When Haematite Explorations Pty. Ltd. began prospecting for petroleum in 1960, there was only ill-defined geological evidence on the land bordering Bass Strait to support the belief that petroleum lay trapped in sedimentary formations beneath its shallow waters.A reconnaissance of the area, made in 1961 by the airborne magnetometer method, covered the waters and islands of the Strait and overlapped the Victorian and Tasmanian coasts. The survey indicated the presence of the Bass Basin (which is completely water-covered), assisted in outlining the Otway and Gippsland Basins, and showed that each basin contains sedimentary rocks over 10,000 ft thick. Information on the regional geology and minor volcanic activity was also obtained.Marine seismic surveys carried out from 1962 to 1965 defined these basins more accurately and showed the nature and structure of the thick sedimentary sections.Correlation of the seismic data with onshore wells identified the sediments as Tertiary and Mesozoic. Subdivisions of the former in all basins and the latter in the Otway Basin were made. These Tertiary and Mesozoic rocks are not seriously deformed and they have good prospects of containing petroleum.Possible structural and stratigraphic traps, recognized from the seismic record sections by petroleum geologists, are being tested by offshore drilling which began in 1964.