2000 EXPLORATION REVIEW

Abstract

The level of exploration and appraisal activity in 2000 maintained a level similar to that of the previous year. Drilling activity offshore increased slightly from 1999, maintaining the gradual increase from a low in 1991.

Onshore drilling activity also increased slightly, but is still markedly down on expected levels; new permits are not being awarded due to native title issues. Onshore and offshore basins showed a continuing decline in 2D seismic acquisition, but a continuing increase in 3D acquisition. The gradual increase in drilling activity over the past 10 years is, in part, attributed to increased density of drilling in areas that have had 3D seismic coverage.

The offshore activity continues to be focussed in the Carnarvon Basin, in which 73% of the wells were located, including perhaps the most significant discovery, Laverda –1, drilled by Woodside. A campaign of 25 wells by the Apache-led JV resulted in three potentially commercial discoveries: Corvus–1, Linda–1 and Tanami–4 (renamed the Simpson field).

Overall success rates were high, but this is not translating to commercial reserve additions because of the number of sub-economic oil accumulations and a predominance of gas rather than oil.

Onshore a further round of acreage was released in the Cooper/Eromanga Basin, and a surge of activity is expected over the next two to three years. However, award of blocks is being held up by delays in approvals related to native title, which is a major issue for the onshore industry.

The new EPBC Act has created significant uncertainty in the industry, with respect to how it is being implemented. It has already led to significant delays in operations and therefore execution of committed work programs.