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PART ONE: 1968 APEA CONFERENCE APEA.

AUSTRALIAN PETROLEUM EXPLORATION ASSOCIATION LIMITED

C. W. SILLER, M.B.E. (Chairman)

CHARLES T. EASLEY (Vice -Chairman)

E. O. ABBOTT LEE M. MATHEWS

E. N. AVERY D. J. McGARRY

H. B. BORWICK L. H. SMART

J. P. DONNET R. C. SPRIGG

J. G. FULLER E. TRAFFORD

Dr. G. M. FURNIVAL H. HUGH WILSON

J. H. HAMLIN R. B. WITHERS

K. M. HORLER, F.C.A., Secretary, Executive Director, The Metrolopitan Building, 56 Hunter St., SYDNEY Postal Address G.P.O. Box 834, SYDNEY 2001 Telegrams and Cables "PETREXION" - SYDNEY

New South Wales L. H. SMART Queensland C. W. SILLER South C. T. EASLEY

Victoria REES B. WITHERS Western Australia Dr. G. M. FURNIVAL u , r LU J urti DiIV STUDIES LIBRARY auGl 2.u.o/a6(9 n,.. e. 8961_330 .Q E

The Council of APEA met Sir Henry Bolte in the lobby of the Southern Cross Hotel. Sir Henry Bolte and APEA Chairman C. W. Síller at right.

The 1968 APEA Conference

O\"ER 500 delegates including more than 30 from bane; 'Case History - Mereenie Field', by D. D. Benbow, overseas, attended the 1968 Conference of the Exoil N.L., Brisbane; 'Recent Developments in Production, Australian Petroleum Exploration Association, Conservation and Storage of Natural Gas', by Professor M. held at the Southern Cross Hotel, , from March R. Tek, University of New South Wales; 'Natural Gas in 17 to 20. ', by B. B. Bennett, Gas and Fuel Corporation of Prominent visitors included Lewis G. Weeks from Victoria; 'Design and Construction of Offshore Platforms Connecticut, U.S.A., adviser to Hematite Petroleum Pty. and Pipelines', by J. F. McPhail, Esso Standard Oil (Aus- Limited; W. J. (Bud) Steeger, Houston, Texas; Al Jergins, tralia) Ltd.; 'Plans for Minimum Manned Operations Off- San Antonio, Texas; Bob Bauer, Los Angeles, California; shore Australia', by T. E. Short, Esso Standard Oil Robert Carella and Gianraffaele Romanogli, Milan, Italy; (Australia) Ltd.; 'Upper Cretaceous of the Peter Bawden, Calgary, Canada; Charles M. Browning, Basin', by T. R. Traill, Woodside (Lakes Entrance) Oil Dallas, Texas; H. J. Dammers, Surrey, England; H. Chris - Company N.L.; 'Exploration in the Otway Basin', by lip, Oklahoma City, Oklahoma; Peter Henderson, New Andrew H. White, Shell Development (Australia) Pty. York; Max Krueger, Wyoming, U.S.A.; and Henry Kerr, Limited; 'Structural Framework of the Timor Sea -Sahul Dallas, Texas. Shelf Area', by J. P. Caye, Australian Aquitaine Petroleum Papers presented included: 'Review of Australian Pty. Ltd.; 'Oceanographic Research', by Professor R. Petroleum Exploration 1967', by R. C. Sprigg, Consulting Radok, The Flinders University of South Australia; 'Aus- Geologist and Geophysicist, Adelaide; 'Petroleum Explora- tralian University Education and the Needs for Exploration tion Outlook for 1968', by L. W. Williams, Bureau of Training', by Professor Eric A. Rudd, University of Mineral Resources, Canberra; 'Case History -Roma Area', Adelaide; 'Continental Drift with Particular Reference to by V. G. Swindon, Mines Administration Pty. Ltd., Bris- Australia and New Zealand', by Dr. Emile Rod, Consulting

1 The Chairman of APEA, Mr. C. W. Sir Henry Bolte -"I have found them The Keynote Speaker, C. A. Byrne, Siller, of Brisbane, during his inaugur- (oil producers) tough, skilled negotia- President, Queensland Chamber of al address -"It is my personal opinion tors, but fair and straight in their own Mines, in presenting "The Necessity that a responsible government will not interests and in the interests of Aus- for Foreign Investment in Australian reduce the 75 cents a barrel incen- tralia." Oil Exploration " -"In 1911 74', of tive in 1970." BHP was in overseas hands. Today only 16% of its enormously expanded capital is held overseas."

Vice- Chairman of APEA, Mr. C. T. J. F. McPhail, Esso Standard Oil (Aus- Bruce B. Bennett, Gas and Fuel Cor- Easley, of Adelaide, in his concluding tralia) - "Already an estimated poration of Victoria -"By 1971, address - "Unfortunately natural gas 510,000 million has been invested off- natural gas will be available to all has been left to find its own place in shore and an additional $25,000 mil- consumers in the Melbourne metro- a very competitive fuel market." lion will be spent during the next ten politan arca." years."

Geologist, Sydney; `Recent Geophysical Results Northern pagnie Generale de Geophysique; 'Electronic Navigation Amadeus Basin', by A. J. Froelich, E. A. Krieg and R. M. Systems for Offshore Surveys', by A. J. Barlow, Bureau Hopkins, Magellan Petroleum (N.T.) Pty. Ltd.; `Devonian of Mineral Resources, Canberra. of Western and Central Australia', by M. H. Johnstone et al., West Australian Petroleum Pty. Ltd., Perth, W.A.; `The The award -winning Paper was 'Recent Geophysical Geology of Western Papua', by F. K. Rickwood, BP Results Northern Amadeus Basin', by A. J. Froelich, E. A. Petroleum Development Australia Pty. Ltd.; 'Recent Krieg, and R. M. Hopkins who received the APEA Advances in Geophysical Techniques', by S. J. Watson, Plaque on behalf of the joint authors. Honourable mention Consulting Geophysicist, Melbourne; 'Advances in Down was made of 'Devonian of Western and Central Australia', Hole Drilling Techniques', by R. Dumbrell, Oil Drilling & by M. H. Johnstone et al., and 'Case History - Roma Exploration Ltd.; `Offshore Exploration with High Sens- Area', by V. G. Swindon. Judges were E. A. Webb, K. E. itivity Digital Air Magnetometer', by J. Thomas, Corn- Denton, and A. E. Prince.

2 Melbourne Chartered Accountant R. R. the Legal Seminar, Main Speaker in Sanderson was Chairman of the Professor Geoffrey T. Bills of Deputy Secretary, Acting Mr. C. W. Harders, Accounting Seminar. the University of Melbourne presented Attorney De- Commonwealth -General's "Analysis of Capital Expenditure Pro- partment- "The Commonwealth does posals In the Petroleum Industry" to not recognise, though it does not seek the Accounting Seminar. to dispute, the existence of State Power." In relation to offshore legis- lation.)

Two seminars were conducted: tion of the sections and decisions confronting management when considering raising capital to finance exploration Accounting Seminar (Chairman: R. R. Sanderson, of and development activities. The discussion contributor was Melbourne) in which two subjects were discussed - D. W. Imber, Chartered Accountant, Brisbane. "Decisions affected by Sections 77A, 77AA and 78 (1) (b) of the Income Tax Act" and "Analysis of Capital Expend- The main speaker on the second subject was Acting iture Proposals in the Petroleum Industry". Professor Geoffrey T. Bills, Department of Commerce and Business Administration, University of Melbourne. The main speaker on the first subject was I. R. Millard, Chartered Accountant, Brisbane, who gave an interpreta- The Legal Seminar (Chairman: A. E. Prince, of Sydney)

Andrew H. White, Shell Development, presented "Exploration in the Otway Basin."

The Hon. J. C. M. Balfour, M.L.A., Minister for Fuel and Power, Victoria, David W. Imber, chartered accountant presented "Petroleum in Victoria - of Brisbane, discussion contributor at History and Present Status." the Accounting Seminar.

3 EXPl.O PETROLEUM .w lb/AUSTRALIAN ASSOCIATION. ,, 1968 COMFFIRF

MELBOURNE Vltlútìlf Il - 20'"MARCH. 1968

1

Mr. R. M. Hopkins of Magellan Petroleum receives the APEA Award for the Prizewinning Paper from the chairman of the technical papers committee, American consulting geologist and Melbourne consulting geologist E. A. Webb. The paper was "Recent Geo- former Jersey Standard Exploration physical Results, Northern Amadeus Basin ". Mr. Hopkins was co- author with Manager Lewis G. Weeks - acknowl Messrs. A. J. Froelich and E. A. Krieg. edged discoverer of the Bass Strait fields and the only individual royalty holder. discussed two related subjects "Offshore Legislation in who have worked in almost every known oil- producing Australia" and "The Continental Shelf". area in the world.... I could not be accused of exaggera- The main speaker on the first subject was C. W. Harders, tion if I were to suggest that the Gippsland Basin shows Deputy Secretary, Commonwealth Attorney -General's promise of being one of the world's really prolific producing Department, Canberra, with Charles H. Wilson, Solicitor, basins. . . I would ask you to spend a few minutes Brisbane, as discussion contributor. The main speaker on thinking about the role of Governments in relation to the the second subject was Dr. R. D. Lumb, University of exploration for and the exploitation of Australia . . . we Queensland. Mrs. Marcia Neave, LL.B., University of might consider what is not the role of Governments . . . Melbourne, was discussion contributor. exploration, especially offshore exploration, is not a job Over 100 delegates participated in each seminar. for Governments ... it is not the function of Government to tie up the activities of explorers in unnecessary red tape, The conference was by opened the Hon. Sir Henry to interfere unnecessarily in their day -to-day activities, Bolte, K.C.M.G., M.L.A., . He was and generally discourage the efforts of the explorer . . . followed by Mr. C. W. Siller, Chairman of APEA, who the role of Government can be very shortly put as being gave an address "The Road to Self -Sufficiency ". to protect the public interest ... the first and overriding The Keynote Address "The Necessity for Foreign Invest- consideration in the public interest in Australia has been, ment in Australian Oil Exploration" was given by C. A. and still is in 1968, to encourage exploration in Australia Byrne, O.B.E., D.S.C., President, The Queensland Chamber and in Australian waters ... despite the accelerated rate of Mines. The Concluding Address was given by C. T. of exploration in recent years, the work really has just Easley, Vice -Chairman of APEA. begun. There are many ways in which Governments can encourage exploration. The subsidies and tax incentives Main Points from the Addresses and Papers granted by the Commonwealth Government have no The Rt. Hon. Sir Henry Nolte doubt significantly contributed to the increased rate of

. . 1 believe that Australia will gain many benefits exploration . . . the most significant assistance that Gov- from petroleum exploration . . . one tangible benefit that ernment can give to explorers is to provide them with a we have already received from petroleum exploration country that has a stable Government, with a sound comes from the influx of specialists from different nations economy and fair laws for them to work under . . . the

4 next consideration is to see that a proper balance is main- industry, favourably with North American experience . . . tained between the rights of the explorers and the rights my prediction is that by 1975 sufficient discoveries will of the community . . in the community interests it is have been made to ensure self sufficiency or at least necessary for Governments to ensure that those who are potential self sufficiency in oil and gas." both technically granted the right to explore are competent C. A. Byrne, President, Queensland Chamber of Mines in the area and financially to carry out the exploration in my view ingratitude is a deadly sin, but apart as rapidly as granted, to ensure that exploration proceeds from this, self interest prompts me to say that the task to any possible, to ensure that areas are not granted of developing Australia to self sufficiency, and I don't to rapidly company which are greater than they are able mean only in oil, is beyond our numbers and our cash that fair and proper royalties are levied explore, to ensure resources. I would rather choose to share my riches with on those who are lucky enough to make commercial a tried and trusted friend who had shed his blood with discoveries, to ensure that all commercial discoveries are me than take a chance of keeping the whole against the rapidly and effectively developed, and to ensure that unknown adversaries I hate calamity howlers -every all so that field ... best oil field practice is used at times every oil or mining man must be an optimist, but I do believe will be to its utmost capacity . . . the explorer explored that time is short -now is Australia's golden opportunity and the Government must at all times be ready and willing - we have the wind behind us. . . . I venture the opinion highest to have their top executives talk together on the that the offshore oil and gas discoveries in 1967, and possible level in order to make reasonably quick decisions. I hope 1968, will outweigh in importance the much - my ... I am happy to say in the experience of Govern- publicised metalliferous discoveries, magnificent as the I of ment in dealing with these matters have not known latter undoubtedly are it may be argued that overseas to do or to attempt ... any attempt by explorers or producers production is cheaper than the current petroleum equiva- to which is contrary to the interests of the do anything lent produced in Australia. This I think is a passing phase. in Victoria in I have found them public or Australia.... I cannot believe that Australians who have proved their tough, skilled negotiators, but fair and straight in their capacity in the production of cheap steel from indigenous own interests and in the interests of Australia." sources cannot do likewise with indigenous petrol- C. W. Siller, Chairman of APEA eum . . . from our own resources we have not the . . substantial onshore production (in addition to financial resources and technical skills to give us self offshore) for reliability of supply is most desirable from sufficiency in time to maintain our financial equilibrium a national point of view . . . certain aspects of the (off- ... we are hastening too slowly in the exploration of our shore) legislation are regarded as unpalatable by some vast sedimentary basins ... it has been a wonderful year companies. I suspect the aspects vary from company to and the value of the offshore discoveries are, I believe, company . . . the passage of the Acts has prevented the beyond computation, but the plain fact is that we have legal disputes which developed in the United States and 1.7 million square miles of sedimentary basins on shore, Canada . . . undue haste in the finalisation of the regu- at least 600,000 square miles offshore and yet have tre- lations will benefit neither Government nor industry . . . mendous unused rig capacity. Modern rigs are racked in the passing of Petroleum Acts in all Australian Parlia- many places in Australia and in January this year 16 ments last year provided an for 'back-bench- opportunity rigs were active and 25 idle, and time is short.... B.H.P. ers' to express their opinions ... some speakers belonging was owned in 1911 as to 74% of its capital by over- to (both) the major political parties indulged in rather seas interests. Today only 16% of its enormously expanded . . . in wild statements the question of overseas equity capital is in overseas hands." the offshore industry was bandied around in an uninformed manner ... the truth of the matter is that approximately Charles T. Easley, Vice- Chairman, APEA 50% of the offshore reserves discovered to date are owned . . by its very nature the oil industry cannot be put by publicly listed, and more importantly, Australian con- in the category of a short -term business. Tremendous

. . is to a project off the ground. trolled companies . the cost of offshore wildcatting - investment required get let us say $3,000,000 per well -would strain the resources Investment, both prior to discovery and that necessary of most, if not all, Australian companies ... overseas equity subsequent to discovery must be analysed and compared is a means of providing a portion of the necessary funds with income expected . . . generally speaking, oil and and is therefore essential . . . Australian participation is gas projects show `long' on return during the latter years of course also provided by way of State and Common- and `short' on return during the early years . . . I sug- wealth interests . . . the alternative to excess overseas gest some steps which might be taken from time to time equity -and opinions vary on what constitutes excessive by the powers that be ... voluntarily decrease the royal- overseas equity-is for Australians to invest more funds ties payable until a project can economically stand on during the speculative phase of our industry ... it is my its feet. Provided I might add, that the company involved personal opinion that a responsible Government will not put up a sufficiently convincing case for such a con- reduce the 75 cents a barrel incentive in 1970. . . . It cession. I believe some arrangement has been made in one is also my opinion that a responsible Government will State in this regard . . , continue the form of support extend the Subsidy Act . . . 577 wildcat wells resulted created by the Federal Government, through its Tariff in the discovery of 42 fields, the vast majority of which Board, in setting a floor price with an incentive bonus were of no commercial significance. . . . Six of these for domestically produced crude oil, thus protecting it fields contain total ultimate recoverable reserves of over against cheap international crude. (I might add that, 50 million barrels of oil or over 300 billion cubic feet unfortunately, natural gas has been left to find its own of gas . . . the results, from a technical point of view, place in a very competitive fuel market) . . construct- compare, having regard to the infant nature of our ively handle taxation concessions.... First, continuation

5 Councillors and guests at the APEA official luncheon.

At the APEA official luncheon L. to R.: Mr. Rees B. Withers (Vic- torian State Chairman); Sir Henry Bolte; Mr. C. W. Silier, and the Key- note Speaker, Mr. C. A. Byrne, President of the Queensland Chamber of Mines.

of the practice which permits the offset of capital expen- of exploration interest to the continental shelf was prob- diture made in petroleum exploration against income ably the most significant feature in the year's search until a balance has been achieved . . . this incentive pattern. . . . It would appear that the events of 1967 might be expanded further by making some provision have pointed to Australia being self -sufficient in oil by in the case of Australian companies who have passed the mid -1970s if present discovery rates are maintained. a similar offset benefit on to their shareholders who have ... All of which highlights the probability that 1968 will supported them through the thin in hope of the thick... . see Government looking far more closely at the long- Secondly, the introduction of an incentive through the term pricing of Australian crude and the eventual review form of a depletion allowance ... the portion of income of incentive formulas generally. " -R. C. Sprigg. from the sale of oil or gas that would be categorised as "No change is expected in the trend which has devel- tax -exempt will no doubt be earmarked for further ex- oped over the last few years towards increasing interest ploration . . . these funds, along with new risk funds in offshore areas and in Papua -New Guinea. . . . The provided, should result in replacement of reserves pro- overall expenditure on petroleum exploration in Australia duced and consumed." and Papua -New Guinea will be approximately the same * * as in 1967.... Because of the greater expense which will "Natural gas is expected to be supplying 20% of the be incurred through the increased use of offshore drilling local energy market within the next decade, in line with experience in Western Europe. . . . The heavy swing

L. to R.: Oil identities Lewis G. Weeks, John H. Hamlin and Eric N. Avery with Sir Henry Bolte (second from right).

At the APEA official luncheon (L. to R.): Dr. G. M. Furnival, W. M. Loney, E. Trafford and K. LeSueur.

6 Mr. K. M. Horler, Executive Director, with some of the Conference Secretaries (L. to R.) Miss Ruth Butt (Mel- bourne), Miss Elaine Shanahan (Sydney) and Mrs. Anne Hutton (Melbourne). Other secretaries were Mrs. Shirley Archer (Brisbane) and Mrs. Pat Bowling (Melbourne).

Mrs. K. M. Horler with Mr. K. M. Horler (Executive Director of APEA) and Mr. E. A. Webb.

Entertainment at the APEA Dinner Dance. Entertainment at the APEA Dinner Dance.

Group at the APEA Dinner Dance includes Mrs. G. H. Jones (fourth from left), Mr. Bud Steeger from Houston, C. U.S.A. (centre), Mr. E. N. Avery, Mrs. Avery (head of Ladies At the Dinner Dance (L. to R.) Darby Munro, Mrs. W. Auxiliary for the Conference) and Miss Perdita Avery (right). Siller, Roy Richter, Mrs. Munro, C. W. Siller and Mrs. Richter. vessels, a reduction in other exploration activities is "Seven wells have been drilled to date at Mereenie. The expected. " -L. W. Williams. in place reserves of oil in the more porous zones are approximately 300 mil. barrels whilst the in place gas "Proven in the Roma area reserves are over 187 Bcf. reserves in the same zones exceed 500 billion cubic feet." gas in place and over 135 Bcf. recoverable pipeline gas. -D. D. Benbow. In addition, ten wells are cased for oil production. . . . and developments in wells have been drilled in the Roma area, "Because of recent discoveries Since 1958, 208 of petroleum, problems in pro- of the 173 wholly Associated Group wells 31.2% have exploration and production pipelining, logistics of gas supply, storage pipe - been completed as producers. The completion percentage duction, economics of distribution and consumption have for wildcats is 22.6% and for development wells 40.2 %. lining, all sharply come into the focus of daily actuality." . . . pipeline is Construction of the Roma -Brisbane -M. R. Tek. scheduled to begin in mid -March, 1968, and the line should be ready for operation by the end of the year.... Initial "It is envisaged that by 1971, natural gas will be avail- contracts call for the supply of 13 MMcfd. to Austral able to all consumers in the Melbourne metropolitan area. Pacific Fertilizers and 6 MMcfd. to South Brisbane Gas . . . Availability of competitively priced natural gas will Company. "-V. C. Swindon. result in major changes in the fuel consumption pattern

7 in Victoria and a rapid growth in the natural gas industry geophysicists made significant contributions towards a is predicted." -Bruce B. Bennett. solution of the problems involved.... The striking strati - "It has been predicted that the new horizon for the graphic and palaeontologic similarities between New petroleum industry lies in the offshore areas of the world. Zealand and southeastern Australia and the necessity to Already, an estimated $10,000 million has been invested find a land mass off the present eastern coast of Australia offshore and an additional $25,000 million will be spent led to the postulated borderlands of Tasmantis', 'Aus- during the next ten years. " -J. F. McPhail. zealandia' and 'Euronotia'. It was then assumed that the borderlands foundered in early Mesozoic time and created "The producing system for offshore gas fields located in the Tasman Sea and the Coral Sea. Modern oceanographic Bass Strait is designed to operate with unattended plat- research has convincingly shown that there is no forms once normal production conditions are attained. This evidence of foundered continental blocks on the floor of the oceans. will be accomplished through a supervisory control system . . . The value of the hypothesis of Continental Drift to which will be operated from a computerised master station long -range planning in geologic exploration is demonstrated located onshore. " E. Short. -T. by the example of the tectonic interpretation of the Queens- "The search for hydrocarbons in the Gippsland Basin land Plateau and the continuity of the serpentinite belts." of Victoria, Australia, has recently brought to light a -Emile Rod. sedimentary section of sandstones, siltstones and shales of "Recently obtained geophysical Upper Cretaceous to Lower Eocene age. In a number of information from the northern part of the bores these sediments were erroneously ascribed to the Amadeus Basin south of the Mac - Donnell Ranges indicates that deformation is essentially Lower Cretaceous Strzelecki Group. . . . Little is as yet restricted to the sedimentary section and the crystalline known of the depositional environment, basin edges, litho - basement beneath is logical and structural development, but the occurrence of not significantly disturbed.'" oil and commercial gas in the porous sandstones warrant -Froelich, Krieg and Hopkins. further studies. " -T. R. Traill. "The Devonian of Western and Central Australia con- sists of sedimentary in "The three offshore wells in the Otway Basin (Pecten -1 A, rocks deposited intracratonic basins. No T.D. 9,352 feet; Nerita -I, T.D. 6,700 feet; and Voluta -1, igneous activity is known.... Except for the Amadeus T.D. 13,037 feet) failed to encounter significant quantities Basin, all these rocks are flat -lying to moderately tilted of hydrocarbons but the drilling results have provided a and high -angle faults are the chief structural elements. clearer understanding of the stratigraphy, depositional Metamorphism is wholly absent except adjacent to major history, palaeostructure and facies variations in the basin. " faults. . . . Interesting features of these rocks are the -Andrew H. White. well -exposed and essentially underformed carbonate reef complexes of the northern Canning Basin and the Bona- "Sediments of a total thickness estimated as exceeding parte Gulf Basin, the thick Frasnian sandstones of the 24,000 feet have accumulated in the Timor Sea -Sahul Bonaparte Gulf Basin, and the thick redbed -evaporite Shelf area. The main oil prospects will be located in sequence of the southern Canning Basin. The reef com- Mesozoic and Cenozoic sediments, which are expected to plexes with their associated basinal facies provide pros- be of the Carnarvon Basin type.... In the basin, faulting pects for petroleum production. " H. Johnstone, et al. and subsidence only have been recognised, with no evid- -M. ence of severe folding or over -thrusting. Anomalous "Two principal phases of sedimentary deposition are structures occur (sometimes domal in pattern) due to known in Western Papua, the Mesozoic and Tertiary. intrusions along fault zones." -J. P. Caye. Knowledge of older sediments is limited to a small outcrop of Permian on the western "In the Australian region, planning of any kind of end of the Kubor Range beneath which are granites coastal development, exploration and exploitation of oil and metamorphic rocks form- ing basement. . . . resources on the continental shelf and in gulf waters, Folding, emergence and erosion occurred at the end of the coastal shipping, etc., are greatly handicapped by lack of Mesozoic, the Tertiary trans- gression being marked information on waves, currents and tides, and equipment for the most part by Eocene and Oligocene . . to obtain such information in suitable limestones of limited thickness. . The final form with relative major phase ease. " -Professor R. Radok. of folding and uplift is believed to have begun during the Pleistocene and continues to the present day "There can be few doubts about the availability of with its associated vulcanism and erosion." mineral resources in Australia after the spectacular devel- -F. K. Rickwood. opments of the last decade. . . . Universities in Australia have traditionally not been designed to train people "While the original geophysical methods of exploring specifically for the exploration activities in which we are sedimentary basins, namely those using magnetic effects, gravitational effects, and elastic or seismic effects, now so actively involved. . . . There now appears to be are still the the need for more extensive and advanced training in most important ones today, they have each steadily undergone improvements in techniques.... There remains exploration within Australia. . . . Australia has its own conditions which require local knowledge and under- one advance that all operators would welcome, that is, a standing.... If, as now seems certain, the mineral indus- substantial reduction in the mounting costs of modern tries are to provide the greatest contribution to the national sophisticated geophysical surveys. " -S. J. Watson. income then the training of people to explore for and "Some of the latest equipment and procedures dis- discover these resources is a national need." cussed include rock bits and associated tools, drilling -Professor Eric A. Rudd. fluids, air and gas as a circulating medium and the Turbo - "Since the earliest days, when the concepts related to Drill."- Richard Du,nbrell. Gondwanaland where discussed, Australian geologists and "Since 1965, oil research has been more and more

8 directed to offshore areas. . . . Sight navigation is and that, whenever obligations are imposed, there will be obviously unapplicable for offshore surveys and this is both an obligation under the Commonwealth Act and an why utilisation of a Navigation Aid System has been obligation under the Act of the State ... special provision largely developed within the last three years. Among the has been made to prevent a company having to make a well -known devices, only systems using hyperbolic and double payment of royalty ... if an obligation or liability circular waves are adequate, the most suitable ones being imposed by a State Act is discharged, it is likewise dis- the Toran, Raydist, Decca and Shoran." -J. P. Thomas. charged under the Commonwealth Act . . . the scheme involves some element of legal, as well as political, com- recent interest in offshore oil prospecting has high- "The promise, but, after all, the Commonwealth of Australia - lighted the need for a review of the many navigation Federation itself is a compromise form of Government . . . systems which may be used for geophysical surveys and through the compromise achieved in this case, the petrol- sites. . . . Bureau of Mineral location of drilling The eum companies have certainty of legal title without Resources has recently had a requirement for a system litigation. " -C. W. Harders. capable of 24 hour operation at long range but requiring Social Events V.L.F. method was about # mile accuracy. The /Omega Various social events were held during the Conference. used with moderate success. " J. Barlow. chosen and -A. On the Sunday night, March 17, the hosts of a Reception .. the legislation that the Commonwealth Parliament and Buffet were Alliance Group, Amalgamated Petroleum, has enacted to give effect to the Convention is perfectly Associated Group, BP Petroleum Development, Freeport valid legislation ... the Commonwealth does not recognise, of Australia, Hematite Explorations, Interstate Oil, Mid - though it does not seek to dispute, the existence of State Eastern Oil, Mobil Exploration, Shell Development, and power - similarly with the States so far as the existence Woodside (Lakes Entrance) Oil Co. of Commonwealth power is concerned . . , in the offshore The APEA Official Luncheon was held on Monday, petroleum scheme, the Commonwealth Act and the Act March 18, the APEA Buffet and Cocktail Party on that of a particular State cover precisely the same ground... . evening, the Conference Dinner Dance on Tuesday, Each set of legislation, for the purpose of administration, March 19. establishes a Designated Authority' who is a Common- At the concluding Cocktail Party on Wednesday, March wealth agent and who, quite separately, is an agent also 20, hosts were Australatic Supplies, E.S. & A. Bank, Gold- of the State . . . it follows that an oil company that is fields Diamond Drilling Co., I.C.I.A.N.Z., National Bank authorised to explore for petroleum will receive two of Australasia, Pipe Line Technologists, W. L. Sides and permits - a Commonwealth permit and a State permit - Son and Eric A. Webb and Associates.

APEA