2009 saw a decrease in total activity from 2008, levelling off in the December quarter as the economy stabilised.

Unsurprisingly, most exploration activity was in offshore WA and on coal seam methane (CSM) in Qld. Highlights include: good results in the Carnarvon and Browse Basins for Hess and other WA operators; Karoon and Conoco-Phillips’ enigmatic Poseidon project; over 180 CSM exploration wells in Qld; and, a relatively busy year for Tasmania.

WA seismic acquisition approached 10,000 km of 2D and 25,000 km2 of 3D for 38* wells and success rate around 50%. SA saw the highest conventional onshore drilling activity, with good results for 18 wells, while other states saw low activity in this sector. Seismic onshore was low even in SA; the lowest total seismic in SA since 1999. Victoria saw one offshore exploration well and no seismic. Tasmania also saw no new seismic, but saw four exploration wells and encouragement at Rockhopper–1. CSM is picking up in SA, with 15 wells drilled, and NSW saw continued CSM activity in a historically low-activity region.

High success rates suggest two trends: explorers finding value in 3D seismic; and, a flight to quality as operating costs and poorer access to capital reinforce risk-aversion among operators. Geothermal energy helped some investors satisfy their appetite for risk outside of petroleum exploration, and results will be watched with great interest.

*numbers are from public and departmental statistics and are subject to revision.