Question Time

Oil and Gas Sector

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy, Minister for Small Business) (14:31): I will ask the department, which had my delegated authority to issue those petroleum exploration licences, but I will inform the house that the PEL was offered in the Cooper Basin in 2010 by the government on the basis of a working program. I understand that the CO2010 acreage release opened in April of 2010 and the close of bidding was 10 March 2011. Eleven bids were received from six national and international explorers. Block C, which became PEL 570, attracted six bids.

All applicants were provided with details of the scoring system to ensure an open and fair process. The receipt and assessment of the bids is governed by strict policies and procedures. Ambassador's work program scored the highest of the six programs bid. Ambassador's five-year work program included eight exploration wells, 200 square kilometres of 3-D and 300 kilometres of 2-D seismic. Petroleum exploration licence 570 has the potential for accumulations of oil and gas in conventional reservoirs, I am advised, as well as gas in deep unconventional reservoirs.

In terms of technical capacity, Ambassador Exploration was represented by Mr Tino Guglielmo, who subsequently became a director of Ambassador Exploration. As I have previously told the house, he was appointed managing director of the company subsequently floated on the ASX.

An honourable member: He's a good man, Tino.

The Hon. A. KOUTSANTONIS: Yes, he is a good man. Mr Guglielmo had many years' prior experience within the oil and gas sector, including 20 years at very senior levels with Santos and as managing director and CEO of Stuart Petroleum. Also, Mr John Davidson was the exploration adviser and had over 25 years' experience at very senior levels of industry, including Exxon.

In terms of the financial capability, the key personnel had to demonstrate their experience in raising capital in respect of the oil and gas sector at the time, when the share markets were relatively receptive to Armstrong petroleum capital raisings. On the specific freedom of information documents that the member is quoting from, I will speak to the bid team about their thinking at the time but, as I said, the authority to issue these exploration leases is delegated, as it should be under the act. I will get an answer for the house.