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2013 PETROLEUM OPPORTUNITIES IN SOUTH AUSTRALIA

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Insert title of presentation here 2013 PETROLEUM OPPORTUNITIES IN SOUTH AUSTRALIA Elinor Alexander, Director Geology and Exploration Energy Resources Division DMITRE www.petroleum.dmitre.sa.gov.au
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Page 1: 2013 PETROLEUM OPPORTUNITIES IN SOUTH AUSTRALIA

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2013 PETROLEUM OPPORTUNITIES

IN SOUTH AUSTRALIA

Elinor Alexander,

Director Geology and Exploration

Energy Resources Division

DMITRE

www.petroleum.dmitre.sa.gov.au

Page 2: 2013 PETROLEUM OPPORTUNITIES IN SOUTH AUSTRALIA

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Officer Basin

Pedirka Basin

Cooper

BasinArckaringa

Basin

Eromanga Basin

Arrowie

Basin

Stansbury

Basin

Bight

Basin

Otway

Basin

Petroleum exploration licence

Petroleum exploration licenceapplication

Petroleum production licence

Gas pipeline

Gas and liquids pipeline

Oil pipeline

Polda Basin

ILUA

Moomba

Onshore acreage release block

Olympic

Dam Mine

• Conventional oil and gas

• Frontier and mature basins

• Unconventional plays:

o shale gas, tight gas

o coal seam gas

o coal gasification plays

o 9 unconventional plays being

chased by 24 JVs

• Work program bidding -

onshore Cooper and Otway,

offshore (Federal Govt)

• Frontier onshore basins -

over the counter at any time.

Simpson

Basin

Offshore acreage release block Exploration licences blue,

applications pink

Page 3: 2013 PETROLEUM OPPORTUNITIES IN SOUTH AUSTRALIA

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Latest (Dec 2012) Domestic Gas Markets

Origin Energy secures record gas price

A Chinese controlled miner in Queensland

(MMG) will pay close to $9 a gigajoule

after CSG export plants in Gladstone start

operating from 2015.

This compares with:

current $3 and $4 a gigajoule and

about $6 a gigajoule for a long-term north

Queensland gas supply by AGL

Energy to miner Xstrata (agreed in

2011).

From Matt Chambers and Annabel Hepworth , The Australian

21 Dec 2012

Page 4: 2013 PETROLEUM OPPORTUNITIES IN SOUTH AUSTRALIA

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Land access agreements

A variety of access agreements with

native title claimants and indigenous

owners are in place for 46 PELs (6

new PELs granted last year)

Agreements cover exploration and

production phases and are public

domain

Agreements are fair to indigenous

people and sustainable for

petroleum E&P

Petroleum Exploration Licence granted via access agreement

ILUA

Native title Claims with RTN agreements

APY/MT Owned Lands

Freehold Land

Parks and Reserves – no petroleum exploration access

Other Aboriginal Lands

200 km

Page 5: 2013 PETROLEUM OPPORTUNITIES IN SOUTH AUSTRALIA

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Cooper Basin bid roundCO2012-A

• PEL 111 relinquished acreage

• Comprises 2 areas totalling 392 sq km

• 1 well and 581 km 2D acquired in the block

• 22 wells on Charo /Snatcher field in-

between

Potential plays

• Western margin Birkhead Fm oil play

• New unconventional plays (e.g. Merrimelia

Formation shale oil play)

• Cambro-Ordovician Warburton Basin

• Undrilled structural and stratigraphic traps

Bids close 4 April 2013

Page 6: 2013 PETROLEUM OPPORTUNITIES IN SOUTH AUSTRALIA

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Cooper Basin shale gas, basin centred gas

and CSG plays

Beach Energy: PEL 218 Chevron now a partner

Successful multistage fracs and flows >2mmscf/d from

gas saturated Early Permian succession.

Beach estimate potential 300 TCF gas in place in

PEL 218 (Nappamerri Trough) – ~100 TCF in shales

and >200 TCF in sands (basin centred gas)

Senex Petroleum, PEL 516: Estimate 75-110 TCF

gas in place in shales and coals.

Strike, Beach, PELs 94, 95, 96: Mean prospective

resource estimate 12.39 TCF gas and 113 MMbbls

liquids in coals and shales

:

Santos PPLs: Booked 2C (contingent, probable,

recoverable, Santos share) unconventional gas

resources (shale gas, tight gas, deep coal) of ~2.22

TCF (2,345 PJ)

Moomba 191 (vertical well) Australia’s first commercial

shale gas producer in Oct 2012

Page 7: 2013 PETROLEUM OPPORTUNITIES IN SOUTH AUSTRALIA

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World class success rates

Discovery oil production in months

Existing infrastructure

Productive play trends extended

Proven play find-size now modest but

3D enabling >1mmbo finds

New unconventional gas plays

Acrasia 1

(2002)

New exploration phase

Page 8: 2013 PETROLEUM OPPORTUNITIES IN SOUTH AUSTRALIA

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Otway Basin

Onshore OT2012-A block

• One large block, 5660 km2

• 22 wells, 4450 km 2D

• 90 wells in SA onshore Otway basin

• Gas production since 1991

• Pipeline infrastructure - access to SE

Australian gas market

Bids close 4 April 2013

Page 9: 2013 PETROLEUM OPPORTUNITIES IN SOUTH AUSTRALIA

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DVD available now

• Includes prospectivity summary,

how to apply, scoring system,

application forms

• The Minister is expected to

announce the winning bidders

around APPEA 2013 Conference in

Brisbane, May 2013

• Get your free copy of the DVD

from the South Australia stand

Page 10: 2013 PETROLEUM OPPORTUNITIES IN SOUTH AUSTRALIA

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Shale Gas/Oil Resources

Page 11: 2013 PETROLEUM OPPORTUNITIES IN SOUTH AUSTRALIA

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Roadmap for unconventional gas

projects in South Australia

• nbcnbcsdjfoijewoiDesigned to inform industry strategies,

government policies, and regulations to

facilitate unconventional gas projects in

ways that communities welcome.

Includes prospectivity, company projects,

SE Australian gas economics, regulatory

framework, supply chain needs etc.

Released 12th Dec 2012.

Available from website or as a free pdf

from SA stand.

The Roundtable has 244 members

(companies, government agencies ,

peak representative bodies,

universities).

Next meeting in March in Adelaide

Page 12: 2013 PETROLEUM OPPORTUNITIES IN SOUTH AUSTRALIA

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Australian Offshore bid round

Prospectivity

• Acreage release process: www.petroleum-acreage.gov.au

• 3 new blocks in Great Australian Bight adjacent BP’s licences

DVD available from stand


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