Four gas fields (Glentulloch, Westgrove, Rolleston and Arcturus) were discovered by AAR Limited in the Denison Trough in the early 1960's. Permian gas reservoirs were encountered in Late Triassic wrench anticlines. The fields were not developed because of low gas prices and exploration technology problems at that time. Exploration activities ceased in 1970.Increased gas prices, the opportunity of an expanded gas market, and improved seismic technology provided the incentive to recommence regional seismic surveying of the basin in 1979. More than 2600 km of multi-fold seismic data have been recorded by the AAR Limited/Oil Company of Australia N.L. Joint Venture. The enhanced seismic resolution resulted in a revision of the structural and stratigraphic interpretation of the basin. Exploration drilling in 1981 was directed initially at deep Early Permian structures; however, reservoir quality of the Lower Permian sequence was poor and gas flow rates minimal.Exploration was therefore redirected towards the definition of prospects which were structurally and stratigraphically similar to the known fields. Five exploration wells have been drilled since November 1981, resulting in the discovery of a further three gas fields — Merivale, Yellowbank and Punchbowl Gully. Appraisal wells were drilled on the Glentulloch, Westgrove, Merivale and Yellowbank Fields, and were cased for future production.It is estimated that nine billion cubic metres (x 109m3) of conventional gas reserves are present within the basin. In addition, tight reservoirs contain large volumes of gas which may be producible by hydraulic fracturing. The basin is being actively explored to realize its full potential and to supply industrial and domestic markets in central and southeastern Queensland.

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The Moonie Field, located in the eastern portion of the Surat Basin and 300 km west of Brisbane, was discovered in December 1961 by Union Oil, operator of the 'UKA' joint venture consisting of Union Oil, Kern and AOG. Successful appraisal and development drilling led to the construction of the Moonie to Brisbane pipeline in 1963-64. Oil production commenced in 1964 and peaked in 1966 at a rate of 9000 BPD (1.4 ML/d). The oil is reservoired in the Precipice Sandstone and is trapped within the closure of the Moonie Anticline, located on the eastern and upthrown side of the Moonie-Goondiwindi Fault. Of the 38 wells drilled in the field to date, 32 have produced oil at economic rates. By August 1990, 22.23 MMBBL (3.5 GL) of oil had been produced from an estimated 59.1 MMBBL (9.3 GL) in place. Remaining recoverable reserves, with primary recovery, are estimated to be more than 1.5 MMBBL (0.2 GL). Enhanced oil recovery using both carbon dioxide and microbial techniques is currently being investigated by AGL Petroleum.The discovery of oil at Moonie represented the start of the commercial oil era in Australia. It provided encouragement for the petroleum exploration industry to expand the search and demonstrated that there were profits to be made from Australia's sedimentary basins. Moonie spawned a generation of petroleum exploration and production people who contributed to discoveries and developments elsewhere in Australia.

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