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April 2014

2014 Petroleum Permits Map & Book
The 2014 editions of the Petroleum Permits of Australasia Map and Book are now available.  They were released at the APPEA Conference in Perth on Sunday 6th April and are available for purchase ...

2014 Offshore Acreage Release
The 2014 Offshore Acreage Release was announced at the APPEA Conference on 8th April 2014.  30 areas were announced in total including work program and cash bid ...


Industry Summary
Geodynamics has entered a $1.5 million agreement with Beach Energy for the sale of its Habanero logistics and operational support base near Innamincka in South Australia. Beach will acquire camp accommodation ...

Permit Updates and Changes
In the Clarence/Moreton Basin, Red Sky Energy has sold 20% of PEL 457 and PEL 479 to ERM Gas for $1.6 million.  The deal was approved by Red Sky shareholders on 06/03/2014 ...
 


2014 Petroleum Permits Map & Book

The 2014 editions of the Petroleum Permits of Australasia Map and Book are now available.  They were released at the APPEA Conference in Perth on Sunday 6th April and are available for purchase from our desk in the registration area at the Conference and also by mail order from our Sydney office.



Please
click here to download a copy of the order form.

The APPEA Conference is being held at the Perth Convention & Exhibition Centre from 6th to 9th April.  As usual we will be in attendance. Please drop by and say hello to Angela Willett, Catherine Speed, Dan Haigh and Cynthia Thomas.


2014 Offshore Acreage Release

The 2014 Offshore Acreage Release was announced at the APPEA Conference on 8th April 2014.  30 areas were announced in total including work program and cash bid areas. For more information, please click here.

Work program areas closing 02/10/2014
AC 14-2 to AC 14-4
NT 14-1 to NT 14-3
W 14-2 to W 14-5, W 14-7, W 14-14 to W14-16

Work program areas closing 02/04/2015
AC 14-1
W 14-1, W 14-6, W 14-8 to W 14-13, W 14-17 to W 14-19

Cash bid areas closing 05/02/2015
W 14-20 to W 14-23


Industry Summary

Company News

Geodynamics has entered a $1.5 million agreement with Beach Energy for the sale of its Habanero logistics and operational support base near Innamincka in South Australia. Beach will acquire camp accommodation, operating support facilities for drilling and associated equipment suited to its current field operations through the agreement.  Geodynamics will retain ownership and responsibility for all geothermal permits in the area including geothermal wells, brine pipelines and geothermal facilities, such as the 1MWe Habanero pilot plant. Upon completion, Beach will assume all responsibility for maintaining the operating base through the agreement. (Source: Geodynamics announcement, 17/03/2014).

Tangiers Petroleum confirms that the offer period for its off-market takeover bid for all the shares and listed options in Jacka Resources closed 18/03/2014. The minimum acceptance conditions to the offer under Tangiersí takeover bid were not met at that time. Accordingly, the offer has now lapsed. As a result all acceptances into the Tangiers takeover offer will be cancelled.  (Source: Tangiers Petroleum announcement, 18/03/2014).

Strike Energy and Orica have reached further agreement for the supply of an additional 100 PJ of gas to be produced by Strike for the Southern Cooper Basin gas project. In July 2013, Orica signed a deal with Strike Energy to supply it with 150 PJ of gas. With the signing of todayís agreement Orica now has access to up to 250 PJ of gas through to the end of 2036.  The deal includes pre-payments of up to $47.5 million for Strike's project development activities and a share placement agreement. (Source: Strike Energy announcement, 25/03/2014).

The closing of the offer period for an off-market takeover of all the ordinary shares in Phoenix Oil & Gas by Torrens Energy has been extended from 01/04/2014 to 15/04/2014. The takeover requires acceptances from 90% of Phoenix shareholders in order to take place, with Torrens currently holding 83%. (Source: Torrens Energy announcement, 26/03/2014).

Seven Group Holdings
has entered into a conditional merger implementation agreement to acquire all of the outstanding equity of Nexus Energy Ltd by way of a scheme of arrangement. The offer to Nexus shareholders is $0.02 per share in cash. Closing of the transaction is expected in June 2014, subject to various conditions, including Nexus shareholder approval and court approval. In addition to acquiring the outstanding shares, Seven Group Holdings will effectively replace Nexusí senior lender and a majority of unsecured debt funding financiers through the merger and will provide working capital, including an immediate bridge-loan facility up to $40 million. A majority of note holders have agreed to accept an offer of 89c per dollar of face value of their notes. (Source: Nexus Energy announcement, 31/03/2014).

On 31/03/2014, Magellan Petroleum Corporation completed the sale of the Companyís interests in Magellan Petroleum (NT) P/L and other assets of Magellan Petroleum Australia consisting primarily of the Palm Valley and Dingo gas fields to Central Petroleum Ltd. Pursuant to the terms of the Sale Deed, Magellan received $15 million in cash on the completion date and will receive an additional $5 million in cash on or before 15/04/2014. Magellan also received approximately 39.5 million shares of Central stock, equivalent to an approximate 11.4% ownership. (Source: Magellan Petroleum announcement and Central Petroleum announcement, 31/03/2014)
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Developments

CB&I has won a contract from Bechtel worth more than $690 million to provide structural, mechanical and piping construction work for all outside battery limits modules and associated units for Chevronís Wheatstone Project in Western Australia. Wheatstone, located at Ashburton North, 12km west of Onslow, will consist of two LNG trains with a combined capacity of 8.9 million tonnes per annum and a domestic gas plant. Bechtel is responsible for the front-end engineering and design works of the onshore gas plant component of the project. (Source: Energy News Bulletin, 19/03/2014).

Monadelphous Group has secured three contracts for the Australia Pacific LNG Project worth a combined $250 million. The largest of the contracts is for the construction of an upstream gas processing facility that will process gas from the projectís gathering network for delivery to its main pipeline. The other two contracts cover the development of a pipeline compression facility and an interconnect facility, which will transfer and meter gas between networks. Monadelphous said the work would be completed in line with APLNGís schedule for first LNG exports in mid-2015. (Source: Energy News Premium, 26/03/2014).

Maintenance and construction contractor ECM has secured $110 million of electrical and instrumentation works on QGCís Queensland Curtis LNG Project. Under the QCLNG contract, ECM will deliver central processing plants and field compressor stations to the Ruby Jo and Woleebee Creek sites, while Harry, Broadwater, Glendower, McNulty and Cam will receive only the latter. (Source: Energy News announcement, 27/03/2014).

WestSide Corporation is pleased to announce that the Meridian joint venture has signed a binding agreement to sell gas to the GLNG Project. The agreement will provide up to 65 TJ per day and will commence in 2015 for gas supply over a 20 year period. The gas price will be oil-linked from 2016. The gas will be supplied from the Meridian gas fields in Queensland and delivered into GLNGís gas transmission pipeline, which passes adjacent fields. (Source: WestSide announcement, 27/03/2014)
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Discoveries

Senex Energy has cased and suspended its jointly operated Worrior 10 well with Cooper Energy for future production after it encountered oil pay in the Patchawarra and Murta Formations. Wireline logs and pressure measurements indicate that Worrior 10 intersected 4.5 metres of net oil pay in the Patchawarra formation and 4.9 metres in the Murta formation. The well will be completed as a Patchawarra producer. (Source: Cooper Energy announcement, 19/03/2014).

Cooper Energy has drilled the first of two deep wells in South Australiaís Otway Basin and is in the process plugging and abandoning the well. Jolly 1 drilled to 4,026 metres in PEL 495 and targeted the Casterton formation, recovering 51.7 metres of conventional core from the target, as well as 26.7 metres from the Lower Sawpit. Elevated mud gas readings were observed during drilling over a gross interval of 340 metres of the Lower Sawpit Shale. The presence of gas shows in this well is very significant and indicates that a substantial deep basin gas play may be present in the Penola Trough. (Source: Cooper Energy announcement, 25/03/2014).

Beach Energy advises that Stunsail 1 in PEL 91 has exceeded expectations by encountering a thicker column and multiple hydrocarbon bearing zones. The well intersected a 10 metre column at the McKinlay/Namur target from a depth of 1,367 metres, with 6 metres in the highly productive Namur sandstone. A 4 metre oil column was also intersected at the mid-Namur reservoir from a depth of 1,403 metres. The first drill stem test across a 15 metre section recovered 46 bbls of oil and 3 bbls of filtrate over a four-hour period, equating to more than 250 bbls of oil per day. The second drill stem test, over an 11.5 metre section in the higher zone was still in progress at the time of the announcement. (Source: Beach Energy announcement, 28/03/2014)
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Permit Updates and Changes

New South Wales

In the Clarence/Moreton Basin, Red Sky Energy has sold 20% of PEL 457 and PEL 479 to ERM Gas for $1.6 million.  The deal was approved by Red Sky shareholders on 06/03/2014.

In the Murray Basin, applications PELA 153, PELA 154, PELA 155, PELA 156 and PELA 157 were refused on 25/03/2014 and now revert to vacant acreage.


Northern Territory

In the Vulcan Basin, AC/P 32 is being renewed.


Joint Petroleum Development Area

A
n application has been submitted for an extension of the expiry date of JPDA 06-101.


Queensland

Six new onshore gazettal areas have been announced Ė PLR 2014-1-1 in the Carpentaria Basin, PLR 2014-1-2 and PLR 2014-1-3 in the Georgina Basin, and PLR 2014-1-4, PLR 2014-1-5 and PLR 2014-1-6 in the Eromanga Basin.   All areas close on 29/09/2014.

In the Bowen Basin, Stanwell and Comet Ridge have revised their September 2011 agreement.  Stanwell will transfer its 5% of the ATP 337 Mahalo Project to Comet Ridge and will relinquish its option to acquire a further 35% in exchange for either:  (1) Stanwell and Comet Ridge entering into a 20PJ to 40PJ gas sales agreement;  or (2) by Stanwell receiving a cash payment of $20 million (escalated at CPI).

In the Galilee Basin, ATP 974 and ATP 978 have been relinquished and now revert to vacant acreage.

In the Surat Basin, PLR 2013-3-3 was granted as ATP 1187 to Vamgas P/L 50% and Total E&P Australia 50% on 25/3/2014.  The licence will expire on 24/03/2018.  Work program is as follows -

Year 1: G&G studies, drilling preparation
Year 2: 1 well (to 1000m)
Year 3: 3 pilot wells (each to 1000m)
Year 4: production testing of pilot wells

Also in the Surat Basin, PLR 2013-4-2 was granted as ATP 1188 to QGC P/L 48.125%, BG International Ltd 20.625% and Australia Pacific LNG P/L 31.25% on 06/03/2014.  The licence will expire on 05/03/2018.  Work program is as follows -

Year 1: G&G studies
Year 2: 2 CSG wells (to penetrate coal-bearing section of Walloons)
Year 3: 3 CSG wells (to penetrate entire coal-bearing section of Walloons)
Year 4: G&G review

Geothermal

In the Eromanga Basin, EPG 91 was not granted and now reverts to vacant acreage.

Also in the Eromanga Basin, Clean Energy Australasia P/L 50% and Earth Solar Power P/L 50% have applied for EPG 100.


South Australia

In the Cooper Basin, relinquished area PEL 112 and part of PEL 94 have been added to the CO2013 Acreage Release as additional area CO2013-C. Bids close 29/05/2014.

In the Cooper Basin, part of relinquished area PEL 94 and part of CO2013-Z1 have been added to the CO2013 Acreage Release as additional area CO2013-D. Bids close 29/05/2014.

In the Eromanga Basin, PEL 112 has been renewed to 10/01/2019 over a reduced area of 1,089 sq km. Work program is as follows -

Year 1: G&G studies
Year 2: G&G studies
Year 3: 50 sq km 3D seismic
Year 4: G&G studies
Year 5: 1 well

In the Cooper Basin, PEL 636 has been granted to Stuart Petroleum P/L on 18/03/2014. The licence will expire 17/03/2019. Work program is as follows -

Year 1: G&G studies
Year 2: G&G studies
Year 3: G&G studies
Year 4: G&G studies
Year 5: G&G studies

In the Cooper Basin, PEL 94 has been renewed to 04/11/2017 over a reduced area of 902 sq km. Work program is as follows -

Year 1: G&G studies
Year 2: G&G studies
Year 3: G&G studies
Year 4: G&G studies
Year 5: G&G studies, 1 well

In the Pirie-Torrens Basin, application PELA 240 has been withdrawn.

In the Arckaringa Basin, application PELA 604 has been varied and now covers a reduced area of 9,286 sq km.


Sequestration

In the Eucla Basin, GSEL 584 - GSEL 587 have been suspended for 12 months from 15/02/2014 to 14/02/2015. The licenses have had their expiry dates extended to 15/05/2019.


Victoria

Offshore in the Gippsland Basin, Cooper Energy has agreed to acquire 65% of VIC/L 26, VIC/L 27 and VIC/L 28 and will take over as operator.  Cooper Energy will acquire 50% from ROC Energy for $1 million and a deferred payment of $5 million contingent on first hydrocarbons production from a commercial development and 15% from Beach.

In the Gippsland Basin, VIC/P 63 and VIC/P 64 expired on 28/03/2014 and now revert to vacant acreage.

Also in the Gippsland Basin, VIC/P 66 was cancelled by NOPTA on 18/03/2014 and now reverts to vacant acreage
.


Western Australia

In the Carnarvon Basin, the year 3 work program for WA-155-P has been extended by 12 months from 26/02/2014 to 25/02/2015. The licence has had its expiry date extended to 25/02/2017.

In the Petrel Sub Basin, a location application for WA-313-P was submitted over the Penguin Gas Field on 24/03/2014.

In the Carnarvon Basin, the year 6 work program for WA-409-P has been extended by 9 months from 30/04/2014 to 29/01/2015. The licence has had its expiry date extended to 29/01/2015.

In the Petrel Sub Basin, WA-442-P was cancelled on 19/03/2014.

In the Carnarvon Basin, WA-5-R and WA-19-R to WA-24-R are in the process of being renewed.

In the Canning Basin, Buru withdrew from EP 104 in 2013 and accordingly Fitzroy River has no remaining royalty rights regarding EP 104.

In the Carnarvon Basin, EP 325 expired 28/03/2014. The area reverts to vacant acreage.

In the Perth Basin, Empire has withdrawn from EP 437. Empire will assign its 35% interest on a pro-rata basis to Key and Caracal which will hold interests of 77% and 23% respectively.

In the Canning Basin, EP 487 has been granted to Oil Basins Ltd 50% and Backreef Oil P/L 50% on 14/03/2014. The licence will expire 13/03/2020. Work program is as follows -

Year 1
: 500 km 2D seismic $2.75m
Year 2: 2 wells $3m
Year 3: 2 wells $3m
Year 4: 200 km seismic $1.1m
Year 5: 1 well $1.5m
Year 6: 1 well $1.5m

In the Canning Basin, STP-SPA-55 has been granted as SPA 17 AO to Admiral Oil NL on 24/03/2014. The acreage will expire 23/03/2015.

In the Canning Basin,
SPA 3 AO is under application as STP-EPA-113 and STP-EPA-114 over a reduced area by Hess Australia Exploration (New Ventures) P/L. The permits cover 8,336 sq km and 7,187 sq km respectively.

In the Carnarvon Basin, application STP-EPA-124 has been varied and now covers 6,069 sq km.

In the Canning Basin, STP-SPA-56 is a new special prospecting authority application in the Canning Basin. Applicant is confidential at this time.


New Zealand

In the Taranaki Basin, PEP 51313 has undergone a partial relinquishment and now covers 818 sq km.

In the East Coast Basin, PEP 56061 has been granted to Schlumberger Seaco Inc on 14/03/2014. The licence will expire 13/09/2014. Work program is as follows -
6 months: 3400 km 2D seismic.


Papua New Guinea

PPL 474  was granted on 06/03/2014 and will expire 05/03/2020.  The licence replaces PPL 236 which expired on 27/03/2014 and includes 8 graticular blocks from PPL 238 which expired on 06/03/2014.

PPL 475 was granted on 06/03/2014 and will expire 05/03/2020. The licence replaces PPL 237 which expired on 27/03/2014.

PPL 476 and PPL 477 were granted on 06/03/2014 and will expire 05/03/2020. The licences replace PPL 238 which expired on 06/03/2014.

Total SA has acquired, through the purchase of all shares in a wholly-owned InterOil subsidiary, a 40.1% interest in PRL 15. InterOil retains 35.5% and immediately received US$401 million for closing the transaction, will receive US$73 million on a final investment decision for an Elk-Antelope LNG project and a further US$65 million on the first LNG cargo. InterOil will also receive payments for certified gas volumes following appraisal of Elk-Antelope.

PRL 39 was granted on 20/12/2013.  The licence will expire on 19/12/2018.


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