I thought i remember reading Buru applying for the right to explore L23-1 in between the red highlighted EP457 permits.
Does anyone know if the application for L23-1 had been announced by Buru?‘A win’ for new gas supply: Fresh Australian exploration acreage up for grabs
WA government tempts players with eight areas across four prolific basins
The Western Australia government has launched the state’s first exploration acreage offering of 2023, with eight onshore areas up for grabs.
Industry association Australian Energy Producers (the former APPEA) called the round as “a win” for new gas supply and a positive step to delivering energy security to Western Australia following forecasts of growing demand in coming years.
The acreage release comes as Australia’s oil and gas sector is calling for onshore projects to be allowed to access export markets, thereby expanding the number of commercially viable projects and unlocking more domestic supply.
A recent report from Rystad Energy found access to larger export markets reduced the domestic price required for fields to become commercial while improving access to financing, noted Australian Energy Producers.
The eight areas — respectively designated L23-1 to L23-8 — are located two apiece in the Carnarvon, Canning, Perth and Amadeus basins. The largest of these assets, L23-5 in the Amadeus basin, comprises 90 blocks and spans more than 7000 square kilometres.
In contrast, each of the two Perth basin areas — L23-7 and L23-8 — has six blocks and is less than 440 square kilometres in size.
Prospective bidders have until 19 January 2024 to apply for acreage, according to WA’s Department of Mines, Industry Regulation & Safety, which noted that the blocks are being made available under the terms of the Petroleum & Geothermal Energy Resources Act 1967 (PGERA).
The criteria considered for the grant of a petroleum exploration permit include proposed work programmes relative to the whole of the area applied for, the adequacy of the work programme and the applicant’s technical and financial ability to undertake the work, added the department.
“As competing bids will be compared, an applicant’s work programme summary… needs to be specific and clear,” the government agency stressed.
Details that should be spelled out include whether 2D or 3D seismic surveying is planned and the proposed number of line or square kilometres of seismic to be acquired and/or reprocessed. Bidders also need to specify exactly how many wells — exploration or appraisal — they plan to drill and the respective target formations.
The department also wants assurance that the work programme for the initial firm period — the first two years of the permit — is achievable.
“It should be noted that applicants will not be able to change any application details once it has been lodged.”
Applicants are also required to provide an exploration rationale identifying key risks and uncertainties, and how the proposed work programme addresses these issues; and justification of proposed expenditure against each element of the work programme.
Hydraulic fracturing forbidden
The WA government earlier elected to indefinitely extend the moratorium on hydraulic fracturing, which rules this out on any new permit granted from this bid round.
“Furthermore, any subsequent petroleum title deriving from this acreage release process will be prohibited from utilising hydraulic fracturing for exploration or production,” explained the department.
“For clarity this will include any production licences or retention leases arising out a permit granted from Release 1 of 2023.”
Australian Energy Producers WA director Caroline Cherry said that exploration for new gas reserves is the “first step” to keeping WA’s energy supplies reliable and affordable.
“New gas supply is critical to the state’s future with demand set to tighten in coming years as gas powers WA’s resources and growing critical minerals sector and supports renewables in the South West electricity system as coal-fired power exits,” she said.
The Australian Energy Market Operator recently said that WA domestic gas demand would rise from 1099 terajoules per day in 2023 to 1278 terajoules per day in 2032
“Exploration also unlocks community investment and new jobs in regional areas. This release demonstrates the state’s understanding of the importance of new gas to WA’s net zero future,” added Cherry.
