WA 460-P (Palta)

WA-460-P sits adjacent to WA-384-P where Shell/Mitsubishi are currently drilling the large Palta prospect. The Palta1 well was spudded on 14 October 2012 and was scheduled to take between 60 to 90 days to drill, with drilling being undertaken by the Noble Clyde Boudreaux drilling vessel.

Cott has previously mapped the Palta prospect as potentially containing a prospective resource of up wards of 13.5Tcf of gas, with approximately 18% of the prospect lying within WA-460-P.

Cott originally lead the consortium of WHL and Strike Energy inidentifying and applying for WA-460-P.

Further background to WA-460-P and the Palta Prospect

Cott evaluated the WA-460-P area open for application in the May 2011 bid rounds, and determined that the area would provide an opportunity to be involved in the potential drilling of the Palta1 prospect. Shell had completed a 3D seismic survey to the south of WA-460-P covering the Palta1 prospect and Cott had evaluated that 18% of the Palta1 prospect was within WA-460-P. Cott arranged a bidding consortium and was awarded the permit. Shell subsequently confirmed the drilling of Palta1.

WA-460-P is located approximately 70km west of North West Cape and lies at the southern end of the Ningaloo Arch towards the western flank of the Exmouth Subbasin. It consists of a single graticular block covering approximately 80km2. Water depth is generally around 1400 metres but the permit is partly bisected by a deep submarine canyon where the water depth reaches almost 2500 metres. The canyon adversely affects the seismic data and Cott's experienced technical team was able to identify the significance of the Palta Prospect.

The permit is covered by a sparse grid of 2D seismic shot in 1996, 1998 and 2001. Line spacing varies between 700 - 2000 metres. Shell shot the Salsa 3D seismic survey over the Palta prospect immediately to the south of the permit in 2010.

The nearest well control is Falcone1A drilled about 40km to the north east by Woodside in 2005 as a test of a Triassic fault block and encountered a non-commercial gross gas column of approximately 35 metres.

Mapping of the 2D seismic data over the permit and the surrounding areas show the very large Palta prospect in WA-384-P to the South of WA-460-P extends into WA-460-P. Palta is a large rotated Palaeozoic fault block. The seal is the Locker Shale and the reservoirs are possibly Permianto Devonianinage and may be either siliciclasticsor carbonates. Prospective resources are estimated to be approximately 13.5Tcf of which approximately 2.5Tcf is estimated to fall within WA-460-P.