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.
Summary of Exploration Permit Bid and Work Requirements (To be read in conjunction with the Guidelines)
| Mandatory | | Flexible |
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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.
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- 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 a 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.#
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- 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 4-6 | - 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.
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