Wolf Petroleum (ASX: WOF) has redefined four sub basins within its Sukhbaatar petroleum block in Mongolia after reprocessing and re-interpreting gravity and magnetic data collected earlier in 2013.

The company has also completed a remote sensing program, which incorporated reprocessed gravity and magnetic data with satellite imagery and digital elevation model data.

Three of the sub basins are more than 4,000 meters deep, with Cretaceous-aged rocks, which are the main rocks where petroleum in Mongolia is produced from.

Notably, all four of the sub basins have areas of high heat flow, which can enhance hydrocarbon cracking and migration, while alteration minerals commonly found near petroleum seep areas have also been identified.

Wolf’s geological team is now working in the field and verifying the remote sensing results.

The company has now started its second phase of exploration works.

This includes additional geological studies and the acquisition of 2D seismic.

Wolf has planned 441 kilometres of 2D seismic and preparation work has been completed.

The four sub basins are estimated to contain about 4,000 metres of sediment, which highly increases the petroleum generation potential in the sub basins.

In addition, Wolf is investigating three other potential sub basins in the western and southern portions of the block.