-A New Frontier Dr Nigel Long Director, Corporate Social - PowerPoint PPT Presentation

Oil & Gas -A New Frontier Dr Nigel Long Director, Corporate Social responsibility SACOME

Who is SACOME? An industry representative body Funded by industry for industry The peak body for Government/Industry interaction/collaboration

Resource Industry Snapshot 2013 20 major Mines 4 major Hydrocarbon Basins Employment 10,097 Exploration AU$600m p.a. Export Revenues 39% AU$4.3 bn Over 30 exciting Mineral and Energy Projects

South Australian Resource Exports Resource Exports are the largest sector contributing to South Australian exports, at over a third (39%) of total state exports of $11.4bn Exports 2011-2012 - $4,216 mil Minerals - $174 mil Petroleum - $3,134 mil Agriculture - $1,127 mil Wine - $359 mil Minerals Machinery 37% - $370 mil Road Vehicles - $2,060 mil Other (All figures in Millions; 11/12 Data) Petroleum 2%

Exploration expenditure by commodity (2011-2012) Uranium Other 6.6% 7.2% Iron Ore Gold 15.6% 1.9% Petroleum $174.3m 34.7% Ag, Pb, Zn, Ni, Co 2.7% Copper 29.1% Coal 0.9% Mineral Sands Total expenditure = $502.7 million 1.4% (Source: ABS, cat. 8412.0, June 2012)

Project Pipeline

The Future… 23 Mines by 2015 40 Mines by 2020 $275 million in Royalties by 2015 +14000 new direct jobs Infrastructure Spend, > $59 bn by 2020 Upstream petroleum & geothermal expenditure to reach $800+ million Resource Revenues, est. $14 bn+ within 6 years $18.4 bn in potential Mineral Revenues in the pipeline

A global contest

Proactive Industry Support Access to land Business environment Infrastructure Better Regulation Community engagement Institute proactive policies on:  Indigenous Land Use Agreements  Indigenous economic development  Skills and Education  Professional Development

Federal Election Priorities v Exploration Tax Credit Rescinding the MRRT PRRT Rescind the Carbon Tax Streamline Federal Environmental Approval Process Infrastructure

Oil and Gas in Australia

Oil and Gas in SA 2 main production Cooper Basin Arckaringa Basins Basin Cooper Basin (1963)  Otway Basin (1987)  2 main prospective Basins Arckaringa Basin  Bight Basin (offshore)  Ceduna Sub-basin Ceduna & Duntroon Sub-  Duntroon Basins Sub-basin Otway Basin Image courtesy of DMITRE

Oil and Gas sales in SA 1970-2011

Cooper Basin - South Australia’s premier Basin First Gas 1963, Oil 1978 35,000km 2 Depth to targets 1250-3670m 85 Tcf recoverable gas 29 Bbbl risked in-place oil Shale Gas Revolution  Remaining reserves and resources  Risked recoverable 93 Tcf  Risked in-place shale 325 Tcf Image courtesy of DMITRE

Otway Basin - Untapped potential Contains both mature and immature plays Jurassic to Late Cretaceous  Onshore and Offshore prospectivity Current gas producing basin First Gas 1987  Current petroleum production from Katnook plant. Production in 2011 – 387.7 TJ Gas – 919 kL Condensate Image courtesy of DMITRE Close proximity to existing pipeline infrastructure SEAGas Pipeline 

Bight Basin - Offshore South Australia Under-explored Current exploration permits:  BP  Bight Petroleum Planned exploration expenditure:  BP - $1.4bn, 3D seismic, 4 wells Image courtesy of DMITRE  Bight Petroleum - $67.6mil, 2D & 3D seismic, 1 well Acreage releases around BP permits of 699 blocks (~70km 2 ea.) Primary targets in the Ceduna and Duntroon Sub-Basins

Arckaringa Basin - Prospective future Large Lignite deposits Under-explored Current investment in Coal Gasification technologies Recent announcement of a potential 103 to 233 Bbbl shale oil find (Linc Energy ASX release) Image courtesy of DMITRE Majority of Basin located outside and within the Woomera Prohibited Area (WPA) Green Zone

Fraser Institute Petroleum Survey 2012 South Australia ranked top in Australia in the All- Inclusive Index. Ranked in the top 20% of 147 worldwide petroleum jurisdictions. World best Geological database in quality, and accessibility. “ Best organised. Only jurisdiction that anticipates problems. Most competent and knowledgeable staff ” “ Ease of dealing with government departments and acquiring the necessary information.”

Industry and Government

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