EXPLORATION HIGHLIGHTS FOR 2006

Abstract

Key business indicators show an upward trend in exploration activity in Australia during 2006. The year was marked by fluctuating high oil prices, a strong uptake of acreage in most basins, and increased levels of drilling activity and seismic acquisition. Market demand for product, production infrastructure and the fruition of several development projects have pushed the level of exploration activity in both offshore and onshore basins. Despite this trend and the spread of tenements, almost all petroleum discoveries made during 2006 were located within 15 km of existing (but often undeveloped) fields.

The Carnarvon Basin continued to be the focus of most offshore exploration activity during 2006, with the highest levels of 3D seismic acquisition and exploration/appraisal/development drilling in the country. Discoveries in the Carnarvon Basin also covered the broadest range of water depths—extending from the oil and gas discoveries made by Apache on the inboard margin of the Barrow Subbasin, to the deepwater gas discoveries at Clio–1 and Chandon–1 by Chevron. Several large gas discoveries were made in the Carnarvon and Bonaparte basins and provide significant tie-back opportunities to existing and planned infrastructure. The Bonaparte Basin also saw significantly increased levels of 2D and 3D seismic acquisition during 2006. Onshore, the Cooper/Eromanga basins continued to experience the highest level of drilling activity and seismic acquisition, while maintaining an overall high drilling success rate. For the first time in many years, data acquisition also occurred in frontier basins like the Daly (Northern Territory), Darling (New South Wales), Tasmanian (Tasmania) and Faust/Capel basins (Lord Howe Rise region).

Coal seam methane (CSM) exploration maintained a strong performance in 2006, particularly in Queensland, while South Australia, Queensland and Victoria continue to lead the way with large tracts of acreage gazetted for geothermal energy exploration.