South Australia has opened 13,000 sq km for bids in the third round of exploration licensing in the prolific Cooper basin, including some of the most prospective blocks offered so far, officials said.
In its effort to boost oil and gas exploration in that basin, the state government is offering eight blocks ranging in size from 950 to 3,300 sq km, with some abutting producing oil and gas fields in the core of the basin.
The government has a staggered timetable for the close of applications. Bids on five of the blocks flanking the Cooper basin are due by June 29, while bids for the three blocks surrounding existing fields are due Sept. 28.
"The three inner blocks represent some of the most prospective acreage to be released to date," said Rob Kerin, deputy premier and minister for minerals and energy. As a result, those inner blocks will be licensed for 5 years, renewable for only one additional 5-year term upon surrender of 50% of the area. The five other flank blocks will be renewable for two 5-year terms.
Applicants must submit statements of proposed exploratory operations for each of the 5 years, including estimates of expenditures. At least one exploratory well must be drilled in that period.
Failure to fulfill the work program for any year, short of force majeure or "a compelling technical justification," would result in cancellation of the license, officials said.
The first round of 11 new blocks early last year attracted six successful bids for a total work program commitment of $45 million (Aus.) during the first 5 years of the license terms.
A second round of blocks closer to existing Cooper basin production closed in September, attracting 47 separate bids from 19 companies. The successful bidders will be announced early this year. All three licensing rounds include acreage freed up following expiration last February of exploration permits held by the Santos Group since the mid-1950s. Meanwhile, spurred by the recent run-up in world oil prices, Beach Petroleum NL has tripled its production from the Kenmore oil field in the Queensland sector of the Cooper-Eromanga basins. The firm says it expects output to rise to 930 b/d from 270 b/d.
