C O U n t R Y R E V i e W on troubled Oil waters Oil exploration in has been fraught with disappointments in a relentless land, but onshore basins such as the Cooper Basin can still yield surprises.

Just to give you an impression of the size of the Australian continent. The North Sea is outlined in red.

View across the Flax-Juniper oilfield on Innamincka­Petroleum lease PEL103 in the Cooper Basin looking toward Flax East-1, which © Innamincka used Petroleum, with permission proved significant upside remains in 2007.

16 GEO ExPro December 2007 Susan Turner "If we find oil, I'll wear (not eat) that hat” Coorong, Carnarvon and Cooper claimed 'experts'. Why is it that oil seems to occur in Gloomy doomsayers were the norm. Oil desolate or difficult places? In the UN Inter- in commercial quantities continued to be national Year of Planet Earth (www.yearof- a rare commodity through to the mid-20th planetearth.org) this is still a hard question century — the only serious shows came because most places are desolate. Australia in the 1920’s from east Gippsland, Victoria. is no exception and oil exploration is a Then on December 4th 1953, WAPET (West story of struggle in 'Outback' places. Australian Petroleum, a joint AMPOL, Aus- The first drilling for oil in 1881 occurred tralian Motorists Petrol Company Limited, far south in Australia on the Coorong, and venture), drilling the Rough an extensive lagoon on the embayment Range Cretaceous anticline in extreme southeast of Adelaide. Sadly, the attempt Western Australia, struck the first heavy oil. was based on mistaken identity of surface But flow rates were too low - two years and oily bitumen. They gave up at 200 m when it was over. they hit salt-water. For the next 80 years it was doubted that oil could be found in the southern “Australia is too old continent. Some even argued that “them foreign companies had come in, found oil for oil and then hidden it”! Myths were pricked by a few astute men, geologists who under- Geologists at the young national survey, stood the land and learnt from experience the Bureau of Mineral Resources (BMR), abroad. As one put it, “If we could strike had – in fact – recognised classic oilfield- commercial reservoirs of oil in our country type anticlines there in the 1930s. They it would be the biggest thing that has were spot on - all it took was time, money happened to Australia since Macarthur and 'hard yakka'. brought in the merino sheep.” These days, the Australian is substantial, a vibrant, growing “Its rocks are all wrong part of the economy generating over A$10 billion a year in oil and gas production and Oil in commercial quantities continued contributing billions in taxes and royalties. to be a rare commodity throughout the first Over 15,000 are directly employed and half of the century. It was Walter George more than 30,000 work in support compa- Woolnough, Commonwealth geological nies. Resources boom is the catchword. advisor, who realised that more money The current federal program is focussed and brains were needed in the search on encouraging offshore exploration for oil. After visiting North American and whereas the States have jurisdiction over Argentinian oilfields in 1930, he encour- onshore upstream activity. Over 95% per- aged the use of aerial surveys and photos, cent of Australian hydrocarbon resources and promoted commercial oil potential in (96% of the oil, and 98% of the gas) lie off- Australia and New Guinea.

shore but onshore basins also clearly have t more to come.

The Cooper Basin, one of the most prolific onshore hydrocarbon provinces in Australia, straddling the -Queensland

border. © Innamincka used Petroleum, with permission

GEO ExPro December 2007 17 C O U n t R Y R E V i e W

Post-WWII bonanza 200 million years of weathering since Following a change of government the Permian have and an end to petrol rationing in 1949, created the hard the search began in earnest. Government 'gibber' peneplain surface in the advice pointed W. G. Walkley of Ampol central Australian at the best prospect in the sedimentary deserts littered with Carnarvon Basin in Western Australia, the clay and ironstone Rough Range with dome-like structures. concretions. In the early 1950’s Walkley brought over Frank Morgan, vice-president of Richfield Corporation of Texas, a top exploration geologist. Chartering an Avro Anson they flew north to Carnarvon, where the Ameri- can got to experience outback hospitality: up at 4.30 for an early take-off there was no water on tap, nobody on duty, and to wash they shared drinking water left in a creme Photo: Susan Turner de menthe bottle that did duty as a carafe. Up in the bright blue subtropical sky flying over salt pans and sand ridges area. Eventually the parent company was fact that the world’s most prolific oilfields approaching Exmouth Gulf they could see persuaded too and they built roads into were located in harsh desert. So why not the ranges rising to 300 m and extending untracked country. Rough Range 1, the in Australia’s great internal deserts? This for 100 km. Flying low, looking down on discovery well was drilled from September hard-baked 'gibber' desert country can eroded limestone canyons, the structure 1953 to May 1955. glow like a rose and has yielded surprise appeared to dip in all directions; Morgan and serendipity. stared down with his expert's eyes and sud- A Big Australian denly said, “That's textbook oil structure! If Hitting the headlines when oil was The Cooper Basin delivers we had it in the States we'd have drilled it proved led to a major resource boom with As well as the big boys (Seven Sisters long ago”. He realised that this basin was fledgling companies vying for land, con- derivatives), there are 'little guys' in Aus- one of the most attractive untested areas cessions and geologists. Onshore was the tralia. Interestingly, a recent 'Big' find was in this world and helped to survey the place to be with wildcat prospecting less made by a relative tiddler in the shoal (see likely than a well-chosen spot because of GEO ExPro Update, 05/2007). Innamincka the remoteness and cost of working in the Petroleum (www.INNAPET.com.au) has a Australian bush. new oil reservoir that should last out the The Cooper Basin underlies the desert century. Even more interesting, this is from region of north-eastern South Australia one of the oldest prospecting areas in and south-west Queensland; an uncon- the centre of Australia's “Dead Heart”, the formity at its upper surface varies in depth Late Carboniferous to Middle Triassic, non- from 970 to 2800m while the base of its marine sedimentary Cooper Basin with deepest trough reaches 4400m below sea level. “There is no oil Geologists began tapping into the structures they had seen in this part of the south of the Equator Great Artesian Basin (1.7 million km2 of desert country in central Australia, span- historical production exceeding 4.6 million ning the Cooper, Eromanga, and Surat m3 of oil (29 MMBO). The basin forms the basins mostly with flat-lying Cretaceous most significant element of Australia’s larg- beds yielding ancient water from wells est onshore oil and gas province. The Tir- and bores), clues coming from early 1920's rawarra Field alone contains 80% of known geological surveys. Reg Sprigg, post-war oil reserves. Assistant Government Geologist in South Indigenous Australians, who gain 1% of Australia, like his contemporaries was INNAPET profits, call this the 'Sunset' coun- sceptical of oil turning up. But he became try - a land of fierce lights and desolate convinced that the best hydrocarbon distances (the Santos gas town of Moomba potential was in the far north-east 'Corner is about 120 km away). The main centre, Country' of the State. 'Innamincka' (from 'Yenie' ours; 'Mincka'

©WAPET/AMPOL ©WAPET/AMPOL Archive or Angus & Robertson Another visionary, an ex-King’s messen- a home or shelter) now has few citizens The Carnarvon Basin in Western Australia show­ ger, had criss-crossed Australia by air dur- but was once a major trading centre for ing the Rough Range, site of the first exploration well, which hit flow oil in December 1953 and the ing the war, carrying secret messages. He another commodity, 'pituri', native tobacco,

dome-like Giralia-Cardabia structure. had been struck (no pun intended) by the a valued stimulant. t

18 GEO ExPro December 2007 checkerboard Santos acreage, or arrange arrange or acreage, Santos checkerboard Lev Dr to offering were Tulsa, wildcatters in legendary orsen the met they before wild.Even oilmen Texan Sprigg send would knew that anticlines Innamincka of tos airpho taking America, for headed thon Bony and Sprigg Australia? remote in oil “$2.00” for search why oil Eastern Middle cheap With exploration. practical holding on back while interested to was BP looked Britain. and leases Australian central away. miles 400 was Hill Broken accom from centre and mining doctor; or modation,railway — track dirt by 700 miles nearly — town Queensland nearest the from miles of hundreds was then incka Dome. incka Innam the anticline, type” “oilfield a giant to corresponding “high” a gravity proved major Basin Cooper northeast the in survey photographic Aerial Basin. Artesian km 312,225 gained help, Sprigg's with and 1954 ber Octo 8th on Rough floated the was SANTOS in Range. show good first that after Dome Innamincka continent.island the of tragedy of it. The place epitomises the romance and the face of the Australian land, died because and Wills, Burke who typify European ignorance in Sea; Inland dreamed his of instead is way his in sandhills desert m 20-30 found central called) one whom (after Sturt Charles explorers: century 19th to barren 20 20 C SANTOS needed backing to work these these work to backing needed SANTOS Innam Eyre, Lake of NE the to Situated 1954 in up hotted upstream Australian and austere seemed it that irony What Australia ever produces ever Australia “I’ll drink all the oil that that oil the all drink “I’ll O GEO ExPro GEO U t n 2 in leases covering the Great Great the covering leases in December 2007 December R Y R E V e i W ------oilfields. onshore possible largest Australia's of one of confirmation with true, come dream a sometimes-harsh conditions, the year successfully,ended like despite and, SANTOS, and Gas City Seoul with entered venture joint into company the 2007 In prospect. upstream major a as troughs adjacent and High Gidgealpa-Merrimelia the pinpointed Lanka), Sri Pakistan, Iran, (Australia, ence experi years 40 some with director, Wecker, Ross managing and Geologist 2003. in listed Petroleum Innamincka company Dreamtime 1959. in oil proved and way under got Betoota-1, sites, and drill Innamincka-1 commercial first The made! it had test partner and deep Santos Basin. Cooper to the keen was and drilling new for subsidy pound-for-pound a announced day. the won Dehli-Taylor rights; exploration for royalties over-riding 1959. in Basin Cooper the in Innamincka 50 years on, the 'small' exploration exploration 'small' the on, years 50 government Federal the 1957 By - 1 drillrig drillrig 1

© Innamincka Petroleum Sandstone. Tirrawarra top showing section Seismic ture map. ture Tirrawarra struc depth Sandstone Field Flax Petroleum's Innamincka ­ - - t their bow. their to string further a scheme, sequestration geo trading carbon major a include also could venture INNAPET the of future the Basin), Cooper the in approach typical a is support pressure for (recovery injection gas with oil release to to pressure water build also and gas of quality right the With 2010. in begin will tonnes/year million 1 for project pilot a reservoirs; to CO CO of tonnes million 20 pipe will project lion $700-mil A basin. the in reservoirs gas and oil depleted into states three from pipe its dioxide carbon sequester to use network line to plans confirmed has SANTOS — circle full come has strikes And so the life of the earliest oil field field oil earliest the of life the so And 2 /year to Moomba and thence south south thence and Moomba to /year 2

sequestration - - -

© Innamincka Petroleum © Sprigg Family Archive, Arkaroola, used with permission. CvGOieg oUnSCn e t tiR e t Y n C REE VEiXP e WL A i n e d Photo: Susan Turner © Innamincka used Petroleum, with permission

Recent years have seen only drought in large parts of Australia with water Ross Wecker of Innamincka Petroleum with geo- and seismic survey maps of scarce everywhere. Tankers bring in water to temporary dams. the Permian oil-bearing rocks; seismic mapping showed the field area was about 120 sq/km and even with a conservative recoverable amount, the oil would be worth more than $1 billion at current prices.

"It won't run out in my lifetime and after confirming that the Flax and Juni- Other companies are back in the Cen- beyond", said Mr Wecker, who is over the per discoveries are connected. This well tre: Some 14 onshore wells were drilled moon, with estimates of 120 million bar- confirms the presence of oil in Permian in October, compared to 13 offshore. The rels in the Flax-Juniper fields. “What you do sandstone through the structural saddle Cooper Basin has yielded for Ross Wecker know now is you have one hell of an area between gas-rich troughs. 10.2 m of the and his exploration company, now heading and anywhere that you drill inside that area net pay is in the primary zone of the basal for bigger things... "for us it's a really good you're going to find oil.” Seismic mapping Patchawarra Formation-Tirrawarra Sand- time ... a really good time". shows the field area as about 120 km2. stone interval. Wecker will test his theory Onshore Innamincka’s Flax East-1 was on oil potential next year with drills along a suspended as a future oil and gas producer major NE-SW-trending fault.

Hazards of working in this country are unpredict­ able sheet floods that sweep down from the north making the land impassable. Another centre phenomenon in this flat land are “willi willis” (twisters) and dust storms that can significantly disrupt work. © Innamincka used Petroleum, with permission.

22 GEO ExPro December 2007