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The Otway Basin is a northwest-trending passive margin rift basin that extends from southeast of South Australia to a
boundary with the contiguous Sorell Basin to the west of King Island. The Basin contains an Upper Jurassic to Holocene
succession and covers an area of 150 000 km2, 80% of which lies offshore. The Otway Basin is an established gas
producing region; however most discoveries are confined to the onshore and shallow water inboard parts of the basin.
Discoveries have not yet been made in either the relatively underexplored, deep water outboard part of the Basin or the
Torquay Sub-basin; hence the Discovery Bay High, Morum, Nelson, Hunter and Torquay sub-basins are classified as
lightly explored provinces.
Basin outline
The Otway Basin is a northwest-trending passive margin rift basin that extends from southeastern South Australia to a
boundary with the contiguous Sorell Basin west of King Island (Figure 1). The basin is filled with Upper Jurassic to
Holocene sediments and covers an area of 150 000 km2, 80% of which lies offshore. The Otway Basin is one of a series
of basins (including the Bight, Otway, Sorell, Bass and Gippsland basins) that formed during the break-up of Gondwana
and the separation of Antarctica and Australia (Willcox and Stagg, 1990; Stagg and Reading, 2007; Blevin and Cathro,
2008; Direen et al, 2012). The western, northern and eastern basin boundaries are defined by the preserved limits of the
uppermost JurassicLower Cretaceous Otway Group sediments, while its southern boundary is delimited by the
southernmost extent of Cenozoic sediments in the Hunter Sub-basin. The basin contains a siliciclastic and carbonate
sedimentary succession that accumulated within two major depocentres. The Inner Otway Basin, which occupies
onshore and shelfal areas, is characterised by a thick Lower Cretaceous sedimentary succession. Farther offshore, the
area basinward of a large fault system in part mapped as the TartwaupMussel Fault Zone (the region referred to herein
as the deepwater Otway Basin) are the Late Cretaceous depocentres of the Morum, Nelson and Hunter sub-basins,
and the Discovery Bay High (Totterdell et al, 2014). The Torquay Sub-basin, a largely offshore depocentre, is situated in
the northeastern part of the basin and contains a Lower Cretaceous succession similar to that elsewhere in the basin,
overlain by a thin, post-rift Upper Cretaceous succession that has affinities with the Upper Cretaceous sediments in the
Bass Basin (Trupp et al, 1994; Blevin and Cathro, 2008; Totterdell et al, 2014).
The Otway Basin is an important gas producing region with discoveries onshore and in shallow water offshore areas
approximately 170220 km west-southwest of Melbourne, the State Capital of Victoria, delivering gas to the southeastern
Australian energy market (Figure 1). The greater Melbourne region represents a large domestic gas market and is
supported by major petroleum refineries. Portland, on the western Victorian coast, is a deep-water port suited to offshore
operations and is serviced by an excellent road and rail network.
Petroleum discoveries have not yet been made in the relatively underexplored deep water part of the basin or within the
Torquay sub-basin; hence the Morum, Nelson, Hunter and Torquay sub-basins and the Discovery Bay High are
classified as lightly explored provinces (Totterdell et al, 2014).
Wells, fields and infrastructure in the region are shown in Figure 1, stratigraphy in Figure 2, and regional seismic
character in Figure 3. The location of permits and the names of their operators are given in Figure 4 and the location of
Commonwealth Marine Reserves and key ecological features are shown in Figure 5.
DISCLAIMER: This information has been provided as a guide only. Explorers should not rely solely on this information when making commercial decisions.
For more information see - http://petroleum-acreage.gov.au/2016/disclaimer. Image courtesy of Chevron Australia
Tectonic development
The Otway Basin is one of a series of basins that developed along the southern margin of Australia during the Middle
Jurassic to Cenozoic breakup of eastern Gondwana, and together they comprise the Southern Rift System. The margin
evolved through repeated episodes of extension and thermal subsidence leading up to, and following, the commencement
of seafloor spreading between Australia and Antarctica. Breakup took place diachronously along the margin, starting in the
west at ~83 Ma and concluding in the east at 34 Ma. In general, breakup was not accompanied by significant magmatism
and the margin is classified as magma-poor. Key references that discuss the geology and tectonic evolution of the
southern margin include: Stagg et al (1990), Willcox and Stagg (1990), Exon et al (1997), Totterdell et al (2000), Norvick
and Smith (2001), Hill and Moore (2001), Teasdale et al (2003), Totterdell and Bradshaw (2004), Krassay et al (2004), and
Blevin and Cathro (2008).
The Otway Basin overlies deformed Proterozoic and Paleozoic rocks of the Delamerian and Lachlan fold belts, which
appear to have influenced the location and orientation of later basin-forming structures (Miller et al, 2002; Moore, 2002;
Bernecker and Moore, 2003; Gibson et al, 2012). The complex structural and depositional history of the basin also reflects
its location in the transition from an orthogonalobliquely rifted continental margin in the west to a transform continental
margin to the southeast (Totterdell et al, 2012).
With the onset of the major rifting phase in the Late Jurassic, several east-northeast-trending extensional depocentres
formed and developed into the Robe, Colac and Gellibrand troughs in the onshore part of the basin. Older parts of the
Portland Trough and the Torquay Sub-Basin may also have been initiated during this extensional phase (Trupp et al,
1994; Perincek and Cockshell, 1995). The Penola Trough and most of the Portland Trough were formed by southeasterly
transtension between the original rifts, as extension continued. The easternmost portion of the offshore Voluta Trough may
represent a continuation of these structures (Figure 1).
Renewed rifting in the Late Cretaceous was driven by a change in crustal extension direction from northsouth to
northeastsouthwest. This created a structural style distinctly different from that developed by the earlier rifting. In the
offshore, where Late Cretaceous rifting was concentrated, the resulting structures overprinted those of the initial rift phase.
Most of the major structural features, including the TartwaupMussel Fault System, AvocaSorell Fault System, Voluta
Trough, Mussel Platform, Prawn Platform and Shipwreck Trough (Figure 1), were formed or reactivated by Late
Cretaceous rifting. In some areas such as the Shipwreck Trough and Mussel Platform in the eastern part of the basin,
sinistral strike-slip motion resulted in the development of transpressional structures with both extensional and
compressional components. These are tightly folded, north-trending anticlinal structures, which are particularly well
developed in the Shipwreck Trough.
The main structural feature within the Torquay Sub-basin is the east-northeast-trending Nerita Trough. The trough is
characterised by thick Otway Group growth wedges (Crayfish and Eumeralla supersequences of Krassay et al, 2004;
Figure 2). A period of contractional deformation affected much of the Otway Basin in the Cenomanian and resulted in
inversion on Early Cretaceous faults, uplift of the Otway Ranges and erosion of much of the Albianmiddle Campanian in
the Torquay Sub-basin. The sub-basin is increasingly deformed to the west, culminating in the uplifted Otway Ranges
(Trupp et al, 1994). The Late Cretaceous extension seen in the rest of the Otway Basin is limited to minor northwest
southeast-oriented faults on the Snail Terrace to the south of the main depocentre, and minor growth against the western
bounding fault system (Cooper and Hill, 1997; Blevin and Cathro, 2008). The sub-basin was affected by a series of
compressional events during the Oligocene and MiocenePliocene, which resulted in the formation of several large
inversion anticlines, and uplift and erosion (Blevin and Cathro, 2008; Holford et al, 2011a).
The deep water Otway Basin consists of two main depocentresthe Morum and Nelson sub-basins. Separated by the
Discovery Bay High, the depocentres are flanked on their basinward side by the Hunter Sub-basin (Figure 1; Totterdell et
al, 2014). The inboard boundary of the deep water Otway Basin approximately coincides with a large fault system (in part
mapped as the TartwaupMussel Fault Zone; Figure 1) and a corresponding hinge zone. Basinward, the Upper
Cretaceous succession thickens dramatically.
The westernmost element of the deep water Otway Basin is the Morum Sub-basin. For the purposes of this description,
the Morum Sub-basin includes the narrow, highly faulted Beachport Sub-basin of Moore et al (2000), that links the Otway
Basin with the Ceduna Sub-basin of the Bight Basin. The narrow, neck-like nature of this part of the basin may reflect its
position adjacent to a transform segment of the continent-ocean boundary. The Morum Sub-basin contains at least
5 s TWT (~8 km) of Cretaceous sediments overlain by a thin Cenozoic succession. The sub-basin is characterised by
intense faulting that affects the entire Cretaceous succession (Moore et al, 2000). The faults are typically high-angle,
particularly in the inboard fault zone that underlies the upper continental slope. Lower-angle listric faults are common
farther basinward.
Cenozoic subsidence and inversion (Nirranda, Heytesbury and Whalers Bluff supersequences)
The oldest rift-fill sediments in the Otway Basin are of latest JurassicEarly Cretaceous age (Figure 2). During that time,
the locus of rifting and deposition was in the onshore parts of the basin where a series of initially distinct, west to
northwest-trending extensional depocentres formed. These depocentres would eventually expand substantially into the
Robe, Colac and Gellibrand troughs (Krassay et al, 2004). In excess of 5000 m of fluvio-lacustrine sediments of the
Crayfish and Eumeralla supersequences (equivalent to the Otway Group) filled these depocentres. The lacustrine
sediments and interbedded flow basalts of the Casterton Formation are overlain by the predominantly fluvial sediments of
the Pretty Hill Formation, which are, in turn, overlain by lower energy fluvial and lacustrine sediments of the Laira
Formation. The overlying Katnook Sandstone represents the return to higher energy fluvial deposition. Studies of apatite
fission track (AFT) data and vitrinite reflectance (VR) data from wells in the basin suggest that it experienced regionally
elevated palaeotemperatures (5060C/km) in the Early Cretaceous (Foster and Gleadow, 1992; Duddy, 1994; O'Brien et
al, 1994; Cooper and Hill, 1997; Mitchell, 1997). Interpretation of seismic data suggests that a thin, extensional Lower
Cretaceous succession is also present in the deep water Otway Basin (Figure 3). In the eastern Nelson Sub-basin,
deposition during this time was strongly influenced by the northsouth oriented AvocaSorell fault system.
A period of compression and structural inversion affected most of the Otway Basin during the Cenomanian (Norvick and
Smith, 2001; Krassay et al, 2004), resulting in kilometre-scale uplift and exhumation in some areas of the basin (e.g.
Otway Ranges and the Cape OtwayKing Island High; Holford et al, 2011b), and non-deposition or erosion of much of the
Cenomanian succession across most of the basin. Driven by uplift and erosion, heat-flow and the associated geothermal
gradient decreased sharply in the early Late Cretaceous. Due to limited seismic data and poor well control, the impact of
this compressional event in the deep water Otway Basin is less clear.
Bernecker et al (2004) proposed that the Cenomanian uplift of the Otway Ranges resulted in isolation of the Torquay Sub-
basin from the rest of the Otway Basin. Thus, when deposition resumed in the Campanian, the sub-basin was effectively a
northwest extension of the Bass Basin (Trupp et al, 1994; Bernecker et al, 2004). The lower coastal plain sandstones,
siltstones and coals of the Campanianlower Eocene Eastern View Formation that cover much of the Bass Basin and
provide the source of hydrocarbons in that basin, were also deposited across the Torquay Sub-basin. The succession is
generally thin (<200 m) but thickens over the Lower Cretaceous half graben. The Eastern View Formation is
unconformably overlain by marine shelfal sediments of the middle Eoceneupper Oligocene Demons Bluff Group, which
includes the basal transgressive sands of the Boonah Formation and the potential seal facies of the Anglesea Formation.
The Demons Bluff Group is overlain by shallow marine carbonates of the upper OligoceneMiocene Torquay Group.
In the rest of the Otway Basin, extension recommenced in the Late Cretaceous and at least 5000 m of sediments were
deposited in the Shipwreck Trough. The main locus of deposition moved to the south, basinward of the TartwaupMussel
Fault Zone and equivalent faults farther west (Reid et al, 2001; Krassay et al, 2004). A series of northwest-trending
depocentres developed beneath the present day outer shelf and slope in the Morum and Nelson sub-basins; the inboard,
fault-controlled depocentre is commonly referred to as the Voluta Trough (e.g. Reid et al, 2001). Deposition throughout the
Late Cretaceous was dominated by the fluvio-lacustrine, deltaic and marine sediments of the Shipwreck and Sherbrook
supersequences (equivalent to the Sherbrook Group; Krassay et al, 2004; Figure 2).
Austral 2: Lower Cretaceous fluvial and coaly facies (Crayfish and Eumeralla supersequences); and
Austral 3: Upper Cretaceous to lowest Cenozoic fluvio-deltaic facies (Shipwreck and Sherbrook supersequences).
OBrien et al (2009) mapped the peak hydrocarbon generation fairways for the three petroleum systems in the Otway
Basin and concluded that the principal control on the distribution of significant hydrocarbon accumulations in the basin is
proximity to actively generating source kitchens. This is related to poor fault seal in the basin, so that development of
hydrocarbon accumulations is reliant on the charge rate exceeding the leakage rate, complicated by relatively complex
and tortuous migration pathways.
While many discoveries have been made in the inboard basin, only six petroleum exploration wells have been drilled in the
remainder of the offshore parts of the basinthree in the deep water sub-basins (Morum 1, Amrit 1 and Somerset 1) and
three in the offshore Torquay Sub-basin (Nerita 1, Snail 1 and Wild Dog 1; Figure 1). All of these wells were plugged and
abandoned as dry holes. Austral 2 source rocks are modelled as being overmature across much of the Late Cretaceous
depocentre in the deep water parts of the basin (OBrien et al, 2009). However, the presence of a thick, dominantly marine
Upper Cretaceous succession, and geochemical indications suggesting the influence of Austral 3-sourced hydrocarbons in
outboard wells (OBrien et al, 2009), provide some support for the concept that active petroleum systems are present in
the deep water parts of the basin.
Source rocks
In the Otway Basin, the source rocks of the Austral 1 Petroleum System consist of non-marine, Upper Jurassic to Lower
Cretaceous fluvio-lacustrine and lacustrine shales deposited in half graben (Casterton Formation and Crayfish Subgroup).
Edwards et al (1999) grouped liquid hydrocarbons sourced by Austral 1 source rocks into four oil families, based on
isotopic and biomarker signatures, and interpreted the depositional environments of the source rocks. The Austral 1
Petroleum System is recognised primarily in the Penola and Robe troughs as the source for: oil and bitumen in
Crayfish 1A and Zema 1 (Family 1); condensates and oil in Wynn 1 and Sawpit 1, respectively (Family 2); condensates in
Haselgrove 1, 2 and Haselgrove South 1, 2 (Family 3); and, gas and minor condensate in Troas 1 (Family 4).
With the exception of the Penola and Robe troughs, the vast majority of hydrocarbon discoveries in the Otway Basin
belong to the Austral 2 Petroleum System, which consists of Lower Cretaceous (Albian-Aptian) source rocks charging the
overlying basal Upper Cretaceous Waarre siliciclastic reservoir unit (Edwards et al, 1999; Boreham et al, 2004; OBrien et
al., 2009). These include the onshore fields in the Port Campbell Embayment and all offshore gas fields in the greater
Shipwreck Trough area (Mehin and Link, 1994; Foster and Hodgson, 1995; Luxton et al, 1995). Source intervals comprise
coals and carbonaceous shales within two coal measure sequences in the Eumeralla Formation, one of Aptian age near
the base of the unit and the other of early Albian age.
Timing of generation
Burial history modelling indicates the Eumeralla Formation has a two-stage hydrocarbon generation history consisting of
an initial Early Cretaceous phase of hydrocarbon expulsion followed by a lesser Cenozoic expulsion phase (Duddy, 1994,
1997; Mehin and Link, 1997b). Early Cretaceous expulsion was associated with the initial rifting event, when the
geothermal gradient was approximately 5070C/km (Mehin and Link, 1997a; Mitchell, 1997). This event would have
resulted in significant hydrocarbon generation from the Casterton Formation, Crayfish Subgroup and basal Eumeralla
Formation, peaking at the end of the Early Cretaceous.
During the Late Cretaceous, hydrocarbon expulsion from the Casterton Formation (Crayfish Subgroup) and base
Eumeralla Formation ceased after the regional geothermal gradient dropped from 5070C/km to 30C/km (Duddy, 1997;
Mitchell, 1997). Further hydrocarbon generation did not recommence until the Eumeralla Formation experienced burial
temperatures greater than those attained at the end of the Early Cretaceous. Duddy (1997) and Mehin and Link (1997b)
believe this occurred in the Paleogene with peak generation occurring in areas where the Eumeralla Formation is overlain
by about 2000 m of Upper Cretaceous sediments and 10002000 m of Paleogene sediments.
Play types
Sandstones within the Shipwreck Supersequence (Sherbrook Group; Waarre and Flaxman formations) sealed by the
Belfast Mudstone and charged by Austral 2 source rocks are the most successful exploration targets inboard of the
TartwaupMussel Fault Zone. All of the producing fields and a majority of the discoveries are from the Waarre reservoir.
The principal structural traps involve closure associated with faulted anticlines and tilted fault blocks. Regional seal is
provided by the Belfast Mudstone while the Flaxman Formation exhibits local sealing capability. The Eumeralla Formation
is expected to be gas generative across most of the region. The potential for oil generation from lower Sherbrook Group
source rocks is inferred to be the highest in the Voluta and Portland troughs. Recent petroleum geochemical studies
suggest that in the offshore, mature Turonian source rocks may be capable of generating liquid hydrocarbons if it can be
demonstrated that these shales are marine in origin (OBrien et al, 2009).
In the western Otway Basin, TuronianSantonian slope fan sediments provide a valid exploration target in addition to the
Waarre/Flaxman play. Rapid deepening and steepening of the shelf to the southwest of the Tartwaup Hinge Zone,
combined with high eustatic sea levels, created a deep water depositional environment over much of the Otway Basin.
Post break-up uplift in the hinterland provided large volumes of clastic material that bypassed the relatively stable platform
of the Tartwaup Hinge Zone to the northeast. Lower delta plain and marginal marine conditions suitable for the formation
of oil-prone source rocks within the Waarre and Flaxman formations are most likely to be found in rapidly subsiding
troughs, such as those located southwest of the Tartwaup Hinge Zone. Slope-fan deposits, overlying a thick, coal-bearing
sequence of the Waarre Formation, have been identified on seismic data in the South Australian part of the basin.
Another regionally well developed play type is associated with tilted fault blocks that contain Paaratte Formation
sediments. These fault blocks rely on both intraformational and cross-fault seal for trap integrity. In proximal locations, trap
seal is the main exploration risk associated with this play. In more distal areas, where the unit interfingers with the Belfast
Mudstone, the risk of seal failure is reduced. Rollovers associated with faulted anticlines developed on the hanging wall of
listric faults may provide independent four-way dip closures. The generally coarsening-upwards, quartz sandstones
display excellent reservoir characteristics. Although this play has yet to be validated by a hydrocarbon discovery, only one
offshore well (Discovery Bay 1) has targeted this play. Downthrown fault blocks, with juxtaposition of Paaratte Formation
reservoirs against shaly sequences from the same unit, or Belfast Formation mudstones, may also constitute valid traps.
The potential for fault seal is expected to increase in a basinward direction.
While there is potential for plays charged by early-generated, Austral 2-sourced hydrocarbons in the inboard parts of the
deep water Otway Basin, preservation of such accumulations is considered problematic. OBrien et al (2009) proposed
that the best opportunities for preservation of early-generated hydrocarbons were in fault-independent anticlines with four-
way dip closure, and in fault-dependent plays on faults with low dip and eastwest strike, rather than northwestsoutheast.
Oceanic Regime
The region has cool temperate waters with complex oceanography due to subpolar influences from the south, subtropical
influences from the Leeuwin Current along the Western Australian Coast and Great Australian Bight (Commonwealth of
Australia, 2015), as well as the influence of Bass Strait immediately to the East. Nutrient-rich upwelling occurs along the
shelf, offshore Bonney coast, and to the west of the area (Robe, South Australia, to Portland, Victoria) between November
and April (IMCRA, 2006; Butler et al, 2002) and may also be linked to strong storm events throughout the year (Blackman
et al, 1987). Mean surface water temperatures range between 14C and 18C. Water temperatures are 23C lower than
adjacent bioregions due to the cooling effect of upwelling (IMCRA, 2006; Parks Victoria, 2006). The Otway coast is a high
wave-energy coastline, constantly impacted by southwesterly swells generated in the Southern Ocean (Barton et al,
2012). Mean annual wave heights of 2.7 m recorded on the coastline cause significant erosion of sea cliffs and pillars
(Bird, 1993). Tides are microtidal (0.8 m to 1.2 m) (Parks Victoria, 2003).
Seabirds, dolphins, seals and White Sharks forage in the reserve, and Blue Whales migrate through Bass Strait.
and associated with the following seafloor features, deep/hole/valley and shelf.
The reserve is zoned Multiple Use Zone IUCN Category VI. Management plans for the Southeast Commonwealth Marine
Reserves Network are in place. Mining operations, including exploration, are allowed.
The iconic cliffs and pillars of the Twelve Apostles are protected by the Twelve Apostles Marine National Park. The park
runs along 17 km of coastline in coastal waters, adjacent to Release Area V17-3. Arches, canyons, fissures, gutters and
deep sloping reefs support kelp forests, sponge gardens, habitat for seabirds, seals, lobsters, reef fish and sea spiders.
Marine mammals visit the area and Little Penguins nest in the caves below the Twelve Apostles. The park is managed for
ecosystem protection and recreation. All forms of extraction are prohibited in the park (Parks Victoria, 2006).
Fisheries
Fishing effort varies spatiotemporally in the region based on fishing restrictions, stock status and environmental conditions
(Larcombe et al, 2001). The following fisheries occur in the Otway Basin area:
Scallop Fishery. The Victorian zone is between the high tide mark, excluding bays and inlets, out 20 nm
(http://agriculture.vic.gov.au/fisheries/commercial-fishing/scallop). The Commonwealth zone is between the Victorian
and Tasmanian fisheries that lie within 20 nm of their respective coasts (http://www.afma.gov.au/fisheries/bass-strait-
central-zone-scallop-fishery/). The fishing season runs from 1 April to 31 December.
Small Pelagic Commonwealth Fishery, western sub-area. The season runs for 12 months
(http://www.afma.gov.au/fisheries/small-pelagic-fishery/).
Southern and Eastern Scalefish and Shark Fishery, Commonwealth Southeast Trawl Sector and Commonwealth
Scalefish Hook Sector. The season runs 12 months (http://www.afma.gov.au/fisheries/southern-eastern-scalefish-
shark-fishery/).
Southern Bluefin Tuna Commonwealth Fishery. The season runs for 12 months
(http://www.afma.gov.au/fisheries/southern-bluefin-tuna-fishery/).
Southern Squid Jig Commonwealth Fishery. The season runs for 12 months
(http://www.afma.gov.au/fisheries/southern-squid-jig-fishery).
Giant Crab Victorian Fishery, Western Zone. Closed seasons for Females, 1 June to 15 November; for Males,
15 September to 15 November (http://agriculture.vic.gov.au/fisheries/commercial-fishing/giant-crab).
Rock Lobster Victorian Fishery, Western Zone. Closed seasons for Females, 1 June to 15 November; for Males
15 September to 15 November (http://agriculture.vic.gov.au/fisheries/commercial-fishing/rock-lobster).
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Figures
Figure 1 Regional setting of the 2017 Release Areas in the Otway Basin, showing petroleum wells, fields and
infrastructure, and the location of the seismic section shown in Figure 3
Figure 2 Stratigraphy and hydrocarbon discoveries of the Otway Basin, based on the Otway and Sorell Basins
Biozonation and Stratigraphy Chart (Kelman et al, 2015). Geologic Time Scale after Ogg et al (2016)
Figure 3 Seismic line p137/09 across the Nelson sub-basin and inner Otway Basin. Interpretation by Geoscience
Australia. Location of the seismic section is shown in Figure 1
Figure 4 Exploration permits and operators in the Otway Basin and surrounds
Figure 5 Marine reserves, marine parks, multiple use zones, ecological features and the 2017 Acreage Release Areas
in the Otway Basin