2016 WESTERN AUSTRALIAN STATE ACREAGE RELEASE 30 May - 2 June 2016, Vienna Author: Richard Bruce Petroleum Division Department of Mines and Petroleum Welcome to Western Australia’s onshore bid rounds presentation. I will be highlighting onshore petroleum acreage proposed for work program bidding.

Outline Acquire WA acreage Apply online only 2016 work program bid round Onshore Canning Basin Onshore Officer Basin Assessment guidelines updated Further information I will also refer to methods of acquiring acreage applications must be done online updated guideline relevant to bid assessment

to acquire Acreage Work program bidding for release areas Release 1 of 2016 Other methods Farmin to existing titles a number of companies could benefit by cash injections and new ideas to accelerate their work programs, in exchange for some equity www.dmp.wa.gov.au/petop for maps/companies. “Over the counter” – Special Prospecting Authority with an Acreage Option. Search on DMP website. Company takeover – may be subject to Foreign Investment Review Board review There are 4 main ways to get into WA acreage. Maps are available showing petroleum titles and companies that could be farmin targets. SPA/AO is described on the DMP website. Company takeover is subject to Foreign Investment Review Board review. I will focus on the work program bidding areas in the following slides.

Many farmin opportunities – a big State These maps show the principal basins in WA jurisdiction, and are colour coded by company names. are available at WA’s booth in the Exhibition area. A number of companies could benefit by cash injections and new ideas to accelerate their work programs, in exchange for some equity. Most of the prospective acreage is currently held but farm-ins may be available. The key benefit of a granted title is that the native title agreement has been reached and there is commercial certainty pertaining to indigenous land access and land usage expectations and requirements.  You can see that WA is large compared to major petroleum producing areas such as the North Sea, Texas and Alberta. The drilling in Texas is like holes in Swiss cheese whereas we need more drilling in WA.

PETROLEUM ROUND 1 OF 2016 Release 13 September 2016, bids close 9 March 2017 APPLY ONLINE only www.dmp.wa.gov.au/acreage_release 14 areas 6 Canning Basin Lennard Shelf L16-1 & L16-2 4240 km2 & 4392 km2 Platforms L14-3 to L14-6 1770 km2 to 2407 km2 8 SE Officer Basin L16-3 to L16-10 5054 km2 to 8129 km2 There are fourteen onshore release areas in two basins. Six are in the Canning Basin and there is eight in the Officer Basin. Within the Canning Basin there are two areas on the Lennard Shelf and four areas largely on platform trends. Release area size varies from 1770 km2 in the Canning Basin to over 8,000 km2 in the Officer Basin. There are a range of possible plays including sub-salt, shale and tight-gas. ------------------------------------------------------------------------------------------------- From now on work program bids can only be made online.  Must be registered before accessing the Petroleum and Geothermal Register https://pgr.dmp.wa.gov.au/PGR/ If not already registered register for online submission and online payments in advance of acreage release closing date to ensure access. recommended to register at least 2 working days ahead of submission Instructions are available online. www.dmp.wa.gov.au/pgr_help

Canning Basin infrastructure A large Paleozoic basin (the size of France!) with some world class source rock and seals – plenty of room for a, so far, elusive giant! The Canning Basin is remote from the State capital Perth (~1300km). However, Canning oil has been trucked to the Kwinana oil refinery in the south of the State and currently to ports in the north of the State for shipping to refineries in SE Asia. There is a gas pipeline to the large Telfer goldmine on the southern margin of the basin and a gas pipeline has been proposed along the coast of the onshore basin. Interest in the Canning Basin has increased in recent years, with: New play oil discoveries at Ungani in October 2011 and Ungani Far West 1 announced in March 2016. Good oil and gas shows in Ordovician Goldwyer Formation shale in the unconventional Theia 1 well drilled in July-August 2015. Large estimates for shale gas. There are many large mines on the Pilbara Block to the south of the basin, some of which are changing from diesel to gas as the power source. One of the largest mineral sands deposit to be discovered in the last 30 years is located on the Dampier Peninsula between Broome and Derby – the Thunderbird deposit.  

Canning Basin Lennard Shelf L16-1, L16-2 These maps show the two Lennard Shelf release areas, with wells and seismic. Lennard Shelf oilfields have produced from Devonian carbonates and Permian-Carboniferous sandstones. The Blina field is situated to the west of L16-1 as per the map on the left. Gas show in the Carboniferous Fairfield Group in release area L16-1 (see arrow). Source rocks include: Carboniferous Laurel Formation Devonian reef complexes (Gogo and Virgin Hills formations) Ordovician Goldwyer Formation Potential conventional plays: Devonian basin floor fan sandstones Devonian reef carbonates Potential shale and tight gas plays: Laurel Formation/Fairfield Group shales Gogo Formation and Virgin Hills Formation shales The sealed Great Northern Highway traverses the release areas thus enhancing access.

Cross section Fitzroy Trough to Lennard Shelf This cross section indicates possible migration of hydrocarbons from source rocks in the deep Fitzroy Trough to the Lennard Shelf on the margin of the basin.

Chestnut 1 mudlog This shows a section of the mudlog from Chestnut 1 well in release area L16-1. Note the gas show in the Carboniferous age Fairfield Group.

Canning Basin platform areas L14-3, 4, 5 & 6 This map shows the Canning Basin platform release areas, with wells and seismic. The acreage became available for release after relinquishment at the end of permit terms from Buru Energy’s Exploration Permits, as required by the Petroleum Act . Platform areas (Crossland & part of Broome Platform) & part of Kidson Sub-basin At least 2 km thickness of Ordovician, Devonian and Permian strata. Ordovician petroleum system Extensive Goldwyer Formation source Numerous oil and gas shows in vicinity (e.g. Sally May 1, Percival 1, Mirbelia 1) Sub-salt plays - potential targets include Acacia Sandstone and Nita & Willara Formations carbonates Note: The Canning Stock Route in the centre. There is a light grid of 2D seismic lines

Ordovician source maturity & petroleum migration Subsalt (Ordovician) source rocks are mature on the southern Broome Platform. These source rocks may be marginally mature on the Crossland Platform due to erosion of the Devonian section, although both platforms have access to petroleum generated in the southern sub-basins. The shale-rich upper part of the Goldwyer Formation is oil prone on the Barbwire Terrace, whereas its lower units are more likely to be gas prone along the southern margins of the platforms. Hydrocarbon shows in Sally May 1 and 2 indicate that oil and gas may have migrated into the Release Areas.

Officer Basin infrastructure This map shows infrastructure relevant to the Officer Basin. Although this is a remote area of Australia, you can see that there are some unsealed roads, public airports and a railway in the vicinity. Much further to the west there is a gas pipeline servicing minesites and towns.

Basement depth from gravity data L16-3 to L16-10 This image shows basement depth interpreted from gravity data. Plays Northern Release Areas (L16-3 to L16-6) As salt-tectonics has deeply and more widely affected the area, in addition to structural and stratigraphic traps, there is a possibility of salt-related plays. If salt has been remobilized during younger tectonic events, secondary migration to shallower traps may have taken place. Southern Release Areas (L16-7 to L16-10) Mabel Creek seismic data in South Australia indicates that broad, gentle folds may be present. Gravity data also indicate that basement highs are present. The basement highs may have been draped, possibly with four-way closure. Neoproterozoic sandstones are a potential target.

Further information For details such as Release area and basin prospectivity reports Petroleum data availability Titles regime, updated bid assessment guidelines Land access, native title and environment Fiscal aspects Other information Visit www.dmp.wa.gov.au/acreage_release Contact petroleum.acreage@dmp.wa.gov.au Generic information may be obtained from the Department’s website right now. However, information specific to this acreage release may be viewed from proposed release date of 13 September 2016.