Chronological highlights

Historical highlights of petroleum exploration and development in South Australia are provided below.

203918_timeline1203918_timeline2

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YearEvent
1866First oil exploration in SA at Alfred Flat near Salt Creek (north of the Otway Basin).
1881-83First drilling for oil in Australia near Salt Creek (north of the Otway Basin).
1912-30Shallow oil wells drilled in the South East of SA by the South Australian Oil Well Co: the deepest was Robe to 1373 m in 1915 (Otway Basin).
1941SA’s Mining (Petroleum) Act 1940 came into effect.
1945First oil exploration licence, OEL 1, granted (included a small part of the southern Cooper Basin).
1947Australian Mining and Smelting Co. granted OEL 3 over 126 910 km2, covering the area of the now productive Cooper and Eromanga Basins.
1954OEL 7 issued for 2 years over 312 095 km2 west of the Cooper Basin, then transferred to Santos (incorporated in March 1954) and combined with OEL 6: the area totalled 507 397 km2 and Santos held 860 000 km2 in SA and Qld.
1955Oil shows discovered in early Cambrian reservoirs by Santos (Wilkatana drillholes, Arrowie Basin, 1955–57).
1957Federal government’s Petroleum Search Subsidy Scheme (and its extension in 1959) provided financial incentives to company exploration.
1958Checkerboarding agreement between Santos and American company Delhi–Taylor Oil Corp.
1959

First petroleum exploration well drilled in the Cooper Basin (Innamincka 1).

1962SA Department of Mines establishes the Petroleum Section, which is led by Heli Wopfner.
1963Gas discovered in the Cooper Basin (Gidgealpa 2).
1966Giant natural gas field discovered (Moomba, Cooper Basin).
1967

First offshore well drilled (Crayfish 1, Otway Basin).
First commercial gas discovery (CO2) with oil shows in Otway Basin (Caroline 1).
SA Government legislated for Natural Gas Pipelines Authority of SA (later known as PASA).

1968

Amendments to the Mining (Petroleum) Act.
Construction of gas processing facility at Moomba began.

1969

First petroleum production licences issued to Delhi–Santos.
750 km Moomba–Adelaide pipeline completed and first Cooper Basin gas produced for sale and piped to Adelaide.
OELs 20 and 21 (formerly OEL 7) reissued as PELs 5 and 6, guaranteed for 20 years without relinquishments and the right of renewal for a further 20 years.

1970Crude oil discovered in the Cooper Basin (Tirrawarra 1).
1971

Big Lake, Burke–Dullingari and Della Permian gas fields discovered (Cooper Basin).
AGL agreement signed to supply Cooper Basin gas to Sydney from 1976–2006.
Year Event

1974

Federal government’s Petroleum and Minerals Authority (PMA) took up Delhi International Oil Corp.’s offer for 50% of its production interests and 25% of its exploration interests in the Cooper Basin.
Federal government’s Petroleum Search Subsidy scheme terminated (but work-in-progress payments continued to 1976).

1975

SA Government acquired the PMA’s interests and became involved in working PELs 5 and 6 through the SA Petroleum Exploration Group in the Mines Department.
Cooper Basin (Ratification) Act 1975 passed, Cooper Basin Producers Unit formed and Indenture signed.

1976

Supply of gas to AGL in NSW commenced.

1977Poolowanna 1 recorded the first oil flow from the Eromanga Basin. South Australian Oil and Gas Corporation (SAOG) created from the SA Petroleum Exploration Group.
1978First commercial volume of oil discovered in the Eromanga Basin (Strzelecki 3).
1979Good oil shows intersected in the Cambrian of the Officer Basin (Byilkaoora 1).
1981Stony Point (Liquids Project) Ratification Act 1981 passed SA Parliament and Cooper Basin Liquids Project commenced.
1982659 km Moomba – Stony Point high vapour pressure liquids pipeline completed and the first crude oil production began, from Strzelecki Field.
1983First exports of crude oil and condensate from Stony Point (now renamed Pt Bonython).
1984

First sale of LPG to Australian and Japanese markets from Pt Bonython.
First code of environmental practice prepared for petroleum, seismic and drilling operations by Delhi, Santos and Department of Mines and Energy.
First enhanced oil recovery scheme initiated (water injection in Dullingari Field).

1985PEL 29 issued in the Pitjantjatjara lands to a consortium including a company owned by the traditional landholders.
1986

Tirrawarra and Moorari Fields enhanced oil recovery scheme initiated (fracture stimulation and ethane injection, Cooper Basin).
Multiple land use concept introduced: a regional reserve was established over the Innamincka Pastoral Lease (covering half of the SA Cooper Basin).

1987Gas discovered in the onshore Otway Basin, SA (Katnook 1).
1988First commercial gas flow from the Katnook Field (Otway Basin).
1989

Twentieth anniversary of uninterrupted gas supply to SA from the Cooper Basin.
New gas sales contract signed with the Cooper Basin Producers.
One thousandth petroleum well drilled.
One hundred millionth barrel of liquids shipped from Pt Bonython.

1990Permian-sourced oil and gas discovered in early Palaeozoic reservoirs of the Warburton Basin (Sturt 6, — oil; Lycosa 1, Moolalla 1 — gas).
1991Gas production commenced in the Otway Basin.
Contract signed to sell SW Qld gas to SA.
Highest ever petroleum royalty payment of $61.5m received from the Cooper Basin Producers due to higher crude oil prices resulting from the Gulf War and from a renegotiation of the royalty system.
Naphtha replaced condensate production from Port Bonython.
1992Oil recovered in the onshore Otway Basin (Sawpit 1; 0.24 kL (1.5 bbl)).
Boral acquired Sagasco Resources (formerly SAOG) as SA Government sold its exploration and operating interest in the Cooper Basin.
1993First horizontal well successfully drilled, completed and tested (Meranji 14H, Cooper Basin).
1994First oil flow recorded from the Otway Basin (Wynn 1).
First significant oil and gas shows recorded in the Duntroon Basin (Greenly 1), SA’s deepest petroleum well (4860 m).
Gas production commenced from SW Qld to SA via Moomba.
1995PASA sold to Tenneco Gas (now Epic Energy), includes Moomba–Adelaide pipeline system.
Access agreement between Anangu Pitjantjatjara and Hemley Exploration for petroleum exploration on Aboriginal land.
To facilitate active upstream industry competition, the SA Government confirmed no rights of renewal would apply to PELs 5 and 6 upon expiry in 1999.
1996Santos announced a A$200m exploration program in the SA sector of the Cooper and Eromanga Basins over a 3-year period.
Carmina 1, south of Moomba, discovered oil in Jurassic Hutton Sandstone; on test oil flowed at a record rate for SA (668 kL (4202 bbl) per day).
Ethane production commenced from Moomba to ICI Botany Bay via a new pipeline.
Producers signed the first separate direct gas sales contracts for supply beyond 2004 with ETSA (contract extends to 2010) and Boral Energy (formerly the Gas Company and Sagasco, contract extends to 2013).
1997PPLs granted to Santos in the Nappamerri Trough: joint venture production licences now held over 4100 km2 of the trough with a $100m tight gas research commitment over 15 years.
1998Boral Energy Resources signed contracts to build a 40 megawatt gas-fired power station at Katnook, following success of Ladbroke Grove 3.
Hydrocarbon Interpretative Centre at Penola opened.
Bidding for the CO98 acreage release of 11 flank blocks opens in October.
1999PELs 5 and 6 expired on 28 February.
The first round of Cooper Basin acreage (CO98) was offered in October and bids closed in March; applications were received for all blocks.
CO99 acreage release opened in April and closed in November; applications were received for all 8 blocks.
2000CO2000 acreage release opened in January; applications were received for all 8 blocks.
Proclamation of the Petroleum Act 2000 and the promulgation of the Petroleum Regulations 2000.
2001Native title agreements signed between three native title claim groups (the Edward Landers Dieri, Yandruwandha–Yawarrawarrka and Wangkangurru–Yarluyandi Peoples), the successful CO98 bidders and the SA Government for PELAs in the Cooper region.
200210 PELs granted to CO98 applicants. New entrants discover oil in three of six exploration wells: Stuart Petroleum — Acrasia 1; Beach Petroleum — Sellicks 1, Aldinga 1.
2003Native title agreements signed between native title claimants, successful bidders for the 16 CO99 and CO2000 PELAs and the SA Government enabling the grant of further PELs in the Cooper Basin, SA.
The first geothermal energy exploration well in SA, Habanero 1, drilled by Geodynamics in the Nappamerri Trough (Cooper Basin) to a depth of 4421 m intersected 754 m of radiogenic granites with a bottom hole temperature of 250 ºC.
The Woodside–Anadarko–EnCana joint venture drilled Gnarlyknots 1 offshore exploration well in the Bight Basin at a cost of ~$53m.
New entrants in the Cooper Basin continued the series of oil and gas discoveries: oil in Christies 1 (Beach Petroleum), Worrior 1 (Stuart Petroleum), Flax 1 (Innamincka Petroleum); gas in Kiwi 1 (Stuart Petroleum), Yarrow 1 (Innamincka Petroleum), Nutmeg 1 (Great Artesian Oil and Gas).
2004Prime Minister John Howard and South Australian Premier Mike Rann officially opened the A$500m SEA Gas Pipeline in March. The 690 km SEA Gas pipeline, from Victorian Otway Basin gas fields, has doubled gas supply capacity into SA gas markets.
Australian Petroleum Investments (API) acquired Delhi Petroleum from Esso Australia Resources in May.
Delhi Petroleum holds non-operating interests of ~21% Cooper–Eromanga Basin assets in SA and Qld.
Cooper Basin new entrants had participated in drilling 25 exploration wells in 2004, 12 oil and gas discoveries were made.
2005Santos celebrated its 50th year in the petroleum exploration and production business.
Cooper Basin new entrants participated in 17 exploration wells, seven of which discovered new petroleum accumulations.
At end December 2005, there were 64 GELs and GELAs covering 29 850 km2. This compares with only six geothermal licences applications for the remainder of Australia. Total licence commitments for the next five years could reach >$410m, excluding costs for demonstration power plants.
2006

Beach Petroleum became a Santos joint venture partner in the SA Cooper Basin, following its acquisition of Delhi Petroleum Group and its joint venture interests with equity interests in excess of 200 oil and gas fields in the Cooper Basin in SA and Qld.
The total prospective area of the state held under licence more than doubled, from 66 109 to 140 225 km2, following expeditious conclusion of native title land access agreements in the Arckaringa Basin between SAPEX, the Yankunytjatjara–Antakirinja native title holders, the Antakirinja Matu – Yankunytjatjara and Arabunna native title claimants and the government.
The first flow of ‘new entrant’ gas through the Santos-operated Moomba facilities occurred in March from Smegsy 1, operated by Great Artesian Oil & Gas Limited — the first Cooper Basin new entrant to commercialise a gas field.

2007
In February the Yandruwandha–Yawarrawarrka people entered into the first petroleum ILUA in the SA Cooper Basin over ~40 000 km2. This agreement also represents the first conjunctive petroleum ILUA in a productive basin in Australia.
Jacaranda Ridge 2, in the Otway Basin, discovered condensate in August.
2008
The Petroleum and Geothermal Group was highlighted as a working example of best practice regulation in Australia by the Commonwealth Productivity Commission in December 2008 in its review of the regulatory burden on the upstream petroleum sector.
The commercial success rate for exploration stayed above 40% and the number of oil discoveries in the South Australian part of the Cooper Basin reached 100 in 2008.
Prospective plays and a supportive investment framework have enabled South Australia to attract 28 companies to apply for 271 Geothermal Exploration Licenses (GELs), representing 71% of all geothermal licenses granted and under application in Australia.
2009
AGL commenced the first coal seam methane exploration drilling in the Cooper Basin region in PEL 103.
Petratherm commenced drilling Paralana 2 as part of the Paralana Geothermal Project in June.
Panax commenced drilling the Otway Geothermal Project.
CO2009 acreage release closed on 15 October with 20 bids by eleven exploreres for the five blocks.