The Press FRIDAY, JANUARY 11. 1963. The Moonie Oil-field

Press, Volume CII, Issue 30027, 11 January 1963, Page 8

The Press FRIDAY, JANUARY 11. 1963. The Moonie Oil-field

This week’s announcement of the presence of oil in the eleventh well drilled at Moonie in Queensland brings the record since drilling began on the Moonie structure in November, 1961. to 11 discoveries of oil in 11 wells. Flows have ranged from 1500 to 2500 barrels a day. Thus, at long last, it seems that Australia has found oiL The Moonie field is a reward for a search of 70 years and expenditure of £A9O million, this—until Moonie—without

any lasting commercial production. Hopes run high that more discoveries will be made in the L 500.000 square miles of sedimentary basins known to exist in Australia. Prospects of success are encouraged by the fact that the Australian oil search is now being conducted on the highest scientific and technical levels. In most cases the search is being directed by overseas oil companies, which are associated with Australian companies and groups of Australian investors. More than 30 geophysical crews—three times the number of two years ago—are working; more than 60 wells, including stratigraphic test wells, were completed last year, or were in progress at the year's end. Australia’s search for oil has been actively encouraged by the Federal Government by way of subsidies and tax concessions. In its Budget last August the Government increased its total

expenditure in support of oil exploration during the year ending June, 1963, to £A6.6 million compared with £A3.7 million the year before. This includes a doubling of subsidies to companies engaged in the search to £AS million, the remainder being expenditure for the Government’s own work.

The Moonie field is relatively small: at present 3J miles long on its northeastern axis and a mile wide on the southern side. Step-out wells will determine the limits of the field. However, that the field is a commercial proposition is established by the decision of the operators (announced last September) to build a pipeline estimated to cost between £AS million and £AB million over the 200 miles from Moonie to Brisbane. According to the Queensland Minister of Mines, the line will be a common carrier. Any spare capacity will be available for carrying crude oil which may be found by other companies exploring in Southern Queensland. Encouraging signs have been found by operators on other structures in the same sedimentary basin as Moonie, and, so far as can be judged, Southern Queensland may be Australia’s first major oil-field. Gratifying successes at Moonie have drawn to Queensland most of the 30 large drilling rigs that are expected to be working in Australia in the next few months.