Nick KyranisManaging Director –Technical

Timor Sea Designated Authority

Technical Overview - JPDA

ContentsContents

• Historic & Future Technical Activity• Synopsis – Exploration & Development • Summary of Exploration Activities• Summary of Development Activities • JPDA 06-101, 06-102, 06-103, 06-104• JPDA Data Availability

Historic & Future Technical ActivityHistoric & Future Technical Activity

• Prior to 1991 Seismic reconnaissance and one well drilled

• Under previous Treaty arrangements 1991-2003– 50,000+/- kms of 2D and 3500 sq-kms of 3D – 46 wells drilled

• 9 significant discoveries, three oilfields had produced 28 MMBO, and development of a major gas recycling project was well advanced

• 28 recorded gas and/or oil shows• 9 dry holes

JPDA wells& fields

Historic & Future Technical ActivityHistoric & Future Technical Activity

• Following entry into force of the TST in April 2003– Drilled one exploration well– Acquired 500 km of 2D Seismic data– Bayu-Undan Project “Development Drilling”

completed– Bayu-Undan Project facilities commissioned and

production commenced– From April 2003 to mid-August 2005, 38+/- million

barrels of liquids produced and sold from all fields– Bayu-Undan to Darwin LNG pipeline

commissioned– Construction of Darwin LNG plant commenced

(near completion)

Historic & Future Technical ActivityHistoric & Future Technical Activity

• The Road Ahead?– PMC and PSC documents now in place allowing more

operational certainty.– The TSDA has been able to release acreage that has

been fallow for several years. – Development of past discoveries more likely to

progress– Additional infrastructure and buoyant markets will lead

to more seismic and drilling activity to take advantage of synergetic opportunities.

ContentsContents

• Historic & Future Technical Activity• Synopsis – Exploration & Development• Summary of Exploration Activities• Summary of Development Activities • JPDA 06-101, 06-102, 06-103, 06-104• JPDA Data Availability

Synopsis, Exploration & DevelopmentSynopsis, Exploration & Development• JPDA – Located over Northern Bonaparte

Basin, and water depths from 60-1000 m.• Sedimentary sequence comprises thick

Mesozoic & Tertiary sediments underlain by Permian & older formations.

• Mesozoic & Tertiary deposition and distribution of source & reservoir rocks were influenced by :

• Subsidence and tectonism • Pre-existing (Palaeozoic) structural grain.

LocalityMap

Synopsis, Exploration & DevelopmentSynopsis, Exploration & Development

• Present subsurface structural configuration in the JPDA resulted from intersection of several rift cycles.

• Structural trends generally strike NE-SW and less frequently NW-SE and E-W

• Later faulting and some rejuvenation of Jurassic faults are evident.

Structural

Synopsis, Exploration & DevelopmentSynopsis, Exploration & Development

• Most accumulations lie in Jurassic-Cretaceous Plover to Flamingo clastics.

• HC’s mostly generated and trapped in dominantly estuarine/deltaic sequences.

• Most common traps are fault dependent. Fault seal integrity is vital.

• Oil and/or gas shows encountered in about 80% of all wells drilled.

• Tertiary fault reactivation is the common cause of hydrocarbons escaping/migrating elsewhere.

Stratigraphy

Synopsis, Exploration & DevelopmentSynopsis, Exploration & Development

• Over twenty commercial discoveries in Northern Bonaparte Basin.

• In JPDA, production from 4 out of 9 discoveries

• Elang, Kakatua & Kakatua North Oilfields commenced production in 1998– 30 MMBO produced to date– Now in late decline

EKKN

TS Wells& Fields

JPDA PSC’s

Synopsis, Exploration & DevelopmentSynopsis, Exploration & Development

• Bayu-Undan Gas/Condensate Field• Commenced production in 2004.• Reserves of 3.4 Tcf and 400MMB of

liquids• Currently producing up to 110,000 BLPD

and reinjecting lean gas.• Export from Darwin LNG plant is expected

to commence in April 2006.Bayu Undan

Synopsis, Exploration & DevelopmentSynopsis, Exploration & Development

• Development of Jahal and Kuda-Tasi Oil Fields (reserves est. 20 MMBO) is under review.

• Greater Sunrise Gas Fields are awaiting development (reserves est. 7.7 Tcf gas and 300 MMB liquids).

• Significant gas encountered at Chuditch (0.7 Tcf). Also Fohn and Kelp Deep (reserves indeterminate)

• Adjacent and west of the JPDA, the Laminaria & Corallina Oilfields commenced development in 1999.

Original reserves 200+ MMBO RecoverableProduction peaked at 150,000 + BOPD

TS Wells& Fields

ContentsContents

• History of E & D in the JPDA area• Synopsis of Petroleum Geology • Summary of Exploration Activities• Summary of Development Activities • JPDA 06-101, 06-102, 06-103, 06-104• JPDA Data Availability

Summary of Exploration ActivitiesSummary of Exploration Activities

• 50,000+ kms of 2D Seismic• 3,500+ sq-kms of 3D Seismic• Other surveys (Aeromagnetic, ALF,

Gravity)• 46 wells drilled,

– 37 wells recorded HC’s, of which 9 are commercially significant.

ContentsContents

• History of E & D in the JPDA area• Synopsis of Petroleum Geology • Summary of Exploration Activities• Summary of Development Activities • JPDA 06-101, 06-102, 06-103, 06-104• JPDA Data Availability

Summary of Development ActivitiesSummary of Development Activities

• EKKN – producing through leased FPSO• Bayu-Undan – currently producing condensate +

LPG via gas recycling project• BU-DLNG pipeline commissioned and gas

introduced.• BU-DLNG facility export program to commence April

2006• Jahal/Kuda Tasi – proposal for development under

review• Sunrise/Troubadour – Inter-Governmental equity

discussions at advanced stage

ContentsContents

• History of E & D in the JPDA area• Synopsis of Petroleum Geology • Summary of Exploration Activities• Summary of Development Activities • JPDA 06-101, 06-102, 06-103, 06-104• JPDA Data Availability

JPDA PSC’s Current & AdvertisedJPDA PSC’s Current & Advertised

Walleroo-1

Nabarlek-1

JPDA 06-101Chuditch-1

JPDA 06-101 (3956 km2)JPDA 06-101 (3956 km2)

• Contains Chuditch gas discovery, est. 0.7 Tcf gas

• Only three wells drilled in this area

• Proven and potential Mesozoic and Permian plays.

• Untested structures likely to exist

• Semi-detailed 2D seismic coverage across entire area

• Water depths are generally less than 100 metres.

Coleraine-1Naga-1

Minotaur-1

Fohn-1

JPDA 06-102

JPDA 06-102 (4215 km2)JPDA 06-102 (4215 km2)

• Adjacent to Bayu-Undan producing field.

• Proven Mesozoic oil and gas province

• Significant HC shows in 4 wells drilled

• Good 2D seismic coverage

• Depth to primary target zone < 3,500m.

• Water depths less than 120 metres

JPDA 06-103

Barnacle-1

Thornton-1

JPDA 06-103 (3741 km2)JPDA 06-103 (3741 km2)

• Proven petroleum province.

• Plays include Permian to Jurassic fault blocks, drape and stratigraphic traps

• 2D seismic coverage across entire area

• Adjacent to the Jahal and Kuda Tasi oil field discoveries

• Untested structures exist with targets < 3500m.

• Water depths generally 130 metres or deeper

JPDA 06-104Jura-1

Kelp-1

Kelp Deep-1

JPDA 06-104 (5777 km2)JPDA 06-104 (5777 km2)

• Adjacent to the Greater Sunrise Gas Field

• Only three wells drilled in this area• Significant hydrocarbon shows

encountered• Semi-detailed 2D seismic coverage

across entire area includes recent reconnaissance 2D

• Existence of untested structures• The Aptian Unconformity is easily

mapped, and is underlain by Jurassic Flamingo and Plover targets

• Depth to targets range from 2,050 –5,000 m.

• Water depths up to 1,000 m.

ContentsContents

• History of E & D in the JPDA area• Synopsis of Petroleum Geology • Summary of Exploration Activities• Summary of Development Activities• JPDA 06-101, 06-102, 06-103, 06-104• JPDA Data Availability

Data AvailabilityData Availability

• Geoscience Australia• Oil, Gas & Energy Directorate, TL• Fugro Multi Client Services Pty Ltd• Australian Seismic Brokers Pty Ltd• IHS Energy• Exploration Data Services Pty Ltd