The licenses, PELs 154 and 155, resulted from the OT2002 release opened last year with bidding closing on May 22 this year.

"The work program bid by Rawson for the two blocks represents an estimated $5.1 million exploration investment and includes two petroleum exploration wells, 200km of seismic surveying, soil gas field surveys and geoscientific studies," said the South Australian Minister for Mineral Resources Development, Paul Holloway.

"Rawson has also guaranteed the first two years of the work program. The blocks are prospective for both oil and gas."

"The total value of Otway Basin petroleum production in 2002 was $20.8 million which generated a royalty payment of $1.7 million. Caroline 1, located south-east of Mount Gambier, still ranks as the most valuable well in SA with its production since 1968 worth $217 million," he said

"The offshore Otway Basin has also recently attracted investment. An exploration well is scheduled to be drilled by February, 2005 by the Woodside Energy and Great Artesian Oil & Gas joint venture in EPP27."

"In addition, three large areas in the offshore Otway Basin (designated S02-6, 7 and 8) are open for work program bidding until September 25 this year."

Holloway said considerable interest has been expressed in these blocks by both Australian and international exploration companies because they have potential for large oil and gas accumulations."

"The 'Humpback Lead' located in 1300m of water in bid block S02-6 offshore from Robe has attributes similar to those of proven petroleum areas in other parts of the world where significant oil and gas fields have been discovered," said Holloway.