Officer Basin - South and Western Australia
The undiscovered resource potential of Rodinia’s lands in the Officer Basin has been assessed by Ryder Scott Company Petroleum Consultants in its report dated December 31, 2009. According to this report, Rodinia’s lands have “Un-risked, Undiscovered, Prospective (Recoverable) Oil Resources” of approximately 126 BBL.
Rodinia has identified 10 drilling leads in PEL 253 and the western portion of PEL 81. These 10 drilling leads have Un-risked, Undiscovered, Prospective (Recoverable) Oil Resources of approximately 26 BBL.
These estimates may appear large in comparison to other, geologically younger, Australian petroleum basins, but are comparable to Proterozoic-Cambrian analogues elsewhere in the world. Oil and natural gas fields in Russia (Moscow Basin, Lena-Tunguska Province and Siberian Basin) and Oman (Fahud Salt Basin and Ghaba Salt Basin) with rocks analogous to the Neoproterozoic/Cambrian reservoirs and source beds of the Officer Basin, have individual proven oil reserves of up to 26.30 BBL.
The Officer Basin covers an area of more than 350,000 km2 in South Australia and Western Australia. Approximately one third of the total area of the Officer Basin (100,000 km2) is situated in South Australia, with the remaining two thirds (250,000 km2) situated in Western Australia.
The Officer Basin has sourced oil as evidenced by the oil shows recorded to date throughout the area. Seismic surveys reveal potential oil traps associated with diapiric salt domes, salt swells, salt walls as well as hanging wall anticlines and basement thrust blocks.
Since 1954, when the first oil exploration license for the Officer Basin was granted, petroleum exploration in the basin has consisted of basic surface mapping, exploratory and shallow stratigraphic drilling, limited gravity and magnetic surveys and restricted seismic programs. However, exploration activity in the Officer Basin has remained minimal because of the area's remoteness, land access restrictions, land ownership disputes, the area's poor local economy, a focus on exploration elsewhere in Australia (largely offshore), and for some of that period, an adverse commodity pricing environment.
Local Aboriginal land rights, which cover much of the Officer Basin, were subject to legislative dispute and a lack of clarity, but were largely resolved in the late 1980's. By the late 1990's, with the resolution of these land access issues, upwardly trending commodity prices, and progress in exploration technologies, geological technology and analysis methodologies, exploration interest in South Australia and Western Australia expanded. However, despite a more favourable and encouraging environment for hydrocarbon exploration in the area, exploration has not yet occurred on a large scale.
Most of the previous exploration in the Officer Basin was done in the 1970's and 1980's in the northeast and northwest portions. This exploration was limited in scope and mainly targeted at mineral exploration. In the vicinity of Rodinia's holdings, less than 7,200 km of seismic data has been recorded, and only 30 holes deeper than 500 meters had been drilled to the end of 2007. Only 12 of the wells drilled were exploratory hydrocarbon targets, and only one well was a valid structural test. When combined with all drill holes shallower than 500 meters, twenty-seven wells in the South Australia portion Officer Basin have hydrocarbon shows. Similarly in the Western Australia portion of the Officer Basin, 12 wells have hydrocarbon shows.
Much of the surface area of the Officer Basin is owned as freehold Aboriginal land. The Aboriginal people have the right to control entry to their lands and to seek compensation for disturbance to their way of life. Rodinia has invested substantial resources and time in negotiation with the local Aboriginal people, with the long term objective of developing a harmonious and effective working relationship. In the summer of 2007, Rodinia entered into a land access agreement with the Maralinga Tjarutja Aboriginal people in South Australia, which enabled it to commence its initial seismic program in the fall of 2007.
It should be emphasized that this is a high risk exploration play and no commercial hydrocarbons have been discovered to date on any of Rodinia's prospects. There is no assurance that any commercial hydrocarbons will be discovered as a result of Rodinia's ongoing exploration activities.