PETROLEUM GEOLOGICAL SUMMARY RELEASE AREAS W11-4, W11-5 AND W11-6, ROWLEY SUB-BASIN, ROEBUCK BASIN, WESTERN AUSTRALIA Bids Close – 12 April 2012 Under-explored sub-basin. Offshore extension of the proven Onshore Canning Basin hydrocarbon province. Phoenix 1 gas column suggests active petroleum system in area. Water depths of approximately 80 m to less than 600 m. 2011 Release of Australian Offshore Petroleum Exploration Areas Release Areas W11-4, W11-5 and W11-6, Rowley Sub-basin, Roebuck Basin, WA Release Area Geology Page 1 of 18 LOCATION The Rowley Sub-basin Release Areas are located approximately 250 km north-northeast of Port Hedland, 150 km west of Broome, and 150 km northwest of the proposed Great Northern Pipeline ( Figure 1). The Release Areas cover the westernmost inboard region of the Rowley Sub-basin and extend into the adjacent Bedout Sub-basin, as well as the Broome Platform and Oobagooma Sub-basin of the offshore Canning Basin. Water depths in this region range from 80 m in the southeast to 590 m in the west-northwest. The three Release Areas over the Rowley Sub-basin are, anticlockwise starting in the northeast, W11-4, W11-5 and W11-6 and comprise approximately 76, 106 and 100 graticular blocks respectively ( Figure 2.). While all the Release Areas cover part of the Rowley Sub-basin, a small portion of W11-4 extends into the western Oobagooma Sub-basin, a small portion of W11-5 lies within the northern Bedout Sub-basin, and W11-6 also covers part of the Bedout Sub-basin, Oobagooma Sub-basin and Broome Platform ( Figure 3). All Release Areas have an interpreted Mesozoic section with a thickness of 2.2 s (TWT) to greater than 2.8 s (TWT) and contain a variety of potential structural and stratigraphic plays. Currently, the petroleum potential of the Rowley Sub-basin is considered poor due to the perceived absence of a prolific source rock (Smith et al, 1999). The limited exploration of the sub-basin has made no economic discoveries, although a tight gas column has been interpreted in Phoenix 1 in the Bedout Sub-basin ( Figure 1). Evidence of hydrocarbon systems in adjacent subbasins includes the Perindi 1 oil indication in the Oobagooma Sub-basin, and the Nebo 1 oil discovery in the Beagle Sub-basin. 2011 Release of Australian Offshore Petroleum Exploration Areas Release Areas W11-4, W11-5 and W11-6, Rowley Sub-basin, Roebuck Basin, WA Release Area Geology Page 2 of 18 RELEASE AREA GEOLOGY Local Tectonic Setting The Rowley Sub-basin is a major westward-thickening upper Paleozoic– Mesozoic depocentre containing about 9 km of Permo-Carboniferous or older strata and up to 6 km of Mesozoic–Holocene sediments terminated at the present continental boundary by large rift faults (Smith et al, 1999). The subbasin is separated from the Beagle Sub-basin and Exmouth Plateau of the Northern Carnarvon Basin to the southwest by the North Turtle Hinge Zone and Thouin Graben, and from the Bedout and Oobagooma sub-basins by the Bedout High and Oobagooma High, respectively. The Paleozoic and lower Mesozoic successions within the Rowley Sub-basin onlap the Broome Platform, Bedout High and Oobagooma High ( Figure 3). Structural Evolution and Depositional History of the Sub-basin The development of the Rowley Sub-basin is largely inferred from what is known of the geological evolution of the adjacent Bedout Sub-basin and Canning Basin, including a lower Ordovician–lower Carboniferous section postulated to underlie the Rowley Sub-basin (Lipski, 1993; Kennard et al, 1994; Smith et al, 1999). The Ordovician–Cenozoic structural and depositional history of the Rowley Sub-basin can be divided into several phases (( Figure 4) Ordovician–middle Carboniferous Late Carboniferous–Permian Triassic–Early Jurassic Early Jurassic–Early Cretaceous Early Cretaceous–Holocene The earliest Ordovician to Carboniferous phase began with the first extensional event recognised in the region, a northeast–southwest extension in the Ordovician. This was followed by north–south compression and uplift (Prices Creek Movement) in the Early Devonian. Three northeast–southwest extensional events occurred in the Late Devonian to Mississippian (early Carboniferous). Ordovician to middle Carboniferous sedimentary rocks, as observed in the onshore Canning Basin, primarily consist of alternating sequences of marine clastic and carbonate rocks, including the primarily transgressive Devonian Reef Complex and Fairfield Group (Kennard et al, 1994). The north-northwest–south-southeast oblique-slip reactivation of preexisting structures, termed the Meda Transpression, terminated this phase of deposition (Kennard et al, 1994; Smith et al, 1999). 2011 Release of Australian Offshore Petroleum Exploration Areas Release Areas W11-4, W11-5 and W11-6, Rowley Sub-basin, Roebuck Basin, WA Release Area Geology Page 3 of 18 The next phase began in the Pennsylvanian (late Carboniferous) with a change to the predominantly northeast-oriented structures of the Roebuck Basin. This was a period of transition from intracratonic extension to extension related to terrane separation from Gondwana (Metcalfe, 1988; Smith et al, 1999). In parts of the Canning Basin, syn-rift sedimentation continued along reactivated intracratonic fractures. Pennsylvanian fluvial deposits are overlain by a thick succession of Permian glacial deposits (Grant Group), in turn overlain by Permian marine and fluvio-deltaic clastic rocks (Poole Sandstone, Noonkanbah Formation, Liveringa Group). The basin fill in the offshore Canning and Roebuck basins during this initial stage is poorly understood. Overlying the Paleozoic sequence is a prominent regional unconformity possibly related to the formation of the Bedout High (Colwell and Stagg, 1994). The Triassic to the Early Jurassic phase was dominated by thermal sag with transgressive marine and fluvio-deltaic sedimentation (Locker Shale, Keraudren and Bedout formations). Separating the lower and upper Keraudren Formation is the Middle Triassic Cossigny Member, a widespread limestone unit seismically expressed as a high-amplitude reflector. Triassic to Early Jurassic deposition was punctuated by multiple northwest–southeast transpressional events, the Fitzroy Movement, focused along the margins of the sub-basins in the Ladinian, Norian and Sinemurian (Smith et al, 1999). The next phase from the Early Jurassic to the Early Cretaceous began after Sinemurian uplift and erosion with accumulation of a broad prograding wedge of fluvio-deltaic sediments (Depuch Formation). The deposition occurred during thermal subsidence across the shelf. Continental breakup in the Callovian resulted in a second phase of prominent uplift and erosion. Subsequent thermal subsidence allowed accumulation of condensed marine mudstones (Baleine and Egret formations) until the Early Cretaceous. An influx of siliciclastic material (Broome Sandstone) occurred in the Valanginian with further uplift of the sediment source (Smith 1999, Smith et al, 1999). The most recent phase began with thermal relaxation of the crust soon after the Valanginian break-up. This led to the development of a passive-margin succession of marine mudstones and marls. A major progradational carbonate wedge developed across the entire North West Shelf in the Cenozoic. Collision of the Australian and Eurasian plates in the mid-Miocene led to transpressional inversion of north-northwest-trending Paleozoic faults, especially in the northeast of the adjacent Oobagooma Sub-basin (Smith et al, 1999). 2011 Release of Australian Offshore Petroleum Exploration Areas Release Areas W11-4, W11-5 and W11-6, Rowley Sub-basin, Roebuck Basin, WA Release Area Geology Page 4 of 18 EXPLORATION HISTORY Few wells have been drilled in the Roebuck and offshore Canning basins due in part to the historical perception that these Basins are not highly prospective. Almost all of the drilling (12 of the total of 15 wells) in these offshore basins was undertaken in the Oobagooma and Bedout sub-basins in the early 70s and early 80s, the other three wells were drilled in the outboard Rowley Sub-basin; East Mermaid 1 (1973), Whitetail 1 (2003) and Huntsman 1 (2006). Drilling in the early 70s was underpinned by several small 2D seismic grids and a few regional 2D grids. In the late 80s to early 90s, more regional 2D seismic was acquired and the North West Shelf tie lines were shot by AGSO. An additional episode of seismic acquisition occurred between 1998 and 2002, and included the first 3D grids used to determine objectives drilled in 2003 and 2006 by Whitetail 1 and Huntsman 1 respectively. Currently, two seismic grids are being acquired by Petroleum Geo-Services (PGS) across the Release Areas, and other 2D and 3D seismic has recently been acquired to the south of W11-5. Recent data acquisition in the area conducted by Geoscience Australia includes a hydrocarbon seepage survey in 2006 over the Roebuck and offshore Canning Basins and an aeromagnetic survey in the Oobagooma Sub-basin in 2007. Within the Roebuck Basin, results to date have been limited to gas shows and discoveries in the Triassic Sandstones of Phoenix 1 and 2. In the Oobagooma Sub-basin, Perindi 1 intersected several intervals in Paleozoic clastics and carbonates with oil indication. In the more intensively explored Beagle Subbasin to the southwest, oil was discovered in the Callovian Calypso Formation sandstones at Nebo 1 (Osborne, 1994), but no economic discoveries in any of these offshore basins have been made. From the 2007 and 2008 acreage release permits immediately to the east and south of the Release Areas have been awarded ( Figure 1). Woodside Energy Ltd has WA-415-P and WA-416-P abutting W11-4 and W11-6 respectively. In 2010 Woodside Energy completed a 4,100 km 2D seismic survey (Koolama 2D) mostly over WA-415-P and WA-416-P (Woodside Petroleum Ltd, 2010, p.7). The blocks adjacent to W11 and W11-6 are operated/held by Finder Exploration (WA-435-P and WA-436-P) and Carnarvon Petroleum Ltd (WA-443-P). Finder Exploration conducted a 15,856 km2 aeromagnetic survey over the entirety of WA-436-P and a portion of WA443-P (Carnarvon Petroleum Ltd, 2010, p. 6), with further plans for 2D and 3D seismic surveys across WA-435-P and WA-436-P, including a significant portion of the 1,100 km2 Phoenix 3D survey that should lie within WA-435-P. Well Control Nine wells have been drilled in the Roebuck Basin and six in the offshore Canning Basin; none with commercial success ( Figure 1). Three wells (East 2011 Release of Australian Offshore Petroleum Exploration Areas Release Areas W11-4, W11-5 and W11-6, Rowley Sub-basin, Roebuck Basin, WA Release Area Geology Page 5 of 18 Mermaid 1, Huntsman 1 and Whitetail 1) have unsuccessfully tested the potential of the Rowley Sub-basin, including deep-water prospects. East Mermaid 1 lies within Release Area W11-5, only 10s of meters from Release Area W11-4 and approximately 1 km west of Release Area W11-6. Six wells have been drilled in the adjacent Bedout Sub-basin (Bedout 1, Keraudren 1, Lagrange 1, Minilya 1 and Phoenix 1 and 2), with the only significant hydrocarbon indications being the tight gas column discovery in Phoenix 1 and gas shows in Phoenix 2. Of the six wells drilled in the offshore Canning Basin (Kambara 1, Lacepede 1, Minjin 1, Pearl 1, Perindi 1 and Wamac 1) all are within the Oobagooma Sub-basin. Ten wells have been drilled in the eastern part of the Beagle Sub-basin, southwest of the Release Areas (Bruce 1, Cimba 1, Darwin 1, Depuch 1, Halo 1, Huascaran 1, Nebo 1, North Turtle 1, Picard 1 and Poissonnier 1). The only significant discovery in the Beagle Sub-basin is a small oil pool at Nebo 1. The following summaries of key wells are based on the relevant well completion reports. Lacepede 1 and 1A (1970) Lacepede 1 and 1A were drilled by BOC of Australia Ltd approximately 129 km northwest of Broome in the central Oobagooma Sub-basin. Lacepede 1 was abandoned at 224 m due to technical difficulties and Lacepede 1A reached a total depth (TD) of 2,286 mRT. The wells were drilled to test an elongate east–west-trending anticlinal structure. Lacepede 1A penetrated Miocene sediments unconformably overlying an Early Cretaceous to Pennsylvanian (upper Carboniferous) sedimentary succession (originally interpreted to be upper Permian; Helby and Partridge, 1982). Lacepede 1A penetrated the most complete Jurassic section in the Canning Basin at that time, with rocks of Early Jurassic age being recorded for the first time. The entire Triassic and most of the Permian section is absent, such that Jurassic (Tithonian–Toarcian) sediments unconformably overlie lower Permian (Asselian) to upper Carboniferous sediments. No significant hydrocarbons shows were encountered in the wells. Slight increases in the background gas readings occurred in the Jurassic and Permian sections and gas prone Middle to Upper Jurassic shales were identified with TOC of up to 2.3% (Conoco, 1992). However, no fluorescence was observed and wireline logs indicated 100% water saturation throughout the well. Lacepede 1A confirmed the presence of thick, porous and permeable reservoirs in the Lower Cretaceous and Jurassic sections and is thought to have adequately tested the Cretaceous, Jurassic and uppermost Permian sections of the Lacepede structure. Bedout 1 (1971) Bedout 1 was drilled by BOC of Australia Ltd to test the seismicallydelineated, unfaulted, anticlinal dome of the Bedout High. The well reached a total depth of 3,073 mRT, and penetrated 465 m of Upper Cretaceous claystone and carbonate, 450 m of Lower Cretaceous clastic sediments, and a 1,113 m thick Jurassic succession of deltaic sandstone with interbedded claystone and coal, including potential source rocks. A thin section (52 m) of Triassic sandstone and claystone overlies volcaniclastic conglomerate in the bottom of the well. The latter were not anticipated and were interpreted as 2011 Release of Australian Offshore Petroleum Exploration Areas Release Areas W11-4, W11-5 and W11-6, Rowley Sub-basin, Roebuck Basin, WA Release Area Geology Page 6 of 18 basement. Good reservoirs were confirmed in the Upper Cretaceous, Jurassic and Upper Triassic intervals, but no hydrocarbon shows were encountered in the well. Wamac 1 (1973) Wamac 1 was drilled by Amax Petroleum (Australia) Inc. to a TD of 2,764 mRT and is located 110 km northwest of Broome in the central Oobagooma Sub-basin ( Figure 5). The well tested the Paleozoic sedimentary succession in an east–west elongated structural feature. Seismic mapping indicated an areal closure of >250 km2 in the Devonian and also possible closure in the Lower Permian. Wamac 1 penetrated a Quaternary to Carboniferous sedimentary succession similar to that in Lacepede 1A. The Paleozoic sediments are intruded by Permian to Lower Triassic dolerite. Difficulties encountered while drilling one of these sills led to termination of the well ~900 m above planned TD. Absence of hydrocarbon shows may have been due to lack of structural closure in the Mesozoic and upper Paleozoic or low porosity and negligible permeability throughout the Paleozoic, although logs and lithologic analysis indicate good reservoir quality through the Lower Cretaceous and Jurassic. Immature source rock intervals in the Jurassic indicate potential for oil and gas in deeper parts of the basin. East Mermaid 1 (1973) East Mermaid 1 lies within Acreage Release Block W11-5 in the southeastern part of the Rowley Sub-basin, and was drilled by Shell Development Australia Pty Ltd. It was drilled to test a series of northeast–southwest oriented, low relief, anticlinal highs mapped and displaying closure in the Middle Jurassic and throughout the Cretaceous. East Mermaid 1 ST1 reached a total depth of 4,068 mRT, intersecting a predominantly fine-grained Cretaceous succession and a thick (1,184 m) Jurassic succession of sandstone, siltstone and coal. The well confirmed the predicted structural configuration and identified the primary target Jurassic sandstones as terrestrial in nature. No hydrocarbons were encountered in the well, which was attributed to the lack of a proximal source rock. Recent research suggests that the tested anticlinal structures are associated with the 'Mermaid Fault Zone', in which faults extend to or near to the seabed, and are currently active (Jones et al, 2007). Therefore, trap integrity is a major risk at this site ( Figure 6). Minilya 1 (1974) Minilya 1 was drilled by BOC of Australia Ltd to test an interpreted faultcontrolled positive feature located in the outboard part of the Bedout Subbasin. The well reached a total depth of 2,400 mRT and intersected Cretaceous claystone, sandstone and carbonates terminating in a succession of Middle Jurassic sandstone and claystone with minor coal. These sandstones, the primary objective, showed variable but good porosity. Sandstones with effective porosity were also intersected in the Upper Cretaceous succession. No significant hydrocarbon shows were recorded in the well. Interpretation of seismic data acquired over the area in 1992 (C92A) suggests that there is no closure on the Minilya 1 structure (Esso, 1994). 2011 Release of Australian Offshore Petroleum Exploration Areas Release Areas W11-4, W11-5 and W11-6, Rowley Sub-basin, Roebuck Basin, WA Release Area Geology Page 7 of 18 Phoenix 1 (1980) Phoenix 1 was drilled by BP Petroleum Development Australia Pty Ltd to test an interpreted large northeast–southwest trending, elongate anticline transected by a series of north-northeast to south-southwest trending faults in the Bedout Sub-basin. These faults were interpreted to have formed four main culminations, with Phoenix 1 located on the most central of these. More recent seismic data suggest, however, that structuring in the area is more complex (Apache, 1995). The primary objective of the well was Middle to Upper Triassic sandstone of the Keraudren Formation, while Middle Jurassic sandstone units directly below the Callovian breakup unconformity were a secondary target. However, seismic data indicated a lack of closure at the upper objective. The well reached a total depth of 4,880 mRT, exceeding the planned total depth of 4,450 m after gas-bearing Middle Triassic sandstones were intersected. Reservoirs in the Keraudren Formation provided good hydrocarbon indications. Despite good reservoir characteristics in the upper Keraudren Formation sandstones (average porosity of 14%, ranging from 19– 12%, decreasing with depth), detected hydrocarbons were limited to oil staining and cut fluorescence. The lower Keraudren Formation sandstone reservoirs exhibited gas and fluorescence (all sandstones below 4,223 mRT are gas-bearing; net gas pay is estimated to be 110.5 m over seven zones), but logs and core analysis indicate very low porosity (average porosity of 9%, ranging from 4–15%). Hydrocarbon types in the lower Keraudren Formation sandstones show fractionation with depth, which suggests intra-formational sourcing of gas and existence of discrete reservoirs that are not in communication due to intercalated sealing shales. Drilling was terminated without testing when it was deemed unsafe to continue with the available pressure-control equipment. The well was abandoned in January 1983. Phoenix 2 (1982) Phoenix 2 was drilled by BP Petroleum Development Australia Pty Ltd to test Triassic sandstones in a fault block forming part of the 'Phoenix structure' in the Bedout Sub-basin. The well reached a total depth of 4,967 mRT. The sedimentary succession intersected is very similar to that in Phoenix 1, but the basal 591 m of Lower to Middle Triassic Locker Shale is interpreted as the outboard facies equivalent of the lower Keraudren Formation interpreted in Phoenix 1. Gas shows are interpreted at low saturations in thin zones within the Triassic sandstones, which have extremely low permeabilities and generally poor reservoir qualities. Oil indications, such as natural fluorescence and possible staining, were also identified. The targeted reservoirs showed significantly lower permeabilities compared to Phoenix 1, and therefore had lower hydrocarbon saturations. Calculations based on the low permeabilities, indicated that commercial hydrocarbon flows could not be obtained from the reservoir sandstones. Therefore, no production testing was carried out. Modelling by Lisk et al (2000) suggests the Triassic Keraudren Formation is mature for gas/condensate and minor oil generation in more deeply buried sections of the Bedout Sub-basin. This unit is mature in Phoenix 1 and 2011 Release of Australian Offshore Petroleum Exploration Areas Release Areas W11-4, W11-5 and W11-6, Rowley Sub-basin, Roebuck Basin, WA Release Area Geology Page 8 of 18 predominantly gas prone, with fluorescence and oil staining likley sourced from thin shales within the unit (Forth and Jourdan, 1982). The Keraudren Formation at Phoenix 2 is early mature for oil and predominantly gas prone, but one thin zone is modelled to be capable of generating light oil. Lagrange 1 (1983) Lagrange 1 was drilled by BP Petroleum Development Australia Pty Ltd to test Upper Triassic sandstones on the irregular anticlinal crest of the Bedout High, with secondary targets in the Lower to Middle Jurassic and, more speculatively, in Paleozoic sediments. The well reached a total depth of 3,260 mRT and penetrated a sedimentary succession very similar to that in Bedout 1. Paleozoic targets were not reached because an unexpectedly thick succession of volcanics (<391 m) was encountered. Lagrange 1 was plugged and abandoned as a dry hole. Whitetail 1 (2003) Whitetail 1 was drilled by Woodside Energy Limited in 953 m of water in the Rowley Sub-basin. It tested the gas potential of a large tilted fault block intersected by a series of north–south trending faults. Lower and Upper Cretaceous regional seals were shown to be present over the structure and micro-permeability tests indicate effective sealing capacity. The target reservoir (Depuch Formation) showed average log porosity of 27%, but was interpreted as water wet to total depth (2,504 mRT). No hydrocarbon shows were evident. Vitrinite reflectance indicates the sequence penetrated is immature for hydrocarbon generation, although spore colouration within the Depuch Formation indicate marginal maturity for oil generation. Analysis of cuttings, sidewall cores and well logs suggest there was no effective hydrocarbon charge. Two potential reasons for charge failure are an ineffective source kitchen and a lack of fault seal to the northwest of the prospect. Neither were able to be assessed from well results. Huntsman (2006) Huntsman 1 was drilled by Woodside Energy Limited as a rank wildcat in the western Rowley Sub-basin in a water depth of 1,469 m. The well reached a total depth of 4,375 mRT, and tested Middle and Lower Jurassic reservoir targets. Quality reservoir sandstones were encountered, but proved to be water wet with no significant hydrocarbon shows acknowledged (Woodside Petroleum Ltd, 2006, p. 7). Lack of charge is deemed to be the cause of failure. Detailed interpretative results had not been released at the time of writing. For further details regarding wells and available data follow this link: http://www.ret.gov.au/Documents/par/data/documents/Data%20list/data%20li st_rowley_AR11.xls 2011 Release of Australian Offshore Petroleum Exploration Areas Release Areas W11-4, W11-5 and W11-6, Rowley Sub-basin, Roebuck Basin, WA Release Area Geology Page 9 of 18 Data Coverage While only one well has been drilled within the Acreage Release Areas (East Mermaid 1) more than 25 seismic surveys cover these areas. These seismic surveys are of variable quality and vintage. One of the earlier and more regional seismic surveys, Mermaid Cartier, acquired in 1973 by the Burmah Oil Company of Australia Ltd., crosses the Browse, offshore Canning and Roebuck basins. This survey covers the eastern portion of W11-4 and a few lines cross into W11-6. During a later stage of regional exploration the Japan National Oil Company ran two regional surveys, the Offshore Canning Basin Marine Geophyscial Survey in 1987 and the Offshore Fitzroy Graben in 1988, providing coverage over the three Release Areas. In 1990 and 1993, AGSO acquired seismic lines providing regional ties to wells in adjacent basins ( Figure 5 Figure 6 and Figure 7). Several surveys during 1998 and 1999 provide grids with line spacing around 10 km over a large portion of the Rowley Sub-basin, including half of W11-4 and part of W11-5. The Tarantula survey, shot by Woodside Energy Ltd in 2000, provides good high resolution coverage over the western part of W11-5, and the Veritas Browse 2001 MC2D survey provides a grid with 6 to 10 km line spacing over most of W11-4 and some of W11-6. The Tarantula 2D survey is currently being reprocessed by CGGVeritas and Multiclient Geophysical (MCG). In 2010, PGS acquired additional regional tie lines crossing the Release Areas including the Deepwater Canning (Golden Orb) multi-client survey and the New Dawn survey. No 3D seismic has been obtained within the Release Areas. Significant gaps in the closely spaced seismic coverage lie along the boundary between the Rowley and adjacent Sub-basins, and include large areas of W11-5 and W11-6. To view image of seismic coverage follow this link: http://www.ga.gov.au/energy/projects/acreage-release-andpromotion/2011.html#data-packages Other notable datasets gathered in or near the Release Areas includes the Geoscience Australia hydrocarbon seepage survey conducted in the Roebuck and offshore Canning Basins in June 2006; several survey locations are within W11-4 and W11-5 (Survey SS06/06; Jones et al, 2007). No definitive evidence of natural hydrocarbon seepage was detected. Head space gas analyses of gravity core sub-samples, and biomarker screening of sediments and carbonate concretions, revealed no thermogenic hydrocarbons or biomarkers diagnostic of methane oxidation. Additionally, two aeromagnetic surveys have been conducted adjacent to the Release Areas; a Geoscience Australia survey in 2007 to the east of W11-4 and W11-6 and a Carnarvon Petroleum and Finder Exploration survey in 2010 to the south of W11-5. The two surveys cover an area of more than 47,500 km2. 2011 Release of Australian Offshore Petroleum Exploration Areas Release Areas W11-4, W11-5 and W11-6, Rowley Sub-basin, Roebuck Basin, WA Release Area Geology Page 10 of 18 PETROLEUM SYSTEMS AND HYDROCARBON POTENTIAL The petroleum potential of the offshore Canning and Roebuck Basins is currently considered to be poor compared to other areas along the North West Shelf, because of the perceived absence of a prolific source rock (Smith et al, 1999). Interpreted mild structural deformation in the Late Jurassic and Early Cretaceous suggests that restricted depocentres did not exist, thus claystone source rocks typical of the adjacent Carnarvon and Browse basins could not accumulate in the Roebuck Basin. Several alternative source rock intervals have been proposed for the Roebuck Basin (Kennard et al, 1994; Smith, 1999; Geoscience Australia and Geomark Research, 2005). Table 1 lists these potential source rock intervals along with proposed reservoirs, seals and play types. Table 2: Potential Petroleum Systems Elements Summary Sources Reservoirs Seals Larapintine 2 (Goldwyer Fm, Nambeet Fm) Larapintine 3 (Pillara and Nullara reef complexes, Fairfield Grp) Larapintine 4 (Laurel Fm, Anderson Fm) Gondwana 1 (Poole Ss, Noonkanbah Fm) Gondwana 2 (Locker Sh, Keraudren Fm) Westralian 1 (Depuch Fm) Westralian 3 (Baleine Fm) Larapintine 3 and 4 (Tandalgoo Fm Poulton Fm) Larapintine 3 and 4 (Anderson Fm) Gondwana 1 (Grant Gp) Gondwana 2 (Locker Sh, Keraudren Fm) Westralian 1 (Depuch Fm) Westralian 3 (Egret Fm, Broome Sdstn, Mermaid Fm) Gondwana 2 (Locker Sh, Keraudren Fm, Cossigny Mbr) Westralian 1 (Bedout Fm, Depuch Fm) Westralian 3 (Baleine Fm, Broome Ss, Mermaid Fm) 2011 Release of Australian Offshore Petroleum Exploration Areas Release Areas W11-4, W11-5 and W11-6, Rowley Sub-basin, Roebuck Basin, WA Release Area Geology Page 11 of 18 Lower–Upper Triassic Locker Sh, Keraudren Fm, Cossigny Mbr; Onlap Lower–Middle Jurassic Depuch Fm; Prodelta, Barrier Island, Channels Mesozoic to Cretaceous rift related structural traps Miocene collision structural traps Play Types Potential Source Rocks Although organic-rich marine shales are well documented within the Ordovician succession of the onshore Canning Basin, it is likely that this Ordovician Larapintine 2 Petroleum system is not well developed across the Roebuck Basin and therefore not highly prospective (Taylor, 1992; Kennard et al, 1994). These sources are characterised by the occurrence of the oil-prone alga Gloeocapsomorpha prisca, and are particularly well developed on the terraces along the northern flank of the Broome Platform (Kennard et al, 1994). If source rock intervals do exist they may be generating hydrocarbons for Mesozoic reservoirs along basin margins (Kennard et al, 1994; Lisk et al, 2000). In the onshore Canning Basin there are several potential Devonian and Carboniferous source rock intervals (Larapintine 3 and 4), but whether these intervals are present in the Rowley Sub-basin is unknown (Kennard et al, 1994; Nicoll et al, 2009). Transgressive Early Permian, Gondwana 1, marine shales of the Poole Sandstone and Noonkanbah Formation are organic-rich in the Fitzroy Trough (Kennard et al, 1994), and form part of a global Pennsylvanian (upper Carboniferous)-Early Permian source unit (Warris, 1993). These sources may also be present, and are likely to be mature in the more deeply buried portions of the Roebuck and offshore Canning basins. Marine shales of the underlying upper Grant Group are also locally organic-rich, but generally have poor generative potential. The most prospective petroleum source rock is part of the Gondwana 2 system and was identified by Smith et al (1999) as Tr1 and Tr2 ( Figure 8). These comprise transgressive shale and minor coal intervals within the Locker Shale and Keraudren Formation (Esso, 1994; Smith et al, 1999; Woodside Energy Limited, 2001). The gas discovery in Phoenix 1 and the gas show in Phoenix 2 are attributed to these source intervals. In the outer Rowley Sub-basin, middle mature Tr1 and Tr2 could be presently expelling liquids (Smith et al, 1999; O’Brien et al, 2003). Belonging to the Westralian 1 system are several thin coaly and alga-rich layers and correlative pro-delta marine shales of the Depuch Formation. These have been identified through geochemical studies of well cuttings and 2011 Release of Australian Offshore Petroleum Exploration Areas Release Areas W11-4, W11-5 and W11-6, Rowley Sub-basin, Roebuck Basin, WA Release Area Geology Page 12 of 18 sequence stratigraphic interpretations, and may be early to late mature beneath the Oligocene carbonate wedge (Conoco, 1992; Smith et al, 1999). Post-dating the Callovian breakup are potential source rocks of the Westralian 3 system including the Baleine Formation ( Figure 4). These transgressive marine deposits occur in large volumes but are only likely to be mature beneath the Oligocene carbonate wedge (Smith et al, 1999). Potential Reservoirs In the Rowley Sub-basin potential sandstone reservoirs occur at several stratigraphic levels. These include sandstones within the Permian Grant Group, shoreward depositional facies of the Keraudren Formation and Locker Shale, and Lower Cretaceous deltaic sands (Lipski, 1993; Kennard et al, 1994; Smith et al, 1999). The Keraudren Formation and Locker Shale are likely to have higher porosity and permeability in the more shallowly buried areas where there is less potential for secondary carbonate and silica precipitation (Lipski, 1993). The Jurassic Depuch Formation offers a variety of potential reservoir sands within the fluvio-deltaic complex, including channel, coastal and potential barrier-bar sand bodies (Smith et al, 1999). The youngest possible reservoirs proposed are deltaic sand bodies developed in the Lower Cretaceous succession on the inner axis of the Rowley Sub-basin during breakup of Australia’s western margin (Smith et al, 1999). Potential Seals The proposed seals for the Rowley Sub-basin include intraformational shales in the Keraudren Formation (effective in Phoenix 1), the Cossigny Member of the Keraudren Formation and the Locker Shale (Lipski, 1993). Additional seals could include the transgressive shales of the Bedout Formation, nearshore claystone beds and prodelta shales in the Depuch Formation, and the Lower Cretaceous regional claystone overlying the Callovian unconformity (Lipski, 1993; Smith et al, 1999). Potential Play Types Onlap plays of Triassic age, and subtle fluvio-deltaic complex plays in the Jurassic have been proposed for the Rowley Sub-basin. The Triassic onlap plays along the Bedout High could be charged from Larapintine or Gondwana source rocks and sealed by the Cossigny Member of the Keraudren Formation. Potential stratigraphic plays in the Jurassic Depuch Formation consist of a variety of sand bodies within the fluvio-deltaic complex, charged either intraformationally or from underlying source rocks (Lipski, 1993; Smith et al, 1999). In addition to stratigraphic plays, there is potential for various structural traps to be present along several largely untested fault trends within the Roebuck Basin, including widespread structuring at the top Cossigny Member and base Cretaceous levels as suggested by seismic data acquired subsequent to the drilling of Phoenix 1 and 2 (Apache, 1995). 2011 Release of Australian Offshore Petroleum Exploration Areas Release Areas W11-4, W11-5 and W11-6, Rowley Sub-basin, Roebuck Basin, WA Release Area Geology Page 13 of 18 Critical Risks Effective hydrocarbon generation in the Rowley Sub-basin is a major risk, because of the lack of significant hydrocarbon discoveries. However, the interpreted gas column at Phoenix 1 is evidence of generation within the Rowley Sub-basin, and widespread grains with oil inclusions (GOITM) discovered in wells across the Roebuck and offshore Canning Basins may be indicative of widespread migration. Therefore, the lack of significant discoveries could be in part due to a lack of valid traps, or due to breaching by recent movement on faults, rather than a lack of oil charge (Lisk et al, 2000; Jones et al, 2007). Other risks include timing of trap and seal development and late gas flushing (Lisk et al, 2000). 2011 Release of Australian Offshore Petroleum Exploration Areas Release Areas W11-4, W11-5 and W11-6, Rowley Sub-basin, Roebuck Basin, WA Release Area Geology Page 14 of 18 FIGURES Figure 1: Location map of Release Areas W11-4, W11-5 and W11-6, in the Rowley Sub-basin, Roebuck Basin, showing existing exploration permits, wells and proposed Great Northern Pipeline. Figure 2: Graticular block map and graticular block listings for Release Areas W11-4, W11-5 and W11-6, in the Rowley Sub-basin, Roebuck Basin. Figure 3: Structural elements of the Roebuck Basin and adjacent basins (after Smith et al, 1999). Figure 4: Generalised stratigraphy of the Roebuck Basin and the adjacent Canning Basin regions, based on the Northern Carnarvon Basin Biozonation and Stratigraphy Chart (Nicoll et al, 2010), Smith et al (1999). Geologic Time Scale after Gradstein et al (2004) and Ogg et al (2008). Figure 5: AGSO seismic line 120/11 through Release Area W11-4 and Wamac 1 well (see Figure 3 for location). Figure 6: AGSO seismic line 120/03 through Release Areas W11-4, W11-5, W11-6 and East Mermaid 1 well (see Figure 3 for location). Figure 7: AGSO seismic line 120/09 through Release Areas W11-5 and W11-6 (see Figure 3 for location). Figure 8: Petroleum systems of the Roebuck Basin (modified after Smith, 1999 and Smith et al, 1999). 2011 Release of Australian Offshore Petroleum Exploration Areas Release Areas W11-4, W11-5 and W11-6, Rowley Sub-basin, Roebuck Basin, WA Release Area Geology Page 15 of 18 REFERENCES APACHE, 1995—H93B Marine Seismic Survey Final Report, unpublished. CARNARVON PETROLEUM LIMITED, 29 October 2010—[Web page] Quarterly Activities Report, http://www.carnarvon.com.au/docs/CVN%20September%202010%20Quarterl y%20Report.pdf (last accessed 30 November 2010). COLWELL, J.B. AND STAGG, H.M.J., 1994—Structure of the Offshore Canning Basin: First impressions from the new regional seep-seismic data set. In: Purcell, P.G. and Purcell, R.R. (editors), The Sedimentary Basins of Western Australia: Proceedings of Petroleum Exploration Society Australia Symposium, Perth, 1994, 757–768. CONOCO, 1992—Source Rock Evaluation and Kerogen Kinetics of Selected Intervals from Barcoo-1, Lacepede-1, and Phoenix-2, unpublished. ESSO, 1994—Exploration Permit WA-236-P Interpretation Report for C92A Seismic Survey, unpublished. FORTH, P.A. AND JOURDAN, C.A., 1982—Drilling proposal for Phoenix-3, WA137P, North West Shelf. British Petroleum Development Australia Pty Ltd. GEOSCIENCE AUSTRALIA AND GEOMARK RESEARCH, 2005—The Oils of Western Australia II. Regional Petroleum Geochemistry and Correlation of Crude Oils and Condensates from Western Australia and Papua New Guinea. Unpublished proprietary report Geoscience Australia and GeoMark Research Ltd, Canberra and Houston. GRADSTEIN, F., OGG, J. AND SMITH, A., 2004—A Geologic Time Scale 2004. Cambridge: Cambridge University Press, 589 HELBY, R. AND PARTRIDGE, A.D., 1982—Palynological Review Selected Stratigraphic Intervals in Lacepede-1A, Meda-1, Tappers Inlet-1 and Wamac1. EAL report 1981/25. JONES, A.T., KENNARD, J.M., RYAN, G.J., BERNARDEL, G., EARL, K., ROLLET, N., GROSJEAN, E. AND LOGAN, G.A., 2007—Geoscience Australia Marine Survey SS06/06 Post Survey Report: Natural hydrocarbon seepage survey on the central North West Shelf. GA Record 2007/21. KENNARD, J.M., JACKSON, M.J., ROMINE, K.K., SHAW, R.D. AND SOUTHGATE, P.N., 1994—Depositional sequences and associated petroleum systems of the Canning Basin. In: Purcell, P.G. and Purcell, R.R. (editors), The Sedimentary Basins of Western Australia: Proceedings of Petroleum Exploration Society of Australia Symposium, Perth, WA, 1994, 657–676. 2011 Release of Australian Offshore Petroleum Exploration Areas Release Areas W11-4, W11-5 and W11-6, Rowley Sub-basin, Roebuck Basin, WA Release Area Geology Page 16 of 18 LIPSKI, P., 1993—Tectonic setting, stratigraphy and hydrocarbon potential of the Bedout Sub-basin, North West Shelf. The APEA Journal, 33(1), 138–150. LISK, M., OSTBY, J., RUSSEL, N.J. AND O’BRIEN, G.W., 2000—Oil migration history of the offshore Canning Basin. The APPEA Journal, 40 (2), 133–151. METCALFE, I., 1988—Origin and assembly of south-east Asian continental terranes. Geological Society, Special Publications, 37, 101–118. NICOLL, R.S., LAURIE, J.R., KELMAN, A.P., MANTLE, D.J., HAINES, P.W., MORY, A.J. AND HOCKING, R.M., 2009—Canning Basin Biozonation and Stratigraphy, Chart 31. in Basin Biozonation and Stratigraphy Charts 2009 CD – GeoCat # 68801. Geoscience Australia. O’BRIEN, G.W., COWLEY, R., LAWRENCE, G., WILLIAMS, A.K., WEBSTER, M., TINGATE, P. AND BURNS, S., 2003—Migration, leakage and seepage characteristics of the offshore Canning Basin and northern Carnarvon Basin: Implications for hydrocarbon prospectivity. The APPEA Journal, 43, 149–166. OGG, J. G., OGG, G. AND GRADSTEIN, F. M., 2008—The Concise Geologic Time Scale. Cambridge: Cambridge University Press, 177. OSBORNE, D.G., 1994—Nebo Oil discovery, Beagle Sub-basin. In: Purcell, P.G. and Purcell, R.R. (editors), The Sedimentary Basins of Western Australia: Proceedings of Petroleum Exploration Society of Australia Symposium, Perth, WA, 1994, 653–654. SMITH, S.A., 1999—The Phanerozoic basin-fill history of the Roebuck Basin. PhD Thesis, University of Adelaide, unpublished. SMITH, S.A., TINGATE, P.R., GRIFFITHS, C.M. AND HULL, J.N.F., 1999— The structural development and petroleum potential of the Roebuck Basin. The APPEA Journal, 39 (1), 364–385. TAYLOR, D., 1992—A Review of Ordovician Source Rocks, Canning Basin, Western Australia. BMR Record 1992/43. WARRIS, B.J., 1993—The hydrocarbon potential of the Palaeozoic basins of Western Australia. The APEA Journal, 33, 123-137. WOODSIDE ENERGY LIMITED, 2001—Tarantula 2D Seismic Interpretation Report, unpublished. WOODSIDE PETROLEUM LIMITED, 19 October 2006—[Web page] Third Quarter Activities Report, http://www.asx.com.au/asxpdf/20061019/pdf/3z2cf8lkzqll0.pdf (last accessed 2 November 2010). 2011 Release of Australian Offshore Petroleum Exploration Areas Release Areas W11-4, W11-5 and W11-6, Rowley Sub-basin, Roebuck Basin, WA Release Area Geology Page 17 of 18 WOODSIDE PETROLEUM LIMITED, 23 July 2010—[Web page] Second Quarter Activities Report, http://www.woodside.com.au/NR/rdonlyres/1CDA8CF4-3630-4BC6-B2831FB6B48F1E17/0/SecondQuarter2010Report.pdf (last accessed 30 November 2010). Front page image courtesy of Petroleum Geo-Services. 2011 Release of Australian Offshore Petroleum Exploration Areas Release Areas W11-4, W11-5 and W11-6, Rowley Sub-basin, Roebuck Basin, WA Release Area Geology Page 18 of 18