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DISCOVERY AND EXPLOITATION OF NEW OILFIELDS IN THE COOPER-

EROMANGA BASINS

Article in The APPEA Journal · January 1986

DOI: 10.1071/AJ85024

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DISCOVERY AND EXPLOITATION OF NEW
OILFIELDS IN THE COOPER-EROMANGA BASINS
LH. Layering and V.L. Passmore
Bureau of Mineral Resources, GPO Box 378, Canberra
ACT 2601
I.M. Paton
Santos Ltd, GPO Box 2319, Adelaide SA 5001
ABSTRACT
Since 1975 the level of petroleum exploration in the
Cooper -Eromanga basins has undergone an unpre-
cedented expansion due to the discovery and develop-
ment of an increasing number of oil reservoirs, largely in
the Eromanga Basin sequence. The commercial incentive
provided by the Commonwealth Government's Import
Parity Pricing and excise arrangements have been instru-
mental in the lead up to and continuation of this series of
discoveries.
Three types of oil discovery in the Eromanga Basin
sequence are evident; firstly, shallow pools above Cooper
Basin gas fields; secondly, separate single-field discov-
eries in areas of limited exploration; and thirdly, as multi -
field discoveries along major structural trends.
Exploitation of the Eromanga Basin oil discoveries has
been made possible by a combination of rapid appraisal
and development drilling and early commencement of
production.
The initial Eromanga Basin oil discoveries overlie
major Cooper Basin gas fields and were located during
appraisal and development drilling of deeper Cooper
Basin gas reservoirs. Wildcat and appraisal drilling on
Eromanga Basin prospects, such as Wancoocha and
Narcoonowie, has upgraded the prospectivity of the
Eromanga Basin sequence in the southern Cooper
Basin -an area where earlier exploration for Cooper
Basin gas was unsuccessful. Significant oil discoveries in
Bodalla South 1 and Tintaburra 1, in the Queensland
sector of the Eromanga Basin, have extended the range of
exploration success and generated considerable interest in
lesser known parts of the Eromanga Basin.
Three successive phases of Cooper -Eromanga explo-
ration have led to the present high level of success. Early
exploration, before 1969, led to the initial discovery and
development of Cooper Basin gas fields and was largely
supported by the Petroleum Search Subsidy Acts (1957-
1974). The results of the second phase, between 1970 and
1975, provided little encouragement to operators to
extend exploration beyond the limits of the then known
gas accumulations. In the decade since 1975, the oil
potential of the Eromanga and parts of the Cooper Basin
sequences has become a major factor in the exploration
and development activity of the region. Since 1975, the
250
favourable commercial conditions prevailing under the
Import Parity Pricing scheme and the concessional crude
oil excise arrangments for production from `newly dis-
covered' oilfields provided a significant incentive for
development and exploitation of the post -1975 oil discov-
eries.
INTRODUCTION
This paper outlines the three distinct phases of Cooper
and Eromanga Basin exploration which have led up to
the present high levels of discovery and exploitation. The
paper emphasises the most recent phase of petroleum
discovery and exploitation, in the decade after 1975.
The paper is partly drawn from the combined efforts
of Santos Ltd and the Bureau of Mineral Resources in the
preparation and assessment, respectively, of applications
for 'new' oil status for oil production from the growing
number of Eromanga and Cooper Basin oil discoveries
made since the introduction of the 'new' oil pricing
scheme in 1975.
The last decade of exploration in the Cooper and
Eromanga basins (1975 -1985) has seen a significant
expansion of activity, and the region is now Australia's
most active area for oil and gas exploration and develop-
ment (Figs 1 and 2). A major factor contributing to the
present level of activity has been the discovery and
successful exploitation of numerous Eromanga and sev-
eral Cooper Basin 'new' oil accumulations. Prior to 1976,
exploration was concentrated on the discovery and deve-
lopment of Cooper Basin gas reserves.
In contrast, the earliest period of significant explo-
ration in the Cooper and Eromanga basins, from 1954 to
1969, saw the South Australian sector of the Cooper
Basin develop from rank wildcat acreage to a major
onshore gas province (Battersby, 1976).
During much of this period explorers were assisted by a
Commonwealth Government subsidy (under the Pet -
roleum Search Subsidy Acts, 1957 -1974), the introduction
of commercial seismic services, and the influx of partner
companies to the region (Allen, 1975).
Early drilling in the South Australian sector of the
Cooper Basin between 1959 and 1963 encouraged a
switch of interest from the Early Palaeozoic to the gas-
bearing Cooper Basin sequence. The Eromanga Basin
sequence was neglected because of a lack of knowledge
and limited exploration funds. A widely held theory of
artesian water flushing in the Eromanga Basin sequence
(Nugent, 1969) downgraded the significance of oil and
gas shows recorded in a large number of artesian water
wells and exploration wells (Vine, 1976).
THE APEA JOURNAL, 1988
 120 -

NORTHERN
TERRITORY
IEROMANGA
100 -
QUEENSLAND
WESTERN
AUSTRALIA OOP ER
SOUTH
AUST`ALIrA77
NEW SOUTH
WALES
80 -
1

ACTT

VICTORIA

0 500 km 0 0

TASMANIA

^ " iì.'il QIo

N1d

HtGH JACKSON -NACCOWLAH

HIGH
Jackson
40 -
TROUGH
NAPPAMERRIj

;
IGH

.i / oQ
_
. ``/
I
U
i; 20 -
'i,
1- Location
14/A110
Figure map and major tectonic elements of the
southern Cooper-Eromanga basins.
Exploration drilling activity in the Cooper Basin
reached an early peak between 1970 and 1975 when most o I ' II
of the presently known fields were discovered during
1 1 I 1 1 1 1 I 1 1 1 I I I I I 1 1 I

1980 1985 1970 1915 1980 1985

Year
exploration for gas reserves to supply the Adelaide and 14/N5

Sydney markets (Fig. 2). This period also saw the end of
the Commonwealth exploration subsidy referred to
above, and the associated condition that explorers under-
take full mud and wireline logging and evaluation pro-
grams in the Eromanga Basin sequence. The end of the
period is marked by the introduction by the Common-
wealth Government of the import parity pricing arrange-
ments and the `new' oil excise arrangements for domestic
crude oil production. These policy measures have had a
significant impact in the post -1975 period.
The approval by the Commonwealth Government, in
1982, of the Strzelecki 3 oil discovery as `new' oil eligible
for concessional excise treatment, opened the way for a
continuing series of applications for `new' oil status for
discoveries made by operators in the Cooper and Ero-
manga basins.
EARLY COOPER EROMANGA BASIN
EXPLORATION (1954 -1969)
The discovery of oil at Rough Range, Western Austra-
lia, in 1953 encouraged widespread petroleum explo-
ration activity in Australia. One of the many new
Figure 2- Drilling activity in the Cooper -Eromanga basins.
exploration companies formed in the period following
the Rough Range discovery was Santos Ltd of Adelaide.
In 1954 Santos was granted licences covering a total area
of 665 000 square kilometres of South Australia, the
Northern Territory, and Queensland, an area which con-
tains most of the Cooper Basin and the central and
western parts of the overlying Eromanga Basin. At that
time, the main attraction of the region to explorers was
the oil- bearing potential of the older pre-Cooper Basin
sequence thought to underlie the area.
In 1958 Delhi Australia Petroleum Ltd farmed -in with
Santos. In the following year regional seismic, gravity,
and aeromagnetic surveys were carried out. This fol-
lowed on from earlier geophysical work undertaken by
the Bureau of Mineral Resources which conducted seis-
mic and gravity reconnaissance surveys over western
Queensland and northeastern South Australia. The South
Australian Mines Department also carried out seismic
traverses in northeastern South Australia during 1958 and
1959.

THE APEA JOURNAL. 1988 251

 South Australia 139° 140° 141'
27
Durham Downs
Limit
The first exploration well, Innamincka 1, was drilled in
I
1959. It was located on the surface expression of the
Moorari
Innamincka dome. The well intersected the Eromanga Coonatie
OIlnnamíncka
Basin sequence and the underlying Permian and Triassic
1

Packsaddle
sediments, which became known as the Cooper Basin Fly Lake. OMudrangie I
PSSA CIRCLE
ftirrawarra
sequence (Battersby, 1976) (Fig. 3). Kanowana0 Merrimelia
rke
AGE ROCK UNIT ROCARBOONS Gidgealpa A DullingaBu
Epsilon
29°
GÁ8 Della0
om bpá 4 Wolgolla
LATE WINTON FORMATION Daralingie
CRETACEOUS Strzelecki os:neath I+

0
i
MACKUNDA FORMATION Big Lake
Brum.y
,,,j ALLARU MUDSTONE 0 s
%, oolachee
WO
¢o TOO LEBUC FM I-i'i -\
tióòied ADLLA/DE
- ;, `d+i.:ì
am
EARLY îÑ WALLUMBILLA FM a S PP4LI1Vf, --4-
CRETACEOUS r..wi)-.,.,w.,).iwv r ï+ !; PSSA
t , i

2 ,
CIRCLE _ -Til 29°
CADNA -OWIE FORMATION `^-/';_ 'i
(TRANSITION BEDS)
+;
o MURTA MEMBER 0 .

i LL NAMUR
SANDSTONE MBR
WESTBOURNE
0
LATE
JURASSIC
FORMATION
ADORI SANDSTONE
.'.. - t1/Na

Producing gas field 100km

O
0
BIRKHEAD FORMATION 1 i
MID JURASSIC HUTTON SANDSTONE {} Dry hole
EARLY
JURASSIC BASAL JUR
JURASSIC' Oil and gas condensate
EARLY
.+.
NAPPAMERRI FORMATION 0 discovery
Gas and/or gas
0
TRIASSIC
condensate discovery
LATE PERMIAN' TOOLACHEE FORMATION ni
MNWVWWV'./!
DARALINGIE BEDS
ROSENEATH SHALE
EARLY
PERMIAN
EPSILON FORMATION 0
MURTEREE SHALE
PATCHAWARRA FM 0 Figure 4-
Cooper Basin petroleum discoveries and develop-
TIRRAWARRA SST
MERRIMELIA FM a q ment as at September 1974. Within `PSSA' circles, exploration
Figure 3- Cooper -Eromanga basins stratigraphy. subsidies enjoyed under the Petroleum Search Subsidy Acts were
progressively removed from December 1964 (see text).
Three other dry wells were drilled in the Cooper Basin
before Gidgealpa 2 was spudded late in 1963 (Fig. 4). Queensland
This well, which resulted in the first hydrocarbon discov-
ery, produced significant flows of gas from Permian Early exploration was not confined to the South
reservoirs in the Cooper Basin sequence. It was followed Australian part of the Cooper Basin. In 1962 Alliance Oil
by an appraisal and four development wells which Development (Australia) NL farmed -in to the L.H.
assisted in the delineation of the field. Wildcat explo- Smart Oil Exploration Company permit in the eastern
ration drilling on other structures followed without signi- part of Eromanga Basin in Queensland (Laing, 1969).
ficant success. Regional geophysical surveys and drilling were under-
Further discoveries eluded the partnership until 1966 taken and several wells were drilled. One well in the
when Moomba 1 tested a subsurface structure 29 km Queensland sector, Chandos 1, recovered 3.8 barrels of
southeast of the Gidgealpa Field (Fig. 4). The well oil during a drill stem test of the Triassic sequence. Cores
intersected Permian reservoir sands in the Cooper Basin in the same well cut from Cooper Basin sediments
sequence which flowed gas at a cumulative rate of 15 contained traces of oil.
million cubic feet per day (MMCFD) (Martin, 1967). By The Roseneath gas field, the first in the Queensland
June 1966 reserves of 1.399 trillion cubic feet (TCF) of sector of the Cooper Basin, was discovered in 1969 and
sales gas had been established in the region (Wilkinson, this was followed by discoveries at Epsilon and Durham
1983). A twenty -year contract to supply gas to Adelaide Downs in 1971 and Wolgolla in 1973.
was signed by the partners in November 1966. Further gas
discoveries at Daralingie in 1967 and Toolachee in 1969 Exploration Subsidy
confirmed that the Cooper Basin was a major Permian
gas province. In 1969 construction of the Moomba to From 1959 to 1964 all petroleum exploration in the
Adelaide gas pipeline was completed and gas supply area of the Cooper and Eromanga basins was subsidised
commenced. (up to 50 per cent of total costs) under the provisions of

252 THE APEA JOURNAL, 1986

the Petroleum Search Subsidy Act which came into
operation in 1957. Between 1957 and 1969 the Common-
wealth Government contributed to the costs of the first
four regional seismic surveys and twelve petroleum
exploration wells. The scheme critically influenced the
decision by Delhi- Santos to initiate major exploration
work in the region and the subsequent course of those
activities.
In late 1964 administrative arrangements of the sub-
sidy scheme were varied so that operations within defined
areas around discovery wells and oil and gas fields were
excluded from subsidy to limit the growing cost of the
scheme. From 20 December 1964 an `excluding circle'
with a radius of 40 miles (67.6 km) was declared around
the Gidgealpa gas field. This area covered a large part of
the prospective area of the Cooper Basin (Fig. 4) and to
some extent the lack of a subsidy and its attendant
conditions reduced the incentive for the companies to
undertake extensive evaluation during development and
appraisal drilling within the excluded area.
From 25 July 1966 the areas excluded from subsidy
were extended by the declaration of a 40 mile (67.6 km)
radius excluding circle around the Moomba 1 and 2 wells.
The Moomba 5 well was the centre of a similar circle
from August 1967. Another excluding circle with a radius
of 20 miles (33.8 km) was declared around Roseneath 1 in
southwestern Queensland (Fig. 4) with effect from 10
April 1970.
EXPLORATION AND DEVELOPMENT
(1970 -1975)
The first significant oil discovery in the Cooper Basin
sequence was made in 1970 by Tirrawarra 1, which
flowed oil from a test of the Tirrawarra Sandstone, the
formation that underlies the coal measures of the Patcha-
warra Formation (Fig. 3). This was followed in 1971 by
gas/condensate discoveries at Moorari and Coonatie, oil
at Fly Lake in 1972, and gas and condensate at Kano -
wana in 1973.
Between 1969 and 1975 6.5 TCF of gas was discovered
in the Cooper Basin (Devine, 1975). The major fields in
the southern Cooper Basin, as shown on Figure 4,
including Della (gas), Tirrawarra (oil and gas), Strzelecki
and Dullingari (gas), were discovered between 1970 and
1972. Devine (1975) considered 16 of the then 23 known
fields large enough and suitably located to be produced.
Thirteen were gas fields and three were combined oil and
gas fields.
By 1975 the ultimate gas resources of the region were
estimated at 7 to 12 TCF of gas, and oil resources were
estimated to be of the order of 56 million barrels (Devine,
1975). Gas production for the Sydney market commenced
in 1976 following completion of the Moomba to Sydney
pipeline. The diverse ownership of blocks in the explo-
ration permits led to the formulation of an economic unit
agreement, finalised in late 1976 but back dated to early
1975. This agreement set out the order of gas field
development and allowed the Cooper Basin partners a
share in production revenue from the beginning of the
scheme.
THE APEA JOURNAL, 1986
Between 1969 and 1972 the greater part of exploration
in the area of the Cooper Basin was unsubsidised.
However, from 12 March 1972 the Petroleum Search
Subsidy Acts excluding circles covering parts of the
region were abolished, so that all exploration, but not
development drilling, was subsidised. This arrangement
continued until cessation of the subsidy in 1974. Between
1972 and 1974 these measures had minimal influence,
since the focus of activity remained largely on the
development gas resources in the Cooper Basin sequence.
Import Parity Pricing -The Commonwealth
Government's `New' Oil Pricing Scheme
The price of crude oil produced in Australia has been
subject to government control since major production
commenced in 1964. In September 1975, the then Prime
Minister announced a policy which meant that, for the
first time, there would be substantially different prices
paid for oil from different fields. Under the policy, oil
from newly discovered fields was to be differentiated
from oil produced from fields already discovered. `New'
oil was to attract a price at the nearest refinery port
equivalent to the landed cost of imported crude (Import
Parity Price) minus a levy.
In August 1976, as a further incentive to exploration
and in recognition of the higher costs associated with
developing new oilfields, the Government removed the
excise levy from `new' oil so that producers would
thereafter receive the equivalent of full import parity for
production from new fields (Department of National
Development and Energy, 1982).
From July 1984 `new' oil again become subject to
payment of a levy by the producers. However, the excise
on `new' oil, if applicable at all, has always been small
compared with the major boost in returns to producers
which resulted from the introduction of the `new' oil
pricing scheme in 1975. The key elements in the defi-
nition of `new' oil are:
1. 'New' oil means any crude oil, not including natural
gas liquids or condensate, discovered after 17 Sep-
tember 1975.
2. Any such discovery shall be a naturally occurring
discrete accumulation.
Originally, there was a requirement that `new' oil must
be discovered as the result of drilling an exploratory well.
This requirement had some unforeseen consequences, as
it led in some cases to inefficient exploration practices.
Some development wells which had the Cooper Basin
sequence as their main objectives, and which encountered
oil accumulations in the overlying Eromanga Basin
sequence, were prematurely terminated by the operator
in the Eromanga Basin sequence with the aim of strength-
ening the operator's claims that the wells were 'explora-
tory' and therefore eligible to discover `new' oil. There
were clearly some cases where it was difficult to distin-
guish between exploratory wells and other classes of
wells.
In June 1983 the Government amended the guidelines
defining `new' oil, eliminating the requirements for
discovery wells to be exploration wells.
253
 EROMANGA OIL DISCOVERIES (1976-1985) located within the largest anticlinal structures, and these
structures were the focus of the subsequent exploration
The first economically exploitable hydrocarbon dis- for oil accumulations in the Eromanga Basin sequence.
covery in the Eromanga Basin sequence was made in 1976 Exploration results in the period immediately after the
when gas flowed from the Namur Sandstone Member in Strzelecki 3 discovery provided significant information
Namur (Fig. 5). This well was located on the crest of a
1
on the nature, size, and areal extent of Eromanga Basin
faulted anticline and was primarily targeted at deeper oil accumulations now known to overlie the Cooper
Cooper Basin reservoirs. At the time of the discovery, the Basin gas fields. In 1979 the next piece in the exploration
gas was thought to have been sourced from the underly- jigsaw puzzle was provided during drilling of the Dul-
ing Permian and to have migrated up into the Namur lingari North 1 well when a thin oil pool (less than lm
structure via nearby faults. In the following year another thick) was discovered in the Murta Member. This pool is
well, Poolowanna I recovered oil from the Jurassic confined to the limits of four -way dip closure on the
Poolowanna Beds. Both these early discoveries in the Dullingari Field.
Eromanga Basin sequence proved to be unrepresentative In 1980 the results from Cuttapirrie 1 highlighted the
of those which followed (Swindon & Moore, 1984). dual gas and oil potential of previously untested pros-
In 1978, Strzelecki 3 (Fig. 6) produced a flow of 2400 pects. The well was drilled as a wildcat exploration well
barrels of oil per day (BOPD) from the Hutton Sandstone on an isolated structure in the northwestern part of the
and encountered oil shows in the Namur Sandstone South Australian sector of the Cooper Basin. Cuttapirrie
Member and Birkhead Formation. It was this discovery 1 recovered oil from the basal Jurassic sequence and gas
that firmly established the oil potential of the Eromanga from the underlying Permian sequence. This discovery
Basin sequence, particularly in and around known helped to redirect the explorers' attention to the oil
Cooper Basin gas fields. The Cooper Basin gas fields are potential of the Eromanga Basin sequence.

139'00 140'00 141`00 142'00 143 00 14.00

ft
MOOTXANDELLA-4

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L / I

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1

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140'00 141'00 142'00 13 00 '44 00

139'00

Figure 5- Location map of post -1975 Cooper and Eromanga Basin oil discoveries.

254 THE APEA JOURNAL, 1986

 140 °40'
Date Well Hydrocarbon(s) Reservoirs) Discovery
Type

6100 Jul 1976 Karmona -I oil Toolachee (rec.108BLS) SF

Nov 1976 4 Namur -1 (gas) Namur SF
Sep 1977 Poolowenne -1 oil basal Jurassic SF
Aug 1978 I Wackett -1 (gas) Birkhead MF
Oct 1978 Strrelecki -3 oil Namur, Birkhead L Hutton SP
Sep 1979 Dullingari North -1 oil Morta SP
Dec 1979 Nappacoongee -2 oil 6 gas Birkhead SF
Feb 1980 Neccov lab -I oil(shows) Eromanga MF
Mar 1980 Cuttap irrte -1 oil basal Jurassic SF
Jan 1981 Marabooka -1 (gas) Namur SF
Feb 1981 Moorar i -3 oil Birkhead SP
May 1981 McKinlay -1 oil Mooga MF
Aug 1981 Merrimelta -6 011 Namur L Hutton MF
Dec 1981 Jackson -1 oil Murta,Westbourne, MF

-
Birkhead 6 Hutton
20°15 Jan 1982 Mocrart -4 oil Birkhead MF
Feb 1982 Merrimelia -7 oil Nappamerrl SP
Mar 1982 Dullingerl -22 oil Namur SP
Apr 1982 Jsckevn South -1 oil Westbourne MF
Mey 1982 Big Lake -26 oil Birkhead SP
May 1982 Kihee -1 oil Murta SF
Sep 1982 Woolkina -1 oil Tirrawarre MF
Sep 1982 Merrimelia-12 oil Nappamerrl SP
Jul 1983 Gunne -1 oil Murta MF
Aug 1983 I Chookoo -1 oil 6 gas Murta,Birkhead 6 Hutton MF
Sep 1983 Narcoonovte -2 oil Nemur,Birkheed 6 Hutton SF
Sep 1983 NOckatunga -1 oil Murta,Westbourne L SF
28 1 7 -- Birkhead
Oct 1983 Chookoo -2 oil Westbourne MF
Nov 1983 Nettoelen South -1 oil Mutton MF
Murta,Namor,Westbourse MF
P- HORIZON
Nov 1983 Wilson -1 oil
6 Hutton
Top coal reflector Dec 1983 Tinpilla -1 oil Murta 6 Birkhead MF
Toolachee Formation) Dec 1983 / Challum -1 oil L gas Murta L Hutton MF
Dec 1983 Naccowlah West -1 011 Hurts 6 Hutton MF
Dec 1983 Sigma -1 oil Murta 6 Namur MF
Dec 1983 Tintaburra -1 oil Cadna -oste 6 Hutton SF
Feb 1984 Pepita -1 oil Patchawarra (rec.12BBLS) MF
0 3 km Mar 1984 Yanda-1 oil Morto MF
I 1 Jun 1984 Rotlollo South -1 oil Hutton 6 basal Jurassic SF
Jun 1984 eogala-1 oil Murta 6 Hutton MF
14/N6 Jon 1984 Cha ro -I oil Birkhead SF

- -6000-
Jul 1984 Ker inne -1 oil Hutton MF

O Contour interval lft)

Jul 1984 Limestone Creek -1 oil Murta MF
Dry ho /e Oil Gas Aug Gidgealpa -17 oil Namur L Birkhead -Hutton SP

6-
1954
Murta 6 titanic MF
Structure contour map of the top coal seam in the
Biala-1
Figure
Aug 1984 oil
Aug 1984 Kober r i -1 oil Murta SF

Permian Toolachee Formation (P- horizon) in the Strzelecki Aug

Sep
1984
1984
Narcoonovte -3
Naccowlah East -1
oil
oil
Murta
Murta
SF
MF
Field, as at December 1980 (ft, subsea). Sep 1984 Big Lake -36 oil Namur L Hutton SP
Sep 1984 Gidgealpa -18 oil Hutton SP
Oct 1984 I Gidgealpa-22 (gas) basal Hutton SP
Nov 1984 Wancoocha -2 oil atrkhead,Hotton 6 SF
In 1981 the Merrimelia 6 well tested the crest of the Nov 1984 Bookabourdie oil, gas
Pstchawar ra
8lrkhead 6 Nappamerrt SF
largest closure on the Merrimelia structure. Oil was
I -1
a con

discovered in the Hutton and Namur reservoirs thereby

Dec 1984 Tickelara -2 oil Namur MF
Dec 1984 Noothandel la -2 oil Murta SF

confirming the potential of the Eromanga Basin sequence Dec

Jan
1984
1985
Kercummurra -1
Epsilon-3
oil
oil
Cadna -owie
Birkhead
SF
SP

in the Merrimelia area. The five previous Merrimelia Feb 1985

Mar 1985
Gidgealpa -24
ulandi -t
oil
oil
basal Jocosely
Murta,Birkhead L Hutton
SP
MP
wells were flank tests of the structure and were targeted Mar 1985 Alwyn -1 oil Murta MF
MF
Muteroo -1 Hutton
at the Cooper Basin sequence which is thin or is absent
Apr 1985 otl
Apr 1985 Mooliampah -i oil Murta,Namur L Adori MF

from the crest of the feature. Further discoveries of May 1985 nodalle South-5 oil basal Jurassic SF
Jun 1985 Jena -1 oil Murta MP

Eromanga Basin oil followed in areas overlying other Jun 1985

Jun 1985
Heran)i -1
Moothendelle -3
oil
oil
Namur
Murta
MF
SF
Cooper Basin gas fields including Moorari, Big Lake, and Jun
Jun
1985
1985
Kooroopa -1
Watson South -I
oil
oil
Adori
Hutton
SF
SF
Gidgealpa. Jun 1985 Kenmore -1 oil Hutton 6 basal Jurassic SF

A total of eleven oil pools were discovered in the

Jul 1985 Talgeberry -1 oil Cadna -owie, Murta, SF
Westbourne L Birkhead

Eromanga Basin sequence between 1978 and late 1981 Aug

Aug
1985
1985
Nockatunga
Cook -1
-3 oil
oil
8lrkhead
Namur L Hutton
SF
SF

(Table 1). All were located on or near the crests of closed Sep
Sep
1985
1985
Glenvale -1
Coors -1
oil
oil
Westbourne
Adori
SF
SF
anticlines. They comprise small fields with an average
pool area of less than 1000 acres (405 ha) and net pay of
I Eromanga gas discoveries which upgraded petroleum prospectivtty

less than 20 ft (6.1 m) (Armstrong & Barr, 1982). The SP - Shallow -pool discovery; SF - Single -field discovery;
MF - Multi -field discovery
implications of these discoveries were evident to explorers Table 1 -New Cooper -Eromanga oil discoveries.
at the time, the discovery and delineation of such pools
requires tight km line spaced (100 ha in area) seismic
1 The Jackson 1 well discovered three oil pools, in the
grids to define the apex of closed anticlines in the Murta, Westbourne, and Hutton reservoirs of the Ero-
Eromanga Basin sequence. manga Basin sequence, and encountered several oil
Exploration for shallow Eromanga Basin oil pools shows in other reservoirs. Total identified recoverable
within closed structures in and around the Cooper Basin reserves of 42 million barrels presently identified in the
gas fields has been a significant aspect of exploration field make Jackson the largest oilfield found to date in
since 1978. In December 1981, however, the results of a the Eromanga Basin. The results from Jackson trig- 1

well drilled in southwest Queensland, Jackson 1, were to gered an entirely new phase of exploration, one which
trigger significant changes to the pattern of exploration; a was largely targeted on the oil- potential of the Eromanga
major thrust into the Queensland sector has to follow. Basin sequence along what has come to be known as the

THE APEA JOURNAL, 1986

255
Jackson -Naccowlah Trend along the northern rim of the
Nappamerri Trough (Fig. 1).
Discoveries on other flank areas of the Nappamerri
Trough, both in the South Australian and Queensland
sectors, were made in exploration wells drilled after
Jackson 1 (1981). These discoveries include Wancoocha 2
(1984) and Watson South 1 (1985) (Fig. 5). Since 1983,
exploration has also extended to the lesser -known parts
of the Eromanga Basin in Queensland and exploration
results from these areas have shown a high success rate.
Discoveries such as Bodalla South 1, Tintaburra I, and
Charo 1 in 1984, and Kenmore 1, Kooroopa 1, Moothan-
della 3, Talgeberry 1, Glenvale 1, Koora 1, and Cook 1 in
1985 have maintained interest in wildcat prospects out-
side areas of close seismic and drilling control and
provided operators with an opportunity for exercising
newly established early-production practices.
Increases in the world oil price, as reflected in the rise
in the import parity price of crude oil since 1975, together
with the development of production infrastructure, have
provided the fundamental incentive for explorers to
develop these newly discovered Eromanga Basin oilfields.
All of the Eromanga Basin `new oil' fields discovered
since 1975, except Jackson, are producing at rates below
which no excise is payable, a situation which provides
significant commercial incentives for further exploitation
in the region.
The Woolkina (1982) and Wancoocha (1984) fields
comprise the bulk of post -1975 new oil reserves dis-
covered in the Cooper Basin sequence. This oil is also free
of excise because of limited production rates.
Strzelecki -The First `New' Oil Field
In 1982 the Joint Venture partners in the Strzelecki
oilfield submitted an application to the Commonwealth
for `new' oil status for crude oil produced from the field.
This submission, the first of its type for an oilfield in the
Cooper -Eromanga basins, was based on the guidelines
specified for granting `new' oil status. A key point of the
submission was the claim that the Hutton oil pool
overlying the Strzelecki gas field was a newly discovered
accumulation, separate and discrete from the underlying
Cooper Basin gas -bearing reservoirs.
In the submission the partners also indicated how the
Strzelecki structure (Fig. 6) was originally located in 1970
and mapped from seismic surveys. The first well to test
the structure, Strzelecki 1, was drilled on the northern
flank in December 1970. Gas was discovered in the
Toolachee Formation and hydrocarbon indications were
noted in the Patchawarra Formation but no significant
hydrocarbons were encountered in the Eromanga Basin
sequence. Interpretation of wire -line and mud log data
from the well suggested that no oil or gas pools had been
intersected within the Eromanga Basin sequence.
The second well, Strzelecki 2, was drilled in 1971, 8.5
km south -southwest of the first well, on what was
interpreted as a southern culmination of the Strzelecki
feature. No shows were recorded during drilling and the
well was then plugged and abandoned as a dry hole.
The third well was drilled in late 1978, 2.6 km
southeast of No. 1, to determine the extent of the
256
Toolachee gas accumulation. The Hutton and Mooga
units of the Eromanga Basin sequence were designated as
secondary targets for the well. Detailed seismic coverage
in the area indicated that the well would intersect an
upthrown Permian fault -block, close to the crest of a
closed structure in the Eromanga Basin sequence. As the
primary target, the Permian sequence, was separated by a
fault from the feature tested by Strzelecki 1, the Strzelecki
3 well qualified for exploration status as an outpost or
extension well, thereby meeting the Government criteria
for `new' oil status. Two oil pools were discovered by the
well in the Eromanga Basin sequence (in the Namur
Sandstone Member and Hutton Sandstone) and a gas
pool was discovered in the Permian Toolachee Forma-
tion. Oil was also recovered from the well in a test of the
basal part of the Birkhead Formation.
After consideration of the submission made on behalf
of the exploration partners and the prescribed guidelines,
the Commonwealth Government determined that crude
produced from the Strzelecki Field satisfied the criteria
for `new' oil status. Numerous similar claims for `new'
oil pricing have been granted since 1982 for newly
discovered oilfields in the Cooper and Eromanga basins.
CLASSIFICATION OF NEW COOPER
EROMANGA OIL DISCOVERIES
A simple three -fold classification of all the post -1975
oil discoveries in the region is given in Table 1. The three
categories are: shallow pools overlying known Cooper
Basin gas fields (shallow -pool discoveries); single field
discoveries identified by wildcat drilling in areas of
limited exploration coverage; and fields located along
major structural features such as the Jackson -Naccowlah
and Mooliampah- Tickalara trends, herein termed multi-
field discoveries. This three-fold division characterises
the separate types of oil accumulations discovered since
1975 and reflects, in simple terms, the nature of each oil
accumulation and its relationship to the nearest known
discovery.
All of the oilfields are small by world standards. They
range up to a maximum of 42 million barrels of recover-
able oil (Jackson). The majority of fields fall in the 1 to 8
million barrel range. The smallest comprise single pools
of less than 1 million barrels of recoverable oil; most of
these are in reservoirs of in the Murta Member of the
Mooga Formation.
Drill stem test flow rates for the wells which resulted in
the discovery of oil (Table 1) are high, despite the small
field sizes, particularly from the Hutton Sandstone and
Namur Sandstone Member. The largest onshore oil flow
recorded in Australia to date, a flow of 4600 BOPD
recorded through a 0.5 inch (12 mm) choke during
production testing, was measured from Muteroo 2 during
a test of the Hutton Sandstone.
Shallow -Pool Discoveries
The oilfields in this category comprise discoveries
made in the Eromanga Basin sequence overlying pre-
viously -known Cooper Basin gas fields. In each case the
THE APEA JOURNAL, 1986
 discovery of oil post -dates the discovery of Cooper Basin
gas and the closed gas- bearing structures related to these
fields are overlain by broad, low -amplitude closures in
the overlying Eromanga Basin sequence. The importance
of this group of discoveries is their early role in signifi-
cantly upgrading the prospectivity of the Eromanga
Basin.
Single -Field Discoveries
Fields included in this category are located in areas of
limited exploration coverage and isolated from other
major developments. The fields contain small oil accu-
mulations but are variable with regard to area, age of
reservoir, and number of pools. In general the structures
are small, less than 10 square kilometres in area, and
their potential economic viability is determined by their
proximity to other fields and production facilities. Oil -
bearing reservoirs in accumulations of this category range
in age from the Cretaceous Cadna -owie Formation in the
Kercummurra Field to the Early Permian Patchawarra
Formation of the Wancoocha Field. We expect that the
greatest number of future discoveries in the Cooper and
Eromanga Basin sequences will be in this category. As
further exploration takes place, however, many of these
discoveries may be found to extend along as yet unknown
multi -field trends.
cores were taken from the surface to total depth, but no
significant hydrocarbons were recognised. Results from
later wells indicate that this well probably intersected a
thin oil column in the Murta Member.
In 1972 the second Dullingari well tested the structure
southeast of the first well and discovered gas in the
Permian Toolachee and Patchawarra formations
Eromanga Basin sequence was not logged or monitored
the -
during drilling.
In 1979 Dullingari North 1 tested a discrete Permian
closure 3 to 4 km north of the main Dullingari structure.
During drilling the well discovered oil in the Early
Cretaceous Murta Member of the Eromanga Basin
sequence which produced a flow of 480 BOPD when
tested. In addition, gas was discovered in both the
Toolachee and Patchawarra formations of the underlying
Cooper Basin sequence.

Multi -Field Discoveries

Fields discovered along the Jackson -Naccowlah and
Mooliampah -Tickalara trends are related to a series of
structures with separate closures located along major
structural features which we term multi-field trends. At
present most of the single field discoveries and multi-field
trends are located around the flanks of the Nappamerri
Trough. In general this reflects the location of previous
exploration activity and may not necessarily indicate
where future oil discoveries will be located. The Jackson -
Naccowlah Trend is the dominant element in this cat-
egory. Exploration along such major structural features
has been an important part of the exploration approach
employed since the Jackson 1 discovery in 1981. It is
anticipated that trends of this type contain most of the
undiscovered oil in the Eromanga Basin sequence.
One example of a discovery in each category is dis-
cussed in the following part of the paper together with
the exploration results which preceded and in some cases
led to the discovery of oil. As the large majority of
discoveries were made in the Eromanga Basin sequence Figure 7- Outline of the known extent of oil and gas pools in
most of the examples given are from this sequence. the Dullingari Field and critical wells which led to the discovery
of Cooper Basin gas and Eromanga Basin oil pools.
After the drilling of Dullingari North 1 the data from
EXAMPLES OF THE DIFFERENT earlier Dullingari wells were re- evaluated by the partners,
CATEGORIES OF DISCOVERIES and this led to the conclusion that the Murta oil pool
extended over both the Dullingari and Dullingari North
Dullingari (1979) -A Shallow Pool Discovery structures. Apparently the oil had not been discovered
earlier because the oil column is thin and only limited
The first well to test the main Dullingari structure (Fig. evaluation was undertaken during the earlier drilling.
7), Dullingari 1, was drilled near the apex of the structure Indications of a second oil pool were subsequently
in 1962; the well was logged and monitored, and several noted in Dullingari 18, drilled 1 km southwest of Dul-

THE APEA JOURNAL, 1986

257
lingari 2, when oil cut muddy water was recovered during
a test of the Namur Sandstone Member. The Dullingari 22
well subsequently tested the crest of the crest of closure at
the Namur Sandstone level, 2 km northwest of Dullingari
18. This well produced oil from both the Murta (2175
BOPD) and Namur reservoirs (1994 BOPD). The results
obtained from further drilling in the Dullingari Field in
1980 were largely responsible for the explorers' decision
to test the Eromanga Basin sequence within the area of
other Cooper Basin gas fields.
Wancoocha (1984) -A Single -Field Discovery
Discoveries of Eromanga Basin oil are not now con-
fined to areas in and around the Cooper Basin gas fields
(Fig. 5). In drilling for gas some exploration wells were
located `off structure' and closures in the Eromanga
Basin sequence remained untested. One such example is
the Wancoocha structure, 45 km south -southwest of
Moomba, which was originally drilled for gas in 1968.
The first well (Wancoocha 1) tested the northern flank
closure in the Cooper Basin sequence in early 1968 and
was plugged and abandoned as a dry hole after penetrat-
ing basement (Fig. 8). In late 1984 the second well,
Wancoocha 2, drilled the crest of an anticline in the
Eromanga Basin sequence, about 1.5 km south of the No.
1 well. Oil was recovered from the Murta Member and
significant flows of oil were recorded from the Birkhead
(3752 BOPD), Hutton (3240 BOPD), and Patchawarra
reservoirs (1747 BOPD and 2.2 MMCFD of gas). Two
subsequent wells, Wancoocha 3 and 4, tested the
southwestern and northeastern flanks of the structure,
respectively. The No. 3 well intersected the Birkhead oil
pool whereas the No. 4 well intersected the Birkhead and
Patchawarra oil pools.
139`:59.
Wancoocha 10k.,5
l.
WANCOOCHA
FIELD LIMIT
BIRKHEAD Fm.
500m /11.31-.
% One -third of the Eromanga Basin lies within 200 km of
2
(B,P
3 PROPOSED FACILITIES
FIELD LIMIT
PATCHAWARRA Fm.
B4O11 RESERVOIR IN BIRKHEAD Fm.
POIL RESERVOIR IN PATCHAWARRA Fm.
139°58.
Figure 8- Outline of the Wancoocha oilfield and development
facilities.
MULTI -FIELD DISCOVERIES
Jackson -Naccowlah Trend -Multi -Field Discoveries
Initial exploration along the Jackson-Naccowlah struc-
tural trend commenced in November and December 1980
258
with the drilling of Naccowlah 1. The oil shows recorded
in this well were sufficient to encourage additional
drilling on several other prospects in the region, of which
the Jackson feature is the largest. The Jackson Anticline
was known from surface mapping undertaken in the
1970's by the Bureau of Mineral Resources and the
Geological Survey of Queensland.
Seismic surveys, prior to the drilling of Jackson 1 in
late 1981, indicated that the Jackson prospect comprised
an elongate north-south oriented anticline with two
separate culminations of approximately equal area. The
northern culmination, which is structurally higher than
the southern culmination, was chosen as the location for
the first well because of its larger trap volume.
The Jackson 1 well discovered three oil pools in the
Eromanga Basin sequence; in the Murta Member, West-
bourne Formation, and Hutton Sandstone. The well was
completed as a dual producer from the Westbourne and
Hutton pools after extensive testing of the entire Ero-
manga Basin sequence. It was followed soon after by the
Jackson South 1 discovery well.
From mid -1983 exploration drilling in the Queensland
sector was concentrated on the Jackson-Naccowlah
Trend. This exploration effort resulted in the discovery of
the Gunna, Chookoo, Naccowlah South, Wilson, Tin-
pilla, Challum, and Naccowlah West fields. A second
multi -field trend is evident from the recent discoveries at
Mooliampah, Sigma, and Tickalara. Other accumula-
tions of this type are listed in Table 1.
EXPLOITATION
The first Eromanga Basin oil development was under-
taken on the Strzelecki Field (Fig. 9), which as we have
noted has oil pools in the Namur and Hutton reservoirs.
140°00' The principal oil pool of the field is the Hutton Sand-
stone, which is estimated to have originally contained
- about 30 million barrels. As at June 1985, 16 wells in the
field were producing from the Hutton pool, averaging
r 366 BOPD. Six wells are producing from the Namur pool
averaging 133 BOPD. It was this field, together with the
Permian Tirrawarra oilfield, that formed the backbone
of the $1.4 billion Liquids Scheme launched in December
1981, which involved construction of a liquids pipeline
from Moomba to Port Bonython (Fig. 5).
J=YO
the Moomba and Jackson production facilities. The
F
ó
existing production infrastructure, including these facil-
ities, provides a significant incentive for additional explo-
LOCATION
ration in this part of the basin. Development of the 1984
Wancoocha oil discovery illustrates how such infrastruc-
140°00' ture has encouraged rapid development of recent discov-
eries via new early production practices.
As we have noted, Wancoocha 2 was drilled on a
Jurassic and Permian closure 45 km from Moomba. The
Wancoocha 2 well was cased in November 1984 and
completed in early January 1985 as a single string dual oil
producer from the Patchawarra and Birkhead forma-
tions. Production testing commenced in January 1985
and the oil was trucked to Moomba for transportation
via the Moomba -Port Bonython liquids pipeline.
THE APEA JOURNAL. 1986
 140040' Similarly, the Jackson pipeline's current oil pumping rate
O
of 22 000 barrels per day falls well short of its ultimate
capacity of 55 000 BPD.
CONCLUSIONS
Hiles HiAMI The last decade of Cooper and Eromanga Basin explo-
H N
ration has been highly successful with respect to the
/NH N SATELLITE STATION discovery and exploitation of small commercial oil accu-
N, mulations. Approximately 140 million barrels of oil
NH ,:Nji \ FIELD LIMIT
NAMUR Sst.
reserves have been discovered since the initial Poolo-
wanna 1 discovery in 1977.
A combination of prospectivity, changes in exploration
FIELD LIMIT
HUTTON Sst.
\\ \ philosophy, and early production of discoveries has
generated an approach ideally suited for exploitation of
o _=1000m
0) small onshore oilfields. The Import Parity Pricing
/ \ Scheme and concessional excise arrangements played a

-- ----
HrOIL RESERVOIR IN HUTTON Sst.
Hz OIL RESERVOIR IN NAMUR Set!
GAS PIPELINE /
OIL PIPELINE S
140°40'
Figure 9- Outline of the Strzelecki oilfield and development
facilities.
The partners applied for a production licence over the
Wancoocha Field in June 1985 after two appraisal wells
(Wancoocha 3 and 4) were drilled on a 45 ac (18.23 ha)
spacing. Three options for full scale development of the
field were available at the completion of the fourth
Wancoocha well:
1. truck production from individual facilities at each
well, or
2. truck production from centralised field storage
facilities, or
3. construct a pipeline to Moomba from centralised
storage facilities.
The choice of options depended on the size of reserves,
deliverability, and distance from existing facilities. The
subsequent development well, Wancoocha 5, upgraded
the field reserves and proved that production rates would
be sufficient to justify a pipeline.
In the case of other small Eromanga Basin oilfields,
trucking of production from individual wellhead facil-
ities, or from centralised storage facilities, is also a viable
option of early production. This applies equally to the
small fields in South Australia and to the recent discov-
eries in the Eromanga Basin of southwest Queensland.
However, the bulk of Eromanga Basin oil is produced via
pipeline facilities from the Jackson -Naccowlah Trend.
The discovery of the Jackson Field (1981) was followed
by a decision of the Joint Venture partners, led by Santos,
significant role in the exploration, discovery, and
exploitaion of post -1975 discoveries of new oilfields in
the Cooper and Eromanga basins.
ACKNOWLEDGMENTS
The paper is published with the permission of the co-
venture partner companies of Santos Ltd. Mr A. Wil-
liams, Dr D.J. Forman, Mr C.S. Robertson, Mr B.G. West
(Bureau of Mineral Resources), and Dr J. Tilley (Depart-
ment of Resources and Energy) critically read the manu-
script. Publication is by permission of the Director,
Bureau of Mineral Resources, Geology and Geophysics.
REFERENCES
ALLEN, R.J., 1975 -Petroleum resources of Queensland.
Geological Survey of Queensland Report No.87. 75 pp.
ARMSTRONG, J.D., & BARR, T., 1982-The Eromanga
Basin. In: Moore, P.S., & Mount, T.J. (Compilers), Eromanga
Basin Symposium, Summary Papers. Geological Society of
Australia and Petroleum Exploration Society of Australia,
Adelaide, 20-43.
BATTERSBY, D.G., 1976 -Cooper Basin gas and oil fields. In:
Geology of Australia and Papua New Guinea -
Leslie, R.B., Evans, H.J., & Knight, C.L. (Eds), Economic
3. Pet-
roleum. Australasian Institute of Mining and Metallurgy,
Monograph 7, 321 -68.
DEPARTMENT OF NATIONAL DEVELOPMENT AND
ENERGY, 1982 -Petroleum exploration and development in
Australia. Australian Government Publishing Service, 48 pp.
DEVINE, S.B., 1975 -An assessment of the onshore petroleum
potential of Central and South Australia. APEA Journal,
15(2), 60-71.
LAING, A.C.M., 1969- Review of geology and case history of
petroleum exploration in Central Eromanga Sub- Basin.
APEA Journal, 9(2), 88 -96.
MARTIN, C.A., 1967 -Moomba -
field. APEA Journal, 7(1), 124 -9.
a South Australian gas

to produce the field via a pipeline from Jackson to
Moonie (780 km) (Fig. 5). Construction of the pipeline
commenced in April 1983 and was completed in late
February 1984, at a cost of $115 million. During pipeline
construction early production was undertaken by truck-
ing oil to Moonie and piping it from there to Brisbane.
The Jackson -Moonie pipeline was commissioned in
March 1984.
As of August 1985, 53 000 barrels of liquids per day
were being pumped down the Moomba -Port Bonython
liquids pipeline, whereas ultimate capacity is 80 000 BPD.
NUGENT, O.W., 1969- Sedimentation and petroleum potential
of the Jurassic sequence in the southwestern Great Artesian
Basin. APEA Journal, 9(2), 97-107.
SWINDON, V.A., & MOORE, P.S., 1984 -Exploration and
production, Eromanga Basin, Central Australia. CSR Oil and
-
Gas Division. August 1984 (unpublished).
VINE, R.R., 1976 Eromanga Basin. In: Leslie, R.B., Evans,
H.J., & Knight, C.L. (Eds), Economic Geology of Australia
and Papua New Guinea -3. Petroleum. Australasian Institute
of Mining and Metallurgy, Monograph 7, 306-9.
WILKINSON, R., 1983 -A thirst for burning, the story of
Australia's oil industry. David Ell Press, Sydney, 383.

THE APEA JOURNAL, 1986

259
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