Depressed exploration activity in Australia looks to continue in 1992 despite growing optimism for offshore discoveries, especially off the northwestern coast. Lack of cash flow stemming from lagging oil prices is the culprit, says Australian Petroleum Exploration Association. APEA notes offshore exploratory drilling fell 40% to 39 wells in 1991 despite early expectations of at least equal the record 82 wells drilled in 1990. APEA estimates 33-60 offshore exploratory wells are planned in 1992. Bass Strait exploration is looking up, with nine wildcats expected there in 1992. Operators will drill at most 86 onshore wildcats in 1992, down 28% from 1991. Australian exploration outlays are expected to be $320-475 million (Australian) vs. outlays of $370 million in 1991. Companies plan 260,00-300,000 line km of seismic surveys in 1992, directed mainly at appraisal/development work.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
