Exploration highlights for 2007

Abstract

Record-high oil prices along with on-going development of infrastructure, increasing domestic demand and international LNG sales continued to drive significant investment in exploration in onshore and offshore Australia during 2007. These trends are reflected nationally by strong uptake of acreage and continued high levels of drilling activity and seismic acquisition. Overall, drilling and discovery trends were similar to 2006 which showed significant exploration activity focussed on proven hydrocarbon basins (Carnarvon, Browse, Perth and Cooper basins). Most petroleum discoveries made in 2007 were located within 10 to 15 km of existing fields. In terms of number of exploration wells, the offshore Carnarvon continued to dominate with over 20 new field wildcats drilled. Discoveries include a major deep-water gas find for BHP-Billiton at Thebe-1 on the outer Exmouth Plateau, Apache’s gas finds at Brunello–1, Julimar–1 and Julimar East–1, oil for Santos at Fletcher–1 and gas at Lady Nora–1 for Woodside. The Browse Basin saw a significant increase in drilling activity with some success. Exploration in the offshore southwest margin received a major boost with a series of shallow-water discoveries for ROC Oil in the Perth Basin with gas at Frankland–1 395and Perseverance–1 and gas and oil at Dunsborough–1. Onshore, the Cooper/Eromanga basins continued to experience the highest level of drilling activity and seismic acquisition. This activity resulted in numerous small to moderate oil discoveries for Santos, Beach Petroleum, Eagle Bay Resources, Stuart Petroleum and Victoria Petroleum. There were a few notable exceptions to near-field exploration in 2007 with several wildcats drilled in frontier regions including PetroHunter Energy and Sweetpea Petroleum’s Shanendoah–1 in the Georgina/Betaloo basins, Austin’s Gravestock–1 in the onshore Stansbury Basin and the onshore drilling campaign by ARC Energy in the Canning Basin. In Queensland, CSM exploration and discovery continued to experience strong positive growth underpinned by delivery to local markets.