AUSTRALIA 2013 Offshore Petroleum Exploration Acreage Release RELEASE AREA V13-2, GIPPSLAND BASIN, VICTORIA HIGHLIGHTS BIDS CLOSE – 22 May 2014 Located in a world class producing petroleum province Shallow to ultra-deep water depths (70– 2500 m) Exploration opportunities in deep-water frontier area Proven plays in anticlines, tilted fault blocks, stratigraphic pinchouts and channel sandstones Multiple potential oil- and gas-prone source rocks and active petroleum systems within the region Figure 1 Location of the 2013 Release Area in the Gippsland Basin Special Notices apply, refer to Guidance Notes Release Area V13-2 straddles the modern continental shelf edge and extends into the Bass Canyon where water depth increases to 3000 m. Geological control is provided by 16 exploration wells which have tested top-Latrobe Group and intra-Latrobe Group targets. Oil and gas discoveries at Angler and Archer/Anemone have demonstrated that a petroleum system involving the Santonian (Upper Cretaceous) Golden Beach Subgroup exists in the southeastern part of the Release Area. The basin developed during the Early Cretaceous as part of the break-up of Gondwana and extension between the Australian and Antarctic continents. Continued rifting into the Late Cretaceous generated a classic extensional geometry comprising a depocentre (the Central Deep) that is flanked by platforms and terraces. Several petroleum systems operate in the basin. The largest oil and gas fields are hosted by top-Latrobe Group (Eocene) shallow marine barrier sandstones with additional discoveries made in intra-Latrobe (Paleocene) coastal plain and deltaic channel sandstones. . AUSTRALIA 2013 Offshore Petroleum Exploration Acreage Release 1 Figure 2 Structural elements of the Gippsland Basin showing petroleum fields and discoveries, the location of regional cross-sections and the 2013 Release Area AUSTRALIA 2013 Offshore Petroleum Exploration Acreage Release 2 Figure 3 Stratigraphy and hydrocarbon discoveries of the Gippsland Basin based on the Gippsland Basin Biozonation and Stratigraphy Chart 40 (Partridge et al, 2012). Geologic Time Scale after Gradstein et al (2012) AUSTRALIA 2013 Offshore Petroleum Exploration Acreage Release 3 Figure 4 Seismic line G92a-3040 across the Southern Terrace and southeastern Central Deep. Location of the line is shown in Figure 2.Seismic line G92a-3040 across the Southern Terrace and southeastern Central Deep. Location of the line is shown in Figure 2 AUSTRALIA 2013 Offshore Petroleum Exploration Acreage Release 4 Figure 5 Seismic line GDW99-18 across the Bass Canyon and Strzelecki High. Location of the line is shown in Figure 2 AUSTRALIA 2013 Offshore Petroleum Exploration Acreage Release 5 PETROLEUM SYSTEMS ELEMENTS Gippsland Basin Sources Upper Cretaceous-Paleogene marine to non-marine Cobia and Halibut subgroups (Latrobe Group) – coals and carbonaceous shales Upper Cretaceous marine Anemone Formation (Golden Beach Subgroup) – shales Upper Cretaceous lacustrine Kipper Formation (Emperor Subgroup) –carbonaceous shales (unproven in release area) Lower Cretaceous non-marine Strzelecki Group (unproven in release area) Reservoirs Seals Regional seals Cretaceous–Paleogene marine and non-marine Latrobe Group; Eocene–Oligocene lower coastal plain Burong Formation (Cobia Subgroup) Paleocene–Eocene Mackerel formations (Halibut Subgroup) Campanian–Maastrichtian Volador formations (Halibut Subgroup) Santonian–Campanian Chimaera and Anemone formations (Golden Beach Subgroup) Oligocene–Miocene marine carbonate Early Oligocene Wedge (EOW), Lakes Entrance and Swordfish formations (Seaspray Group) Intra-Latrobe Group seals Paleocene marine Kate Shale (Halibut Subgroup) Campanian–Paleocene volcanics (several distinct horizons) Santonian–Campanian Anemone Formation (Golden Beach Subgroup) Traps Structural traps (anticlinal closures) A variety of fault related traps, including tilted fault blocks Channel plays Stratigraphic pinch out plays INFRASTRUCTURE AND MARKETS The Release Area is situated to the southeast of pre-existing infrastructure in the Central Deep, which contains most of the major oil and gas fields. Hydrocarbon production in the basin remains strong expanded by a new $4.4 billion investment to develop the Kipper Tuna Turrum project. The oil and gas resources are processed at the Longford facility and made available for the growing SE Australian energy market. Despite long term production, the Gippsland Basin is still recognised as a world class petroleum province, with crude oil and condensate production of 3.34 GL, condensate production of 1.5GL and gas production of 5.5 Gm 3 in the 2010/2011 financial year. CRITICAL RISKS Risks include migration distance and migration shadows. Generation from the Kipper Shale and Anemone Formation is a critical risk since the Halibut Subgroup has not reached thermal maturity in this region, and would rely on longer distance migration from the Central Deep. The timing of peak generation from the Strzelecki and Emperor subgroups compared to trap formation is also a critical risk. These subgroups reached peak generation during the Late Cretaceous (~85–80 Ma), while the main trap-forming event at top-Latrobe level occurred in the Oligocene. Hence, the preservation of any hydrocarbons generated in this early phase must rely on stratigraphic trapping or traps formed within the lower Latrobe Group. AUSTRALIA 2013 Offshore Petroleum Exploration Acreage Release 6 DATA SETS For the Wells Data Listing go to http://www.petroleum-acreage.gov.au/2013/support/geo.html For the Seismic Surveys Listing go to http://www.ga.gov.au/energy/projects/acreage-release-and-promotion/2013.html#data-packages GEOSCIENCE AUSTRALIA GEOSCIENCE AND VICTORIA PRODUCTS Regional Geology and Seismic Australian Southern Margin Synthesis, Project GA707, Client report to Geoscience Australia by Australian Southern Margin Synthesis, Project GA707, Client report to Geoscience Australia by FrOG Tech Pty Ltd., 2009. GEOCAT 68892 XYZ single and multibeam bathymetry grids of the Gippsland Basin, 2012. GEOCAT 74009 Regional Structure of the Gippsland Basin: Interpretation and Mapping of a Deep Seismic Data Set, Australian Geological Survey Organisation Record 1993/13. GEOCAT 14616 A regional Review of the Offshore Gippsland Basin, 1990. GEOCAT 15209 O'Brien, G.W., Bernecker, T., Thomas, J.H., Driscoll, J., Harrison, M. and Frankel, E., 2007. Hydrocarbon prospectivity of areas V07-1, V07-2 and V07-3, north-eastern offshore Gippsland Basin, Victoria, Australia. Victorian Initiative for Minerals & Petroleum Report 92. Department of Primary Industries. Bernecker, T., Thomas, J.H. and O'Brien, G.W., 2006. Hydrocarbon Prospectivity of Areas V06-2, V06-3 and V06-4, Southern Offshore Gippsland Basin, Victoria, Australia. Victorian Initiative for Minerals and Petroleum Report 88, Department of Primary Industries. Bernecker, T., Driscoll, J., Powell, A. and Thomas, J.H., 2004. Hydrocarbon prospectivity of the 2004 Acreage Release Areas, Victoria, Australia. Victorian Initiative for Minerals and Petroleum Report 83. Department of Primary Industries Thomas, J.H., Bernecker, T., and Driscoll, J., 2003. Hydrocarbon Prospectivity of Areas V03-3 and V03-4, Offshore Gippsland Basin, Victoria, Australia: 2003 Acreage Release. Victorian Initiative for Minerals and Petroleum Report 80. Department of Primary Industries. Bernecker, T., Wong, D., Driscoll, J. and Liberman, N., 2002. Hydrocarbon prospectivity of areas V02-2, V02-3 and V02-4, offshore Gippsland Basin, Victoria, Australia: 2002 Acreage Release. Victorian Initiative for Minerals and Petroleum Report 74. Department of Natural Resources and Environment. Smith, M.A., Bernecker, T., Liberman, N., Moore, D.H. and Wong, D., 2000. Petroleum prospectivity of the deepwater gazettal areas V00-3 & V00-4, southeastern Gippsland Basin, Victoria. Victorian Initiative for Minerals and Petroleum Report 65. Department of Natural Resources and Environment. Wong, D. and Bernecker, T., 2001. Prospectivity and hydrocarbon potential of area V01-4, Central Deep, Gippsland Basin, Victoria, Australia: 2001 Acreage Release. Victorian Initiative for Minerals and Petroleum Report 67. Department of Natural Resources and Environment. Woollands, M.A. and Wong, D. (eds), 2001. Petroleum Atlas of Victoria, Australia. Department of Natural Resources and Environment. Stratigraphy Gippsland Basin Biozonation and Stratigraphy Chart 40 – Gippsland Basin. GEOCAT 75819 AUSTRALIA 2013 Offshore Petroleum Exploration Acreage Release 7 Petroleum Systems and Accumulations The Oils of Eastern Australia, 2002. GEOCAT 68754 South-eastern Australia Surface Geochemistry II: Light Hydrocarbon Geochemistry in Bottom-waters of the Gippsland Basin, Eastern Otway Basin, Torquay Sub-Basin and the Durroon Sub-Basin. Volumes 1 and 2. Australian Geological Survey Organisation Record 1992/54. GEOCAT 14562 Southeast Gippsland Basin Hydrocarbon Prospectivity Package. Bureau of Mineral Resources Record 1991/09. GEOCAT 14395 Australian Petroleum Accumulations Report. Gippsland Basin, Victoria, 1987. GEOCAT 37050 For Geoscience Australia products and for further information or to order these reports contact the Sales Centre: phone 61 (0)2 6249 9966, email sales@ga.gov.au For Geoscience Victoria reports access: http://dpistore.efirst.com.au/ AUSTRALIA 2013 Offshore Petroleum Exploration Acreage Release 8 KEY REFERENCES BERNECKER, T. AND PARTRIDGE, A.D., 2001—Emperor and Golden Beach Subgroups: The onset of Late Cretaceous Sedimentation in the Gippsland Basin, SE Australia. In: Hill, K.C. And Bernecker, T. (eds), Eastern Australasian Basins Symposium, A Refocused Energy Perspective for the Future. Petroleum Exploration Society of Australia, Special Publication, 391–402. BERNECKER, T. AND PARTRIDGE, A.D., 2005—Approaches to palaeogeographic reconstructions of the Latrobe Group, Gippsland Basin, southeastern Australia. The APPEA Journal, 45(1), 581–600. BERNECKER, T., WOOLLANDS, M.A., WONG, D., MOORE, D.H. AND SMITH, M.A., 2001— Hydrocarbon prospectivity of the deep-water Gippsland Basin, Victoria, Australia. The APPEA Journal, 41(1), 79–101. BURNS, B.J., BOSTWICK, T.R. AND EMMETT, J.K., 1987—Gippsland terrestrial oils – recognition of compositional variations due to maturity and biodegradation. The APEA Journal, 27, 73–85. BURNS, B.J., JAMES, A.T. AND EMMETT, J.K., 1984—The use of gas isotopes in determining the source of some Gippsland Basin oils. The APEA Journal, 24, 217–221. DUDDY, I.R., 1994—The Otway Basin: Thermal structural tectonic and hydrocarbon generation histories. In: Finlayson, D.A.I. (ed), NGMA/PESA Otway Basin Symposium Abstracts. Australian Geological Survey Organisation Record 1994/14, 35–42. DUDDY, I.R., 2000—Modelling source rock maturation histories for 7 wells and 7 pseudowells, Gippsland Basin deep water project. Geotrack Report 741. GOLDIE DIVKO, L.M., O’BRIEN, G.W., HARRISON, M.L. AND HAMILTON, P.J., 2010—Evaluation of the regional top seal in the Gippsland Basin: implications for geological carbon storage and hydrocarbon prospectivity. The APPEA Journal 50(1), 463–486. GORTER, J.D., 2001—A marine source rock in the Gippsland Basin? In: Hill, K.C. and Bernecker, T. (eds), Eastern Australasian Basins Symposium, A Refocused Energy Perspective for the Future. Petroleum Exploration Society of Australia, Special Publication, 385–390. GROSS, M., 1993—Determination of reservoir distribution over the Blackback/Terakihi oil field, Gippsland Basin, Australia. The APEA Journal, 33, 1–14. HOCKING, J.B., 1988—Gippsland Basin. In: Douglas, J.G. and Ferguson, J.A. (eds), Geology of Victoria. Victorian Division Geological Survey Australia Inc., Melbourne, 322–347 HOLDGATE, G.R., WALLACE, M.W., DANIELS, J., GALLAGHER, S.J., KEENE. J.B. AND SMITH, A.J., 2000—Controls on Seaspray Group sonic velocities in the Gippsland Basin – multidisciplinary approach to the canyon seismic velocity problem. The APPEA Journal, 40(1), 295–313. MOORE, D.H. AND WONG, D., 2001—Down and out in Gippsland: using potential fields to look deeper and wider for new hydrocarbons. In: Hill, K.C. and Bernecker, T. (eds), Eastern Australasian Basins Symposium, A Refocused Energy Perspective for the Future. Petroleum Exploration Society of Australia, Special Publication, 363–371. PARTRIDGE, A.D., 2012—Palynology and kerogen analyses from seven wells in Gippsland Basin: Anemone-1 & 1A, Carrs Creek-1, Hermes-1, Omeo-1, Perch-1, Sunday Island-1 and Volador-1. Biostrata Report 2012/03 prepared for Geoscience Victoria and Geoscience Australia, 44pp (unpublished). PARTRIDGE, A.D. KELMAN, A.P., KHIDER, K., LE POIDEVIN, S. AND MANTLE, D.J., 2012—Gippsland Basin, Biozonation and Stratigraphy, 2012, Chart 40. Geoscience Australia. GEOCAT 73734 TINGATE, P., CAMPI, M., O'BRIEN, G., MIRANDA, J., GOLDIE-DIVKO, L.M., LIU, K., MILLS, D., VOLK, H., HALL, D. AND HAMILTON, J., 2011—Understanding the plumbing of the Gippsland Basin; new results on fluid migration and reservoir quality. The APPEA Journal 51 (DVD) – extended abstract. AUSTRALIA 2013 Offshore Petroleum Exploration Acreage Release 9