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): January 20, 2005
CHEETAH OIL & GAS LTD.
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(Formerly Bio-American Capital Corporation)
(Exact name of registrant as specified in its charter)
Nevada
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(State of Incorporation)
000-26907
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(Commission File Number)
93-1118938
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(I.R.S. Employer Identification Number)
498 Ellis Street, 2nd Floor
Penticton, British Columbia V2A 4M2 Canada
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(Address of principal executive offices, including zip code)
(250) 497-6072
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(Registrant's telephone Number, including area code)
INFORMATION TO BE INCLUDED IN THE REPORT
Section 8 - Other Events
Item 8.01 Other Events
Cheetah Oil & Gas Ltd. (the "Registrant") currently holds five petroleum
prospecting licenses in Papua New Guinea directly and through its majority
controlled subsidiary, Scotia Petroleum Inc. The Registrant also has a 97.5%
farm-in interest in two additional prospecting licenses in Papua New Guinea. The
Registrant has commissioned and received a resource and risk assessment of
petroleum prospecting license #246 ("PPL 246") from 3D-GEO Inc. of Melbourne,
Australia ("3D Geo"). PPL 246 is held by Scotia Petroleum Inc. 3D Geo is a
Melbourne, Australia based seismic-structural geology consulting firm. 3D Geo
provides seismic/structural and tectonic interpretation, modeling, restoration
and data collection services to the oil and gas industry worldwide. 3D Geo's
particular geographic area of expertise is Australia and Southeast Asia.
The Registrant proposes to post the 3D Geo assessment on the Registrant's
website. The Registrant believes that the 3D Geo assessment contains material
information regarding the Registrant's proposed operations and accordingly is
filing the entire 3D Geo assessment as an exhibit to this Form 8-K. A summary of
the 3D Geo assessment including conclusions and recommendations is set out in
this Form 8-K. The entire 3D Geo assessment has been filed as an exhibit.
Summary
The Registrant's petroleum prospecting license no. 246 ("PPL 246") lies towards
the eastern end of the oil and gas producing fold belt in Papua New Guinea,
approximately 30 km southeast of the Southeast Gobe oil and gas field. Four
wells were drilled in the license in the 1950's and discovered an undeveloped
gasfield in shallow Miocene carbonates. West of the license, the Barikewa and
Iehi wells discovered gas in Upper Jurassic sandstone reservoirs. Conventional
wisdom is that the PPL 246 area is beyond the limit of Upper Jurassic sand
deposition, but thin Hedinia and Lower Iagifu sands with oil shows were recorded
in the Orie-1 well 1 km north of PPL 246. We suggest that these sands record the
northern distal limit of deltaic sand lobes beneath the southeastern and central
part of PPL 246, similar to those recorded in the Gobe area, that are 30-50
metres thick. The Koi-Iange and Magobu sandstones may provide deeper reservoir
potential.
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 3.3 tcf. The largest
medium-risk lead for a Jurassic sand play is the 100 km2 Middletown Culmination,
which has mean, unrisked gas-in-place of 0.75 tcf gas with an upside of 1.4 tcf
gas. The current risk is estimated to be 1:19, which is primarily for presence
of reservoir. The Culmination lies next to the village of Middletown on the
Kikori River and is accessible by barge. It lies along the proposed route of the
gas pipeline to Australia.
It is recommended that field mapping be carried out to confirm the structural
interpretation, including accurate dating of surface limestone samples. A more
extensive study of Jurassic facies is required to better constrain the model for
Jurassic sand development in PPL 246. A seismic program should be considered to
confirm the structural interpretation and constrain the presence of reservoir.
Conclusions and Recommendations
Prospectivity
1. PPL 246 has proven hydrocarbon source, generation and migration.
2. PPL 246 has a proven Miocene limestone reservoir and inferred Jurassic
sandstone reservoirs.
3. PPL 246 has proven Pliocene Orubadi Mudstone seal on the limestone and
proven Cretaceous Ieru shale seal over the inferred Jurassic sands.
4. One undeveloped discovery and five leads have been mapped at top
Mesozoic or top Miocene reservoir level and four other plays are
suggested (See Table 1)
5. Total unrisked mean gas-in-place for all leads and plays is 3.3 tcf.
6. The undrilled Middletown Culmination has mean, unrisked gas in place
of 0.75 tcf gas with an upside of 1.4 tcf gas.
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Risk (see Table 1 and Appendices for details)
1. The primary risk is presence of Jurassic reservoir
2. A secondary risk is seal as both the Pliocene Orubadi Mudstone and
Cretaceous Ieru shale are locally thin, so present a potential risk of
breaching.
3. For the Mesozoic sand play leads, northern or western closure is not
confirmed for the Middletown, Victory Junction, nor SE Iehi /Kikori
Bend Leads.
4. The presence, nature and distribution of primary and secondary
(fracture) porosity throughout the whole gross-rock volumes modeled is
very uncertain. Accordingly the gas-in-place estimates for the Kuru
Anticline carry considerable uncertainty
5. Sustained and commercial gas flow rates are not assured from the Kuru
wells which have not been tested.
Recommendations
1. Ascertain if accurately located field samples still exist from the
Base Resources field mapping of this area. If Miocene limestone
samples can be found, have them all dated by Sr isotope and
Micropalaeontological dating.
2. Immediately instigate a field program to confirm the surface mapping
of the leads, specifically closure of the Middletown culmination to
the west and presence of the Orie Attic and Victory Junction High.
This program must include accurate Sr isotope and
Micropalaeontological dating of surface limestone samples.
3. Expand the Jurassic reservoir study to include all recent wells in the
area so as to better constrain the model for Jurassic sand development
in PPL 246 through the creation of sand fairway maps and risk segment
analysis.
4. Consider acquisition of modern high quality reflection seismic data
and the application of amplitude analysis over the key prospects to
confirm the structure and constrain the presence of reservoir.
5. If (4) is not cost effective, carry out potential field analysis of
basement and limestone thickness in the area of the Middletown
Culmination.
6. Potential gas flow rates from the Miocene limestone at Kuru requires
confirmation possibly by re-entering and testing an existing well and
predictive porosity /permeability/ fracture studies on cores, logs,
surface outcrops and through the acquisition of image and production
logs.
7. Consider acquisition and interpretation of additional seismic to
further investigate the potential 100 bcf accumulation in the SE Iehi
Lead on the proposed pipeline route for the PNG Gas Project.
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8. Implement the Phase 2 assessment of the license including:
a. A review of all data and literature
b. Entering all data in a digital format
c. Petroleum Systems and Play Fairway Analysis
d. Geochemical analysis
e. Basin Modelling
f. Acquisition of new field data
g. Complete and upgrade the prospect inventory
h. High grade the prospectivity applying segment analysis.
The full evaluation report is attached as an addendum to this form 8-K.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits
(a) Financial Statements of Business(es) Acquired
Not Applicable
(b) Pro forma Financial Information
Not Applicable
(c) Exhibits
99.1 3D Geo Assessment Report
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CHEETAH OIL & GAS LTD.
(formerly Bio-American Capital Corporation)
Per: /s/Garth Braun
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Garth Braun, Chief Executive Officer
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