Permit EPP SA-1 in the South Australian Otway Basin covers the 3 nautical mile - wide State territorial waters between the coastline and the eastern boundaries of offshore permits EPP 24 and the relinquished EPP 23, and was essentially acquired by BHP Petroleum and Cultus Petroleum in November 1990 as protection acreage for these larger and more prospective permits. The initial 3-year guaranteed work programme for EPP SA-1 has involved seismic survey acquisition and processing, seismic data reprocessing, and office studies performed by operator BHP Petroleum. Based primarily on new seismic data acquired by the work programme, a detailed evaluation of the permit and surrounding area has been carried out by the permittees, and is summarised in this report. The conclusions are that there are presently no drillable prospects within the permit: for the mainly Crayfish Subgroup plays identified so far, all of the mapped structural leads have unacceptable trap validity risks due to their sparse seismic coverage, high uncertainty of faults sealing, and likely gas-proneness. All leads require additional seismic definition if any are to be upgraded to prospect status. Furthermore, there are no leads identified in the adjoining EPP 24 which are likely to extend into EPP SA-1. This has two implications: the necessity for having EPP SA-1 as protection acreage to EPP 24 no longer matters (EPP 23 has already been relinquished), so any prospects proven in EPP SA-1 must stand on their own merits. The latter point makes the likelihood of discovering a stand-alone economic field in such a small area somewhat remote, particularly in the case of gas.