The Sydney-based company today said the $19 million survey is expected to lead to the development of several prospects and leads, which could “add substantially to the natural gas inventory of the region”.

AWE said the new 3D seismic survey adds to the $1.1 billion the company and its co-venturers have spent on petroleum exploration and development in the Bass and Otway basins over the last five years.

It said it also adds to the $40 million already committed to drill the Netherby-1 and Pecten East-1 exploration wells in the Vic/P44 area at the end of 2007.

The 700 square kilometre Otway 3D seismic survey will adjoin an earlier 3D survey area over the Pecten High trend that incorporates the Casino, Henry and Martha gas fields.

AWE said it will cover the Champion High trend, which includes the large Champion South prospect and several adjacent prospects and leads.

“The Bass and Otway acreage held by AWE has potential for significant additional gas reserves,” AWE managing director Bruce Phillips said.

He said to date, AWE has a 100% success rate in its offshore Otway drilling program and was optimistic about the upcoming exploration drilling on the Netherby and Pecten East prospects later this year.

“The new 3D seismic survey is designed to delineate additional drilling prospects and extend the gas fairway to the west of the existing Casino, Henry and Martha gas fields,” Phillips said.

“AWE is delighted to hold meaningful equities in such prospective acreage close to the largest domestic gas market in Australia. In the future we look forward to participating in the gas market opportunities emerging in the region.”

The 3D Otway Basin survey is expected to start in May.