1. 2010 WESTERN AUSTRALIAN STATE ACREAGE RELEASES
Richard Bruce
Petroleum Division
Department of Mines & Petroleum
Welcome to Western Australia’s onshore and State Waters bid rounds presentation.
I will be foreshadowing both conventional petroleum acreage available for work program bidding, and acreage for geothermal energy exploration.

2. CONTENT Introduction Petroleum round 1 of 2010
Geothermal round 1 of 2010
Further information
We have 1 round of petroleum and 1 round of geothermal acreage release.

3. There are a range of opportunities to bid by work program for acreage both onshore and offshore Western Australia, in Commonwealth (Federal) and State jurisdictions.

4. STATE ACREAGE RELEASES
Round. Release Bids close Petroleum 1/ May 19 August 2010
“ “ 4 November Geothermal 1/ April 22 July 2010
Petroleum bid round number 1 of 2010 is to be gazetted in May.
Petroleum round 1 of 2010 is a split round part closing in August and part in November.
The whole of State Geothermal bid round for this year closes July.

5. Areas to be released 18 May 2010
PETROLEUM ROUND 1 OF 2010
Areas to be released 18 May 2010
Closing 19 August 2010
Two in Bangemall Supergroup
Two in Blake Sub-basin, Officer Basin
Closing 4 November 2010
One in the onshore Canning Basin
One in the coastal waters northern Perth Basin
This slide shows where petroleum acreage is to be released in May, in association with the APPEA Conference, Brisbane.

6. Acreage Release Areas 6 release areas 1 Canning Basin
L sq km
2 Bangemall S/grp
L sq km
L sq km
2 Blake Sub-basin
L sq km
L sq km
1 Perth Basin
T sq km
There are 6 release areas in round 1 of Targets range in age: Mesoproterozoic, Neoproterozoic, Palaeozoic and Mesozoic.
Release area size ranges from 1331 to over sq km.

7. CANNING BASIN
Oil production in Devonian reef, Permian-Carboniferous clastics
Numerous live oil shows Ordovician, Devonian, Carboniferous and Permian sections - good migration pathways
Good oil-prone source rocks, reservoir rocks, and seals
Shows widespread throughout almost entire stratigraphic column (Lower Ordovician to Permian).
Generation - oil-saturated mineral cores and live-oil from petroleum wells suggest presence of number oil-prone source rock within Canning Basin.
Based on pre-existing work:
Source, reservoir, and seals identified in areas where is potential for adequate structural closure, effective migration pathways, and appropriate timing of trap development.
Indicates good migration pathways (from oil shows).
Some key risks (charge, timing, migration, and trap integrity). Note: most wells drilled on poorly defined structures, outcropping anticlines or purely stratigraphic tests.

8. Canning Basin stratigraphy and petroleum systems
There are more than 130 giant and super-giant oil and gas fields with Paleozoic source and reservoir that are similar to the Canning Basin. The Canning Basin may be the least explored of the known Paleozoic basins with proven petroleum systems.
In recent times there has been increased interest in the Canning Basin, with farmin activity and bids for acreage by Australian and Canadian companies.
The petroleum systems of the Canning Basin release areas can be sub-divided into sub-salt and supra-salt plays based on the widespread salt seals in the Carribuddy Group.
Thus there are two main targets: the Ordovician and the Devonian-Lower Carboniferous.
Source – major is Ordovician Goldwyer Fm (unit 4, microbial-rich, argillaceous facies – type I/II kerogen). Other Ordovician include shale + siltstone intervals in Nambeet, Willara, and Bongabinni. Other sources – Upper Devonian, Laurel (Fairfield), ?Anderson, Grant Poole, Noonkanbah.
Reservoir – Ordovician (Nambeet, Willara + Acacia, Goldwyer, Nita), of these best is Nita; Devonian (Tandalgoo, Worral, reef complexes + other carbonate units), Fairfield, Anderson, ?Reeves, Grant, Poole.
Seals - intraformational shale, mudstone, limestone present within most of Ordovician section, Carribuddy Group, Upper Devonian, proven seals in Carboniferous + Permian.

9. Seismic data coverage and wells L10-1
The acreage release area is underexplored with sparse seismic coverage and well density.
However, the Lennard Shelf address is good.
The most active time for shooting seismic was in the 1980s.

10. Prospectivity L10-1 Located on Lennard Shelf - known for
Widespread hydrocarbon shows to south
Oil production – from Upper Devonian fractured reef carbonates and Permian-Carboniferous sandstones
Source rocks may include
Lower Carboniferous Laurel Fm
Devonian Gogo Fm
Ordovician Goldwyer Fm
Seals provided by shales in Permian and Carboniferous
Traps include fault-controlled anticlines, flower structures, drape closures over reef structures.
Release area L010-1 is located on the Lennard Shelf, an area noted for widespread hydrocarbon shows and oil production from Devonian reefs and Permian-Carboniferous sandstones.
Source rocks may include the Laurel Fm, the Gogo Fm and the Goldwyer Fm
Shale seals occur the Permian and Carboniferous
There are a variety of trap styles including anticlines, flower structures, and drapes over reefs.

11. BANGEMALL SUPERGROUP
Areas infilled by the Mesoproterozoic Bangemall Supergroup lie to the south and west of the iron ore town Newman in the Pilbara region.
Mineral holes OD15 and OD23, drilled in the eastern area infilled by the Bangemall Supergroup, encountered bitumen and trace oil in vugs in dolomite.
Areas infilled by the Mesoproterozoic Bangemall Supergroup lie to the south and west of the iron ore town Newman in the Pilbara region.
Mineral holes OD15 and OD23, drilled in the eastern area infilled by the Bangemall Supergroup, encountered bitumen and trace oil in vugs in dolomite.

12. Bangemall Supergroup L10-2, L10-3
The Goldfields Gas Transmission pipeline goes through the eastern flank of L10-3.
The Dampier To Bunbury Natural Gas Pipeline is less than 100km west of L10-2.
The sealed Great Northern Highway passes through the eastern flank of L10-3.
Several companies have expressed interest in this region.

13. BLAKE SUB-BASIN A sub-basin of the Neoproterozoic Officer Basin.
Lies to the south and east of Newman.
Oil fluorescence was encountered in stratigraphic coreholes Boondawari 1 and Mundadjini 1 drilled by Amadeus Petroleum.
A sub-basin of the Neoproterozoic Officer Basin.
Lies to the south and east of Newman.
Oil fluorescence was encountered in stratigraphic coreholes Boondawari 1 and Mundadjini 1 drilled by Amadeus Petroleum.

14. Blake Sub-basin L10-4, L10-5
The Goldfields Gas Transmission Pipeline skirts the western edge of these release areas.
The sealed Great Northern Highway skirts the western flank of L10-4 and L10-5.
Several companies have also expressed interest in this region.

15. PERTH BASIN
Source pods within the Dandaragan Trough or Abrolhos Sub-basin
Early mature for top Jurassic
Mature to overmature for top Permian
Best quality source and seal is the Triassic Kockatea Shale, with possible source in the Jurassic Cattamarra Coal Measures
This area was nominated for release by a significant international oil company.
Two possible sources – one onshore and one offshore.
Infer maturity for offshore part of area – southern part of acreage is early mature for Jurassic CCM but the northern appears to be immature, for top Permian – northern part of acreage mature, ranges to overmature at southern part.
Best quality is L. Triassic Kockatea, possibly CCM

16. Reservoir Source Seals Wagina Perth Basin elements
Within acreage release – thick L. Triassic source and seal couple as well as source in L. Jurassic.

17. Seismic Data Coverage and Wells T10-1
The northern Perth Basin has numerous seismic lines, wells and production of oil and gas.
Two gas pipelines occur to the east of T10-1. Also onshore a sealed highway connects to the State capital Perth and the Kwinana oil refinery.

18. GEOTHERMAL ENERGY
Sources of geothermal energy – heated groundwater and hot dry rocks
Applications include electricity generation and direct use (eg heating buildings, drying foods).
Geothermal is regarded as a clean energy source with limited environmental effects.
I’ll now discuss geothermal energy.
Sources of geothermal energy include heated water (as in much of WA’s sedimentary basins) and hot dry rocks (as in South Australia’s Cooper Basin).
Applications include the generation of electricity and direct use such as the heating of buildings.
Geothermal energy is regarded as a clean energy source.

19. Geothermal Energy - WA Initial Stages
First geothermal exploration permits awarded.
Extent and economic feasibility of WA geothermal resources is presently unknown.
A quantitative assessment requires systematic geological, hydrogeological, geophysical, and geochemical evaluation to further delineate and prove these resources.
Amendments to the Petroleum Act 1967 have allowed the release of acreage around the State for Geothermal energy exploration.
The first geothermal exploration permits have been awarded in the Perth Basin.
The economic feasibility of WA geothermal resources is presently unknown.
Systematic geotechnical studies are required to quantify resources.

20. Geothermal Release Regions
Four regions
Close Block size
(sq km)
April ~320
Feb ~6400
1 re-release ~320
25 June 2009
Aug ~6400
Jan ~8000
1,2,3, July 2010
The Western Australia Department of Mines and Petroleum has successively released acreage for geothermal energy exploration in four regions of the State.
There was a re-release of acreage in the onshore Perth Basin and adjacent region in Western Australia (Region 1 extends from Geraldton in the north to Busselton in the south).
The initial release of acreage in the onshore Perth Basin and adjacent region in January 2008 was well received, attracting over 60 bids. Application area size is approximately 320 sq km.
Region 2 which encompasses the onshore Carnarvon Basin and adjacent region was released for geothermal exploration in August 2008 and bids closed in February Application area size was approximately 6400 sq km. 13 bids were made for 10 application areas.
Region 3 (the southeast region) was released in May 2009.
Region 4 (northeast region) was released September 2009.
The Perth Basin and adjacent region was re-released due to industry interest.
It is well situated with respect to the power grid and transmission lines, and to populated areas of the State. There are numerous industrial projects, particularly in the southern part of the release region.
There were 9 applications for the re-release.

21. EXPLORATION INCENTIVE SCHEME
A State govt initiative that aims to encourage exploration in W. Australia.
A$80m over 5 years, mineral & petroleum.
Includes:
stratigraphic corehole drilling in the Canning and southern Perth Basins.
airborne magnetic & radiometric surveys
deep crustal seismic traverses
The EIS is to help reinforce the image of Western Australia as an attractive destination for mineral and energy exploration investment.
Approximately A$20 million is allocated to petroleum studies.

22. FURTHER INFORMATION Visit Exhibition area
Further information may be obtained from Western Australia’s booth in the Exhibition area or you may like to visit the Department’s website, especially in May at the time of acreage release.