In a significant development for Australia’s energy future, Melbana Energy Limited has secured a petroleum exploration permit (WA-552-P) for a promising area in Western Australia’s Dampier Sub-basin. This region is part of the Northern Carnarvon Basin, one of the richest petroleum areas in Australia. The permit, which comes after the 2022 Offshore Petroleum Exploration Acreage Release, will allow Melbana to explore potential large gas accumulations as part of Australia’s push to meet future gas supply needs.

Melbana Energy’s exploration team will focus on desktop research for the first three years, reprocessing 3D seismic data and conducting geophysical studies. The company may then proceed with further exploration in subsequent years, including drilling a well if early findings prove promising. Executive Chairman Andrew Purcell highlighted that the Federal Government’s Future Gas Strategy, which positions natural gas as a vital part of Australia’s energy mix until 2050, reinforces the significance of this permit. Purcell believes that leveraging Melbana’s experience in offshore exploration could help address the country’s looming gas supply deficit.

The company’s geological studies will be essential to determine whether the Dampier Sub-basin could hold significant gas reserves. This work builds on Melbana’s history of successful exploration projects in the region, such as its earlier work in WA-454-P and WA-488-P, which led to notable industry interest and financial backing from major global oil companies.

The potential of WA-552-P

The Dampier Sub-basin has long been known for its smaller oil discoveries, such as Tusk, Okapi, and Brocket, as well as its proximity to the long-producing Stag oil field. However, Melbana aims to unlock deeper gas plays by applying advanced seismic and tectonic analysis, a technique it has successfully used in other regions like the Petrel Basin. According to the company, this basin may share geological similarities with the Canning Basin and other gas-rich basins, further boosting hopes of significant findings.

Melbana’s exploration strategy will focus on identifying new exploration targets by comparing the region’s geology with similar plays in the Middle East and Caspian region. If successful, the company could help boost Australia’s gas output at a critical time when energy security is a growing concern globally. Melbana’s earlier exploration efforts, including their sale of a permit to a major US oil company, signal that the company is well-positioned to turn exploration opportunities into significant commercial success.

Expert opinion: Industry-wide implications

The exploration of WA-552-P could have broad implications for Australia’s energy sector. As the world grapples with energy transition challenges, natural gas continues to play a bridging role. According to energy experts, expanding gas exploration efforts in areas like the Dampier Sub-basin could be crucial in maintaining energy security while reducing reliance on coal. The federal government’s backing of such initiatives through its Future Gas Strategy underscores the importance of natural gas for Australia’s long-term energy plan.

Moreover, if Melbana Energy succeeds in proving the Dampier Sub-basin’s gas potential, it could attract further investment from global energy majors. This follows the company’s previous achievements, where it successfully sold stakes in its exploration permits to larger firms, demonstrating its capacity to develop exploration projects that appeal to major players in the industry.

The stakes are high for Melbana, as its success could provide Australia with much-needed gas supplies while boosting the company’s standing within the global energy market. Industry insiders are watching closely to see if this exploration effort will reveal significant new gas deposits.

  Andrew Purcell, Canning Basin, Dampier Sub-basin, Future Gas Strategy, Melbana Energy Limited, Northern Carnarvon Basin, Stag oil field, Tusk oil discovery, Western Australia