Release of petroleum exploration acreage

Oil and gas explorers now have the opportunity to bid for offshore petroleum...

  Oil and gas explorers now have the opportunity to bid for offshore petroleum acreage releases in Commonwealth waters.The Federal Government announced the release of 35 new exploration areas in April, with the 2008 releases located across five basins off the Northern Territory, Western Australia and the Territory of Ashmore and Cartier Islands coastlines. Of the 35 areas released, 23 are located in Western Australia.Western Australian Department of Industry and Resources Director of Petroleum and Royalties, Bill Tinapple said the 2008 acreage releases would encourage investment in petroleum exploration within the State.“Exploration is fundamental to the future of the State’s resources industry, and the long-term growth of this vital industry,” Mr Tinapple said.“Petroleum production in Western Australia has grown over the years, from US$24m worth of production in 1973, to more than US$12b now.“Intensifying oil and gas exploration ensures Western Australia maintains its international competitiveness,” he said.Mr Tinapple said that Western Australia is one of the few places in the developed world where the potential remains for larger discoveries and ongoing exploration success.The 2008 release also includes seven Designated Frontier Areas, which are eligible for the frontier exploration tax incentive of 150 percent uplift for exploration expenditure.Mr Tinapple said that the tax incentive boosted the attractiveness of frontier areas to explorers.“As exploration in frontier areas is often a higher cost and risk, tax incentives are a way to encourage exploration in the area,” he said. “Encouraging exploration in these selected areas can contribute to increasing the chances of a new petroleum province being discovered.”Mr Tinapple said that in addition to the 35 offshore areas released in April, the State Government had announced the availability of 10 more petroleum acreage areas in Western Australia.“The Department of Industry and Resources has also released six onshore and four offshore Western Australian petroleum acreage releases,” he said.“The State has extensive onshore and offshore sedimentary basins, the majority of which are considered prospective for new petroleum discoveries."