Closing Dates, Lodgement of Applications and Availability of Data

Closing Dates
Lodgement of Applications
Availability of Data
Limit on Number of Permit Renewals
Summary of Exploration Permit Bid and Work Requirements

Closing Dates

Applications must be lodged by 4.00pm on the relevant dates below. Late applications will not be considered.

First Round	Thursday, 18 October 2007
	Areas V07-1, W07-1 to 7 & 16 to 17, AC07-1 to 5, NT07-1 to 2
Second Round	Thursday, 17 April 2008
	Areas V07-2 to 3, W07-8 to 15 & 18 to 21, NT07-3 to 5

Lodgement of Applications

Applications, together with supporting data, should be submitted in duplicate to the relevant State/Territory Department address listed below:

Western Australia Director Petroleum and Royalties Division Department of Industry & Resources Level 11, Mineral House 100 Plain Street EAST PERTH WA 6004 ATTENTION: Petroleum Applications Receiving Officer	Tasmania Director of Mines Mineral Resources Tasmania 30 Gordons Hill Road ROSNY PARK TAS 7018 ATTENTION: Petroleum Registrar, Industrial Minerals & Land Management
Victoria The Tender Box Manager Department of Primary Industries 16th Floor, 1 Spring Street MELBOURNE VIC 3000 ATTENTION: Manager Petroleum Tenements, Minerals and Petroleum Regulation	Northern Territory and Territory of Ashmore and Cartier Islands Director of Energy Department of Primary Industries, Fisheries and Mines 5th Floor, Centrepoint Building 48-50 Smith Street Mall DARWIN NT 0800 ATTENTION: Petroleum Registrar

The following special instructions should be observed:

two copies of the application and supporting data, together with an application fee payable to the “Commonwealth of Australia” through an Australian Bank or by bank cheque, should be enclosed in an envelope or package (electronic funds transfer or credit card facilities are not available). At the time of printing the fee was A$4040 including GST. Changes to fees are notified in the Australian Petroleum News;
the application should then be sealed and clearly marked as "Application for Area ..... Commercial-in-Confidence"; and
this envelope or package should then be enclosed in a plain covering envelope or package and delivered by hand or posted to the jurisdiction address above relevant to the area being bid for. It is the responsibility of the applicant to confirm receipt.

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Availability of Data

Refer to the Overview for Applicants section on Petroleum and Geoscience Datasets, as well as the Products and Services section of this acreage release package for further information on data availability.

Copies of basic exploration data pertaining to the blocks comprising this release may also be purchased from the relevant State/Territory Department at the above addresses.

It is recommended that companies interested in bidding for areas register their contact details so that they receive the offshore petroleum release publication which includes a CD-ROM and the Australian Petroleum News (electronic publication). Please send request to petroleum.exploration@industry.gov.au

This ensures the company will be notified of important updates to information for potential explorers as well as information on current issues in the governance of the Australian offshore petroleum sector.

Limit on Number of Permit Renewals

Permits granted from acreage offered for bidding after 1 January 2003 may, in most circumstances, be renewed for a further two five year terms. However, special provisions apply to areas comprising six or fewer graticular blocks. The 2007 offshore petroleum exploration acreage release area W07-5, which contains six blocks, may be renewed twice with 4 blocks both times.

Summary of Exploration Permit Bid and Work Requirements
Mandatory		Flexible
All applications must contain: Technical Assessment of the area Minimum Guaranteed Work Program (Years 1, 2 and 3) Secondary Work Program Technical qualifications of the applicants and its key employees Technical advice available to the applicant Financial resources available to the applicant Where relevant, applicants must provide: the viability of the consortium; percentage interest of each party; past performance; director’s links with a company that has defaulted over the previous 5 years. Generally, the minimum guaranteed work program should include at least a significant amount of new seismic surveying and/or wells. At least one well is normally expected in the six years of the permit term.	Bid	The minimum acceptable bid will vary with the size of an area and its perceived prospectivity. Where extensive non-exclusive seismic data or significant reprocessed seismic data are available over an area, it would generally be expected that the minimum guaranteed work program would include at least the licensing of a significant amount of those data, followed by a well or wells. Where an area is covered by 3D seismic data, substantial reprocessing may form a substantial part of the proposed primary work commitments. The challenges of exploring in frontier areas are recognised and will be reflected in the assessment of bids. Such assessment would include consideration of the type of survey to be carried out over the permit area and the timing of any wells which are proposed.

Summary of Exploration Permit Bid and Work Requirements

Mandatory

Flexible

All applications must contain:

Technical Assessment of the area
Minimum Guaranteed Work Program (Years 1, 2 and 3)
Secondary Work Program
Technical qualifications of the applicants and its key employees
Technical advice available to the applicant
Financial resources available to the applicant

Where relevant, applicants must provide: the viability of the consortium; percentage interest of each party; past performance; director’s links with a company that has defaulted over the previous 5 years.

Generally, the minimum guaranteed work program should include at least a significant amount of new seismic surveying and/or wells.
At least one well is normally expected in the six years of the permit term.

Bid

The minimum acceptable bid will vary with the size of an area and its perceived prospectivity.
Where extensive non-exclusive seismic data or significant reprocessed seismic data are available over an area, it would generally be expected that the minimum guaranteed work program would include at least the licensing of a significant amount of those data, followed by a well or wells.
Where an area is covered by 3D seismic data, substantial reprocessing may form a substantial part of the proposed primary work commitments.
The challenges of exploring in frontier areas are recognised and will be reflected in the assessment of bids. Such assessment would include consideration of the type of survey to be carried out over the permit area and the timing of any wells which are proposed.

Permittee is required to undertake each element of the minimum guaranteed work program in the designated year or earlier.
The minimum work program cannot be reduced once the permit is awarded.
Only work within the permit area can count towards a work commitment.

Primary Term
Years 1-3

A permittee can:

surrender permit in good standing prior to the beginning of the fourth permit year if minimum guaranteed work program has been completed (and other permit conditions met).
submit proposals for a revised work program six to three months before the end of the third year. If agreement with JA cannot be reached, the permit may be surrendered in good standing.
apply to vary or suspend permit conditions on force majeure grounds(as defined in guidelines).^#
apply for variation and suspension to commit new seismic surveying if unable to prove up a prospect to meet a drilling commitment.^#
apply to have an alternative work activity of at least equal work value and technique credited to a work program commitment.^#
in certain circumstances, apply to enter into a good standing arrangement after a work program default / cancellation.^#

On commencement of the fourth permit year, the secondary work program becomes guaranteed on a year by year basis and each component must be undertaken within the permit boundary in the designated year or earlier.

Secondary Term
Years 1-3

Permittee can renegotiate the secondary work program on an annual basis (before entering the year in question) by providing substantial and compelling evidence that the work program should be varied on technical grounds.

^# Also available in the Secondary Term.

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