2015 PESA industry exploration review

Abstract

Globally, 2015 had the lowest addition of new oil reserves in more than 60 years, reflecting both reduced activity and fewer oil opportunities, although significant gas discoveries were made. In Australia, the underlying theme for the year was one of adapting to low oil prices and learning to operate prudently with a lower price outlook.

The cautious approach of 2014 persisted, with exploration activity at reduced levels. Offshore seismic recording maintained its recent high activity levels with a total of 45,563 km² of mainly regional 3D seismic recorded, but onshore seismic recorded was at historically low levels.

Nine exploration wells were spudded offshore with limited success (two gas and condensate discoveries at Auriga West–1 in the Browse Basin and Roc–1 in the Roebuck Basin). Onshore, however, the 38 non-CSG exploration wells drilled had a high success rate although discoveries were small. A highlight onshore was Origin Energy reporting encouraging results from the McArthur Basin for its Proterozoic mid-Velkerri Formation shales gas exploration program.

Caution also extended to permit activity, where offshore relinquishments exceeded the number of permits granted, and onshore international companies withdrew from their unconventional farmin programs. For permits granted offshore, lower expectations of prospectivity resulted in only one well being committed in the primary term work program.

Community pressure continued to play a significant role in the lack of CSG and other exploration drilling in NSW and onshore Victoria.