I am very pleased to introduce the Victorian section in this supplement, dedicated to the 2006 International AAPG Conference and Exhibition in Perth. The Victorian Minerals and Petroleum Division (MPD) of the Department of Primary Industries (DPI) is exhibiting at this convention, as part of the Australian team. You can find out more about Victoria’s resources boom by visiting our booth in the Australian Pavilion and meeting MPD representatives. They will be pleased to assist you with enquiries about procedures on how to explore in Victoria and other matters related to petroleum and energy resources. Free CD-ROMs and DVDs are available containing previous prospectivity reports, geotechnical data, published papers on the Otway and Gippsland basins, information data packages and the Petroleum Atlas of Victoria (particularly useful for explorers who are new to the State).

Today, Victoria is recognised by minerals and petroleum explorers as an attractive location - among the best areas in Australia - for investment in new exploration ventures. The State is the hub for industries in constant demand of energy supplies and has promising potential for more oil and gas discoveries. Furthermore, it has established refineries and gas processing plants to process oil and gas finds and has extensive gas-pipeline grids that allow delivery of gas discoveries to both local and interstate markets.

Exploration successes in recent years, particularly gas discoveries in the Otway and Gippsland basins, have led to many downstream development projects. Over the past few years $3 billion has been invested in field development projects and $1.5 billion on pipeline construction projects. These projects have created over 4500 construction and 280 permanent jobs in Victoria. For further information on these projects, see article on petroleum projects.

MPD is committed to facilitating minerals and petroleum sector activities which bring economic benefits to not only Victorians, but also to Australia. Furthermore, MPD takes on an important role in research and development in the minerals and petroleum sector in support of sustainable development outcomes. GeoScience Victoria, which is part of MPD, provides high quality geoscientific data which is essential for project investment decisions and information. MPD also has a regulatory role in safety and environmental aspects associated with minerals and
petroleum projects.

The past twelve months was an exciting period for GSV, Business Development and Technology, Regulation and Earth Resources Policy units within MPD. These units were all involved in various projects which moved into fruition. Some of the outstanding achievements in this period include:

• Grant of a mining licence for the Monash Energy project to convert Latrobe Valley brown coal into clean diesel fuel, at an estimated cost of US$5 billion, with the potential to produce 60,000 barrels of fuel per day.

• Release and invitation for applications for the annual May 2006 State and Commonwealth petroleum acreage, supported by GSV, through the preparation of hydrocarbon potential assessment reports on the
released blocks.

• Release of Victoria’s first geothermal energy resources acreage (31 permits) in April 2006, which was supported by the release of the Regulations for the Geothermal Energy Act 2005 - essential to provide guidance and confidence to permit operators.

• Progressing the finalisation of the Regulations for the recently passed Pipelines Act 2005.

• Continue to support new technologies through the development of a geosequestration trial for carbon dioxide injection into the Otway Basin near Port Campbell.

• Provision of facilitation, fast track assessment and approval of petroleum and pipeline projects including SESA transmission gas pipeline, Basker-Manta, Casino and Bass Gas field development, which have moved
into operation.

The articles presented in this section provide important summaries that highlight MPD’s activities and provide a useful introduction to new and potential explorers.

MPD welcome potential investors to consider exploring Victoria and would be pleased to provide the required data to make informed decisions on project risks.

Dr Richard Aldous, Executive Director, Minerals and Petroleum Division
Victorian Department of Primary Industries -http://www.dpi.vic.gov.au/minpet/

For further information, please contact
Kathy Hill, Director Geoscience Victoria,
on +61-3- 96584562 or by e-mail
on kathy.hill@dpi.vic.gov.au