Navaho Gold's (ASX: NVG) 98.5% owned subsidiary NavGas has been named preferred tenderer for an oil and gas permit which covers a prospective area of the Roma Shelf, and surrounding the Riverslea Oil Field in Queensland.
Based on a reinterpretation of existing seismic and analysis of petroleum wells drilled by previous explorers, NavGas believes several promising conventional petroleum targets exist.
The largest of these targets, Riverslea West, is an untested lead measuring 4.8 square kilometres, with an exploration target focussed on light crude and/or condensate.
The oil, condensate, and gas bearing Showgrounds Sandstone Reservoir is predicted to lie at 1700 metres depth, and the Evergreen Formation sand at 1440 metres.
Several smaller oil-prospective leads have also been identified in the vicinity of the shut-in Martini Oil Field.
The permit is situated in an area with established production facilities and infrastructure, and is well serviced by existing gas pipelines.
NavGas will now progress the process required to have formally the lease formally granted, and Navaho Gold continues to review strategic project and corporate opportunities.
Navaho is capped at around $1 million.
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