GPinfo Update

 

April 2015

 

Monthly Update

 

The April 2015 data update is now available …

 

Industry Summary

 

Mosman Oil and Gas has extended the closing date of its offer to acquire 100% of the fully paid ordinary shares in MEO Australia. The offer will now close on 08/05/2015 …

 

Permit Updates and Changes

 

As a result of the NSW Petroleum Titles Buyback Scheme, a number of licences have been cancelled – PEL 5, PEL 442, PEL 444

 


 

Monthly Update

 

The April 2015 GPinfo data update is now available.

Important note: The March update included a major software release.  Please refer to the March edition of this newsletter for more details or contact GPinfo Support by phone
on 02 9475 3500 or by email.

 


 

Industry Summary

 

Company News

 

Mosman Oil and Gas has extended the closing date of its offer to acquire 100% of the fully paid ordinary shares in MEO Australia. The offer will now close on 08/05/2015, unless further extended or withdrawn. Mosman is offering 1 Mosman share for every 10 MEO shares.  (Source: Mosman Oil & Gas announcement, 16/03/2015).

Metgasco has terminated its merger with Elk Petroleum. The proposed merger was subject to a number of conditions precedent, including Metgasco’s ability to raise funds to support the merger and a Material Adverse Condition associated with oil prices. Based on discussions with numerous financial organisations, Metgasco has concluded that the chance of securing acceptable finance is now very low. This is due to a number of factors, including current oil prices, which are significantly lower than anticipated when the original merger terms were negotiated. (Source: Metgasco announcement, 16/03/2015).

Evoworld Corporation’s proportional takeover bid to acquire 50% of Neon Energy shares at 3.8 cents per share was approved by shareholders on 25/03/2015. The offer is now no longer subject to any conditions. Evoworld currently holds 36.95% in Neon Energy. (Source: Evoworld Corporation announcement, 27/03/2015).

 

New Zealand Oil and Gas has issued a fifth supplement to its takeover attempt on Cue Energy Resources. As of the evening of 26/03/2015 NZOG had moved to a 45.6% shareholding in Cue. The company has noted that just one significant shareholder in Cue, PetroChina, remains holding more than 5% and NZOG has stated that it will seek significant representation on the Cue board. NZOG said that it will force a strategic review on Cue’s corporate structure, governance, assets, businesses, personnel, and operations to determine if there are areas where Cue’s business can be enhanced. It also said it will consider whether to delist Cue from the ASX and it wants half the seats on the board. (Source: Oil and Gas Journal, 27/03/2015).

 

Woodside Petroleum has completed the previously announced acquisition of Apache’s Wheatstone LNG and Balnaves oil interests in Australia. The transaction successfully closed on 02/04/2015 for a total cost of US$2.817 billion, including a closing adjustment of US$567 million. Under the terms of the agreement, Apache has sold equity ownership in its Australian subsidiary, Apache Julimar P/L, which owns a 13% interest in the Wheatstone LNG Project and a 65% interest in the WA-49-L block and includes the Julimar-Brunello offshore gas fields and the Balnaves oil development. (Source: Woodside announcement, 02/04/2015, Apache announcement, 02/04/2015).

 

Carnarvon Petroleum commissioned independent technical advisor DeGolyer and MacNaughton to assess the potential recoverable oil within the Phoenix 3D seismic area which includes the Phoenix South 1 discovery, based on data provided by operator Apache Energy. Carnarvon says the Phoenix South structure contains the potential for between 6-56 million barrels, with a best estimate of 19 mmbbl of contingent resources. DeGolyer and MacNaughton also verified Apache’s initial oil-in-place estimate of up to 300 mmbbl for the Phoenix South structure, assessing 296 mmbbl OIP in the Lower Keraudren Formation. Apache’s contingent and prospective recoverable oil assessed in the entire Phoenix 3D study area are for between 48-232 mmbbl (gross) with a best estimate of 104 mmbbl. The Roc prospect, the next structure to be drilled later this year, has recoverable potential of between 12-133 mmbbl, with a best estimate of 42 mmbbl, classed as prospective resource. (Source: Energy News Premium, 07/04/2015).

 

Royal Dutch Shell plc has agreed to acquire BG Group plc in a $70.1 billion cash and shares deal intended to sharpen Shell’s focus on integrated gas projects and deep water. If the transaction is approved by shareholders and completed, existing BG shareholders will own about 19% of Shell. Shell said the acquisition would increase its proved oil and gas reserves by about 25% and its production by 20%. Under the terms of the deal, BG shareholders will be entitled to receive 383 British pence in cash for each BG share and 0.4454 “Shell B” shares. BG directors intend to unanimously recommend that BG shareholders vote in favour of the scheme at a court meeting, with the scheme expected to become effective in early 2016. (Source: Oil & Gas Journal, 08/04/2015, OilVoice announcement, 08/04/2015).

 

Apache Corporation is selling its Australian subsidiary, Apache Energy Ltd, and its Australian oil and gas production and exploration assets to a consortium of private equity funds managed by Macquarie Capital Group Ltd and Brookfield Asset Management Inc for US$2.1 billion. Brookfield and Macquarie Capital will jointly manage the Apache assets, each holding 50%.The transaction is expected to close mid-year 2015 and is subject to necessary government and regulatory approvals and customary post-closing adjustments. (Source: Apache announcement, 09/04/2015).

 

Zeta Resources, through its wholly owned subsidiary Zeta Energy P/L, has made an unconditional takeover offer for Pan Pacific Petroleum NL. The offer is for all the fully paid ordinary shares in Pan Pacific that it does not already own at an offer price $0.05 per share. The offer is scheduled to close on 27/05/2015 unless extended or withdrawn. (Source: Pan Pacific Petroleum announcement, 10/04/2015).

 

AGL Energy has entered into a gas supply agreement with Esso Australia Resources and BHP Billiton Petroleum which will see it source gas from Victoria’s Bass Strait. Under the agreement, AGL will purchase up to 198 PJ of conventional natural gas from Bass Strait over three years. The contract will start in January 2018 and will last until 2021, at which time AGL may seek to recontract more gas. (Source: Energy News Bulletin, 09/04/2015).

 

Developments

 

Central Petroleum has announced the Dingo Gas Project pipeline and plant has been successfully commissioned and the necessary regulatory approvals to operate have been obtained. The project was completed ahead of schedule and 10% below budget. The plant is connected up to the Owens Springs power plant, and is ready to start gas sales as soon as Power and Water Corporation’s engineering and tie-in to the company’s delivery point has been completed. The field will produce gas from the Dingo 2 and Dingo 3 wells which are connected by a 43 km, 100-mm pipeline north to the Brewer industrial estate in Alice Springs. The pipeline and processing plant capacity is as much as 2.4 PJ/year. (Source: Central Petroleum announcement, 23/03/2015).

 

The Environmental Protection Authority of Western Australia has approved plans for expansion of the Gorgon LNG Project on Barrow Island into a fourth train. The expansion will see the Chevron-led group push the foundation production of 15 million tonnes per year of LNG up to a total of 20 million tonnes per year. The expansion project includes construction of a feed gas pipeline system along either the Northern Pipeline Route Option or the Southern Pipeline Route Option plus the addition of a fourth LNG train on Barrow along with associated systems within the existing plant. (Source: Oil & Gas Journal, 04/03/2015).

 

Santos has asked UGL to provide plant services for the operational phase of its Gladstone LNG Facility at Curtis Island. The $120 million contract is for an initial three-year term, with options to extend it a further four years. Under the scope of the contract UGL will perform maintenance, shutdown, engineering and project services for the $18 billion Gladstone LNG. UGL is expected to begin mobilisation of its workforce in the second quarter of the year. (Source: Energy News Bulletin, 25/03/2015).

 

ExxonMobil PNG Ltd, operator of the PNG LNG Project, has executed an agreement for the sale of electricity to PNG Power. Under the agreement, PNG LNG will supply up to 25 megawatts of electricity to PNG Power, which will in turn, build the necessary infrastructure to the LNG plant in order for supply to commence. The agreement fulfils one of the key commitments made under a memorandum of understanding signed by ExxonMobil and the government of Papua New Guinea to provide domestic gas for power generation for Port Moresby. (Source: ExxonMobil announcement, 01/04/2015).

 

INPEX has awarded Petrofac an integrity and maintenance program development contract for the Ichthys LNG Project. Petrofac’s asset performance management consultancy Plant Asset Management will complete the contract over the next 20 months, with the work involving an integrated gas chain covering both upstream and midstream assets. Prior to start-up of the offshore and onshore facilities, Plant Asset Management will deliver a fit for purpose integrity and maintenance program, which will allow for review and acceptance of the maintenance and inspection program by operations personnel and ensure repair strategies and spares are in place. (Source: Energy News Bulletin, 09/04/2015).

 

Discoveries

 

The Santos-Drillsearch joint venture has announced a new wet gas discovery on the Western Cooper Wet Gas Fairway. This is the fourth discovery out of five drilled by the joint venture. Kyanite 1 has been cased and suspended as a future producer in PEL 513 after excellent gas shows were observed across the Patchawarra and Tirrawarra sandstone and Merrimelia Formations with 250 to 3795 total gas units with stacked reservoirs identified. Drillsearch’s preliminary interpretation of wireline logs confirmed an aggregate estimate of 24.2 metres of net conventional gas pay over several intervals in the Patchawarra Formation, with a gross interval of 534.3 metres. In addition, 8.5 metres of net gas pay were encountered over a gross interval of 59.1 metres in the Tirrawarra Sandstone/Merrimelia Formation. The potential for multiple completion targets has been observed and formation pressure testing identified good permeability. Several zones with potential for significant unconventional pay were also observed. (Source: Drillsearch Energy announcement, 16/03/2015).

 

Woodside has made a natural gas discovery with its Pyxis 1 wildcat just 15 km from its Pluto field production facilities in WA-34-L offshore Western Australia. The well intersected about 18.5 metres of net gas pay within the Jurassic sandstone target reservoir. Wireline logs have confirmed the discovery and gas samples have been brought to the surface. Woodside has not quantified the find, but observers suggest a resource of several hundred billion cubic feet. Pyxis offers future tie-back potential to the existing Pluto infrastructure, including the onshore One-train LNG Plant on the Burrup Peninsula. (Source: Oil & Gas Journal, 08/04/2015).

 

The Santos-Drillsearch joint venture has had further success at the Spinel 1 exploration well. Spinel 1 is located approximately 11.7 km northeast of the Raven gas field, and 5.3 km east of the Moonanga gas field. Drillsearch’s preliminary assessment of the drilling results has identified approximately 11.3 metres of net pay across several zones in the Patchawarra Formation, with a gross interval of 510 metres and approximately 2.5 metres of net pay in the Tirrawarra Sandstone with a gross interval of 58 metres. In addition to the conventional pay, several zones with potential for unconventional pay were also observed. The well will be cased and suspended as a future gas producer. (Source: Drillsearch announcement, 08/04/2015).

 


 

Permit Updates and Changes

 

New South Wales

 

As a result of the NSW Petroleum Titles Buyback Scheme, a number of licences have been cancelled –

 

Licence      Cancellation approval date

PEL 5                 05/03/2015

PEL 442              16/03/2015

PEL 444              16/03/2015

PEL 454              16/03/2015

PEL 459              06/03/2015

PEL 460              06/03/2015

PEL 463              06/03/2015

PEL 464              06/03/2015

PEL 478              09/03/2015

PEL 479              09/03/2015

 

In the Clarence/Moreton Basin, PPLA 9 has had its application area varied slightly.

 

In the Gunnedah Basin, PPLA 14 has had its application area varied slightly.

 


 

Northern Territory

 

On the Ashmore Platform, AC 14-1 closed 02/04/2015 and is under consideration.

 

In the Browse Basin, AC 14-2 was granted as AC/P 59 to Murphy Australia Oil P/L 60% and Mitsui E&P Australia P/L 40% on 20/03/2015. The licence will expire on 19/03/2021. Work program is as follows –

 

Year 1: 316 sq km 3D seismic, 1457 km 2D seismic reprocessing $3.6m
Year 2: G&G studies $0.1m
Year 3: G&G studies $0.2m
Year 4: well planning, G&G studies $0.2m
Year 5: 1 well $60m
Year 6: geotechnical studies $0.1m

 

In the Bonaparte Basin, an application to suspend the work program and extend the expiry date of NT/P 68 has been lodged with NOPTA - a decision is pending.

 

In the McArthur Basin, EP 154 was granted to Minerals Australia P/L 50% and Jacaranda Minerals Ltd 50% on 20/03/2015. The licence will expire on 19/03/2020.

 

In the McArthur Basin, EP 187 was granted to Imperial Oil & Gas P/L on 20/03/2015. The licence will expire on 19/03/2020.

 

In the Georgina Basin, applications EP(A) 177 and EP(A) 178 have been varied and now cover reduced areas of 15,658 sq km and 15,548 sq km respectively.

 

In the Pine Creek Geosyncline, application EP(A) 255 has been varied and now covers a reduced area of 12,093 sq km.

 


 

Queensland

 

In the Eromanga Basin, ATP 594 has undergone a partial relinquishment and now covers 1,233 sq km.

 

In the Eromanga Basin, the work program for ATP 659 is as follows –

 

Year 1: G&G studies
Year 2: seismic reprocessing, 100 km seismic
Year 3: 50 km seismic
Year 4: 1 well to 1500m

 

In the Eromanga Basin, ATP 784 is in the process of being transferred to Twinza Oil (QLD) P/L.

 

Also in the Eromanga Basin, ATP 792 was granted to Patrick J. Fennell 100% on 06/03/2015.  The licence will expire on 31/03/2019.  Work program is as follows –

 

Year 1: G&G studies
Year 2: seismic reprocessing, 1 well to 1500m
Year 3: 50 km seismic
Year 4: 1 well to 1500m

In the Cooper Basin, Chevron has elected to not participate in Stage 2 of the ATP 855 farmin.  As a result, Chevron's 18% equity will return to Beach for nil consideration.

 

In the Cooper Basin, Bridgeport’s interest in ATP 944 is held by Bridgeport Energy (QLD) P/L.

 

In the Surat Basin, ATP 1059 was relinquished on 30/03/2014.

 

In the Eromanga Basin, Chi Oil & Gas has finalised a deal to acquire 100% of ATP 1173 from Seymour Energy on grant of the licence.

 

In the Galilee Basin, Queensland Energy’s interest in ATP 1181 is held by QER CSG P/L.

 

In the Cooper Basin, an application has been made for a replacement tenure over PL 193.

 

In the Bowen Basin, PL 300 was not granted.

 

Santos subsidiary Fairview Pipeline acquired Tri-Star Petroleum’s 0.302% interest in a number of licences:  ATP 607, ATP 972, PCA 107, PL 297, PL 403, PL 404, PL 405, PL 406, PL 407, PL 408, PPL 412, PL 413, PL 444, PL 469, PL 470 and PL 471.

 


 

South Australia

 

In the Cooper Basin, Orca Energy has entered into a binding sales agreement with Senex Energy to sell 20% in PEL 110, PPL 251 and PRL 117 for approximately $2m in cash, with an effective date 01/01/2015. The transaction is subject to regulatory approvals.

 

In the Arckaringa Basin, PEL 123 has been suspended from 02/04/2015 to 01/10/2015. The licence has had its expiry date extended to 01/10/2015.

 

In the Otway Basin, PEL 494 and PEL 495 are being renewed.

 

Also in the Otway Basin, Rawson Resources advises that the expiry date to complete the acquisition of PRL 13 from Adelaide Energy has lapsed. As not all the conditions present under the sales and purchase agreement were fulfilled, the agreement has been terminated and purchase price paid by Rawson Resources will be fully refunded.

 

In the Otway Basin, PRL 2 is being renewed.

 

In the Cooper Basin, Beach Energy has been advised by Chevron Exploration Australia 1 P/L that it will not participate in Stage 2 of the Nappamerri Trough Natural Gas Project. As a result of this decision, all Chevron’s equity interests in the joint ventures will return to Beach for nil consideration, and no return of Stage 1 capital expenditure is payable by Beach to Chevron. Resulting Stage 2 ownerships for PRL 33 to 49 and GSEL 633 will be Beach Energy 100%.

 

Sequestration

 

In the Cooper Basin, GSELA 652 and GSELA 654 have been consolidated under GSELA 652.

 

In the Cooper Basin, application GSELA 653 has been varied and now covers a reduced area of 407 sq km.

 

In the Otway Basin, Adelaide Energy P/L 30% and Somerton Energy P/L 30% have applied for GSELA 654 over 2,559 sq km.

 


 

Western Australia

 

In the Petrel Sub Basin, W 14-1 closed on 02/04/2015 and is under consideration.

 

In the Carnarvon Basin, W 14-6, W 14-8, W 14-9, W 14-10, W 14-11, W 14-12, W 14-13, W 14-17 and W 14-18 closed on 02/04/2015 and are under consideration.

 

In the Browse Basin, W 14-3 and W14-14 closed 02/04/2015 and are under consideration.

 

In the Great Australia Bight, W 14-19 closed on 02/04/2015 and is under consideration.

 

In the Browse Basin, the year 4 work program for WA-285-P has been extended by 12 months from 08/04/2015 to 07/04/2016. The licence has had its expiry date extended to 07/04/2017.

 

In the Dampier Basin, the year 3 work program for WA-330-P has been extended by 12 months from 06/04/2015 to 05/04/2016. The licence has had its expiry date extended to 05/04/2018.

 

In the Carnarvon Basin, the Tallaganda location application is pending over WA-351-P.

 

In the Carnarvon Basin, Woodside Petroleum has completed the previously announced acquisition of Apache's Wheatstone LNG and Balnaves oil interests in Australia, WA-356-P and WA-49-L, through the acquisition of subsidiary Apache Julimar P/L. The transaction successfully closed on 02/04/2015 for a total cost of US$2.817 billion.

 

In the Carnarvon Basin, the various Coniston and Van Gogh agreements have been terminated and replaced with a new joint operating agreement – the Coniston-Van Gogh Production Joint Venture - resulting in WA-55-L and WA-35-L being treated as a single project with participant interests now consolidated under a singular permit for WA-35-L and a singular permit for WA-55-L.

 

In the Carnarvon Basin, the Pinhoe Location WA-383-P LP has been extended to 28/04/2017.

 

In the Browse Basin, CalEnergy Resources (Australia) Ltd has withdrawn from WA-424-P. Its interest has been transferred to IPB WA 424P P/L.

 

In the Carnarvon Basin, the year 6 work program for WA-428-P has been extended by 12 months from 03/04/2015 to 02/04/2016. The licence has had its expiry date extended to 02/04/2016. The Year 6 work program is now - geotechnical studies, seismic interpretation, play evaluation, portfolio re-evaluation, $0.4m.

 

In the Browse Basin, WA-429-P has expired and the area now reverts to vacant acreage.

 

In the Carnarvon Basin, the Vos location application pending over WA-439-P.

 

In the Carnarvon Basin, a change to work program for WA-473-P has been applied for: Year 4 - 600 sq km 3D seismic reprocessing, geotechnical studies, $0.89m; Year 6 - 1 well, geotechnical studies, $17.7m.

 

In the Petrel Sub Basin, MEO's farminee has obtained final board approval for the exercise of option to farmin to WA-488-P for 30%. Final farmin documentation is scheduled to be completed within 8 weeks.

 

In the Dampier Basin, the year 1 work program for WA-499-P has been extended by 12 months from 17/04/2015 to 16/04/2016. The licence has had its expiry date extended to 16/04/2021.

 

In the Dampier Basin, Neon Energy has signed a deed of assignment with Rampart Energy Ltd and Black Swan Resources P/L to assign its full interest in WA-503-P. Rampart Energy will acquire 80% and operatorship, and Black Swan Resources will acquire 20%.The agreement is subject to NOPTA approval.

 

In the Perth Basin, EP 432 A and EP 432 B have been consolidated as the ERM farm out did not proceed.

 

In the Carnarvon Basin, EP 433 and EP 434 are being relinquished.

 

In the Perth Basin, EP 454 Yarragadee Deeps and EP 454 Y Yarragadee Shallows have been consolidated under EP 454 as the ERM farm out did not proceed.

 

In the Canning Basin, Apache does not wish to exercise the option to earn 40% in EP 472, EP 476 and EP 477 and up to 40% in EP 478. As a result of the recent suspension & extension of these permits, the joint venture is discussing the next steps for the permits.

 

In the Perth Basin, EP 484 and EP 485 are being relinquished.

 

In the Canning Basin, Oil Basins has not been successful with its application to the State Administrative Tribunal to have Backreef’s grant of title in EP 487 overturned. If Rey proceeds with the acquisition of Backreef’s 50% stake in EP 487, it would be immediately required to repay past cash-calls to Oil Basins of circa $450,000.

 

In the Canning Basin, the year 1 work program for EP 493 has been extended by 12 months from 29/02/2016 to 28/02/2017. The licence has had its expiry date extended to 28/02/2021.

 

In the Carnarvon Basin, L 13-2 closed on 23/04/2015 and is under consideration.

 

In the Officer Basin, L 14-7, L 14-8, L 14-9 and L 14-10 closed on 23/04/2015 and are under consideration.

 

In the Canning Basin, L 14-3, L 14-4, L 14-5 and L 14-6 closed on 23/04/2015 and are under consideration.

 

In the Carnarvon Basin, interests in STP-EPA-121, STP-EPA-122 and TTP-EPA-5 are held by Goshawk Energy subsidiary Goshawk (Offshore) P/L.

 

In the Barrow Basin, the year 5 work program for TR/4 has been extended by 30 months from 29/03/2015 to 28/09/2017. The licence has had its expiry date extended to 28/09/2017.


 

Victoria

 

Geothermal

 

The correct expiry date for GEP 11 is 13/12/2019.

 


 

New Zealand

 

The New Zealand Government has opened a tender for the 2015 Block Offer. Invitation for bids for the seven areas - 15GSC-R1, 15NRN-R1, 15PEG-R1, 15TAR-R1, 15TAR-R2, 15WEC-R1 and 15WEC-R2 - close on 30/09/2015.

 

In the Taranaki Basin, PEP 51906 has undergone a partial relinquishment and now covers a reduced area of 804 sq km.

 

In the Cook Strait Basin, PEP 53674 was relinquished 20/03/2015.

 

In the Taranaki Basin, an extension of land has been granted for PEP 55769. The licence now covers 12 sq km.

 

In the Taranaki Basin, PEP 55790 is being relinquished.

 


 

Papua New Guinea

 

In the North New Guinea Basin, PPL 320 and PPL 322 have lapsed.

 

Also in the North New Guinea Basin, an application has been made to simultaneously surrender and top file PPL 321 with a new application.

 

In the Papuan Basin, the work program for PPL 486 is as follows –

 

Years 1-2: -50 km seismic, 1 exploration well
Years 3-4: -data analysis, 50 km seismic, 1 exploration well
Years 5-6: -data analysis, 1 exploration well

 


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