploration Geoscience Australia
•Geosience Australia
•Crown Minerals NZ
•Kieth Woolard
•David Orth •David Remus

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David Breeze Advent Energy Limited Ph +61 8 9328 8711 [email protected] Director 14 View Street Fax +61 8 9328 8733 www.adventenergy.com.au North Perth WA 6006 Australia DISCLAIMER

Advent Energy Ltd (Advent Energy) has prepared this Company Introduction Presentation. Whilst the information contained in this publication has
been prepared with all reasonable care from information provided by the Company and from sources, which Advent Energy Ltd believes are reliable, no responsibility or liability is accepted by Advent Energy Ltd for any errors or omissions or misstatements however caused. Any opinions forecasts or recommendations if any reflects the judgment and assumptions of Advent Energy Ltd as at the date of the publication and may change without notice. Advent Energy Ltd and its officers, agents, employees, consultants and its related bodies corporate, exclude all liability whatsoever, in
negligence or otherwise, for any loss or damage relating to this document to the fullest extent permitted by law. This publication is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Any securities recommendation contained in this publication is unsolicited general information only. Advent Energy Ltd is not aware that any recipient intends to rely on this
publication or of the manner in which a recipient intends to use it. In preparing our information, it is not possible to take into consideration the
investment objectives, financial situation or particular needs of any individual recipient. Investors should obtain individual financial advice from their investment advisor to determine whether recommendations contained in this publication are appropriate for their investment objectives, financial situation or particular needs before acting on any such recommendations. This publication is not for public circulation or reproduction whether in whole or in part and is not to be disclosed to any person other than the intended recipient, without obtaining the prior written consent of Advent Energy Ltd. Advent Energy Ltd its officers, employees, consultants or its related bodies corporate may, from time to time hold positions in any securities and may buy or sell such securities or engage in other transactions involving such securities.

Offshore Sydney Basin : Seal

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Thick sequences of marine siltstones, equivalents of the Mulbring and Berry
Siltstones, and the Branxton Formation and Wandrawandian Siltstone would act as regional seals to contained sandstone units e.g. Nowra and Muree Sandstones.
Siltsones, claystones, mudstones (Early & Late Permian coal measures) = local
seals to interbedded fluvio-deltaic sand units
Interbedded red and green claystones seal individual fluvial + sand bodies of
Narrabeen Group
Bald Hill Claystone seals top of Narrabeen Group
Shaly facies of Wianamatta Group = regional seal for Hawkesbury Sandstone
The primary inferred seal for the Offshore Sydney Basin is the Ashfield Shale –
its presence is indicated over the offshore uplift and eastwards. A secondary seal may be the shaly laminate at the top of the Newport Formation and this would top-seal quartzose sandstones in the lower Newport Formation.

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Offshore Sydney Basin : Seal
• NSW Dept of Mineral Resources:
• “Potential source and seal sequences occur extensively…”
• Seals ： Siltstone in Wandrawandian and Branxton group
• “Seal potential is one of the least critical factors to defining
prospectivity in the Sydney Basin as thick shaly units with the
potential to act as seals occur throughout the Sydney Basin”
(Santos, 1987; Stewart and Alder, 1995)
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Offshore Sydney Basin : Reservoir

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NSW Dept of Mineral Resources:

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“Reservoir potential should increase to the east, in the offshore”
• “Early Permian sands are likely to / have good initial primary porosity and permeability.”