27 May 2025

South Australia is calling on companies to investigate the exploration of new energy resources in two key areas of the state.

In a move that recognises the critical role that the state’s natural resources will play in the transition to net zero, South Australia is declaring itself open for business in providing what the country needs.

Extensive investigation and review by the world-renowned Geological Survey of South Australia (GSSA) has revealed new exploration opportunities, including:

  • The Otway Basin – which shows further potential for gas discovery, geothermal energy and gas storage
  • The Polda Basin – which presents new opportunities for exploration for petroleum, hydrogen and other regulated substances

The resources that can be yielded from these acreage releases could greatly support South Australia’s net zero transition targets, while also supporting the state’s long-term energy stability.

South Australia’s growth in renewable energy is set to be firmed with lower-greenhouse emission natural gas, decarbonised through carbon capture and storage. Adding alternative gases such as hydrogen into our energy mix will also contribute to the net renewable ambition.

The acreage releases come as new research has also revealed potential for a new greenfield hydrocarbon province on the Eyre Peninsula.

A review of core from a legacy minerals drill hole in the Polda Basin showed the presence of oil staining. The hole was drilled in 1983 in search of potash, not hydrocarbons, but this new observation shows that reservoirs in the area could hold accumulations of oil and gas.

While only a first step, the discovery will help to ensure that valuable hydrocarbon opportunities aren’t overlooked.

Applications for new exploration licences are now open through a competitive bid process. Licences would permit exploration for regulated substances including natural gas, hydrogen and petroleum, as well as the potential for gas storage and geothermal energy.

Applications for these new exploration opportunities close on 31 October 2025.

More information:

Quotes attributable to Paul Martyn, Chief Executive, Department for Energy and Mining

Achieving net zero presents an unprecedented global challenge, and the South Australian government supports a technology-neutral approach that makes use of all available technologies at our disposal.

We need gas to achieve the transition to net zero – to firm the very high penetration of renewables in our energy mix. These acreage releases provide opportunities for explorers to get on-ground and find new energy resources.

The pathways to net zero require that we find new sources of gas with lower carbon intensity, and that we offset carbon emissions with capture and storage technologies.

We are leading the way with carbon capture and storage in Australia, with the Santos/Beach joint venture in Moomba proving the technology at scale. This state has other potential reservoirs for storage of gas or carbon capture and storage – which is why we’re encouraging explorers to investigate gas storage potential in the Otway basin.

With the support of the GSSA’s pre-competitive data reducing exploration risk, South Australia continues to offer enticing opportunities for explorers to uncover critical resources.

The state’s robust legislative framework will ensure that these release areas are explored in a sensitive and coordinated way, and that the South Australian community will benefit from any new discoveries.