By an OGJ Online Correspondent
MELBOURNE, Feb. 26�Australian operators have indicated they will drill 125 exploration wells this year, a 31% increase from the 95 drilled in 2000.
The survey by the Australian Petroleum Production & Exploration Association Ltd. indicated 80 of those wells would be onshore and 22 offshore. Also, industry is expected to drill 65 development wells, 43 onshore and 22 offshore.
Barry Jones, APPEA executive director, said most of the exploration will be in the mature Cooper-Eromanga basin of South Australia and Queensland, and on the North West Shelf.
As in recent decades, he said little activity is expected in offshore frontier areas and regions subject to native title claims.
He said coalbed methane drilling in the Bowen and Surat basins of Queensland and the Gunnedah and Sydney basins of New South Wales should increase due to higher gas prices.
Jones said Australia must find substantial quantities of oil to offset the major decline expected within the next 10 years.
He urged governments to review their approval processes to ensure they are integrated, applied consistently, and are not excessively costly. Governments also need to simplify the native title process, he said.
Details
The survey received data from 34 companies and the New South Wales Department of Mineral Resources.
It indicated seismic activity would be 4,225 line-km of 2D and 2,500 km of 3D onshore and 71,000 km of 2D and 6,430 km of 3D offshore.
Operators expected to drill 63 wildcats and 18 appraisals onshore, and 39 wildcats and nine appraisals offshore. They expected 72 to 78 coalbed methane wells.
They expected to spend $192.4 million (Aus.) for onshore exploration and $477.2 million (Aus.) for offshore. Development spending would be $308 million onshore and $1.07 billion offshore.
Most activity would be off Western Australia, where 30-45 wildcats, eight or nine appraisals, and 22-29 development wells were expected. Most onshore drilling would be in Queensland (29-37 wildcats, six appraisals, and 19-21 development wells) and South Australia (20-23 wildcats, nine appraisals, and 24 development wells).
The Gippsland basin of Victoria (Bass Strait), once the mainstay of Australia�s exploration and production activity, would see only two wildcats and two or three development wells.
