August 2013

Monthly Update
The August 2013 data update is now available ...

Industry Summary
MEO Australia has completed its assessment of the Beehive prospective resource estimates in WA-488-P. The company found a mean prospective resource in the upper objective of 1,009 mmbbls and a mean prospective resource of 575 mmbbls in the lower objective ...

Permit Updates and Changes
On the Ashmore Platform, gazettal AC 11-1 has been granted as AC/P 56 to Finder No 12 P/L on 11/07/2013. The licence will expire on 10/07/2019. Work program is as follows - Year 1: license 120 sq km existing multi-client 3D seismic, G&G studies $0.28m, Year 2: G&G studies $0.55m ...

 


Monthly Update

The August 2013 GPinfo update is now available.

 


Industry Summary

Company News

MEO Australia
has completed its assessment of the Beehive prospective resource estimates in WA-488-P. The company found a mean prospective resource in the upper objective of 1,009 mmbbls and a mean prospective resource of 575 mmbbls in the lower objective. MEO is now looking for potential farm in participants. (Source: MEO Australia announcement, 15/07/2013).

Strike Energy and Orica Australia have entered a binding term sheet for the supply of up to 150 PJ of gas from PEL 96 over 20 years, which will involve Orica providing $52.5 million of gas pre-payments. Strike said that the deal would effectively provide the underpinning it needs to develop the resource at PEL 96, which Strike said had a prospective resource of 2.7 tcf to 6.3 tcf. (Source: Strike Energy announcement, 16/07/2013).

Oil Basins has completed the transaction with Green Rock Energy for the acquisition of 100% equity of Green Rock Canning Basin P/L. Consequently Oil Basins group now holds ownership of 100% beneficial rights to the Backreef Area, and Green Rock Canning Basin P/L is to be renamed Backreef Energy P/L. (Source: Oil Basins announcement, 29/07/2013).

Woodside has received approval to amend conditions of the five Commonwealth Browse retention leases WA-28-R, WA-29-R, WA-30-R, WA-31-R and WA-32-R. The variations to the retention lease conditions allow the Browse Joint Venture participants to progress the selection of an alternative development concept and commence related design and engineering work. The Joint Venture has also applied for the same amendments to State Browse leases TR/5 and R 2 and is awaiting a decision. (Source: Woodside announcement, 02/08/2013).

The Northern Territory Government has withdrawn from its proposed deal to supply gas to Rio Tinto's Gove alumina refinery. Earlier this year, the Government offered 300 PJ of gas over 10 years from its domestic supply source to save the refinery, operated by Rio subsidiary Pacific Aluminium. Key to the deal was the financial underwriting of the pipeline from Katherine to Gove, with the gas from the deal coming from existing supply with the replacement of that supply to come from Eniís Blacktip field. However, the NT government has been frustrated by a lack of progress on the pipeline underwriting deal and is now proposing to supply Gove with 195 PJ of gas over 15 years, so the refinery can keep the facility operating on both diesel and gas. (Source: Energy News Premium, 29/07/2013, Energy News Bulletin, 31/07/2013).

Buru Energy has secured more than $100 million funding to develop the Ungani Oil field as well as carry out further exploration and appraisal work on the Laurel wet gas project in the Canning Basin. The program will be funded by a combination of equity, senior debt and support from Buruís partners. The Ungani development will involve the workover of the Ungani 1 and 2 wells. This will be followed by drilling of the Ungani 3 appraisal well followed by horizontal production and water injector wells. Buru will also carry out a $54 million appraisal of the Laurel Wet Gas accumulation including stimulation and flow testing of up to five wells in the Yulleroo and Valhalla regions. Buru has also secured the Huisman LOC 400 drilling rig to support the work program. (Source: Buru Energy announcement, 08/08/2013).

Developments

Origin Energy has started producing from the Geographe gas field at the Otway Gas Project in the Bass Strait following commissioning and testing. The Otway Gas Project consists of two offshore gas fields, Geographe and Thylacine, and an onshore gas processing facility near Port Campbell in south-west Victoria. Development of the Geographe field started in October 2011. (Source: Origin Energy announcement, 29/07/2013).

Origin Energy has provided an update on reserves and progress at the Australia Pacific LNG Project advising that the upstream and downstream portions of the project are now 45% complete.
Releasing its quarterly production figures to the market, Origin said the APLNG joint venture now had 2P reserves of 13,382 PJ equivalent, and 3P reserves of 16,155 PJ. The $24.7 billion APLNG project is being built on Curtis Island off Queensland and will see the construction of two trains with a total capacity of 9 mtpa of liquefied natural gas per annum, this equates to about 27 years at the projectís current configuration. (Source: Energy News Premium, 31/07/2013, Origin Energy announcement, 31/07/2013).

Empire Oil and Gas is pleased to announce that the Condensate Supply and Purchase Agreement for the Red Gully Gas and Condensate Processing Facility has been entered into between Empire Oil Company (WA), ERM Gas, BP Australia and BP Refinery (Kwinana). The agreement allows for condensate to be delivered each day from the Red Gully Facility into the BP Kwinana Refinery. (Source: Empire Oil &Gas announcement, 09/08/2013)
.

Discoveries

Senex Energy has achieved drilling success at its Worrior 8 development well within the Worrior oil field in the Cooper Basin. Initial interpretation of electric logs reveal up to 18 metres of net oil pay across multiple formations. Gas was also detected in the bottom zone of the well within the Patchawarra Formation. (Source: Senex Energy announcement, 16/07/2013).

Santos has announced a gas discovery at the Winchester 1/ST 1 exploration well in WA-323-P, located in the Carnarvon Basin offshore Western Australia. Wireline logging and pressure testing has confirmed 40 metres of net gas pay in the Jurassic Angel and Triassic Mungaroo formations between 3,614 and 3,721 metres. Preparations are underway to deepen Winchester 1/ST1 to evaluate the gas-bearing potential of further objectives within the Mungaroo section. (Source: Santos announcement, 18/07/2013).

In PEL 91, Beach Energy and Drillsearch Energy drilled Bauer 11 to further develop the Bauer oil field and provide additional structural control in the north of the field. The well intersected a 10 metre gross column including 6 metres in the Namur sandstone. The well has been cased and suspended as a future oil producer. (Source: Beach Energy announcement, 07/08/2013)
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Permit Updates and Changes

New South Wales

In the Surat Basin, Ison Energy P/L 100% has applied for special prospecting authority PSPAPP 62 over 2,741 sq km.

In the New England Fold Belt, the application for PELA 133 was withdrawn on 17/07/2013.

In the Murray Basin, PELA 145 was refused on 02/07/2013 as the application is wholly within the Oaklands Moratorium area.

In the Surat Basin, Ceemac P/L 100% has applied for PELA 149 over 10,116 sq km.


Northern Territory

On the Ashmore Platform, gazettal AC 11-1 has been granted as AC/P 56 to Finder No 12 P/L on 11/07/2013. The licence will expire on 10/07/2019. Work program is as follows -

Year 1: license 120 sq km existing multi-client 3D seismic, G&G studies $0.28m
Year 2: G&G studies $0.55m
Year 3: G&G studies $0.1m
Year 4: G&G studies $0.1m
Year 5: G&G studies $0.1m
Year 6: G&G studies, 1 well $17.1m

In the Georgina Basin, the amended farm-in agreement between PetroFrontier Corp and Statoil Australia Theta BV in relation to permits EP 104, EP 127, EP 128, EP(A) 213  and EP(A) 252 received FIRB and TSX Venture Exchange approval on 19/07/2013.

In the Amadeus and Pedirka Basins, Central Petroleum has completed the farm-out transaction with Santos and has transferred a 25% interest in EP 105, EP 106, EP 107, EP 112, EP 82, EP(A) 147, RL 3, RL 4, a 40% interest in EP 115 NM, EP 93 and a 70% interest in EP 125 to Santos QNT P/L.

In the Amadeus Basin, the agreement with Oil & Gas Exploration to farm-in to the Mt Kitty block EP 125 MK and the Magee block  EP 82 M has been terminated.  As a result the blocks no longer exist and revert back to being part of EP 125 and EP 82 respectively. Furthermore, Santos' agreement with Central Petroleum is to farm-in to the whole of EP 82 and EP 125.

In the Ngalia Basin, EP 165 and EP 309 have been granted to Tamboran Resources P/L 100% on 15/07/2013. The licenses will expire on 14/07/2018.

In the Wiso Basin, Blue Energy has entered into an agreement with Australian Oil and Gas to farm-in for 50% and operatorship of  EP 200, EP 205, EP 207, EP(A) 199, EP(A) 206, EP(A) 208, EP(A) 209, EP(A) 210 and EP(A) 211. Under the terms of the farm-in, Blue will make an upfront cash payment to cover AOG's costs and will acquire additional interest over 3 stages of the project.

In the Petrel Sub Basin, RL 1 has been renewed to 08/07/2018
.


Queensland

In the Surat Basin, ATP 336P has been renewed to 30/09/2015.

In the Bowen Basin, ATP 337P has been renewed to 30/09/2015.

In the Surat Basin, CNOOC will acquire an additional 20% from BG in the Surat Basin licences in which they already hold an interest. In addition, they will acquire an interest in some additional licences which are still being finalised.  The deal is likely to be completed in the second half of 2013.

In the Bowen Basin, Eureka Petroleum is seeking to farmout its interests in ATP 817P, ATP 818P and ATP 819P
.

In the Surat/Bowen Basin, ATP 837P will be relinquished once the P&A operations on Hoadleys 1 are complete.

Bridgeport will acquire the following interests from Arrow Energy -

  -  100% from Seqoil in ATP 608P
  - 
94.625% from Seqoil and 5.375 from private interests in ATP 608P Rookwood
  - 
9% from Bow Energy and 6% from Ocellaris Oil in ATP 752P Barta and PL 303
  - 
10.5% from Bow Energy and 7% from Ocellaris Oil in ATP 752P Wompi
  - 
40% from Seqoil and 25% from Bow in ATP 794P Barcoo
  - 
88% from Seqoil in ATP 794P Barcoo Junction
  - 
10% from Seqoil in ATP 794P Brightspot
  - 
16% from Seqoil in ATP794P Regleigh
  - 
40% from Seqoil in ATP 794P Remainder
  - 
16% from Seqoil in ATP 794P Springfield
  - 
100% from Bow Energy in ATP 805P
  - 
100% from Bow Energy in ATP 944P
  - 
25% from Bow Energy in PL 15FO

In addition, Bridgeport will acquire the following interests after grant of the permits -

  -  100% from Arrow Energy in ATP 714P
  - 
20% from Ocellaris Oil in ATP 736P, ATP 737P and ATP 738P
  - 
100% from Bow Energy in ATP 948P

In the Eromanga Basin, Bengal and Santos will pre-empt the sale of Senex's interest in
ATP 752P
and PL 303.  Bengal and Santos and will acquire an additional 9.6429% and 5.3571% respectively of ATP 752P Barta and PL 303 and additional 9.4231% and 8.0769% respectively of ATP 752P Wompi.  The transfers are subject to final approvals.

In the Surat Basin, Arrow Energy has applied for production licences PL 491 (231 sq km) and PL 492 (231 sq km) over the Yeronga and Alderley fields
.


South Australia

In the Cooper Basin, the Burruna block PEL 115 B and the Fury block PEL 115 F are excluded from the agreement over PEL 115 with Orca. The participants for the Burruna and Fury blocks are Victoria Oil Exploration (1977) P/L 55%, Stuart Petroleum P/L 25% and Komodo Energy P/L 20%.

In the Cooper Basin, Planet Gas has received regulatory and government approval to transfer a share of its interest in PEL 514 N and PEL 514 S to Senex Energy.

In the Eromanga Basin, Ambassador Oil & Gas has entered an agreement to farm-out 70% of its interest in PEL 570 to Outback Energy Hunter P/L. Outback Energy Hunter will pay all costs, including funding Ambassador's remaining 30%, associated with the exploration work program up to a maximum of $50 million. The farm-out will be conditional on Outback Energy subscribing for shares in Ambassador at a price of 25c per share.

In the Cooper Basin, Beach Energy Ltd has applied for PPLA 248 over the Rincon field, PPLA 249 over the Elliston field and PPLA 250 over the Windmill field.

Geothermal

In the Otway Basin, GEL 223 has undergone a partial relinquishment and now covers 330 sq km.

In the Otway Basin, GEL 611 has been extended and now covers 2,998 sq km.


Tasmania

Onshore Tasmania, SEL 58/2008 was relinquished on 04/07/2013.

Geothermal

Onshore Tasmania, SEL 9/2009 is in the process of being relinquished
.


Victoria

Offshore in the Gippsland Basin, Bass Strait Oil Co has executed farm-in agreements with Cooper Energy whereby Cooper will fund Bass Strait Oil's share of reprocessing and merging of multiple 3D datasets and selected QI/AVO analyses in consideration for being assigned 25.8% of VIC/P 41.

In VIC/P 68, Cooper Energy will undertake, at its sole cost, reprocessing and merging of multiple 3D seismic datasets and will conduct selected QI/AVO analyses, including 255 sq km within VIC/P 68 for an option to acquire 50% at no further cost prior to 18/04/2014.  The deals are subject to waiver of pre-emptive rights.

In addition, Years 2 and 3 of the work program for VIC/P 41 have been varied and are now as follows -  

Year 2: 430 sq km 3D seismic reprocessing, fault seal and QI studies $0.8m 
Year 3: G&G studies $0.2m

Also in the Gippsland Basin, the VIC/P 47 joint venture has applied for a Location over Moby.  A decision by NOPTA is pending.  An application for a Location over Judith was not approved by NOPTA.

Onshore in the Otway Basin, operatorship for PRL 2 has reverted to Petro Tech P/L (Lakes Oil).

Geothermal

In the Otway Basin, GEP 6 and GEP 8 are in the process of being renewed over a reduced area
.


Western Australia

In the Canning Basin, L 12-15 is under application as STP-EPA-92 by New Standard Energy.

In the Carnarvon Basin, the area of WA-28-P has been reduced and now covers 405 sq km. WA-28-P is also being renewed.

In the Carnarvon Basin, MEO and Cue have agreed to market their respective interests in WA-360-P and WA-361-P jointly to potential new entrants.

In the Browse Basin, WA-371-P has been renewed over a reduced area of 334 sq km. The licence will expire on 18/07/2018. Work program is as follows -

Year 1: 3D seismic reprocessing, geotechnical studies $1.425m
Year 2: geotechnical studies $0.775m
Year 3: geotechnical studies $0.7m
Year 4: geotechnical studies $0.7m
Year 5: 1 well $30m

In the Carnarvon Basin, the year 6 work program for WA-384-P has been extended by 6 months from 20/08/2013 to 20/02/2014. The licence has had its expiry date extended to 20/02/2014.

In the Carnarvon Basin, the year 6 work program for WA-390-P has been extended by 12 months from 05/08/2013 to 05/08/2014.  The licence has had its expiry date extended to 05/08/2014. The Equus location WA-390-P L has had its expiry date extended to 30/11/2013.

In the Bonaparte Basin, the year 6 work program for WA-402-P is now - 1490 sq km 3D seismic $12.1m.

In the Carnarvon Basin, the year 6 work program for WA-412-P is now - geochemical analysis, seismic inversion, PSTM seismic, G&G studies $1m.

In the Browse Basin, WA-423-P was relinquished on 05/08/2013.

In the Browse Basin, the year 2 work program for WA-424-P has been extended by 12 months from 12/07/2013 to 12/07/2014. The licence has had its expiry date extended to 12/07/2017.

In the Carnarvon Basin, Sasol has withdrawn from WA-433-P. Interests are now Woodside Energy Ltd 69.23% and Mitsui E&P Australia P/L 30.77%.

In the Petrel Sub Basin, Origin Energy Resources Ltd is farming in for a 50% operating interest in WA-454-P. Origin will reimburse MEO 80% of the costs in the permit to date and pay 80% of drilling costs for an exploration well on the Breakwater prospect.

In the Browse Basin, the work programs for WA-28-R, WA-29-R, WA-30-R, WA-31-R and WA-32-R are now -

Year 1: subsurface, engineering, geotechnical & environmental studies, commercial & marketing activities $56m
Year 2 & Year 3: subsurface, engineering, geotechnical & environmental studies $119m
Year 4: development concept, commercialise Browse field $36.14m
Year 5: commercialise Browse field, marketing activities $15.71m

In the Carnarvon Basin, WA-51-R was granted on 11/07/2013. The licence will expire on 10/07/2018. Interests are as follows -

WA-51-R Gas interests - Shell Development (Australia) P/L 15.784%, Woodside Energy Ltd 15.784%, BHP Billiton Petroleum (Northwest Shelf) P/L 15.783%, BP Developments Australia P/L 15.783%, Chevron Australia P/L 15.783%, Japan Australia LNG (MIMI) P/L 15.783% and CNOOC NWS Pte Ltd 5.300%.

WA-51-R Oil interests - BP Developments Australia 16.667%, Chevron Australia P/L 16.667%, Shell Development (Australia) 16.667%, Woodside Energy Ltd 16.667%, Japan Australia LNG (MIMI) 16.666% and BHP Billiton Petroleum (Northwest Shelf) 16.666%. Work program is as follows -

Year 1: studies, front end engineering & design $27m
Year 2: front end engineering & design, field development plan $30m
Year 3: front end engineering & design, field development plan $8.2m
Year 4: brownfields construction works on Goodwyn A platform $TBA
Year 5: brownfields construction works on Goodwyn A platform $TBA

In the Canning Basin, Key Petroleum has executed an agreement to acquire Emerald Oil & Gasí interests in EP 104 and R 1 for $50,000. Emerald will also be issued with 4 million ordinary fully paid shares in Key Petroleum. The sale is subject to approval by the WA Department of Mines and Petroleum.

In the Carnarvon Basin, Australian Oil Company is selling its 17% interest in EP 435 to a joint venture partner for $35,700.

In the Canning Basin, EP 438 is being renewed.

In the Perth Basin, Perth Resources was unable to raise its finance for the EP 454 farm-in. The agreement has been terminated.

In the Carnarvon Basin, STP-SPA-22 and STP-SPA-26 are under application by UIL Energy Ltd.

In the Canning Basin, STP-SPA-30 is under application by Amadeus Basin Oil & Gas P/L.

In the Officer Basin, STP-SPA-34 is under application by Woolnough Dome Oil & Gas P/L.

In the Savory Basin, STP-SPA-35 is under application by CSR Well 13 Oil & Gas P/L.

In the Canning Basin, Phoenix Resources has withdrawn from R 1.


New Zealand

In the East Coast Basin, PEP 50940 and PEP 52676 were relinquished on 23/07/2013 and 12/07/2013 respectively.

In the Taranaki Basin, PEP 51311 was relinquished on 29/07/2013.

In the Taranaki Basin, New Zealand Energy Corp has signed a binding agreement with L&M Energy whereby L&M will pay NZEC C$18.25 million to form a 50/50 joint venture to explore and develop PML 38138, PML 38140 and PML 38141, the Waihapa Production Station and associated pipelines and infrastructure. Closing of the joint venture is subject to government and regulatory approvals, obtaining funding and the closing of the Sale and Purchase Agreement with Origin, as announced on 17/06/2013
.


Papua New Guinea

In the Papuan Basin, Kirkland Ltd (a subsidiary of New Guinea Energy) has signed an agreement for the sale of its 50% interest in PPL 269 to Esso PNG Robin Ltd (a subsidiary of Exxon Mobil Corp) for a total consideration of US$40 million cash. The agreement is subject to initial conditions which need to be satisfied or waived by 23/08/2013, including the following:  Esso giving notice that they wish to proceed; Kirkland obtaining the consent of the holder of convertible bonds in NGE; and NGE providing a parent company guarantee to Esso.  If these initial conditions are met, Esso will be required to pay a US$4 million deposit to Kirkland. Completion is contingent on the satisfaction of certain additional conditions that include pre-emption rights not being exercised, a variation to the PPL being approved and government and joint venture approvals, all of which need to be satisfied by 26/10/2014.

Also in the Papuan Basin, Oil Search has withdrawn from PPL 276 and PPL 312
.
 


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