2005 ACREAGE RELEASES ONSHORE AUSTRALIA Elinor Alexander Manager, Petroleum Geology Branch Department of Primary Industries and Resources South Australia On behalf of other States and Territories

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NORTHERN TERRITORY The grant of petroleum titles has begun to flow. - 5 new title grants in the last year. - 23 license applications over the last 4 years. NT basins will be featured at the Central Australian Basins Symposium (CABS) in Alice Springs, August. Exploration timewarp over the last 10-15 years in the NT. Major advances in the last 5 years- work programs are just now getting underway in these vastly underexplored basins.

ONSHORE PETROLEUM EXPLORATION PERMITS

Amadeus Basin > 100 untested anticlinal structures Established oil and gas systems New seismic interpretations highlight fractured gas reservoir potential in the southeast. Subsalt and other salt related plays to be featured at CABS. A large number of previously unrecognised anticlinal structures have been delineated with the use of aeromagnetic intepretations. These have been audited against all available information including, but not limited to, field information, satellite images and other field studies. Established productive oil and gas systems are present in the Amadeus Basin; the prolific Horn Valley Siltstone system is responsible for the oil and gas at Mereenie, and gas at Palm Valley. Other sub-economic gas discoveries have been made lower in the sequence at Orange, Dingo, Ooraminna, Magee, West Walker.Very large tight gas potential in the Southeast quadrant of the basin. The high helium content at Magee (6%) in the Heavitree quartzite reservoir could further commercialise gas accumulations. A huge variety of play types exist, many related to blanket Gillen salt. A Consultants overview report to be released at CABS plus 7 papers. Potentially very large undrilled gas prone structures in the southeast quadrant.

Suggested Amadeus Application Areas A number of small blocks are available in the southwest Amadeus Basin. NTGS will drill 2 statigraphic holes in this area in July to help calibrate petroleum potential. To the east at Poeppels corner in the Pedirka area, 2 vacant blocks include a previously neglected Triassic petroleum system plus the Poolowanna petroleum system. NTGS STUDIES TO COMMENCE IN 05/06 For more information on NT basins, please see the NT onshore hydrocarbon CD, available at the booth, or speak to one of the petroleum geologists in attendance.

Georgina Basin Previously harmed by negative geological dogma. New studies show the basin has been unroofed, hence oil mature source rocks and reservoirs occur at shallow depths. Two prolific Middle Cambrian oil systems. Seismic indicates sandstones developed in high energy channel, delta and turbidite facies. Exploration fairway is 300-400 km across. Oil pools could range up to 100s mmbbl at depths of 300-900 m. 40 billion tonnes of oil expelled from mid Cambrian petroleum systems. Recommend you pick up the NT onshore exploration CD for details of the models. New petroleum plays to be discussed at CABS. Recently recognised thick Cambrian channel, delta, shoreline plays have huge potential at <1000 m as a result of basin unroofing. The play has never been drilled. This complex basin area represents some of the highest potential for finding oil in the NT.

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WESTERN AUSTRALIA Annual value of production ~A$10 billion Perth = centre of Australia’s oil industry Canning & Perth Basin acreage bids close 27 October 2005

Canning Basin Oil and gas shows Mature source rocks Regional seal Favourable reservoir development Large mapped structures LO5-1 5,999 km2 (1.48 million acres) LO5-2 5,092 km2 (1.25 million acres)

Canning Basin Fairways and leads mapped Ordovician, Devonian and Permian plays Economics modelled Data and reports now available

Perth Basin Interest revitalised by Jingemia, Cliff Head and ongoing oil discoveries Blocks are <10km from gas fields & discoveries Parmelia gas pipeline connects to Perth Sealed highway connects to Kwinana oil refinery Permian, Jurassic plays LO5-3 444 km2 (109,714 acres) LO5-4 810 km2 (200,155 acres)

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SOUTH AUSTRALIA Cooper Officer Otway Proven trends in the Cooper and Otway Potential for giant oil in the Officer Evermore expeditious land access High success rates and short cycle time to production in Cooper Infrastructure Data access Geothermal energy exploration underway, 50+ licenses Opportunities exist to get on the land expeditiously, to find economic petroleum and to be producing within six months of discovery. All the ingredients for commercial success beckon in SA. This map illustrates licence and licence application areas with respect to the extent of potential petroleum systems on- and offshore South Australia, 85% of which is now under licence or application. Moving clockwise from the NE corner of the State – the most prospective play trends in the Cooper-Eromanga, outer Eromanga, Arrowie, Otway, Bight and Officer Basins have all attracted the interest of explorers. 299 petroleum and geothermal exploration and production licences and applications are all-time highs for South Australia. The combination of EPIC’s Moomba to Adelaide and the SEAGas pipeline from Iona to Adelaide connects SA to gas from the Otway, Gippsland and Cooper Basins at combined capacity of 650 TJ / day. Local markets in the State’s Southeast will soon be linked to the SEAgas pipeline. In the medium term, we also expect pipelines to connect SE Australia with gas from the north and/or west. SA has made real progress in achieving Native Title access agreements that are fair to the registered Native Title claimants and sustainable in relation to development. The agreements struck in the Cooper have already served as templates in negotiations in the Officer, and are being leveraged into additional access agreements elsewhere in SA, most recently in the Arrowie Basin. Currently vacant acreage in the Cooper and offshore Otway Basins is now available for work program bidding. More on that later. Enormous interest is being shown towards new ‘clean and green’ energy sources, Geothermal Exploration licenses outlined in blue are current over the Nappamerri Trough, Gawler Craton and over Recent volcanics in the State’s Southeast. Otway

Cooper Basin oil success rates Since new licences were granted in the Cooper Basin in late 2001, 43 exploration wells and 6 appraisal/development wells have been drilled by new explorers. Most have targeted oil, however both oil and gas have been discovered. The new entrants found new pools in 60% of their wildcats and achieved a respectable 46% commercial exploration success rate, with 20 new fields discovered through to March 2005. The spurt in oil exploration success rates and oil production since Acrasia 1 is attributable to the skills of the new entrants and application of new technologies and ideas. Both the New Entrant Explorers and Santos JV have lots more good opportunities to explore, appraise and develop.

Cooper Basin CO 2004-A closes 28 July Potential Jurassic oil play, Permian tight gas play 1600 km2 (395,370 acres) Upcoming acreage Partial acreage relinquishments due 2006+ Conjunctive land access agreement (ILUA) planned Consolidated vacant acreage to be released in one round. High commercial success rates and quite profitable and expeditious production has and will sustain the Cooper Basin as a popular destination for exploration. Last year the CO2003-A block around Coongie Lakes attracted five bids and Eagle Bay Resources won the block with a bid worth $21.55 million, including guaranteed work of 11 oil and gas exploration wells, geoscientific studies and 70 km of seismic acquisition in the first three years of the program. The RTN process under the Native Title Act was initiated in October 2004. The CO 2004 – A area covers 1,600 km2 and has considerable potential for oil in the Eromanga and tight gas in the Cooper. The area was released for bids in September 2004, bids close on 28 July 2005. This block represents the last ‘ground floor’ opportunity to enter the Cooper Basin for a few years. Full information is contained in a free acreage release CD available from the SA booth. Current Cooper Basin licences will be subject relinquishments commencing in 2006 - 2007. Core licences have a 50% relinquishment, licences around the basin margin 33%. PIRSA is planning to consolidate vacant acreage and hold a release in 2008. Work has commenced to develop an Indigenous Land Use Agreement over the Cooper Basin to further improve land access processes. MOOMBA

Otway Basin No current onshore releases. Upcoming PEL expiries and relinquishments to be consolidated into a large block. SA coastal strip now available plus 2 offshore blocks. We now shift our focus to the Otway in the southeast of SA The two onshore areas released last year are now under licence, Neo Oil a SA-based start up company was the successful bidder. There are no planned onshore acreage releases this year. Some significant licences will expire in the next two years, PEL 32 operated by Origin Energy expired in February 2005. PEL 27 also operated by Origin will expire in February next year. The partners, Origin and Beach, are planning to drill an exploration well this year. Because the Otway Basin is a highly prospective area, vacant acreage must currently be gazetted and bids sought, however this is now under review. PIRSA have a preference to consolidate larger licences to spread exploration risk across a range of play types and also to promote the oil play. The Basin is largely free-hold land – so the offer to the highest bidder, acceptance and grant process can be concluded in a matter of weeks. As you’ve already heard, potential for giant petroleum accumulations is recognised in the offshore Otway and two deepwater blocks have been made available for application in the 2005 offshore release. The coastal strip (SA waters) is also available for application, after requests from an Otway explorer.

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Otway Basin

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31 exploration titles over all major basins Large under-explored basins cover 500,000 km2 Extensive coal seam methane targets Palaeozoic and Mesozoic sequences with producing analogues in Qld & SA Data packages now available

Exploration tenure now only granted as a result of a call for tenders. New legislative regime - Petroleum and Gas (Production and Safety) Act 2004. Exploration tenure now only granted as a result of a call for tenders. Tenders likely to be called in the second half of 2005. Seeking expressions of interest in areas to be released in the call for tenders. The administration of petroleum in Queensland has undergone a major change with the commencement of new legislation late 2004. The new legislation is the first major change in over 80 years and provides for a comprehensive and modern regime for the administration of the petroleum and pipeline industries in the State.

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