Shaping the Cooper Basin's 21st century renaissance

Abstract

The Department of Manufacturing, Innovation, Trade, Resources and Energy (DMITRE) SA has been successfully using competitive acreage releases to manage highly prospective Cooper Basin acreage since 1998. The expiry of long-term exploration licenses enabled the most significant structured release of onshore Australian acreage in the industry’s history—it has generated: 32 petroleum exploration licences (PELs) from ~70,000 km2 acreage; $432 million in guaranteed work program bids; 70 new field discoveries; $107.6 million royalties and $1.4 billion sales;and, increased gas supply-side competition. Cooper acreage turnover has also changed the makeup of Australia’s onshore exploration industry from numerous company-making discoveries. Since 1998, 10 acreage releases have been staged, enabled by the Petroleum Act 2000 (now the Petroleum and Geothermal Energy Act 2000), conjunctive agreements with Native Title claimants, access to multiple-use Innamincka and Strzelecki Regional Reserves, and transparent application and bid assessment processes. Despite delays, most recently due to flooding, all but three of the original PELs are in their second term and relinquished acreage has been incorporated into subsequent releases. All work-program variations have been kept above the second bid score (except one, where the second ranked bidder was consulted and approved the change) preserving bidding system integrity. DMITRE is planning new Cooper Basin acreage releases while contemplating acreage management options for emerging unconventional plays. Industry input to map the best possible future for the SA Cooper Basin continues to be welcomed.