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204315 Department for Manufacturing, Innovation, Trade, Resources and Energy Energy Resources Division August 2012 www.petroleum.dmitre.sa.gov.au APRIL 4 2 0 1 3 Bids close Cooper Basin CO2012-A South Australia Acreage Release

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Page 1: Cooper Basin acreage release CO2012-A - Petroleum | · PDF fileAugust 2012. . APRIL . 4 2 . 0 1 3. Bids close. Cooper Basin. ... f GIS datasets including wells, ... deltaic in part

204315

Department for Manufacturing,Innovation, Trade, Resources and Energy

Energy Resources Division August 2012

www.petroleum.dmitre.sa.gov.au

APRIL 42 0 13

Bids close

Cooper BasinCO2012-ASouth Australia Acreage Release

Page 2: Cooper Basin acreage release CO2012-A - Petroleum | · PDF fileAugust 2012. . APRIL . 4 2 . 0 1 3. Bids close. Cooper Basin. ... f GIS datasets including wells, ... deltaic in part

Cooper Basin CO2012-A 2

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

Page 3: Cooper Basin acreage release CO2012-A - Petroleum | · PDF fileAugust 2012. . APRIL . 4 2 . 0 1 3. Bids close. Cooper Basin. ... f GIS datasets including wells, ... deltaic in part

Cooper Basin CO2012-A 3

THE OFFERA new petroleum exploration licence (PEL) in the Cooper and Eromanga Basins is being offered by the South Australian Government on the basis of work program bidding (Fig. 1). Block CO2012-A comprises two areas totalling 391.8 sq km relinquished from PEL 111 on the western margin of the Patchawarra Trough. One well (Darter 1) has been drilled and 581 line kilometres of 2D seismic data have been acquired within the block (Fig. 2).

PRODUCTS AND DATAA comprehensive summary of the Cooper and Eromanga basins is available in The Petroleum Geology of South Australia volumes 2 (Eromanga Basin) and 4 (Cooper Basin). These volumes include chapters on structural and tectonic history, litho- and biostratigraphy, source rocks and maturity, reservoirs, seals, trap development, discovered reserves, field reviews, undiscovered potential, and exploration history. The publications can be downloaded via the DMITRE Petroleum website, and are also available for free on the Petroleum and Geothermal in South Australia DVD.

Previous exploration data and reports are readily available from DMITRE in digital format on portable hard drives, including:

f well completion reports (also downloadable from the DMITRE Petroleum website via SARIG)

f GIS datasets including wells, seismic, tenements, pipelines

f seismic survey shot point location data f seismic survey reports and archive stack data (SEGY format)

f digital well logs (DLIS/LIS format) f velocity survey check shot information f structure maps and datasets

f PEPS database with production, well, seismic and engineering data (also downloadable from the DMITRE Petroleum website)

f company prospectivity reports (also downloadable from the DMITRE Petroleum website via SARIG)

SARIG (South Australia Resources Information Geoserver) can be accessed by selecting SARIG on the DMITRE Petroleum website <www.petroleum.dmitre.sa.gov.au>. SARIG provides an interactive map window to view, query and download data. The map window is useful for viewing wells, seismic lines, tenements, land access etc over the various Cooper Basin depth, time and isopach images.

More information on products and data can be accessed by selecting ‘Products and Data’ on the DMITRE Petroleum website home page.

INTRODUCTIONThe Cooper Basin is a Permo-Carboniferous to Triassic intracratonic basin located 800 km north of Adelaide, extending into southwest Queensland (Gravestock et al., 1998). It is overlain by the prospective Jurassic to Cretaceous intracratonic Eromanga Basin which extends of much of central-eastern Australia (Cotton et al., 2006). The Cooper and Eromanga basins collectively contain up to 3700 m of predominantly fluvial, glaciofluvial, lacustrine and deltaic sediment with some Cretaceous marine sediments (Fig. 3). Targets are 1200–3700 m deep. The Cooper and Eromanga basins lie unconformably over early Palaeozoic marine sediments of the Warburton Basin and Mid-Carboniferous Big Lake Suite granite, which is currently being evaluated as a source of geothermal energy (e.g. Wyborn, et al., 2004; Wyborn, 2008).

The Cooper Basin and overlying Eromanga Basin is Australia’s largest and most mature

South Australia COOPER BASINAcreage Release Block CO2012-ABIDS CLOSE 4.00 pm Australian Central Standard Time, Thursday 4th April 2013

Page 4: Cooper Basin acreage release CO2012-A - Petroleum | · PDF fileAugust 2012. . APRIL . 4 2 . 0 1 3. Bids close. Cooper Basin. ... f GIS datasets including wells, ... deltaic in part

Cooper Basin CO2012-A 4

Petroleum pipelines

Pipeline licence (PL) – gas

Pipeline licence (PL) – gas and liquids

Pipeline licence (PL) – liquids

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! Moomba

Innamincka

103

101

101CO2012-A

CO2012-A

424

96

8887

95

568

91

182

92

94

569

444

112

570

218

514

516

93

90

111

516

110

113

106

114

516

90

107

570

104

100

514

514

516

104

516

570

516

102

105

115

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115

516

101 101

105

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115

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105

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101

515

512

71

560

133

290

512

513

515

513

331

513

607 146

575

516

516516

Cooper and Eromanga Basins, South Australia

PETROLEUM LICENCES

PL1

PL5

NEW

SO

UTH

WA

LES

PL2

PL15

PLs7,8

PL9

0 25 50 Kilometres

Datum GDA 94 - Projection MGA Zone 54

Petroleum tenements

Acreage release block

Exploration licence (PEL)

Exploration licence application (PELA)

Production licence (PPL)

Production licence application (PPLA)

Retention licence (PRL)

Retention licence application (PRLA)

PL17

QUEENSLAND

REG 204315-003

PL18

Cooper Basin subcrop limit

Coongie Lakes control zone – no access

Discoveries 2002 – 2012! Oil

! Gas

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WESTERNAUSTRALIA

SOUTHAUSTRALIA

NORTHERNTERRITORY

QUEENSLAND

NEW SOUTH WALES

VIC

TAS

ACT

PerthSydney

Darwin

Brisbane

Adelaide

Melbourne

Hobart

1000 km

PL20

Figure 1 Petroleum licences

Page 5: Cooper Basin acreage release CO2012-A - Petroleum | · PDF fileAugust 2012. . APRIL . 4 2 . 0 1 3. Bids close. Cooper Basin. ... f GIS datasets including wells, ... deltaic in part

Cooper Basin CO2012-A 5

Figure 2 CO2012 acreage release

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CO2012-A

CO2012-A

PEL 91

PEL 424

PEL 182

PEL 111

PEL 444

PEL 92

PEL 104

PEL 106

PEL 104

PEL 514

PEL 105

PELA 513

PELA 513

PELA 512

Darter 1

Hoolendinnie 1

140°0'E

140°0'E

139°45'E

139°45'E

139°30'E

139°30'E

139°15'E

27°0

'S

27°0

'S

27°1

5'S

27°1

5'S

27°3

0'S

27°3

0'S

27°4

5'S

27°4

5'S

340000

340000

360000

360000

380000

380000

400000

400000

6920

000

6920

000

6940

000

6940

000

6960

000

6960

000

6980

000

6980

000

7000

000

7000

000

Parks with petroleumexploration accessParks with no petroleumexploration access

Ramsar site0 5 10 15 km

Cooper and Eromanga basins, South Australia

ACREAGE RELEASECO2012-A

REG 204315-008

GDA 94 – MGA Zone 54

Petroleum tenementsAcreage release block

Exploration licence (PEL)Exploration licenceapplication (PELA)

Production licence (PPL)Production licenceapplication (PPLA)

Retention licence (PRL)

Cooper Basin Permian edge

Top Nappamerri subcrop edge

Seismic coverage2 dimension3 dimension

Petroleum pipelinesGasGas and liquids LiquidsLiquid trunklineGas trunkline

Petroleum wells.

Dry hole.

Dry hole with oil shows.

Gas shows.

Gas well

.

Gas well with oil shows.

Oil and gas well.

Oil well.

Proposed or currently drilling

Darter 1

Page 6: Cooper Basin acreage release CO2012-A - Petroleum | · PDF fileAugust 2012. . APRIL . 4 2 . 0 1 3. Bids close. Cooper Basin. ... f GIS datasets including wells, ... deltaic in part

Cooper Basin CO2012-A 6

onshore hydrocarbon province, supplying major south-eastern Australian gas markets since 1969 and producing oil since 1982. The Cooper Basin Liquids Project (1980–84) was initiated to market the oil and existing gas liquids. A liquids pipeline links Moomba to a processing plant and storage and export loading facilities at Port Bonython.

Over 2000 exploration and development wells have been drilled and over 75 829 km 2D and 8882 km2 3D seismic recorded. Estimated total cumulative product sales to end June 2012 are: 5.05 tcf of sales gas, 77 mmboe of condensate, 158.0 mmbbl of oil and 78.2 mmboe of LPG. Annual petroleum production and the value of sales since 1970 are shown in Figure 4. Oil production was declining until 2002 when new discoveries caused a resurgence of drilling activity and exploration success, while gas sales peaked in 1989 and have been declining since 1998.

Exploration drilling has produced a steady stream of discoveries since the discovery of gas in 1963 as indicated by the world class exploration success rates (Fig. 5). While drilling hiatuses correlate with oil price crashes, the steep increases in the oil discovery success rate are linked to improved seismic acquisition and processing, more 3D seismic acquisition, testing new play types (e.g. the Jackson discovery in 1981 and the Strzelecki-3 oil discovery in 1978) and also to new companies entering the basin and reinvigorating exploration. In contrast, the gas discovery success rate curve is smoother because the commodity price has not been as variable as the oil price, and long term contracts dominate the market.

Figure 3 Cooper–Eromanga Basin stratigraphy

DEPOSITIONALENVIRONMENT

LITH

OLO

GY

LAKE EYRE BASIN

PA

LYN

OLO

GIC

AL

ZON

E

STAGESERIES

SY

STE

M ROCK UNIT

AGE

CE

NO

-Z

OIC

Meandering fluvial,

deltaic in part

Daralingie unconformity

Fluvio-deltaic

Lacustrine

Lacustrine

Fluvio-deltaic, localtransgressive/regre-ssive shore face

Fluvio-deltaic,

lacustrine

Peatswamp

Vc coal

Terminoglacial, proglacial,

glaciolacustrine, aeolian.

Proglacial outwash,

braided fluvial

Floodplain.

Meandering fluvial

Sinuous meandering

streams. Fluvio-lacust.

Braided fluvial channel

belt and floodplain

Floodplain, lacustrine,palaeosols, moderate/sinuosityfluvial channels.

202396_002

WARBURTON BASIN

GID

GE

ALP

A G

RO

UP

CO

OP

ER

BA

SIN

NA

PP

AM

ER

RI G

RO

UP

Late

Early

Late

Early

Middle

Late

Ste

phan

ian

Ass

elia

n

Artinskian

Kungurian

Ufimian

Kazanian

Tatarian

Scythian

Anisian

Ladinian

Carnian

Norian toRhaetian

Sak

mar

ian

Merrimelia Formation

Daralingie

Formation

Arrabury

Formation

Patchawarra Formation

Toolachee Formation

Tinchoo Fm

Cuddapan Formation

CallamurraMember

PaningMbr

Wimma Sandstone Mbr

Epsilon Formation

Roseneath Shale

Murteree

Shale

PP1

PP2

PP3

PP4

PP5

PP6

PT1

PT2

PT3

PT4

PT5

Tirrawarra Sandstone

CA

MB

RO

-O

RD

.C

AR

BO

N-

IFE

RO

US

PE

RM

IAN

TR

IAS

SIC 100 m

100 m

150 m

125 m

160 m

140 m

80 m

680 m

75 m

450 m

Poolowanna

Formation

Adori SandstoneWestbourne Fm

Wyandra SandstoneMbr

WALLUMBILLA

FORMATION

McKinlay Mbr

CR

ETA

CE

OU

SJU

RA

SS

IC

Winton Formation

Allaru Mudstone

Toolebuc Fm

Mackunda Formation

Cadna-owie Formation

NamurSandstone

HuttonSandstone

Alg

eb

uckin

aS

an

dsto

ne

Murta Formation

BirkheadFormation

OodnadattaFormation

Bulldog Shale

CoorikianaSandstone

Late

Middle

Early

Early

Late

Meandering-

anastomosing fluvial

Braided fluvial with

aeolian influence

Fluvio-lacustrine

backswamp

Lacustrine turbidites, deltas. Shoreface facies

Non-margin to

marginal marine

Open marinetransgressive

Regressive marineshoreface

Restricted marine - stratified and anoxic

Marine

Marginal marine

Non-marine to

marginal marine

ER

OM

AN

GA

BA

SIN

Braided-meanderingfluvial

Big Lake Suite

granite intrusives

(Middle

Carboniferous)

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Cooper Basin CO2012-A 7

PETROLEUM GEOLOGYThe Cooper Basin unconformably overlies flat lying to compressively deformed Cambro-Ordovician Warburton Basin strata and Carboniferous granitic intrusives. The unconformity is mapped as the Z seismic horizon (Fig. 6). The intracratonic Cooper Basin represents a Late Carboniferous to Triassic depositional episode terminated at the end of the Middle Triassic with regional uplift and

erosion. Three major troughs (Patchawarra, Nappamerri and Tenappera) are separated by ridges (Gidgealpa–Merrimelia–Innamincka (GMI) and Murteree) associated with the reactivation of NW-directed thrust faults in the underlying Warburton Basin (Fig. 6). These troughs contain up to 2500 m of Permo-Carboniferous to Triassic sedimentary fill overlain by as much as 1300 m of Jurassic to Tertiary strata.

Cooper BasinThe Late Carboniferous to Late Permian succession consists of basal glaciofluvial clastics and proglacial outwash deposits, overlain by thick coal measures (peat swamp), floodplain, lacustrine and high sinuosity fluvial facies. Uplift and erosion at the end of the Early Permian resulted in a depositional break and Late Permian to Early Triassic fluvial and floodplain facies were deposited on the unconformity surface. Deposition in the region was terminated at the end of the Early Triassic with slight but widespread deformation, regional tilt and erosion. The top of the Permian succession is mapped as the P Seismic Horizon.

Eromanga BasinThe Jurassic–Cretaceous Eromanga Basin can be divided into three sedimentary packages — a lower non-marine package, a marine package, and an upper non-marine package. Exploration is concentrated on the productive lower non-marine sediments, which consist of basal high-sinuosity fluvial and floodplain deposits (Poolowanna Formation), overlain by extensive and thick low-sinuosity fluvial sandstones. Two floodplain and lacustrine units (Birkhead and Westbourne formations) occur within this sand package, which is overlain by extensive lacustrine and shoreface facies (Murta Formation), deposited in a large lake which extended throughout the Cooper Basin region. This lower non-marine package is overlain by Early Cretaceous marine shales that form a regional seal, and Late Cretaceous non-marine deposits. The top Cadna-owie Formation (Early Cretaceous) is mapped as the C Seismic Horizon.

Lake EyreTertiary to Recent fluvial to lacustrine deposits of the Lake Eyre Basin unconformably cover the Eromanga Basin. The unconformity at the

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Cooper Basin CO2012-A 8

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Figure 6 Top basement depth structure map with structural elements

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Cooper Basin CO2012-A 9

top of the Eromanga Basin is often difficult to distinguish in wells and seismic.

SOURCE ROCKSCooper BasinNumerous producing oil and gas fields and significant gas and oil shows in wells in the Cooper Basin area indicate that sufficient mature source rocks are present and have generated hydrocarbons. Permian coal measures and shales have high Total Organic Carbon (TOC) content and represent the main hydrocarbon source for Cooper Basin oil and gas accumulations.

The Patchawarra Trough contains the bulk of the oil and wet gas reserves consistent with local source rocks being in the ‘oil window’, while the hot Nappamerri Trough (40–50 °C/km), underlain in part by granite, is over mature and contains mainly dry gas.

Coal and carbonaceous shale of the Patchawarra Formation represent the principal source rocks of the Cooper Basin, both in source richness and quality, and overall thickness (Boreham and Hill, 1998). Rock-Eval data indicates that Patchawarra 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 that Toolachee Formation source rocks also contain a mix of both Type II and Type III kerogen (Fig. 8). The total gas generative potential of the Cooper Basin source rocks has been estimated to be between 4027 tcf (minimum estimate) to 8055 tcf (maximum estimate) (Morton, 1998).

Oils and condensates are typically medium to light (30–60° API) and paraffinic, with low to high wax contents. Most Permian oils in Permian reservoirs contain significant dissolved gas and show no evidence of water washing. Gas composition is closely related to maturity/depth with drier gas occurring towards basin depocentres.

Eromanga BasinIn the Eromanga Basin, the Poolowanna and Birkhead formations contain organic-rich shales that are oil-prone (Type II/III kerogen) and maturity ranges from 0.5–0.7% Ro. The Murta Formation is interpreted to have potential to

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Baratta 1 (4), Callabonna 1 (3),

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Kobari 1 (6), Lake MacMillan 1 (3),

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Figure 8 HI vs Tmax plot, Toolachee Formation

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Cooper Basin CO2012-A 10

generate light paraffinic crude oils, even at maturity levels as low as 0.50–0.55% Ro. It generally contains Type II/III kerogen, however the best Murta source facies contain telalginite and indicators of bacterial precursors occur.

The marine sediment package and upper non-marine sediment package are immature for hydrocarbon generation over much of the basin (<0.45% Ro).

Both Permian and Mesozoic source rocks have contributed to oil accumulations in the Eromanga Basin. Each Eromanga oil accumulation needs to be considered in terms of its access to potential source kitchens to assess the likelihood of Permian and/or Mesozoic sources (McKirdy et al., 2005).

RESERVOIRS AND SEALSMulti-zone high-sinuosity fluvial sandstones form poor to good quality reservoirs in the Cooper Basin succession. The main gas reservoirs occur primarily within the Patchawarra Formation (porosities up to 23.8%, average 10.5%; permeability up to 2500 mD) and Toolachee Formation (porosities up to 25.3%, average 12.4%; permeability up to 1995 mD). Shoreface and delta distributary sands of the Epsilon and Daralingie formations are also important reservoirs. Oil is produced principally from low-sinuosity fluvial sands within the Tirrawarra Sandstone (porosities up to 18.8%, average 11.1%; permeability up to 329 mD). Towards the margin of the Cooper Basin, oil is also produced from the Patchawarra Formation and from Merrimelia Formation fluvial channel sands in the Malgoona Field.

The Callamurra Member of the Arrabury Formation is conventionally regarded as a regional seal, but nevertheless contains economic oil and gas reservoirs in some areas and is a leaky seal in others. Low sinuosity fluvial sandstones of the Paning and Wimma Sandstone members form economic oil and gas reservoirs, and high-sinuosity fluvial sandstone of the Tinchoo Formation reservoirs oil. As yet, there have been no economic oil or gas fields discovered in the Cuddapan Formation in South Australia.

Intraformational shale and coal form local seals in the major reservoir units. Beneath the Daralingie unconformity are two important early Permian regional seals — the Roseneath

and Murteree shales. The Roseneath Shale is the top seal of the Epsilon Formation, and the Murteree Shale seals the Patchawarra Formation. A younger regional seal is provided by the Triassic Arrabury Formation.

The principal Eromanga Basin reservoirs are good to excellent reservoir quality Hutton and Namur braided fluvial sandstones (porosities up to 25%, permeability up to 2500 mD). Oil is also reservoired in fair to excellent quality sandstones in the Poolowanna and Birkhead formations, McKinlay Member and Murta Formation. The Wyandra Sandstone Member of the Cadna-owie Formation forms a significant oil reservoir in Queensland; however, the only significant accumulation in SA occurs in the Aldinga Oil Field. Seals consist of intra-formational diagenetic sandstones, siltstones and shales of the Poolowanna, Birkhead and Murta formations in the Cooper region.

TRAPSWarburton BasinThe Warburton Basin remains under-explored, yet has all the required ingredients of a valid hydrocarbon system: oil and gas shows and flows, reservoir, seal, traps and access to proven mature source rocks via down dip migration pathways from the Eromanga and Cooper basins (Sun and Gravestock, 2001). Hallmann et al. (2006) present evidence for small amounts of migrated Warburton Basin oil in Permian reservoirs. Locally, Permian oil has migrated into Warburton Basin reservoirs on the basin margin and gas has migrated into fractured Ordovician reservoirs fringing the Allunga Trough. Overlying Merrimelia Formation glaciolacustrine shale would form an effective seal.

Cooper BasinAnticlinal and faulted anticlinal traps have been relied on as proven exploration targets but potential remains high for discoveries in stratigraphic and sub-unconformity traps, especially where the Permian sediments are truncated by the overlying Eromanga Basin succession. Economic oil and gas are reservoired in the Nappamerri Group, paradoxically regarded as a regional seal to the Cooper Basin.

Structural growth during the Permian and Jurassic and differential compaction played an important role in trap formation and

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Cooper Basin CO2012-A 11

fill, as well as strongly affecting reservoir properties. Anticlinal, fault, sub-unconformity truncation, structure–stratigraphic (e.g. channel fairway facies draped on structural nose) and stratigraphic pinchout traps are also proven plays.

Eromanga BasinTrapping mechanisms within the Eromanga Basin are dominantly structural (anticlines with four-way dip closure or drapes over pre-existing highs) with a stratigraphic component (e.g. Poolowanna Formation, Hutton–Birkhead transition, intra-Birkhead channel sands, McKinlay Member and Murta Formation). Seals consist of intraformational siltstones within the Poolowanna, Birkhead and Murta Formations. The Birkhead-Hutton petroleum system is the most productive in the Eromanga Basin.

Stacked oil pay in the McKinlay/Namur, Hutton and Birkhead occurs around the Cooper Basin region. The Eromanga Basin also contains rare gas accumulations, where Permian gas has migrated upwards along faults and been trapped higher in the section (e.g. Namur Gas Field).

EXPLORATION POTENTIALThe number of oil discoveries in the South Australian part of the Cooper Basin reached 125 at the end of June 2012 (Fig. 5). Extensive areas on the flanks of the Cooper Basin and in the broader Eromanga Basin remain under-explored.

In the core Cooper province, oil and gas exploration has typically focused on four-way dip-closed anticlines. 3D seismic is an extremely useful tool for prospect delineation in the Eromanga Basin where vertical closures can be small, falling within the range of possible errors introduced by statics and lateral velocity variations. Stratigraphic plays are a proven play concept in Cooper Basin (e.g. the Brownlow Gas Field, Patchawarra Trough), and recent Eromanga Basin discoveries on the western flank of the Cooper Basin have a stratigraphic component.

Significant unconventional gas potential remains in the Cooper Basin, in the form of shale gas, tight gas and coal seam gas. At this early stage the Cooper Basin JV (operated by Santos) and Beach Energy already have contingent unconventional gas resources totalling more than 5 Tcf in the South Australian Cooper Basin,

equivalent to the total sales gas production from the South Australian Cooper Basin to date. The US Energy Information Administration has estimated that the entire Cooper Basin (South Australia and Queensland) has a risked recoverable shale gas resource of 85 trillion cubic feet. The US EIA report World Shale Gas Resources: An initial assessment of 14 regions outside the United States can be downloaded from <www.eia.gov/analysis/studies/worldshalegas>.

The region is also being explored for geothermal energy (e.g. Wyborn et al., 2004).

Block CO2012-ABlock CO2012-A captures part of the north-western margin of the Patchawarra Trough in the Cooper Basin, and the Eromanga Basin west of the Permian sub-crop edge.

Birkhead Channel Play — Eromanga BasinThe Snatcher and Charo oil fields and the Warhawk 1 and recent Mustang 1 oil discoveries lie within the area of PEL 111, immediately adjacent to Block CO2012-A. These oil pools occur in Birkhead Formation channel sands on or immediately west of the Permian sub-crop edge.

Charo 1 (PPL 177), drilled in 1984 was the first intra-Birkhead oil discovery in the area. However, the intra-Birkhead channel play was not further pursued in the area until 2007 with the drilling of Charo 2 in PPL 177, and later Warhawk 1 (PEL 111) in 2008 and Snatcher 1 (PEL 111) in 2009. All these wells were sited on 2D seismic. 3D seismic surveys (Charo – 2008 and Mollichuta – 2009) have since been acquired to better image the Birkhead Formation channel systems and better define structural closures.

The nearby Callabonna (1990), Growler (2006), Wirraway (2007) and Tigercat (2008) oil pools also occur in intra-Birkhead Formation channel sands on or near the Permian sub-crop edge. Similarly the discovery wells were sited on 2D seismic and 3D seismic surveys have since been acquired. Reservoir quality has been variable as a result of lateral facies changes in the fluvial system. The Growler Field is an example of this lateral variability. Growlers 3, 4 and 5 intersected good sands and this is reflected in the improved oil flow rates compared with Growlers 1 and 2.

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Cooper Basin CO2012-A 12

Significantly, gas peaks, hydrocarbon fluorescence and an oil recovery from the basal Birkhead Formation in Hoolendinnie 1 suggest that oil has migrated at least 20 km from the Permian sub-crop edge, if it is Permian sourced (Fig. 2). Alternatively Michaelsen and McKirdy (1996) have argued that the Charo and Callabonna oils have a Jurassic source affinity on the basis of specific biomarker ratios. If the Eromanga Basin oils are sourced from intraformational source rocks then oil prospectivity is independent of the Permian subcrop edge.

Conventional four-way dip closures — Cooper BasinThe Brolga, Fly Lake, Moorari and Woolkina oil and gas fields are trapped in four way dip closures near the south eastern edge of Block CO2012-A. The Fly Lake-Brolga trend contains liquid rich gas in Patchawarra Formation sands, and volatile oil in the basal Patchawarra Formation and Tirrawarra Sandstone. The Moorari-Woolkina trend has oil in the Tirrawarra Sandstone, and liquid rich gas accumulations in the Patchawarra and Toolachee formations and the Nappamerri Group.

Merrimelia Formation shale play — Cooper BasinShales in the Merrimelia Formation may be a shale oil target if sufficient organic richness, thickness and lateral extent can be demonstrated.

Numerous oil shows have been recorded within sands and shales of the Merrimelia Formation in the vicinity of the southern portion of Block CO2012-A, and over a wide area of the central and south-western Patchawarra Trough. In Yarma 1 shows vary from 10–40% fluorescence (9089–9093 feet, 2770.3–2771.5 m).

Sedimentological analysis of cored sections within the Merrimelia Formation reveals a complex glacigenic environment with over 20 facies identified including glaciolacustrine, deltaic, fluvial and aeolian facies (Chaney, 1998). Facies changes can be abrupt and provide juxtaposition of source and reservoir sequences with potential for stratigraphic traps.

Of these facies, a persistent shale ranging in thickness from 15 to 30 feet at the top of the

Merrimelia Formation in the Tirrawarra – Brolga – Woolkina region has returned encouraging Rock Eval results from recent sampling by DMITRE. Two Merrimelia Formation core samples over the interval 9742 to 9743 ft (2969.4 to 2969.7 m) in Tirrawarra 17 returned TOC values of 6.26 and 9.88% (excellent generative potential) and S2 Pyrolysis Yields of 11.50 and 16.15 mg HC/g (very good generative potential). Corresponding Hydrogen Index (HI) values were 163 and 185 mg HC/g TOC which places this shale in the gas-prone kerogen range, close to the mixed oil/gas threshold of 200 mg HC/g TOC. Given these results, organic rich shales in the Merrimelia Formation may be a potential source of Tirrawarra Sandstone oil accumulations in a number of fields including Tirrawarra, Fly Lake and Moorari.

Palynological analysis, commissioned by DMITRE, of the Merrimelia shale in Tirrawarra 17 (sample depth 9742’2”/2969.4m) returned an APP1.2 age with an abundance of freshwater algae, suggesting a lacustrine depositional environment. Future work will concentrate on mapping the lateral and vertical extent of this facies.

A mean maximum Vitrinite Reflectance value of 1.04% over the same interval confirms a late oil to wet gas maturity. This suggests potential for a shale oil/liquid rich gas play in the upper Merrimelia Formation, especially in slightly shallower portions of the Patchawarra Trough both on the western Cooper margin and also against the GMI Ridge.

INFRASTRUCTURE AND TRANSPORTA total of 5240 km of pipeline has been laid to gas markets in South Australia, New South Wales and Victoria and to the liquids load out facility at Port Bonython. Gas from individual wells passes via field gathering systems (flowlines) to satellite stations which separate gas, free water and condensate. Evaporation ponds are used for water disposal. The essentially water-free gas and condensate pass to the Moomba treatment plant through trunklines. Crude oil is transported by either pipeline or truck to the Moomba plant which was designed to process 25.4 x 106 m3 (902 mmcf) of raw gas and 6000 kL (42 000 bbl) of condensate and crude oil per day. Nine oil and 11 gas satellites are currently in operation.

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Since January 2009, the Queensland to South Australia/New South Wales (QSN) Link Pipeline between Ballera (Qld) and Moomba has transported sales gas sourced from coal seam methane reserves in south-eastern Queensland directly into the Moomba to Adelaide Pipeline. A connection directly into the Moomba to Sydney Pipeline is also possible.

The new entrant Cooper Basin explorers have secured access to Moomba facilities operated by Santos Ltd. Oil is trucked from a number of oil field fields to Moomba. New pipelines are also planned/under construction to connect western margin oilfields to the existing pipeline network or directly to Moomba.

Condensate, LPG, crude and some ethane are transported as a cocktail from Moomba via a pipeline to Port Bonython where they are separated and exported. At least one party has attained an agreement for third-party gas to be processed at Moomba (Smegsy 1, operated by Great Artesian Oil and Gas in 2005).

The township of Innamincka lies southeast of Block CO2012 (Fig. 1), 65 km NE of Moomba. It offers a hotel, general store, and light-aircraft airstrip, and is accessible by good quality roads. The causeway at Innamincka provides the major crossing point for the Cooper Creek, which in times of flood is impassable by vehicle.

Accommodation and support facilities are located at the Moomba Production Facility, operated by the Cooper Basin Joint Venture, and not open to the general public. Access is by arrangement with the operator. The full range of support services are located at the Moomba camp including wireline logging, fracture stimulation, cementing, transport, fuel supply, aviation (including helicopter) and emergency services. There is a sealed airstrip at the Moomba Production Facility.

LAND ACCESSNational parks and reservesParts of the Cooper Creek system are listed as wetlands of international significance under the Ramsar Convention (1971). Most of Block CO2012-A falls within the Ramsar area (Fig. 9). South Australia’s obligations are to manage the wetlands wisely to maintain their ecological character; this does not necessarily restrict exploration access.

Part of the eastern portion of Block CO2012-A lies within the Innamincka Regional Reserve, in the core of Australia’s arid region (Fig. 9). Regional Reserve is a reserve classification under the National Parks and Wildlife Act 1972 that specifically accommodates multiple land use. A PEL application incorporating any portion of the Innamincka Regional Reserve will be referred to the Minister for Sustainability, Environment and Conservation and the views of such Minister are required to be taken into account when granting the PEL. In the case of Petroleum Production Licences within the Innamincka Regional Reserve, approval must be obtained from the Minister for Sustainability, Environment and Conservation. Failing such Minister’s approval, the issue is referred to the Governor for decision.

Environmental regulationOne of the key environmental requirements of the Petroleum and Geothermal Energy Act 2000 is the need for all regulated activities to be covered by an approved Statement of Environmental Objectives (SEO), whether in a Regional Reserve or on pastoral leases. The purpose of the SEO is to address all risks associated with activities and to address issues and concerns raised by stakeholders detailed in a supporting document — an Environmental Impact Report (EIR). The SEO is prepared on the basis of the EIR through stakeholder consultation. The SEO also provides an effective mechanism for establishing ‘one-window-to-government’ for the industry by engaging the other agencies in the SEO consultation process.

An SEO does not have to be prepared for every activity proposal if the licensee can demonstrate that their proposed activity is covered by an existing approved SEO, such as the current regional Cooper Basin SEOs for drilling and seismic activities (downloadable from the DMITRE Petroleum website).

Heritage and land accessA PEL cannot be granted in the Cooper Basin unless an appropriate land access agreement is in place with the Registered Native Title Claimants (Fig. 10), the State Government and the explorer. Indigenous Land Use Agreements (ILUAs) are an alternative to the right-to-negotiate (RTN) process pursuant to the Commonwealth Native Title Act 1993 and now cover most of the

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Cooper Basin CO2012-A 14

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Figure 9 Regional reserves and environmental zones

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SC1997/004Dieri Native Title Claim

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Figure 10 Indigenous land use agreement and registered native title claimants

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Cooper Basin. All South Australian land access agreements cover the full cycle of petroleum activities including exploration, development and production.

Conjunctive ILUAs are being used to expedite land access with lower transaction costs than RTN proceedings. The negotiations for an ILUA for the South Australian Cooper Basin region (already covered with RTN land access agreements) commenced in 2006 and in February 2007 the Yandruwandha/Yawarrawarrka peoples entered into the first petroleum ILUA. This agreement was the first conjunctive petroleum ILUA in a producing basin in Australia. Negotiations for additional ILUAs have progressed with the two relevant native title claim groups over the remainder of the Cooper Basin with the Wangkangurru/Yarluyandi peoples petroleum ILUA achieving formal registration in March 2012. The State Government intends to propose enhancements to the existing Yandruwandha/Yawarrawarrka ILUA to match any significant enhancements agreed with the other two relevant native title groups with registered claims in the Cooper Basin region. Establishing essentially common terms for all three ILUAs will be fair, efficient, and foster sustainable development for the whole of the Cooper Basin and most of the Eromanga Basin in South Australia.

The RTN, ILUA and legislation-specific processes will continue to be developed with a desire to enable the expeditious grant of new PELs in ways that remain fair to traditional owners and sustainable in relation to exploration and production investment. The native title deeds for all South Australian petroleum exploration licenses subject to the right-to-negotiate or ILUA process pursuant to the Commonwealth Native Title Act 1993 are available for public scrutiny from the DMITRE website.

It may be necessary to access adjoining accessible areas to conduct regulated activities relative to the PEL, via an Associated Activities Licence (AAL). The right-to-negotiate or ILUA process will include negotiation for facilitation of appropriate access to such adjacent accessible areas reasonably necessary to conduct such regulated activities, and will also include negotiation for facilitation of access relative to the grant of any ensuing licence for future production and necessary infrastructure development.

For further details of the right-to-negotiate or ILUA process contact Joe Zabrowarny, General Manager, Resource Royalties and Licensing, email <[email protected]>, phone (08) 8463 3203.

A number of sites of European heritage significance such as historical buildings, structures and geological monuments may also occur in the area. The majority of sites are small and easily avoided by exploration activities.

Geothermal Exploration LicencesA number of Geothermal Exploration Licences (GELs) coincide with petroleum exploration and production licences in the Cooper Basin region (Fig. 11). The GEL licensee must be notified of activities in PELs, and may object to the activity and claim compensation if their activities or resources are affected. Likewise the GEL holder must notify the PEL holder of their activities, and the PEL holder may also object and claim compensation.

Associated Activities LicencesAssociated Activities Licences (AALs) are now available under the Petroleum and Geothermal Energy Act 2000. These licences allow explorers to undertake activities (e.g. seismic surveys) or establish facilities in proximity to petroleum exploration, retention and production licences. AALs are typically used to enable the recording of full-fold seismic within a PEL by recording tails of seismic lines outside the licence area.

CLIMATE AND LAND USEAustralia’s seasons are opposite to those of the northern hemisphere – the hottest months are January–February and the coldest month is July. At Moomba temperatures can range as high as 48 °C (118 °F) in summer, while overnight temperatures can drop to 2 °C (36 °F) in winter. The Cooper Basin is located in the core of Australia’s arid region. The average annual rainfall in far northern South Australia is 176 mm (7 in), with the heaviest rainfall during December–February.

The northern part of South Australia is sparsely populated and relatively undeveloped due to its remoteness and harsh climate. The main industries are petroleum exploration and development, followed by large pastoral leases producing cattle and tourism.

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Cooper Basin CO2012-A 18

BIDDING AND AWARD PROCESSWinning bidders will be selected on the basis of the total five-year work program bid. The work program must be completed within the overall area of the PEL. It must include a statement of exploration operations the applicant proposes to carry out in the first five-year licence term. It is expected that at least one petroleum exploration well would be included in the program.

Bids will be assessed using the philosophies expressed in ‘Selecting the winning bid’. For a review of how this process has been applied see ‘Shaping the Cooper Basin 21st century renaissance’. The specific scoring scheme is detailed in ‘CO2012 Bid Assessment Policy’ included on this DVD.

In general, it is important to note that the timing of well drilling and seismic or other data acquisition will be taken into account. Key assessment criteria include:

f The number and timing of exploration wells to be drilled in the PEL.

f The number of years the applicant is prepared to guarantee the program.

f The extent to which proposed wells are supported by existing or new programmed seismic data.

f The amount and nature of seismic surveying (i.e. 2D versus 3D) to be carried out and its timing.

f Other data acquisition (e.g. gravity, aeromagnetic or geochemical surveys).

f Seismic reprocessing to be carried out.In addition to the above criteria, where bids are similar, the benefits of the introduction of new explorers into the area may be taken into account. In the case of cascading bids (i.e. multiple or hybrid bids by one applicant or joint venture), only the highest bid will be considered.

The closing date for CO2012-A applications is 4.00 pm, Thursday 4th April 2013.

The Minister is expected to announce the winning bidder, together with details of work programs, by late May 2013.

CONTACT INFORMATIONComments, inquiries and applications for exploration licences may be addressed to:

Executive Director, Energy Resources Division Department for Manufacturing, Innovation, Trade, Resources and Energy Level 7, 101 Grenfell Street Adelaide SA 5000 AUSTRALIA

Phone National (08) 8463 3204 Fax National (08) 8463 3229

Phone International +61 8 8463 3204 Fax International +61 8463 3229

Web www.petroleum.dmitre.sa.gov.au

The envelope containing your application must be marked ‘Confidential — contains PEL application’.

REFERENCESALEXANDER, E.M., 2008. A brief history of exploration in the Cooper Basin, South Australia. PESA EABS3.

CHANEY, A.J., 1998. Sedimentology, facies architecture and hydrocarbon potential of the Merrimelia Formation (glacial Permo-Carboniferous), southern Cooper Basin, South Australia. Aberdeen University. PhD. Thesis (unpublished).

COTTON, T.B., SCARDIGNO, M.F. and HIBBURT, J.E. (Eds), 2006. The petroleum geology of South Australia. Volume 2: Eromanga Basin. 2nd edn. South Australia. Department of Primary Industries and Resources. Petroleum Geology of South Australia Series.

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.

HALLMANN, C.O.E., AROURI, K.R., MCKIRDY, D.M. and SCHWARK, L., 2006. A new perspective on exploring the Cooper/Eromanga Basin petroleum province – evidence of oil charging from the Warburton Basin. Australian Petroleum Production and Exploration Association Journal, 46:261-281.

LAW, B.E., 2002. Basin-centred gas systems. American Association of Petroleum Geologists, V. 86, No. 11 (November 2002), PP. 1891-1919

MCKIRDY, D.M., AROURI, K.R. and KRAMER, L., 2005. Conditions and effects of hydrocarbon fluid flow in the subsurface of the Cooper and Eromanga Basins. University of Adelaide report on ARC SPIRT Project C39943025 for PIRSA and Santos Ltd. South Australia. Department of Primary Industries and Resources. Report Book, 2005/2.

MICHAELSON, B.H. and MCKIRDY, D.M., 1996. Source rock distribution and hydrocarbon geochemistry. 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. 8.

NAKANISHI, T. and LANG, S.C., 2002. Toward an efficient exploration frontier: constructing a portfolio of

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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.