The new petroleum exploration licences cover a total area of 74,116 square kilometres, increasing the total prospective area of the state now held under petroleum exploration licence from 66,109sq.km to 140,225sq.km.
Seven of the leases are in the Arckaringa Basin in the state’s far north, and one is in the St Vincent Basin in the state’s mid-north. The Arckaringa licences have potential for oil and both conventional gas and coal gas. The mid-north licence has potential for coal seam methane.
Mineral Resources Development Minister Paul Holloway said before the Arckaringa Basin PELs could be granted, it was necessary to conclude Native Title land access agreements under the Federal Native Title Act 1993.
“Native Title land access agreements were expeditiously concluded between SAPEX, the Yankunytjatjara/Antakirinja native title holders, the Antakirinja Matu-Yankunytjatjara native title claimants, the Arabunna native title claimants and the Government through the right to negotiate process,” he said.
“To date, the relevant registered native title claimants, petroleum explorers and the State Government have concluded access agreements for a total of 36 licence areas – seven in the Arckaringa Basin, 28 in the Cooper Basin and one in the Officer Basin.
“All of these agreements cover the full cycle of petroleum activities including exploration, development and production.”
SAPEX managing director Andrew Andrejewskis said today the approval process for offering the eight new SA exploration petroleum licence areas had been quite remarkable.
“It has been amazing. Despite the permit areas covering one of the largest onshore petroleum licence applications in Australian history, the required approvals have been finalised in an astonishingly short timeframe,” he said.
“This is not only further evidence of the pace-setting resources industry approach being successfully undertaken by the SA Government, but also again reflects the ability of all parties involved to work through Native Land Title requirements.
“SAPEX congratulates the Government, the Yankunytjatjara/Antakirinja native title holders, the Antakirinja Matu-Yankunytjatjara native title claimants, and the Arabunna native title claimants on their outstanding approach and achievements.”
Andrejewskis said the company would now proceed with a planned IPO.
“We will now target completion of our public float and ASX listing prior to Christmas,” he said.
“SAPEX will then undertake a structured exploration program aimed at unlocking what we believe are considerable unrealised oil and gas resources in a virtually unexplored area of onshore Australia.”
While the Arckaringa Basin has been referred to some as “the forgotten basin” because it has not been actively explored since 1986, it has similarities with parts of the prospective Permian section in the Cooper Basin.
SAPEX’s licence work programs in the Arckaringa Basin include extensive geological studies and seismic acquisition and up to 12 exploration wells.
The company has also been granted PEL 120, located north of Adelaide, and will be targeting shallow coal-gas plays around known Tertiary-age brown coal deposits. The work program includes geological studies, seismic acquisition and up to six exploration wells.
Three of the Arckaringa Basin PELs include portion of the Tallaringa Conservation Park and as is the case with all licences under the Petroleum Act 2000, any operations in such areas will be conducted subject to stringent environmental conditions.
Any operations in the Tallaringa Conservation Park will require the collaboration of the environment and conservation minister.
Andrejewskis said SAPEX aimed to lodge its prospectus with the Australian Securities Investment Commission during the next month.
“The prospectus will contain details of planned seismic survey activity, drilling of exploration wells and other work programs as part of Government offering the licence areas,” he said.
