huge potential for gas and oil

The area of South Australia being explored for petroleum has more than doubled, with the granting of eight new licences.



The new Petroleum Exploration Licences (PELs), representing a total area of 74,116 square kilometres, have been offered to SAPEX Limited.



Seven of the licences are located in the Arckaringa Basin, in the State?s far north, and one is in the State?s mid-North. The Arckaringa licences have potential for oil and both conventional gas and coal gas. The mid-North licence has potential for coal gas.



The new licences more than double the total prospective area of the State now held under petroleum exploration licence, increasing it from 66,109 to 140,225 square kilometres - clear evidence of the high level of interstate and global interest in exploring for oil and gas in SA.



Mineral Resources Development Minister Paul Holloway says that before the Arckaringa Basin PELs could be granted, and pursuant to the Commonwealth Native Title Act 1993, it was necessary to conclude Native Title land access agreements over the areas to be licensed.



?Native Title land access agreements were expeditiously concluded between SAPEX, the Yankunytjatjara/Antakirinja native title holders, the Antakirinja Matu ? Yankunytjatjara native title claimants, the Arabunna native title claimants and the Government through the Right To Negotiate process,? says Mr Holloway.



?All involved in this successful outcome should be congratulated. Thanks to their efforts, SA continues to lead the nation in attaining native title agreements that are fair to the native title claimants and sustainable for economic development projects.?



?To date, the relevant registered native title claimants, petroleum explorers and the State Government have concluded access agreements for a total of 36 license areas ? 7 in the Arckaringa Basin, 28 in the Cooper Basin and one in the Officer Basin.?



?All of these agreements cover the full cycle of petroleum activities including exploration, development and production.?



While the Arckaringa Basin has been referred to by the oil industry as ?the forgotten basin? because it hasn?t been actively explored since 1986, it has similarities with parts of the prospective Permian section in the Cooper Basin.



SAPEX?s licence work programs in the Arckaringa Basin include extensive geological studies and seismic acquisition and up to 12 exploration wells.




The company has also been granted PEL 120, located north of Adelaide and will be targeting shallow coal-gas plays around known Tertiary-age brown coal deposits. The work program includes geological studies, seismic acquisition and up to six exploration wells.



Three of the Arckaringa Basin PELs include portion of the Tallaringa Conservation Park and as is the case with all licences under the Petroleum Act 2000, any operations in such areas will be conducted subject to stringent environmental conditions.



In respect to proposed operations within the Tallaringa Conservation Park, any such operations will require the collaboration of Minister for Environment and Conservation.