2011 PETROLEUM OPPORTUNITIES IN SOUTH AUSTRALIA · 2011 PETROLEUM OPPORTUNITIES IN SOUTH AUSTRALIA ELINOR ALEXANDER, PETROLEUM AND GEOTHERMAL GROUP SOUTH AUSTRALIA. Pedirka Basin

2011 PETROLEUM OPPORTUNITIES IN SOUTH AUSTRALIA

ELINOR ALEXANDER, PETROLEUM AND GEOTHERMAL GROUP

SOUTH AUSTRALIA

Pedirka Basin

CooperEromanga Basin

SimpsonBasin SA’s PETROLEUM

PORTFOLIOSA’s PETROLEUM

PORTFOLIOOfficer Basin

Cooper

BasinArckaringaBasin

Moomba

• Conventional oil and gas

PORTFOLIOPORTFOLIO

ArrowieBasin

OlympicDam Mine

• Frontier and mature basins• Shale gas, tight gas

Coal seam gas

P ld B i

• Coal seam gas• Coal gasification plays• Gas storage

StansburyBasin

Bight Basin

Polda Basin Gas storage

BasinBasin

Petroleum exploration licence (Onshore: PEL Offshore EPP)

Otway Basin

Petroleum exploration licenceapplication (PELA)

Petroleum production licence (PPL) Gas pipelineGas and liquids pipeline

Oil pipelineAcreage release block

Retention licence (PRL)

Greenhouse gas storage area ILUA

Acreage release block

LAND ACCESS AGREEMENTS INAGREEMENTS IN PLACE NOW

A variety of access agreements with native title claimants and indigenous owners are in place for 42 PELs

Agreements cover exploration and production phases

Agreements are fair to i di l d

200 km

indigenous people and sustainable for petroleum E&PILUA

Native title Claims with RTN agreements

APY/MT Owned Lands

Freehold Land

Parks and Reserves – no petroleum exploration access

Other Aboriginal Lands

Petroleum Exploration Licence granted via access agreement

p p

Cooper Basin Acreage• CO2010: 3 blocks available now

• work program bidding closes 10th March 20112011

• Oil and gas targets

• Application fee US$3,634Application fee US$3,634

• Get your free info CD from stand 649

UPSIDE• More structures to be found in seismic-

poor areas• 3D seismic -new stratigraphic traps• New unconventional gas plays• Cambro-Ordovician Warburton Basin

• CO2009: closed Oct 2009• 11 companies applied• Winning bids: 37 guaranteed wells,

1000k 2D 700k 2 3D~1000km 2D, 700km2 3D

Acrasia 1(2002)

New exploration phase

SHALE GASBeach Energy (First mover)Early Permian playEncounter 1 completed good shows multi-Encounter 1 completed, good shows, multistage frac plannedHoldfast 1 drilling nowBeach estimate potential gas in place >200 TCF i N i T h

Roseneath ShaleE. Permian

TCF in Nappamerri Trough

Stuart PetroleumSignificant shale gas potential in PEL 516Significant shale gas potential in PEL 516 Estimate 38 - 60 TCF gas in place in the Allunga Trough-Mettika Embayment

Santos LtdReserves and resources, both conventional and unconventional, suggest at least 3Xs as

h i i th C B i thmuch gas remains in the Cooper Basin than has already been produced

Dullingari GroupOrdovician

COOPER BASIN AND US SHALE GAS BASINS

Cooper Basin inset from Beach Energy Presentation, “Cooper Basin Shale Gas”, April 2010

COMPARISON OF BARNETT AND COOPER SHALE GAS PLAYS

Moomba 77 – Cooper Basin

Roseneath Shale

100 200GR

Roseneath Shale (191’, 58m)

Epsilon Formation

REM*Roseneath-Epsilon-Murteree

Barnett Shale* Epsilon Formation (224’, 68m)

Murteree Shale

Siliceous mudstone Type II source rockThickness: 400-500’TOC Ave: 5%

Barnett Shale*Siliceous mudstone Type II source rockThickness: 250-500’TOC Ave: 5%

(163’, 50m)

*From Beach Energy presentation “Cooper Basin Shale Gas” Gordon Moseby 30From Beach Energy presentation Cooper Basin Shale Gas , Gordon Moseby, 30 March 2010

Wireline log through Barnett Shale from Kinley et al, 2008 “Hydrocarbon Potential of the Barnett Shale (Mississippian), Delaware Basin, west Texas and southeastern New Mexico” AAPG v92, No 8southeastern New Mexico AAPG v92, No 8

ENORMOUS VOLUMES OF GAS TRAPPED IN DEEP COOPER BASIN COALS

01000200030004000Total Gas

Wimma 1 – Patchawarra Formation Moomba 77 – Patchawarra FormationTotal Gas

0.1 1 10 1000100

DTGR

45f t coal seam at ~11,155 ft

http://www.santos.com/library/110909_International_Investor_Presentation.pdf

2800 units Total Gas

30 ft coal seam at ~9514 ft~900 units Total Gas

Otway Basin• No current onshore acreage release• Some operators are interested

Asphaltite, KI (oil source)

pin farm in deals• President Petroleum to drill Northumberland 2 in Q1 2011

Update – hollicks 1? Northumberland 2??Northumberland 2 in Q1 2011• Oil and gas play trends• Pipeline infrastructure - access

Add length

pto SE Australian gas market

PEL255

Gas

WellsGasCO2

Oil showsGeothermalDry Northumberland 2

Officer Basin

“The last onshore Australian frontier”

• Officer Basin Energy (Rodinia -Calgary)

• Standard-Dawnpark (Ahava -Adelaide)

• 4 known petroleum systems• Linc Energy Maglia 1 oil show,

follow up drilling in 2011• High risk high reward – largeHigh risk, high reward large

structures, salt seal

Source ChargeSeal (salt)Reservoir

Bight Basin

• EPPs 37 to 40 granted to BP• EPPs 37 to 40 granted to BP Exploration 17 Jan 2011

• Primary program $605m (11 400 km2 3D; 4 wells to 2014)(11,400 km2 3D; 4 wells to 2014)

• Blocks S10-1 & 2 closed 11 Nov, announcement soon

• Nominations from industry sought for 2012 release blocks

SA oil and gas Sales of Gas (PJ)

180

200 20

Cooper Basingproduction

120

140

160

180

15

Otway Basin

Q. How to address falling production?

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80

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0

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800

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$/bb

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200

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20

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1983

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2009/10

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See you at Stand 649 OR why not visit Australia for il t h f 10 13 A il i P thour oil patch conference, 10-13 April in Perth

www.pir.sa.gov.au/petroleum