Cooper Basin CO2012-A South Australia Acreage Release
Bids close APRIL 4 2 0 1 3
Department for Manufacturing, www.petroleum.dmitre.sa.gov.au Energy Resources Division Innovation, Trade, Resources and Energy August 2012
204315 CONTENTS THE OFFER...... 3 PRODUCTS AND DATA ...... 3 INTRODUCTION ...... 3 PETROLEUM GEOLOGY...... 7 Cooper Basin...... 7 Eromanga Basin ...... 7 Lake Eyre...... 7 SOURCE ROCKS ...... 9 Cooper Basin...... 9 Eromanga Basin ...... 9 RESERVOIRS AND SEALS...... 10 TRAPS...... 10 Warburton Basin...... 10 Cooper Basin...... 10 Eromanga Basin ...... 11 EXPLORATION POTENTIAL...... 11 Block CO2012-A...... 11 Birkhead Channel Play — Eromanga Basin ...... 11 Conventional four-way dip closures — Cooper Basin ...... 12 Merrimelia Formation shale play — Cooper Basin...... 12 INFRASTRUCTURE AND TRANSPORT...... 12 LAND ACCESS...... 13 National parks and reserves...... 13 Environmental regulation...... 13 Heritage and land access...... 13 Geothermal Exploration Licences...... 16 Associated Activities Licences...... 16 CLIMATE AND LAND USE...... 16 BIDDING AND AWARD PROCESS...... 18 CONTACT INFORMATION...... 18 REFERENCES...... 18
Cooper Basin CO2012-A 2 South Australia COOPER BASIN Acreage Release Block CO2012-A BIDS CLOSE 4.00 pm Australian Central Standard Time, Thursday 4th April 2013
THE OFFER ffPEPS database with production, well, seismic A new petroleum exploration licence (PEL) and engineering data (also downloadable in the Cooper and Eromanga Basins is being from the DMITRE Petroleum website) offered by the South Australian Government ffcompany prospectivity reports (also on the basis of work program bidding (Fig. 1). downloadable from the DMITRE Petroleum Block CO2012-A comprises two areas totalling website via SARIG) 391.8 sq km relinquished from PEL 111 on the SARIG (South Australia Resources Information western margin of the Patchawarra Trough. One Geoserver) can be accessed by selecting SARIG well (Darter 1) has been drilled and 581 line on the DMITRE Petroleum website
Cooper Basin CO2012-A 3 Cooper and Eromanga Basins, South Australia PETROLEUM LICENCES
QUEENSLAND
") Darwin
568
NORTHERN TERRITORY 569 QUEENSLAND
WESTERN 87 AUSTRALIA 88 ") Brisbane SOUTH AUSTRALIA
NEW SOUTH WALES Perth ") Adelaide ") ") Sydney VIC ACT 1000 km ") 570 Melbourne
TAS ") Hobart
424 110 444 290 PL20
! 90 514 90 100 ! 102 101 !! ! 570 514 182 102 Petroleum tenements !!! CO2012-A 101 ! 101 101! !! Acreage release block 111 ! 101 ! ! 101 ! CO2012-A 570 103 Exploration licence (PEL) 331 ! 102 105 ! ! 514 Exploration licence application (PELA) 512 ! 104 513 91 105 Production licence (PPL) 104 105 PL18 ! Innamincka PL5 Production licence application (PPLA) ! ! )" ! ! ! ! ! 218 Retention licence (PRL) ! ! ! ! ! ! Retention licence application (PRLA) ! ! 106 ! 92 ! !! ! ! ! ! ! ! 513 ! ! 516 115 Petroleum pipelines ! Moomba )" 115 Pipeline licence (PL) – gas ! ! PL17 71 107 ! ! 512 ! 513 516 Pipeline licence (PL) – gas and liquids PL15
Pipeline licence (PL) – liquids 115 115! 516 PL9 516 !! ! Discoveries 2002 – 2012 112 516 114 ! ! !! ! !!! ! ! Oil ! 516 ! !! 115 93 ! ! !! !! ! ! ! !! ! ! ! ! ! 113 ! !115 115 Gas ! 115 515 ! 516 ! 516 !! 115 !! !! 516 516 PLs Cooper Basin subcrop limit 7,8 ! Coongie Lakes control zone – 95 no access 94 515
560 0 25 50 Kilometres
Datum GDA 94 - Projection MGA Zone 54
96
575
PL2 PL1 WALES SOUTH NEW
607 146 133 REG 204315-003 Figure 1 Petroleum licences
Cooper Basin CO2012-A 4 139°30'E 139°45'E 140°0'E 340000 360000 380000 400000 27°0'S 27°0'S
PEL 444
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. 340000 360000 380000 400000 REG 204315-008 139°15'E 139°30'E 139°45'E 140°0'E
Petroleum tenements Petroleum pipelines Parks with petroleum exploration access Acreage release block Production licence (PPL) Gas Gas and liquids Parks with no petroleum Exploration licence (PEL) Production licence exploration access application (PPLA) Liquids Exploration licence Liquid trunkline Ramsar site application (PELA) Retention licence (PRL) 0 5 10 15 km Gas trunkline GDA 94 – MGA Zone 54 Seismic coverage Petroleum wells . . 2 dimension Cooper and Eromanga basins, Dry hole Gas well with oil shows
. . 3 dimension South Australia Dry hole with oil shows Oil and gas well
.
. Gas shows Oil well Cooper Basin Permian edge ACREAGE RELEASE
. . Proposed or currently drilling Gas well Top Nappamerri subcrop edge CO2012-A Figure 2 CO2012 acreage release Cooper Basin CO2012-A 5 onshore hydrocarbon province, AGE supplying major south-eastern DEPOSITIONAL
ZONE ROCK UNIT Australian gas markets since SERIES STAGE ENVIRONMENT SYSTEM LITHOLOGY 1969 and producing oil since PALYNOLOGICAL 1982. The Cooper Basin Liquids LAKE EYRE BASIN ZOIC
Project (1980–84) was initiated CENO- to market the oil and existing gas liquids. A liquids pipeline links Moomba to a processing plant Late Winton Formation Non-marine to and storage and export loading marginal marine Mackunda Formation Marginal marine Oodnadatta Allaru Mudstone Marine facilities at Port Bonython. Formation Restricted marine - stratified and anoxic Toolebuc Fm Regressive marine Coorikiana shoreface Over 2000 exploration and Sandstone WALLUMBILLA Open marine Early Bulldog Shale FORMATION transgressive development wells have been CRETACEOUS Wyandra Sandstone Non-margin to drilled and over 75 829 km Mbr marginal marine Cadna-owie Formation 2 Murta Formation Lacustrine turbidites, 2D and 8882 km 3D seismic deltas. Shoreface facies McKinlay Mbr Braided-meandering recorded. Estimated total Namur Westbourne Fm fluvial Sandstone Adori Sandstone EROMANGA BASIN cumulative product sales to Late Birkhead Fluvio-lacustrine Formation backswamp end June 2012 are: 5.05 tcf Braided fluvial with Sandstone Algebuckina Hutton aeolian influence of sales gas, 77 mmboe of Middle Sandstone condensate, 158.0 mmbbl of oil Poolowanna Meandering- JURASSIC anastomosing fluvial and 78.2 mmboe of LPG. Annual Formation petroleum production and the Early value of sales since 1970 are Norian to PT5 Cuddapan Formation Floodplain. Rhaetian Meandering fluvial Late shown in Figure 4. Oil production Carnian PT4 was declining until 2002 when Sinuous meandering Ladinian PT3 Tinchoo Fm streams. Fluvio-lacust. Middle 100 m new discoveries caused a Anisian Wimma100 m Braided fluvial channel belt and floodplain resurgence of drilling activity and Sandstone PT2 Mbr Paning Arrabury exploration success, while gas TRIASSIC Mbr Early Scythian 150 m Formation sales peaked in 1989 and have Floodplain, lacustrine, PT1 Callamurra palaeosols, Member moderate/sinuosity been declining since 1998. GROUP NAPPAMERRI fluvial channels. PP6 125 m Tatarian Meandering fluvial, Toolachee Formation deltaic in part Exploration drilling has produced PP5 160 m Late Kazanian Daralingie unconformity a steady stream of discoveries Daralingie Ufimian Formation Fluvio-deltaic since the discovery of gas in PP4 Lacustrine 1963 as indicated by the world Kungurian Roseneath Shale Fluvio-deltaic, local class exploration success rates Epsilon Formation 140 m transgressive/regre- ssive shore face PP3 80 m
Artinskian COOPER BASIN (Fig. 5). While drilling hiatuses Murteree Lacustrine Shale correlate with oil price crashes, Fluvio-deltaic, Early lacustrine the steep increases in the oil PERMIAN GIDGEALPA GROUP GIDGEALPA discovery success rate are linked Sakmarian PP2 Patchawarra Formation Peatswamp to improved seismic acquisition Vc coal 680 m and processing, more 3D seismic Proglacial outwash, braided fluvial Asselian acquisition, testing new play Tirrawarra Sandstone 75 m Terminoglacial, proglacial, types (e.g. the Jackson discovery glaciolacustrine, aeolian. PP1 Merrimelia Formation in 1981 and the Strzelecki-3 Late 450 m IFEROUS oil discovery in 1978) and also Stephanian CARBON- to new companies entering Big Lake Suite the basin and reinvigorating granite intrusives WARBURTON BASIN (Middle exploration. In contrast, the gas ORD. Carboniferous)
CAMBRO- 202396_002 discovery success rate curve is smoother because the commodity Figure 3 Cooper–Eromanga Basin stratigraphy price has not been as variable as the oil price, and long term contracts dominate the market.
Cooper Basin CO2012-A 6 SA oil sales (ML) SA gas sales (PJ) erosion. Three major troughs (Patchawarra, Value (2009 $m) 2200 220 Oil sales Value of hydrocarbon sales Nappamerri and Tenappera) are separated by 2000 Gas sales Value of hydrocarbon royalties 200 ridges (Gidgealpa–Merrimelia–Innamincka (GMI) 1800 180 and Murteree) associated with the reactivation 1600 160 of NW-directed thrust faults in the underlying 1400 140 Warburton Basin (Fig. 6). These troughs contain 1200 120 up to 2500 m of Permo-Carboniferous to Triassic 1000 100
800 80 sedimentary fill overlain by as much as 1300 m
600 60 of Jurassic to Tertiary strata.
400 40
200 20 Cooper Basin
0 0 1970 1975 1980 1985 1990 1995 2000 2005 2011 The Late Carboniferous to Late Permian 204315-011 Figure 4 Annual Cooper Basin petroleum production and the value of succession consists of basal glaciofluvial clastics sales since 1970 and proglacial outwash deposits, overlain by thick coal measures (peat swamp), floodplain, PETROLEUM GEOLOGY lacustrine and high sinuosity fluvial facies. Uplift The Cooper Basin unconformably overlies and erosion at the end of the Early Permian flat lying to compressively deformed resulted in a depositional break and Late Permian Cambro-Ordovician Warburton Basin strata to Early Triassic fluvial and floodplain facies and Carboniferous granitic intrusives. The were deposited on the unconformity surface. unconformity is mapped as the Z seismic Deposition in the region was terminated at horizon (Fig. 6). The intracratonic Cooper Basin the end of the Early Triassic with slight but represents a Late Carboniferous to Triassic widespread deformation, regional tilt and depositional episode terminated at the end erosion. The top of the Permian succession is of the Middle Triassic with regional uplift and mapped as the P Seismic Horizon.
Cooper Basin oil success rate Eromanga Basin
150 120 The Jurassic–Cretaceous Eromanga Basin can
2012 be divided into three sedimentary packages 125 100 — a lower non-marine package, a marine
100 80 package, and an upper non-marine package. Exploration is concentrated on the productive 75 60 lower non-marine sediments, which consist
Oil price (US$)
Oil discoveries 50 40 of basal high-sinuosity fluvial and floodplain 2000 deposits (Poolowanna Formation), overlain 25 20 by extensive and thick low-sinuosity fluvial
1978 Oil exploration wells 0 0 sandstones. Two floodplain and lacustrine units 0 50 100 150 200 250 300 350 400 450 500 550 600 650 204315-024 (Birkhead and Westbourne formations) occur within this sand package, which is overlain by Cooper Basin gas success rate extensive lacustrine and shoreface facies (Murta
200 Formation), deposited in a large lake which
2012 extended throughout the Cooper Basin region.
150 This lower non-marine package is overlain by
2000 Early Cretaceous marine shales that form a regional seal, and Late Cretaceous non-marine 100 deposits. The top Cadna-owie Formation (Early 1990
Gas discoveries Cretaceous) is mapped as the C Seismic Horizon.
50
1980 Lake Eyre 1963 Gas exploration wells 0 Tertiary to Recent fluvial to lacustrine deposits 0 50 100 150 200 250 300 350 400 450 204315-025 of the Lake Eyre Basin unconformably cover Figure 5 Cooper Basin oil and gas discoveries the Eromanga Basin. The unconformity at the
Cooper Basin CO2012-A 7 Cooper and Eromanga Basins, South Australia TOP BASEMENT DEPTH IMAGE with STRUCTURAL ELEMENTS
139°0'E 140°0'E QUEENSLAND 141°0'E
Enlargement area
Eromanga Basin
Marla )" E Cooper G T Basin D I N )" E R
Moomba E YM I )" Coober Pedy BA W M E O J H A M T R )" ID E Leigh Creek N W G S U O E D O D Ceduna M A )" Port H Augusta )" Port Bonython )"
)" Port Lincoln )" ADELAIDE
250 km
AR T RA RO B E U UR G G Y
H 27°0'S ID R K C A R T E L IL V S CO2012-A CANDRA D RIDGE IR B
CO2012-A A E CK L N D I E D AM G A E N D S N RI K G I H C ID G A R U P O R A T LI A E R R IM E A R G Innamincka R D " W E I ) M R H HA G C U T O A R P T RI ER A M P A L PP A E A E G N - EE G D A G D LL N 28°0'S I RI DE O G Moomba CO E Acreage release block PA G )" P RID NA A W H R T O G R R O U WA GE O RO Cooper Basin permian edge D UGL T RI O A O G
H E P N Cooper Basin subcrop limit A U E LL T R N H I A E O N
D C A G O G E K H A I
E D G L M A U I T Y L R T O O E R E KA E N E T A R T R O BO I G O E A B M D XW D ID O EN RT E R T EP OO R N M U G PE M R U Y M E ESS D D A RID AP ION N EMB TE KOBARI EMBAYMENT DUNOON RIDGE
T MILPERA I N
DEPRESSION G
A
A T R I PE E N IL G IDG M R A N
0 25 50 Kilometres A
R 29°0'S
I WEENA TROUGH D Datum GDA 94 - Projection MGA Zone 54 G
E NEW SOUTH WALES SOUTH NEW
REG 204315-007 Figure 6 Top basement depth structure map with structural elements
Cooper Basin CO2012-A 8 top of the Eromanga Basin is often difficult to Andree 2 (8) distinguish in wells and seismic. Gidgealpa 1 (3) Kurunda 1 (11) Murteree 2 (20) SOURCE ROCKS 1000 I Cooper Basin Pondrinie 2 (17) 900 Snake Hole 1 (20) Numerous producing oil and gas fields and Sturt 3 (1), Sturt 4 (1), Sturt 6 (1), Sturt East 4 (1) significant gas and oil shows in wells in the 800 Tibouchina 1 (3) Cooper Basin area indicate that sufficient mature Tirrawarra West 1 (22) II VR = 0.5 % source rocks are present and have generated 700 Baratta 1 (4), Callabonna 1 (3), Cuttapirrie 1 (5), Dirkala1 (1), hydrocarbons. Permian coal measures and shales Fly Lake 3 (1),Gidgealpa 17 (1), Kanowana 1 (2),Kerinna 1 (8), 600 have high Total Organic Carbon (TOC) content Kobari 1 (6), Lake MacMillan 1 (3), Leleptian 1 (10), Maraku 1 (4), and represent the main hydrocarbon source for Munkari 4 (7), Nulla 1 (7), Cooper Basin oil and gas accumulations. 500 Papyrus 1 (7), Spectre 1 (14), Tindilpie 2 (10), Tinga Tingana 1 (30),
HYDROGEN INDEX The Patchawarra Trough contains the bulk of the 400 Tirrawarra 2 (2), Tirrawarra 16 (1), Tirrawarra North 1 (12), oil and wet gas reserves consistent with local Toolachee East 2 (21), source rocks being in the ‘oil window’, while the 300 Toonman 1 (1), Wancoocha 1 (7) hot Nappamerri Trough (40–50 °C/km), underlain 200 in part by granite, is over mature and contains VR = 1.35 % mainly dry gas. III 100 Coal and carbonaceous shale of the Patchawarra Formation represent the principal source rocks 0 380 400 420 440 460 480 500 520 of the Cooper Basin, both in source richness and ° Tma x ( C) quality, and overall thickness (Boreham and Hill, 98-0510 1998). Rock-Eval data indicates that Patchawarra Figure 7 HI vs Tmax plot, Patchawarra Formation Formation source rocks contain a mix of both Type II and Type III kerogen (Fig. 7). Toolachee Formation coal and carbonaceous shale represent the second most important source rock unit of the Cooper Basin in terms of richness, quality and thickness. Rock-Eval data indicates 1000 I that Toolachee Formation source rocks also Andree 2 (2) contain a mix of both Type II and Type III kerogen 900 Leleptian 1 (2) Murteree 2 (8) (Fig. 8). The total gas generative potential of the 800 Tirrawarra North 1 (3) Cooper Basin source rocks has been estimated Tirrawarra West 1 (2) VR = 0.5 % II Toolachee East 2 (17) to be between 4027 tcf (minimum estimate) to 700 8055 tcf (maximum estimate) (Morton, 1998). Toonman 1 (1) Snake Hole 1 (7) 600 Oils and condensates are typically medium Baratta 1 (3), Cuttapirrie 1 (4), to light (30–60° API) and paraffinic, with low Dirkala1 (1), Gidgealpa 1 (1), 500 Kenny 1 (2), Kerinna 1 (5), to high wax contents. Most Permian oils in Kurunda 1 (1), Lake MacMillan 1 (3),
Permian reservoirs contain significant dissolved HYDROGEN INDEX 400 Munkarie 4 (17), Nulla 1 (1), Pondrinie 2 (3), Spectre 1 (2), gas and show no evidence of water washing. Tindilpie 2 (2), Toonman 1 (1) Gas composition is closely related to maturity/ 300 depth with drier gas occurring towards basin depocentres. 200 VR = 1.35 %
III Eromanga Basin 100 In the Eromanga Basin, the Poolowanna and 0 Birkhead formations contain organic-rich shales 380 400 420 440 460 480 500 520 that are oil-prone (Type II/III kerogen) and Tmax (°C) maturity ranges from 0.5–0.7% Ro. The Murta 98-0506 Formation is interpreted to have potential to Figure 8 HI vs Tmax plot, Toolachee Formation
Cooper Basin CO2012-A 9 generate light paraffinic crude oils, even at and Murteree shales. The Roseneath Shale is maturity levels as low as 0.50–0.55% Ro. It the top seal of the Epsilon Formation, and the generally contains Type II/III kerogen, however Murteree Shale seals the Patchawarra Formation. the best Murta source facies contain telalginite A younger regional seal is provided by the Triassic and indicators of bacterial precursors occur. Arrabury Formation. The marine sediment package and upper non- The principal Eromanga Basin reservoirs are marine sediment package are immature for good to excellent reservoir quality Hutton and hydrocarbon generation over much of the basin Namur braided fluvial sandstones (porosities up (<0.45% Ro). to 25%, permeability up to 2500 mD). Oil is also reservoired in fair to excellent quality sandstones Both Permian and Mesozoic source rocks in the Poolowanna and Birkhead formations, have contributed to oil accumulations in McKinlay Member and Murta Formation. The the Eromanga Basin. Each Eromanga oil Wyandra Sandstone Member of the Cadna- accumulation needs to be considered in terms owie Formation forms a significant oil reservoir of its access to potential source kitchens to in Queensland; however, the only significant assess the likelihood of Permian and/or Mesozoic accumulation in SA occurs in the Aldinga sources (McKirdy et al., 2005). Oil Field. Seals consist of intra-formational diagenetic sandstones, siltstones and shales of RESERVOIRS AND SEALS the Poolowanna, Birkhead and Murta formations Multi-zone high-sinuosity fluvial sandstones form in the Cooper region. poor to good quality reservoirs in the Cooper Basin succession. The main gas reservoirs occur TRAPS primarily within the Patchawarra Formation Warburton Basin (porosities up to 23.8%, average 10.5%; The Warburton Basin remains under-explored, permeability up to 2500 mD) and Toolachee yet has all the required ingredients of a valid Formation (porosities up to 25.3%, average hydrocarbon system: oil and gas shows and 12.4%; permeability up to 1995 mD). Shoreface flows, reservoir, seal, traps and access to proven and delta distributary sands of the Epsilon mature source rocks via down dip migration and Daralingie formations are also important pathways from the Eromanga and Cooper reservoirs. Oil is produced principally from low- basins (Sun and Gravestock, 2001). Hallmann et sinuosity fluvial sands within the Tirrawarra al. (2006) present evidence for small amounts Sandstone (porosities up to 18.8%, average of migrated Warburton Basin oil in Permian 11.1%; permeability up to 329 mD). Towards the reservoirs. Locally, Permian oil has migrated into margin of the Cooper Basin, oil is also produced Warburton Basin reservoirs on the basin margin from the Patchawarra Formation and from and gas has migrated into fractured Ordovician Merrimelia Formation fluvial channel sands in the reservoirs fringing the Allunga Trough. Overlying Malgoona Field. Merrimelia Formation glaciolacustrine shale The Callamurra Member of the Arrabury would form an effective seal. Formation is conventionally regarded as a regional seal, but nevertheless contains economic Cooper Basin oil and gas reservoirs in some areas and is a leaky Anticlinal and faulted anticlinal traps have seal in others. Low sinuosity fluvial sandstones been relied on as proven exploration targets of the Paning and Wimma Sandstone members but potential remains high for discoveries in form economic oil and gas reservoirs, and stratigraphic and sub-unconformity traps, high-sinuosity fluvial sandstone of the Tinchoo especially where the Permian sediments are Formation reservoirs oil. As yet, there have been truncated by the overlying Eromanga Basin no economic oil or gas fields discovered in the succession. Economic oil and gas are reservoired Cuddapan Formation in South Australia. in the Nappamerri Group, paradoxically regarded Intraformational shale and coal form local as a regional seal to the Cooper Basin. seals in the major reservoir units. Beneath the Structural growth during the Permian and Daralingie unconformity are two important Jurassic and differential compaction played early Permian regional seals — the Roseneath an important role in trap formation and
Cooper Basin CO2012-A 10 fill, as well as strongly affecting reservoir equivalent to the total sales gas production properties. Anticlinal, fault, sub-unconformity from the South Australian Cooper Basin to truncation, structure–stratigraphic (e.g. channel date. The US Energy Information Administration fairway facies draped on structural nose) and has estimated that the entire Cooper Basin stratigraphic pinchout traps are also proven (South Australia and Queensland) has a risked plays. recoverable shale gas resource of 85 trillion cubic feet. The US EIA report World Shale Gas Eromanga Basin Resources: An initial assessment of 14 regions Trapping mechanisms within the Eromanga outside the United States can be downloaded Basin are dominantly structural (anticlines from
Cooper Basin CO2012-A 11 Significantly, gas peaks, hydrocarbon Merrimelia Formation in the Tirrawarra – Brolga fluorescence and an oil recovery from the – Woolkina region has returned encouraging basal Birkhead Formation in Hoolendinnie 1 Rock Eval results from recent sampling by suggest that oil has migrated at least 20 km DMITRE. Two Merrimelia Formation core samples from the Permian sub-crop edge, if it is Permian over the interval 9742 to 9743 ft (2969.4 sourced (Fig. 2). Alternatively Michaelsen and to 2969.7 m) in Tirrawarra 17 returned TOC McKirdy (1996) have argued that the Charo values of 6.26 and 9.88% (excellent generative and Callabonna oils have a Jurassic source potential) and S2 Pyrolysis Yields of 11.50 and affinity on the basis of specific biomarker 16.15 mg HC/g (very good generative potential). ratios. If the Eromanga Basin oils are sourced Corresponding Hydrogen Index (HI) values were from intraformational source rocks then oil 163 and 185 mg HC/g TOC which places this prospectivity is independent of the Permian shale in the gas-prone kerogen range, close to subcrop edge. the mixed oil/gas threshold of 200 mg HC/g TOC. Given these results, organic rich shales in the Conventional four-way dip closures — Merrimelia Formation may be a potential source Cooper Basin of Tirrawarra Sandstone oil accumulations in a The Brolga, Fly Lake, Moorari and Woolkina number of fields including Tirrawarra, Fly Lake oil and gas fields are trapped in four way dip and Moorari. closures near the south eastern edge of Block Palynological analysis, commissioned by CO2012-A. The Fly Lake-Brolga trend contains DMITRE, of the Merrimelia shale in Tirrawarra liquid rich gas in Patchawarra Formation 17 (sample depth 9742’2”/2969.4m) returned sands, and volatile oil in the basal Patchawarra an APP1.2 age with an abundance of freshwater Formation and Tirrawarra Sandstone. The algae, suggesting a lacustrine depositional Moorari-Woolkina trend has oil in the Tirrawarra environment. Future work will concentrate on Sandstone, and liquid rich gas accumulations in mapping the lateral and vertical extent of this the Patchawarra and Toolachee formations and facies. the Nappamerri Group. A mean maximum Vitrinite Reflectance value Merrimelia Formation shale play — Cooper of 1.04% over the same interval confirms a late Basin oil to wet gas maturity. This suggests potential Shales in the Merrimelia Formation may for a shale oil/liquid rich gas play in the upper be a shale oil target if sufficient organic Merrimelia Formation, especially in slightly richness, thickness and lateral extent can be shallower portions of the Patchawarra Trough demonstrated. both on the western Cooper margin and also against the GMI Ridge. Numerous oil shows have been recorded within sands and shales of the Merrimelia Formation INFRASTRUCTURE AND TRANSPORT in the vicinity of the southern portion of Block CO2012-A, and over a wide area of the central A total of 5240 km of pipeline has been laid to and south-western Patchawarra Trough. In gas markets in South Australia, New South Wales Yarma 1 shows vary from 10–40% fluorescence and Victoria and to the liquids load out facility (9089–9093 feet, 2770.3–2771.5 m). at Port Bonython. Gas from individual wells passes via field gathering systems (flowlines) to Sedimentological analysis of cored sections satellite stations which separate gas, free water within the Merrimelia Formation reveals a and condensate. Evaporation ponds are used complex glacigenic environment with over 20 for water disposal. The essentially water-free gas facies identified including glaciolacustrine, and condensate pass to the Moomba treatment deltaic, fluvial and aeolian facies (Chaney, 1998). plant through trunklines. Crude oil is transported Facies changes can be abrupt and provide by either pipeline or truck to the Moomba plant juxtaposition of source and reservoir sequences which was designed to process 25.4 x 106 m3 with potential for stratigraphic traps. (902 mmcf) of raw gas and 6000 kL (42 000 bbl) Of these facies, a persistent shale ranging in of condensate and crude oil per day. Nine oil and thickness from 15 to 30 feet at the top of the 11 gas satellites are currently in operation.
Cooper Basin CO2012-A 12 Since January 2009, the Queensland to South Part of the eastern portion of Block CO2012-A Australia/New South Wales (QSN) Link Pipeline lies within the Innamincka Regional Reserve, between Ballera (Qld) and Moomba has in the core of Australia’s arid region (Fig. 9). transported sales gas sourced from coal seam Regional Reserve is a reserve classification under methane reserves in south-eastern Queensland the National Parks and Wildlife Act 1972 that directly into the Moomba to Adelaide Pipeline. A specifically accommodates multiple land use. A connection directly into the Moomba to Sydney PEL application incorporating any portion of the Pipeline is also possible. Innamincka Regional Reserve will be referred to The new entrant Cooper Basin explorers have the Minister for Sustainability, Environment and secured access to Moomba facilities operated by Conservation and the views of such Minister are Santos Ltd. Oil is trucked from a number of oil required to be taken into account when granting field fields to Moomba. New pipelines are also the PEL. In the case of Petroleum Production planned/under construction to connect western Licences within the Innamincka Regional Reserve, margin oilfields to the existing pipeline network approval must be obtained from the Minister for or directly to Moomba. Sustainability, Environment and Conservation. Failing such Minister’s approval, the issue is Condensate, LPG, crude and some ethane are referred to the Governor for decision. transported as a cocktail from Moomba via a pipeline to Port Bonython where they are Environmental regulation separated and exported. At least one party has One of the key environmental requirements attained an agreement for third-party gas to be of the Petroleum and Geothermal Energy Act processed at Moomba (Smegsy 1, operated by 2000 is the need for all regulated activities Great Artesian Oil and Gas in 2005). to be covered by an approved Statement of The township of Innamincka lies southeast of Environmental Objectives (SEO), whether Block CO2012 (Fig. 1), 65 km NE of Moomba. in a Regional Reserve or on pastoral leases. It offers a hotel, general store, and light-aircraft The purpose of the SEO is to address all risks airstrip, and is accessible by good quality roads. associated with activities and to address issues The causeway at Innamincka provides the major and concerns raised by stakeholders detailed in crossing point for the Cooper Creek, which in a supporting document — an Environmental times of flood is impassable by vehicle. Impact Report (EIR). The SEO is prepared Accommodation and support facilities are on the basis of the EIR through stakeholder located at the Moomba Production Facility, consultation. The SEO also provides an effective operated by the Cooper Basin Joint Venture, mechanism for establishing ‘one-window-to- and not open to the general public. Access is by government’ for the industry by engaging the arrangement with the operator. The full range other agencies in the SEO consultation process. of support services are located at the Moomba An SEO does not have to be prepared for every camp including wireline logging, fracture activity proposal if the licensee can demonstrate stimulation, cementing, transport, fuel supply, that their proposed activity is covered by an aviation (including helicopter) and emergency existing approved SEO, such as the current services. There is a sealed airstrip at the Moomba regional Cooper Basin SEOs for drilling and Production Facility. seismic activities (downloadable from the DMITRE Petroleum website). LAND ACCESS National parks and reserves Heritage and land access Parts of the Cooper Creek system are listed as A PEL cannot be granted in the Cooper Basin wetlands of international significance under unless an appropriate land access agreement is in the Ramsar Convention (1971). Most of Block place with the Registered Native Title Claimants CO2012-A falls within the Ramsar area (Fig. 9). (Fig. 10), the State Government and the explorer. South Australia’s obligations are to manage Indigenous Land Use Agreements (ILUAs) are the wetlands wisely to maintain their ecological an alternative to the right-to-negotiate (RTN) character; this does not necessarily restrict process pursuant to the Commonwealth Native exploration access. Title Act 1993 and now cover most of the
Cooper Basin CO2012-A 13 Cooper and Eromanga Basins, South Australia REGIONAL RESERVES and ENVIRONMENTAL ZONES
139°0'E 140°0'E QUEENSLAND 141°0'E
Enlargement area
Eromanga Basin
Marla )" Cooper Basin )" Moomba Coober Pedy )"
Leigh Creek )"
)"Ceduna Port )" Augusta Port Bonython )"
)" Port Lincoln )" ADELAIDE
250 km 27°0'S
CO2012-A
Environmental areas CO2012-A Park or reserve – petroleum exploration access Park or reserve – no petroleum exploration access
National Estate Register Innamincka )" Ramsar site
Acreage release block 28°0'S
)" Cooper Basin subcrop limit Moomba Cooper Creek
Current tenements not shown
0 25 50 Kilometres 29°0'S
Datum GDA 94 - Projection MGA Zone 54 NEW SOUTH WALES SOUTH NEW
REG 204315-004 Figure 9 Regional reserves and environmental zones
Cooper Basin CO2012-A 14 Cooper and Eromanga Basins, South Australia INDIGENOUS LAND USE AGREEMENT and NATIVE TITLE CLAIMANTS
139°0'E 140°0'E QUEENSLAND 141°0'E
Enlargement area
Eromanga Basin
Marla )" Cooper SC1997/003 Basin )" The Wangkangurru/Yarluyandi Moomba Coober Pedy )" Native Title Claim
Leigh Creek )"
)"Ceduna Port )" Augusta Port Bonython )"
)" Port Lincoln )" ADELAIDE
250 km 27°0'S
SC1998/001 Native Title claimants Yandruwandha/Yawarrawarrka SC97/3: Native Title Claim The Wangkangurru/Yarluyandi CO2012-A Native Title Claim CO2012-A SC97/4: Dieri Native Title Claim SC98/1: Yandruwandha/Yawarrawarrka Native Title Claim Innamincka SC99/1: )" Adnyamathanha No.1 SC08/2: Dieri No 2 Native Title Claim SC1997/004 Dieri Native Title Claim 28°0'S Indigenous Land Use Agreement (ILUA) )" Moomba
Acreage release block
Cooper Basin subcrop limit
Current tenements not shown Yandruwandha/Yawarrawarrka Petroleum Conjunctive Indigenous Land Use Agreement (SI2006/008)
0 25 50 Kilometres 29°0'S
Datum GDA 94 - Projection MGA Zone 54
SC2008/002 SC1999/001 WALES SOUTH NEW Adnyamathanha No.1 Dieri No 2 Native Title Claim
REG 204315-005
Figure 10 Indigenous land use agreement and registered native title claimants
Cooper Basin CO2012-A 15 Cooper Basin. All South Australian land access For further details of the right-to-negotiate or agreements cover the full cycle of petroleum ILUA process contact Joe Zabrowarny, General activities including exploration, development and Manager, Resource Royalties and Licensing, email production.
Cooper Basin CO2012-A 16 Cooper and Eromanga Basins, South Australia GEOTHERMAL LICENCES
139°0'E 140°0'E QUEENSLAND 141°0'E
Enlargement area
Eromanga Basin
Marla )" Cooper Basin )" Moomba Coober Pedy )"
Leigh Creek )"
)"Ceduna Port )" Augusta 370 371 Port Bonython )" 372
)" Port Lincoln )" ADELAIDE 191 250 km
382 386 Ö Ngapaturu 1 192 384 27°0'S
383 385 CO2012-A 193 387 388 389 Ö Geothermal well CO2012-A 502 316 Geothermal tenements 268 Exploration licence (GEL) 281 6 282 11 Innamincka Exploration licence application (GELA) 4 )" 267 Jolokia 1,2 7 12 9 Ö 5 Ö 3ÖÖÖÖÖÖ Retention licence (GRL) Savina 1 Ö8 Habanero 1–4 10 Celsius 1 283 185 Ö 211 211 320 Boyle 1 Acreage release block 28°0'S 284 20 23 Moomba )" 220 Cooper Basin subcrop limit 22 Fahrenheit 1 Ö 21 24 378 320 269
273 379 317 317
380 381 352
526
0 25 50 Kilometres 29°0'S
Datum GDA 94 - Projection MGA Zone 54
527
603 WALES SOUTH NEW
REG 204315-006 Figure 11 Geothermal licences
Cooper Basin CO2012-A 17 BIDDING AND AWARD PROCESS Executive Director, Energy Resources Division Winning bidders will be selected on the basis of Department for Manufacturing, Innovation, the total five-year work program bid. The work Trade, Resources and Energy program must be completed within the overall Level 7, 101 Grenfell Street area of the PEL. It must include a statement of Adelaide SA 5000 AUSTRALIA exploration operations the applicant proposes to Phone National (08) 8463 3204 carry out in the first five-year licence term. It is Fax National (08) 8463 3229 expected that at least one petroleum exploration Phone International +61 8 8463 3204 well would be included in the program. Fax International +61 8463 3229 Bids will be assessed using the philosophies Web www.petroleum.dmitre.sa.gov.au expressed in ‘Selecting the winning bid’. For a The envelope containing your application must review of how this process has been applied be marked ‘Confidential — contains PEL see ‘Shaping the Cooper Basin 21st century application’. renaissance’. The specific scoring scheme is detailed in ‘CO2012 Bid Assessment Policy’ REFERENCES included on this DVD. ALEXANDER, E.M., 2008. A brief history of exploration in In general, it is important to note that the the Cooper Basin, South Australia. PESA EABS3. timing of well drilling and seismic or other CHANEY, A.J., 1998. Sedimentology, facies architecture data acquisition will be taken into account. Key and hydrocarbon potential of the Merrimelia Formation assessment criteria include: (glacial Permo-Carboniferous), southern Cooper Basin, South Australia. Aberdeen University. PhD. Thesis ffThe number and timing of exploration wells to (unpublished). be drilled in the PEL. COTTON, T.B., SCARDIGNO, M.F. and HIBBURT, J.E. (Eds), ffThe number of years the applicant is prepared 2006. The petroleum geology of South Australia. Volume 2: Eromanga Basin. 2nd edn. South Australia. Department to guarantee the program. of Primary Industries and Resources. Petroleum Geology of ffThe extent to which proposed wells are South Australia Series. supported by existing or new programmed GRAVESTOCK, D.I., HIBBURT, J.E. and DREXEL, J.F. (Eds), seismic data. 1998. The petroleum geology of South Australia. Vol. 4: Cooper Basin. South Australia. Department of Primary ffThe amount and nature of seismic surveying Industries and Resources. Report Book, 98/9. (i.e. 2D versus 3D) to be carried out and its HALLMANN, C.O.E., AROURI, K.R., MCKIRDY, D.M. and timing. SCHWARK, L., 2006. A new perspective on exploring the ffOther data acquisition (e.g. gravity, Cooper/Eromanga Basin petroleum province – evidence aeromagnetic or geochemical surveys). of oil charging from the Warburton Basin. Australian Petroleum Production and Exploration Association Journal, ffSeismic reprocessing to be carried out. 46:261-281. In addition to the above criteria, where bids LAW, B.E., 2002. Basin-centred gas systems. American are similar, the benefits of the introduction of Association of Petroleum Geologists, V. 86, No. 11 new explorers into the area may be taken into (November 2002), PP. 1891-1919 account. In the case of cascading bids (i.e. MCKIRDY, D.M., AROURI, K.R. and KRAMER, L., 2005. multiple or hybrid bids by one applicant or joint Conditions and effects of hydrocarbon fluid flow in the subsurface of the Cooper and Eromanga Basins. University venture), only the highest bid will be considered. of Adelaide report on ARC SPIRT Project C39943025 for The closing date for CO2012-A applications is PIRSA and Santos Ltd. South Australia. Department of Primary Industries and Resources. Report Book, 2005/2. 4.00 pm, Thursday 4th April 2013. MICHAELSON, B.H. and MCKIRDY, D.M., 1996. Source The Minister is expected to announce the rock distribution and hydrocarbon geochemistry. In: winning bidder, together with details of work Cotton, T.B., Scardigno, M.F. and Hibburt, J.E. (Eds), 2006, programs, by late May 2013. The petroleum geology of South Australia, Volume 2: Eromanga Basin. 2nd Edition. South Australia. Department of Primary Industries and Resources. Petroleum Geology of CONTACT INFORMATION South Australia Series, ch. 8. Comments, inquiries and applications for NAKANISHI, T. and LANG, S.C., 2002. Toward an exploration licences may be addressed to: efficient exploration frontier: constructing a portfolio of
Cooper Basin CO2012-A 18 stratigraphic traps in fluvial-lacustrine successions, Cooper- Eromanga Basin. Australian Petroleum Production and Exploration Association Journal, 42: 131-150. NAKANISHI, T., LANG, S.C. and MITCHELL, A.B., 2003. Visualisation of a fluvial channel reservoir analogue from the Birkhead Formation, Merrimelia, Meranji and Pelican fields, Eromanga Basin. Australian Petroleum Production and Exploration Association Journal, 43: 453-471. O’NEIL, B.J., 1998. History of petroleum exploration and development. In: Gravestock, D.I., Hibburt, J.E. and Drexel, J.F (Eds), 1998, The petroleum geology of South Australia. Vol. 4: Cooper Basin. South Australia. Department of Primary Industries and Resources. Report Book, 98/9. Chapter 2. O’NEIL, B.J. and ALEXANDER, E.M., 2006. History of petroleum exploration and development. In: Cotton, T.B., Scardigno, M.F. and Hibburt, J.E. (Eds), 2006, The petroleum geology of South Australia, Volume 2: Eromanga Basin. 2nd Edition. South Australia. Department of Primary Industries and Resources. Petroleum Geology of South Australia Series, ch. 3. SUN, X. and GRAVESTOCK, D. I. 2001. Potential hydrocarbon reservoirs in upper levels of the Eastern Warburton Basin, South Australia), South Australia. Department of Primary Industries and Resources. Report Book 2001/16, 228pp. VEEVERS, J.J. (Ed), 2000. Billion –year earth history of Australia and neighbours in Gondwanaland. Published by GEMOC Press, Department of Earth and Planetary Sciences, Macquarie University, NSW. WYBORN, D., DE GRAAF, L., DAVIDSON, S. and HANN, S., 2004. Development of Australia’s first hot fractured rock (HFR) underground heat exchanger, Cooper Basin, South Australia. In: Boult, P.J., Johns, D.R. and Lang, S.C. (Eds), PESA’s Eastern Australasian Basin Symposium II, Adelaide 2004. Petroleum Exploration Society of Australia. Special Publication, pp. 423-430. WYBORN, D., 2008. Habanero Circulation Test – connection between two wells in granite at 4200 m depth. In Gurgenci, H. and Budd, A.R. (eds). Proceedings of the Sir Mark Oliphant International Frontiers of Science and Technology. Australian Geothermal Energy conference, Geoscience Australia Record 2008/18, 143-144.
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