2012 PESA industry review—exploration

Abstract

The Australian exploration landscape experienced an escalation of unconventional activity in 2012. Drilling targeting shale oil and gas, basin-centred tight gas, and coal gas is on the increase compared to previous years. Drilling for onshore oil and large offshore gas continued to be a staple activity for the year although, in general, offshore, the number of wells drilled is continuing to decline, in line with previous years. A number of very large 3D seismic surveys were acquired in 2012 and this is hoped to provide many future drilling targets.

Within Australia, 19 new offshore conventional petroleum exploration permits were awarded within the Commonwealth jurisdiction (compared to 24 in 2011), of which 15 are located in WA, two in Victoria, one in NT, and one in the Territory of Ashmore and Cartier Islands (NT). Onshore exploration tenures awarded in 2012 included four in WA, 14 in NT, six in Queensland, and nine conventional and six geothermal in SA.

At least 25 3D and six 2D seismic surveys were acquired offshore in 2012, including some very large 3D marine surveys, the largest covering an area of 12,417 km2. Onshore seismic activity was highest in Queensland and SA where 33 and 11 surveys were acquired, respectively.

Offshore, 21 conventional petroleum exploration wells were drilled during the year, which resulted in 11 announced discoveries. Two exploration wells, which were spudded late in 2011, were announced as discoveries early in 2012. Five wells, which were spudded in 2012, were still drilling at year end. This equates to a better than 50% technical success rate for offshore exploration drilling for all well results known at year end. All but two of these wells were located in WA waters, the others being located in NT and Victoria.

Australia-wide onshore drilling was more active than in 2011 and, as is reflected in the seismic activity, the most wells (1,048) were drilled in Queensland (dominated by CSG drilling), followed by SA (77).