Santos and their partners have enjoyed remarkable success onshore with five discoveries in the Port Campbell region. Origin has also has a successful appraisal. Although these discoveries are relatively small, the nearby infrastructure and good market fit permits the explorers to convert these discoveries into production quickly often within a few months. Lakes Oil has persevered in onshore Gippsland and has had gas shows onshore.

The highlight of the year was certainly the major offshore gas discoveries in May and June at Thylacine (in the Tasmanian Adjacent Area) and Geographe in the offshore Otway Basin. The discoveries were followed up by appraisals at Thylacine 2 and North Geographe. Origin, Woodside and partners are currently reviewing the fields but currently are carrying between 1-1.6 TCF total in place in the fields.

Strike Oil has successfully farmed out equity in their offshore Otway acreage to Santos and have just completed a 3D survey in Vic P/44.

Esso and BHP Billiton have returned to exploration in Gippsland with a gas discovery at East Pilchard and are conducting the largest ever (over 4000 sq km) 3D seismic survey in Gippsland.

In the development area the Duke Tasmanian Natural Gas Pipeline project is starting early construction preparation work, to be followed by the Bream pipeline, probably followed by the Patricia Baleen gas development. Aside from some small pipeline and gas fired power plants two groups are proposing pipelines for Adelaide to supply gas from Victoria. A final approval decision is anticipated next year on the Minerva project in the Otway offshore area as new infrastructure and markets open up more opportunities.

Kathy Hill is Manager Petroleum Development, Department of Natural Resources & Environment.