The Htaukshabin, Kanni, and Peppi Fields are located in the Salin Sub-basin of the Central Myanmar Basin, a sub-basin filled with clastic sediments of Tertiary age.

The Central Myanmar Basin is a basin that covers some 24500 sq km and contains about 22 oil and gas fields. It is bounded on the west by the Arakan Mountains, which consists of a partly altered sedimentary sequence ranging in age from Cretaceous to Eocene. The right-lateral Sagaing Fault and the uplifted Shan Plateau . a cratonic sequence of docked sub-continental blocks, consisting of Paleozoic metasediments and granite, control the eastern boundary of the basin. The basin stretches from the Naga Hills in Northern Myanmar to the offshore area in the Gulf of Martaban, seaward of the present-day mouth of the Ayeyarwady Delta

The Central Myanmar Basin is itself divided into a western forearc and eastern backarc basin separated by a calc-alkaline volcanic ridge.

The Salin Sub-basin is situated in the western forearc portion of the Central Myanmar Basin.

Linear thrust-related compressional anticlines were formed in the Salin Sub-basin by the tectonic forces of the converging Indo-Burman plates during the Late Miocene-Early Pliocene.

Up to 47 petroleum-producing levels have been identified in FOCUS.s PCC Area in sandstones of Middle Oligocene to Early Miocene age. The gross sandstone thickness of the producing levels varies between 5-333 feet. Individual net pay thickness ranges from 5-120 feet.

A tectonically complex thrusted anticline is the dominant structure at Htaukshabin. Kanni and Peppi are separate thrust-related anticlines that probably formed as a result of structural rotation. Deformation and structural development of the trapping mechanisms occurred during the late Middle to Late Miocene. Generation and subsequent migration of petroleum was post-deformation and is probably continuing at the present time. The thick sequence of continental clastics that is present deep in the sub-basin is considered to be the source for the oil, in particular the Yaw Formation of Late Eocene age.

The following geological units are recognised in outcrop and in the subsurface in the PCC Area:

Underlying the PA is the Shwezetaw Formation (SH) of Early Oligocene, a prospective unit that has yet to be penetrated in Htaukshabin-Kanni-Peppi Area.

The overall depositional model at Htaukshabin-Kanni-Peppi appears to represent a combination of fluvio-deltaic with strong tidal influences. The respective sandstone reservoirs were deposited in the associated mixture of environments expected in this regime, including fluvio-deltaic (point bars and channels), tidal channels, mouth bars and nearshore to offshore marine sheet and bar sands.

The signature of the SP curve on the Electric Log at the many wells drilled at Htaukshabin-Kanni-Peppi provided a reasonable basis for interpreting the depositional style of the various sandstone bodies.

In fact the entire stratigraphic model proposed in the PCC area was developed using the Electric logs as a basis for correlation and noting the characteristic signatures of gross depositional units (parasequences).

Certain of the zones mapped in the subsurface are absent in places due to the complexity of the tectonic activity . thrusting, reverse and normal faulting . which makes it difficult for the stratigrapher to piece together the complex tectonic history of the original paleogeography of the region.

For instance, at East Kanni, a completely new late Early Miocene (late KK) sequence was established by correlation around various fault blocks.

The deposition of the sedimentary sequence under review (PA to KK) appears to have been continuous, which is contrary to that depicted in the attached Stratigraphic Table. Only lateral changes in the character of sedimentary environment appear to have taken place, due to sea level changes, resulting from a mixed depositional regime of fluvio-deltaic and nearshore marine with strong tidal influences. The Shan Plateau to the east was the source of sediment for a westerly flowing river system that flowed seaward toward a northerly trending Mid-Tertiary shoreline.

A rise in sea level during mid-KK time apparently halted the advance of the delta system with the advent of thicker shaley sequences between the nearshore (coastal) sand bodies, suggesting deposition in a bay-type environment.

The widespread advance of a southwesterly prograding delta system appears to have commenced prior to the deposition of the 1400-ft sand. The sand deposited at this time level and all overlying sandstone units were deposited under fluvio-deltaic conditions. Massive sand bodies, particularly at Kanni, are prevalent which represent distributary channels within the delta system.

The fluvially generated sediments of the AY Formation unconformably overlie the KK. This unconformity is clearly visible on the seismic. No other erosional breaks are seen on the seismic and this is confirmed by the results of the stratigraphic analysis of the wireline logs.

The results of the stratigraphic analysis has provided sound evidence of the presence of shallow to deep sandstone reservoirs at the southern end of the PCC, the Kanni-Peppi areas, which has high-graded the potential of the exploration targets.

The deeper targets in certain under-developed blocks at Htaukshabin (3200-ft to 4500-ft sands) are also considered to have high potential. The structural cross-sectional mapping and the results of those wells that have penetrated these targets confirm this.

(The levels of the respective sand packages were named from the type well, Mann-2, in the Mann Oilfield immediately to the north of FOCUS's PCC Area at the depth intersected in that well).