GPinfo Update August 2017

Senex Energy Ltd has made a Birkhead oil discovery on the western flank of South Australia’s Cooper basin, with its Marauder 1 exploration well which flowed 655 bopd on a drillstem test …

The year 3 work program conditions for AC/P45 have been extended by 12 months from 26/08/2017 to 25/08/2018. The licence has had its expiry date extended to 25/08/2020 …

Rawson Oil & Gas Ltd has entered into a staged farm-in agreement with Vintage Energy P/L to acquire up to 50% interest in PEL 155. Vintage will acquire an initial 25% interest in PEL 155 in exchange for …

Industry Summary

Company News

Real Energy Corporation Ltd has executed a non-binding memorandum of understanding (MOU) with Weston Energy P/L to sell gas from the company’s Windorah gas project in the Cooper Basin, Queensland. Real Energy said the MOU represents a significant step towards signing a binding gas sales agreement and covers the purchasing by Weston Energy of three PJ per annum over an initial five years. A future GSA is subject to a number of conditions, including Weston finalising gas transportation arrangements. The MOU also provides for Weston Energy to make a prepayment of $6 million, which will give Real Energy additional financial flexibility to execute future field development activities. (Source: Real Energy announcement, 17/07/2017).

Central Petroleum’s board has secured a decisive victory, following the collapse of a takeover deal with Macquarie Group. Almost two thirds of Central shareholders rejected a push by Stuart Howes’ OptionCo alliance to spill the board and take the company’s future into their own hands. Central chairman Robert Hubbard and directors Wrixon Gasteen and Professor Peter Moore managed to defeat moves by Howes, Colin Goodall and Nick Bolkus to replace the board just weeks out from the rejection of the recent Macquarie Group takeover. Around 64% of the vote backed the board, compared to with around 36% agitating for change at a shareholder meeting held on 19/07/2017. New Directions Team, which claims to have a line on more than $100 million in financing that can be brought to Central if a new board is in place, is yet to respond to the vote, but had previously flagged its own tilt at the company. (Source: Energy News Premium, 20/07/2017).

Carnarvon Petroleum has completed an extensive body of technical work around the Buffalo oil field. There is strong evidence the original field development did not produce all of the economically recoverable oil. This was due to imperfect seismic imaging and mapping, which led to suboptimal well placement and significant areas of unswept oil. At the time the field was shut-in during 2004 the wells were still producing around 4,000 bopd. The application of full waveform inversion technology, using DownUnder GeoSolutions 5.5 petaflop computer known as Bruce, has produced greater clarity around the Buffalo oil field reservoir. Carnarvon's work will now be reviewed by an independent expert with resource estimates expected to be reported in the second half of August 2017. (Source: Carnarvon Petroleum announcement, 31/07/2017).

AWE Ltd has been advised by Dawney & Co that the offer period under the Dawney proposal has now closed without sufficient shareholder update, and that any options that were granted will now lapse. The Dawney proposal has now been withdrawn. (Source: AWE Ltd announcement, 07/08/2017).

Todd Petroleum Mining Company Ltd has acquired Shell (Petroleum Mining) Co Ltd’s 50% interest in the Kapuni gas field PML 38839. Todd Energy is now the 100% owner and operator. As part of the agreement, Shell has acquired Todd Energy’s 50% shareholding in Shell Todd Oil Services (STOS), making Shell the 100% owner of the operating company. Given the change in ownership, STOS has been renamed Shell Taranaki Ltd from 01/08/2017. (Source: Shell announcement, 01/08/2017).

Zeta Resources is proposing to make a partial takeover offer to acquire at least 41.955% of all the shares of New Zealand Oil & Gas Ltd (NZO) that it does not already hold or control for $0.72 per fully paid ordinary share in NZO. If Zeta is unsuccessful in achieving acceptances for at least 50.01% the offer will not proceed. (Source: Zeta Resources announcement, 10/08/2017).

Western Australia’s Department of Mines, Industry Regulation and Safety (DMIRS) has formally asked industry stakeholders to nominate areas to be considered for the 2018 Western Australia petroleum exploration acreage release. This year the department is calling for industry nominations of currently vacant acreage, from those that have been recently identified on under the new McGowan government strategic five-year release program. The nomination period for the 2018 acreage release will close on 31/08/2017. The round one acreage release is planned for announcement at the APPEA conference in Adelaide in May 2018. (Source: Department of Mines, Industry Regulation and Safety announcement, 07/08/2017, Energy News Premium, 07/08/2017).

Developments

The INPEX-operated Ichthys LNG Project’s floating production, storage and offloading (FPSO) facility–Ichthys Venturer–has safely sailed away from waters near its construction site in Okpo, South Korea en- route to Australia. The voyage will take approximately one month to complete. This follows the completion of commissioning and preparation work. The facility will be permanently moored in 250m deep waters, where it will undergo hook-up and commissioning, along with the Ichthys Explorer central processing facility (CPF), located 3.5 km away. When operational, the FPSO will process and store condensate delivered from the Ichthys LNG Project’s CPF before periodically offloading this condensate to export carrier vessels. (Source: INPEX announcement, 19/07/2017).

Commissioning of the Wheatstone LNG Train 1 is well advanced and nearing completion, Woodside Petroleum has revealed, saying the start-up of Australia’s newest LNG plant is imminent. Releasing its second quarter results, Woodside said the offshore platform hook-up and commissioning required for LNG Train 1 start-up was complete, the trunkline was pressurised and ready to supply gas onshore, and final commissioning of the onshore plant near Onslow is nearing completion. Train 2 is expected to follow 6-8 months later. Woodside said it had also had a major win on the North West Shelf with the Persephone project expected to be ready for start-up next month. (Source: Energy News Premium, 20/07/2017).

The Prelude floating LNG (FLNG) facility has arrived in Australian waters, Shell Australia confirmed on 25/07/2017. The Prelude FLNG facility started its 5,800 km journey to Western Australia late June from its construction site in South Korea. Prelude is the first deployment of Shell’s FLNG technology, which will comprise a 488m long floating facility extracting and liquefying gas at sea before exported it worldwide. The project lies 475 km north-northeast of Broome in Western Australia. (Source: Oil & Gas Journal, 25/07/2017).

Discoveries

Senex Energy Ltd has made a Birkhead oil discovery on the western flank of South Australia’s Cooper basin, with its Marauder 1 exploration well which flowed 655 bopd on a drillstem test. Marauder 1 encountered good oil shows within well-developed Birkhead sands and evaluation of logs indicate net pay of up to 8.6m within a 17.5m gross oil column. A drill stem test over the Birkhead formation, at 1,744.2m to 1,764.6 m, recovered 83.7 bbls of approximately 48 degree API oil. Oil flowed to surface after 79 minutes and continued to flow for the full 184 minute flow period through a ½ inch choke. The flow rate was calculated with no indications of formation water throughout the test. The well will be cased and suspended and is expected to be placed on production in the coming months via a flowline to connect the well to existing infrastructure on producing western flank fields. (Source: Senex Energy announcement, 25/07/2017).

Santos has completed a near-field gas exploration campaign in southwest Queensland. Okotoko North 1, the final well of the campaign, is located on the Jackson-Naccowlah gas trend. Okotoko North 1 tested a four-way dip closure analogous to those in neighbouring producing fields, and targeted the Toolachee and Patchawarra formations. The well intersected approximately 8m of net gas pay across the primary targets and was cased and suspended as a future producer. Okotoko North 1 is a new gas field discovery which presents potential for future development wells and follow-up near-filed exploration drilling. (Source: Beach Energy announcement, 02/08/2017).

Beach Energy has completed its first horizontal well in the Bauer field, Bauer 26, which will be completed as a producer after intersecting 350m of net pay in the thin McKinlay Member. Beach reported that the Bauer 26 development well drilled a lateral section of 400m targeting the McKinlay Member, which is a thin sandstone overlying the Namur Sandstone. The well has now been completed for production and will be brought on stream as free-flow production during the next two months. Artificial lift is scheduled for installation by the end of this year. (Source: Beach Energy announcement, 02/08/2017).

Permit Changes

Northern Territory
Ashmore Platform	The year 3 work program conditions for AC/P45 have been extended by 12 months from 26/08/2017 to 25/08/2018. The licence has had its expiry date extended to 25/08/2020.
Bonaparte Basin	The years 1-3 work program conditions for NT/P84 have been extended by 12 months from 03/07/2017 to 02/07/2018.
	NT/RL5 is being renewed.
Ngalia Basin	EP164, EP165, EP 166 and EP 309 were relinquished on 17/07/2017. The areas have reverted to vacant acreage.
	EP310 and EP311 were withdrawn on 09/08/2017. The areas have reverted to vacant acreage.
Vulcan Sub Basin	The years 1-3 work program conditions for AC/P32 have been extended by 24 months from 24/06/2017 to 23/06/2019. The licence has had its expiry date extended to 23/06/2021. A change to the work program has been approved – Years 1-3 - licence and interpret 252 sq km 3D seismic, AVO inversion studies, well planning and approvals, 1 well, geotechnical and engineering studies $27.85m
	Rouge Rock P/L has exercised its option to acquire 45% interest in both AC/P50 and AC/P51.
Queensland
Bowen Basin	Potential Commercial Areas PCA 165, PCA 166, PCA 170 and PCA 171 were granted to an OME Resources-led consortium on 17/07/2017. The licences will expire on 16/07/2022.
	PL 231 is held by State Gas Ltd, formerly a subsidiary of Triangle Energy (Global). State Gas allotted 24,499,900 shares to raise $500,000 and Triangle contributed $150,000 for 7,499,900 shares, diluting Triangle's interest in State Gas to 32% and indirectly, its interest in PL 231 to 19.2%.
Eromanga Basin	ATP 662 has had its expiry date extended to 30/06/2020.
Surat Basin	ATP 626 has been relinquished and now reverts to vacant acreage.
	ATP 647 is in the process of being renewed. An application is pending for a Potential Commercial Area.
	Potential Commercial Area application PCA 161 has had its area varied and now covers an increased area of 152 sq km.
South Australia
Arckaringa Basin	The work program conditions for PEL 118 and PEL 119 have been suspended by 3 months from 31/07/2017 to 30/10/2017. The licenses have had their expiry dates extended to 02/04/2021.
	The work program conditions for PEL 121 and PEL 122 have been suspended by 3 months from 16/08/2017 to 15/11/2017. The licenses have had their expiry dates extended to 04/07/2019.
	The work program conditions for PEL 123 and PEL 124 have been suspended by 3 months from 14/10/2017 to 13/01/2018. The licenses have had their expiry dates extended to 04/01/2023 and 05/01/2023 respectively
Cooper Basin	Geothermal licence GEL 268 was relinquished with effect from 22/05/2017.
	Geothermal licence GEL 667 was granted to ReNu Energy Ltd 100% on 27/07/2017. The licence will expiry on 26/07/2022.
	The work program conditions for PEL 512 have been suspended by 6 months from 05/07/2017 to 04/01/2018. The licence has had its expiry date extended to 28/10/2020.
Eromanga Basin	The work program conditions for PEL 568 and PEL 569 have been suspended by 3 months from 31/07/2017 to 30/10/2017. The licenses have had their expiry dates extended to 17/03/2020.
Otway Basin	Geothermal licence GEL 611 was relinquished with effect from 15/07/2017.
	The work program conditions for PEL 154 and PEL 155 have been suspended by 6 months from 04/07/2017 to 03/01/2018. The licenses have had their expiry dates extended to 04/01/2020.
	Rawson Oil & Gas Ltd has entered into a staged farm-in agreement with Vintage Energy P/L, for Vintage to acquire up to 50% interest in PEL 155. Vintage will acquire an initial 25% interest in PEL 155 in exchange for $0.1m initial payment. If certain conditions are met, Vintage has the option to acquire an additional 25%. Further, Rawson and Vintage have made an application for a PACE gas grant. The parties have applied for funding and intend to further assess the economics, costs, technical aspects and other matters of drilling an exploratory well in PEL 155
	The work program conditions for PEL 629 have been suspended by 12 months from 02/06/2017 to 01/06/2018. The licence has had its expiry date extended to 01/09/2022.
St Vincent Basin	The work program conditions for PEL 120 have been suspended by 3 months from 16/08/2017 to 15/11/2017. The licence has had its expiry date extended to 03/01/2019.
Tasmania
Otway Basin	An exemption and variation on T/49P was lodged with NOPTA on 19/07/2017.
Victoria
Gippsland Basin	Esso Deepwater Gippsland P/L has acquired 100% of VIC/P70 from Liberty Petroleum Corp. Liberty has a Production Payment Agreement (% is unconfirmed).
	Llanberis is seeking JV or equity partners for VIC/P71.
Otway Basin	The previous surrender application for VIC/P62 has been withdrawn.
Western Australia
Barrow Sub Basin	TP/7 is being renewed.
	A variation for WA-55-R was lodged on 24/07/2017.
Bonaparte Basin	The Ascalon Location WA-407-P LA has been extended by 2 years to 28/07/201.
Browse Basin	A variation for WA-371-P was lodged with NOPTA on 14/07/2017.
	A Location was declared over Crown/Proteus Extension & Lasseter West WA-502-P LC on 19/07/2017.
Canning Basin	A suspension and extension for EP 104 was lodged on 21/07/2017.
	Suspension and extensions for EP129, EP 391, EP 431, EP 436, EP 457 and EP 458 were lodged on 28/07/2017.
Carnarvon Basin	Santos Ltd and Santos Offshore P/L have transferred their interests in WA-208-P to Quadrant Northwest P/L. Quadrant Northwest P/L now holds 100% and operatorship.
	BHP Billiton Petroleum (Australia) P/L has transferred its 60% interest and operatorship in WA-389-P to Cue Exploration P/L. Cue Exploration P/L now holds 100%.
	WA-439-P is being renewed.
	WA-480-P is being relinquished.
	A variation for WA-482-P was lodged with NOPTA on 11/07/2017.
	WA-489-P was relinquished on 26/07/2017.
	WA-48-R is being renewed.
	WA-490-P and WA-491-P were relinquished on 26/07/2017.
	A suspension, extension and variation for WA-496-P was lodged on 02/08/2017.
	A suspension and extension for WA-520-P was lodged on 20/07/2017.
Perth Basin	In May 2017, Norwest Energy made the decision to hand SPA 16 AO (under application as STP-EPA-0137) back to Finder due to the high degree of uncertainty on whether future exploration activities could be carried out within the area.
New Zealand
Taranaki Basin	PEP 51152 has undergone a partial relinquishment and now covers a reduced area of 53 sq km.
	PEP 51154 was relinquished on 13/07/2017. The area reverts to vacant acreage.
	PEP 54879 was relinquished on 04/08/2017. The area reverts to vacant acreage.
	Todd Petroleum Mining Company Ltd has acquired Shell (Petroleum Mining) Co Ltd's 50% interest in the Kapuni gas field PML 38839. Todd Energy is now the 100% owner and operator.
Papua New Guinea
Papuan Basin	APPL 611 is an application by Kina Petroleum 100% over 6469 sq km.
	APPL 545 was granted as PPL 545 to Esso PNG Exploration Ltd 50% and Oil Search (PNG) Ltd 50% on 30/06/2017. The licence will expire on 29/06/2023.
	APPL 548 was granted as PPL 548 to Oil Search (PNG) Ltd 100% on 20/07/2017. The licence will expire on 19/07/2023.
	APPL 595 was granted as PPL 595 to Oil Search (PNG) Ltd 100% on 30/06/2017. The licence will expire on 29/06/2023.
	PPL 235 has expired.
	Horizon’s interests in PPL 372 and PPL 373 (held by subsidiary Ketu Petroleum Ltd) have increased to 95% and 100% respectively, following approval from the PNG Government.
	A renewal has been offered on PPL 374 over a reduced area of 6929 sq km. The renewal and new expiry dates are yet to be confirmed. Work program is as follows: Years 1-3: G&G studies, 1000 km 3D seismic US$6m Years 4-5: G&G studies, 1 exploration well contingent on Years 1-3 results US$42m
	A renewal has been offered on PPL 375 over a reduced area of 5572 sq km. The renewal and new expiry dates are yet to be confirmed. Work program is as follows: Years 1-3: G&G studies, 1000 km 3D seismic US$6m Years 4-5: G&G studies, 1 exploration well contingent on Years 1-3 results US$42m
	PRL 14 has been renewed to 21/11/2020.
	Mitsubishi/Diamond Gas has withdrawn from PRL 21 and its 7.5% interest has been taken up by Talisman, Horizon and Kina. Interests in the licence are now as follows: Talisman Energy Niugini Ltd 35.1%, Horizon Oil (Papua) Ltd 30.15%, Osaka Gas Niugini P/L 18% and Kina Petroleum Ltd 16.75%.
	Horizon has exchanged 20% of PRL 28 for 20% of PRL 40 in a trade with Kumul Petroleum Holdings.
	PRL 40 has been granted over the Puk Puk/Douglas discoveries. Grant and expiry dates are yet to be verified.

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