COOPER BASIN

The Hon. J.M. GAZZOLA (15:16): Will the Minister for Mineral Resources and Development provide an update on levels of investment and recent successes in the South Australian Cooper Basin?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (15:16): Is it not extraordinary: 18 months out from the election we have a Liberal Party that has absolutely no substance or policies: all they can do is muck rake and ask about whether I have been having dinner with an old parliamentary colleague of mine. Heavens above, he's in the eastern suburbs: God help us! That is really scary. If this is the sort of behaviour members of the Liberal opposition want to go on with, I think they will get their just rewards at the election. If you are not able to develop policy, I guess it is the only substitute you have.

They will not criticise the decision, because it is interesting that the Liberal Party supports the development at Le Cornu and agrees with it. If they agree with it, why are they trying to undermine it? It shows up their incompetence about getting any development in this state. Come the next election, there will be a very clear distinction between those who want to go back to the past and live in the sewer and those who are achieving development within this state.

The Hon. J.S.L. DAWKINS: On a point of order, it has escaped the leader that he has been asked a fresh question about the Cooper Basin, which has nothing to do with the previous question.

The Hon. P. HOLLOWAY: I will talk about the Cooper Basin because, as members may be aware, our state remains Australia's biggest on-shore producer of oil and gas. Most originates from the Cooper Basin in the state's north-east. Since 1969, gas has been produced from the basin to supply south-eastern Australian markets. Billions of dollars of investment by the Santos joint venture led to oil being produced from the basin since 1982. Since the major turnover in licences at the turn of the century, the Cooper Basin has attracted a record number of explorers and very high tenement work programs, as well as sharply increasing the oil discovery rate.

This turnover changed both the tenement map and make-up of Australia's exploration industry through a number of companies making discoveries. Two local examples are the spectacular growth of Adelaide-based Beach Petroleum and Stuart Petroleum. The most recent success in the basin comes from Perth-based Victoria Petroleum NL and its joint venture in Petroleum Exploration Licence 104/Petroleum Retention Licence 15.

On 10 September, Victoria Petroleum announced a flow of 1,673 barrels per day, with no water from Growler 3 appraisal well on a one inch choke. For those not technically minded, I assure them that that represents a very valuable flow. The well will now be completed for production and tied into the main Growler oil well production facility 800 metres to the east. Victoria Petroleum estimates the most likely oil-in-place for the Growler structure is 5.7 billion barrels and the most likely recoverable oil is estimated to be 1.4 million barrels. Victoria Petroleum anticipates bringing Growler 3 and Growler 2 onstream in October 2008, after gaining the necessary regulatory approvals.

Results at Growler are evidence that the Cooper Basin remains a rewarding destination for petroleum exploration investment. Since January 2002, through to early September 2008, 164 exploration wells have been drilled in the Cooper Basin. Most have targeted oil, but both oil and gas have been discovered.

New petroleum fields were discovered by 71 of these wells at a world-class commercial success rate of 43 per cent from exploration drilling. The first round of mandated partial acreage relinquishments from Cooper Basin exploration licences and conditional production licences will be consolidated into four to six new petroleum licence application areas covering a total area of about 20,250 square kilometres. These licences are to be offered in a phased series of competitive work program bidding rounds, the first of which will begin in February 2009.

Cooper Basin exploration activity in 2008, based on guaranteed work programs, is forecast to include 28 exploration wells, 500 square kilometres of three dimensional seismic and 180 kilometres of two dimensional seismic. Additional new field discoveries in the Cooper Basin are inevitable and will underpin the financial strength of explorers and generate petroleum royalties for South Australia.