Monthly Update
The December 2011 data update is now available. A new field called Original Permit has been added to the Wells data.  It contains the name of the permit that existed at the time the well was originally drilled ...

Welcome New Users
We would like to welcome the following organisations that became GPinfo users in 2011 ...

Industry Summary
Drillsearch Energy Ltd is pleased to announce it has signed a Gas Sale Agreement covering its wet gas project in PEL 106B with the South Australian Cooper Basin Joint Venture. Gas sales are expected to ...

Permit Updates and Changes
In the Surat/Bowen Basin, PEL 427 is in the process of being renewed ...
 


Monthly Update

The December 2011 data update is now available.

Data Change

A new field called Original Permit has been added to the Wells data this month.  It contains the name of the permit that existed at the time the well was originally drilled. 

       

    Puffin 12 was drilled in 2008 in AC/L 6 and              Skua 1 was drilled in 1974 in NT/P 2
    the permit still exists over the well location
.              The well location is now in AC/L 8.

For recent wells, the original permit and the current permit will be the same.  However, for many wells in the database, the original permit long ago ceased to exist.  Original Permit has been populated from mines department listings and cross-referenced with the GPinfo history module which contains geometry for all permits over the last 20 years.

The Original Permit field is populated for 17,500 of the 18,000+ wells in the GPinfo database.  If, following our research, it was still not possible to establish the name of the original permit for a well, an entry of Unknown has been recorded.  A small number of old wells have no entry as yet and we will continue to research these wells in the coming months.

Can't see the new data?

Correct display of the Original Permit field requires a modification to the structure of your GPinfo configuration file.  This should happen automatically the first time you start a GPinfo session after the December update has been installed.

If the December update has been installed but you still can't see the new field when you display wells data, you can force GPinfo to apply the required structural changes by selecting View > Options > Updates and clicking on the Update GPinfo system layers now button.
 


Welcome New Users

We would like to welcome the following organisations that became GPinfo users in 2011 -

Australian Marine Oil Spill Centre
Bass Strait Oil Company Ltd
DownUnder GeoSolutions Group
Exoma Energy Limited
InterOil Australia Pty Ltd
ITECO Oilfield Supply GmbH
Molopo Energy Ltd
National Offshore Petroleum Safety Authority
Perenco (SE Australia) Pty Ltd
Rodinia Oil Corp


Industry Summary

Company News

Drillsearch Energy Ltd
is pleased to announce it has signed a Gas Sale Agreement covering its wet gas project in PEL 106B with the South Australian Cooper Basin Joint Venture. Gas sales are expected to commence in December 2011, with the maximum daily quantity of gas delivered initially capped at 25 million cubic feet per day, reducing to 15 MMcfd from 1 January 2012. The agreement is on an interruptible basis for a term to 30 April 2013. Beach and Drillsearch have also agreed to a five well drilling campaign that will commence in December 2011. (Source: Drillsearch Energy announcement 28/11/2011).

Buru Energy Ltd is pleased to announce that Mitsubishi Corporation has exercised its option to participate in Buru’s 2012 Unconventional Exploration Program in the Canning Basin. Mitsubishi Corp will fund $40 million of the first $50 million spent on unconventional exploration by the joint venture in 2012, earning Mitsubishi Corp a 50% interest in the unconventional resources in Buru’s exploration permits. (Source: Buru Energy announcement 1/12/2011).

Dart Energy Ltd has entered into a Memorandum of Understanding with Maria’s Farm Veggies for its first Gas Sales Agreement in New South Wales to provide gas for a $65 million glasshouse development. The initial term of the MoU is ten years, to supply up to 6.3 petajoules of gas at a provisional price of $7.50 per gigajoule from planned pilot wells at Fullerton Cove to be drilled in the first half of 2012. (Source: Energy News Premium 07/12/2011).

Orion Petroleum Ltd has executed a binding agreement to merge with Petrel Energy Ltd. Subject to shareholder approval in January 2012, Orion will be renamed Petrel Energy Limited and retain its ASX listing. (Source: Orion Petroleum Ltd announcement 23/11/2011).

FAR Ltd is pleased to advise that its off-market takeover offer for Flow Energy Ltd has successfully closed. The offer closed on 18/11/2011 and it is currently anticipated that the acquisition process will be completed before the end of 2011. (Source: FAR Ltd announcement 21/11/2011).

Havilah Resources NL has advised they now hold a relevant 94.17% interest of the issued shares of Geothermal Resources Ltd, providing Havilah the right to compulsorily acquire all the remaining Geothermal shares that Havilah does not already hold. Geothermal will be suspended and removed from the official list of the ASX in due course. (Source: Havilah Resources NL announcement 24/11/2011).

Development News

Santos today announced that natural gas from the offshore Reindeer field in the Carnarvon Basin was delivered to the Dampier to Bunbury natural gas pipeline for the first time. The delivery of gas, processed at the onshore Devil Creek plant, marks the start up of Australia’s first new domestic gas hub in almost 20 years. The plant has a gross production capacity of 215 terajoules per day, with the Santos/Apache joint venture aiming for initial production of 120TJpd. The plant is also capable of delivering up to 500 barrels of condensate per day into the pipeline. (Source: Santos announcement 06/12/2011, Energy News Premium 06/12/2011).

Verve Energy and Synergy have both signed contracts for the supply of domestic gas for the Chevron operated Gorgon LNG Project, Western Australia. The agreements are for the supply of a combined 125 terajoules per day for 20 years starting from 2015. The contracts with Verve and Synergy are the first domestic gas deals signed by the Gorgon joint venturers since they started marketing about two years ago. (Source: Energy News Premium 30/11/2011).

Papua New Guinea’s Gulf LNG Project has taken a big step towards a final investment decision after InterOil and Pacific LNG Operations have signed a heads of agreement with Gunvor Singapore to supply one million tonnes per annum of LNG from the Gulf LNG facility for 15 years commencing in 2015. The target date for a binding sales agreement is the second quarter of 2012. A final investment decision is due by the end of 2011. (Source: Energy News Premium 29/11/2011).

Construction has officially begun on Chevron’s $29 billion Wheatstone LNG Project in Western Australia’s Pilbara region. The breaking of the ground ceremony marks the start of works on one of the nation's biggest resource projects. Chevron says the ceremony was a major milestone for the project, which is expected to start producing LNG in 2016. (Source: Energy News Premium 2/12/2011, ABC News 2/12/2011).

INPEX and Total have today secured 15 year Sales and Purchase Agreements worth $A70 billion with five Japanese power companies to supply LNG from the proposed Ichthys Project. The agreements cover the supply of 4 million tonnes of LNG per annum for 15 years with supply starting in 2017. Tokyo Electric Power and Tokyo Gas will each take 1.05MMtpa while the Kansai Electric Power Company and Osaka Gas will each take 0.8MMtpa. Kyushu Electric Power Company will offtake the remaining 0.3MMtpa. Osaka Gas has also acquired a 1.2% interest in the Ichthys project from INPEX, leaving INPEX with a 74.8% interest and Total with the remaining 24%. (Source: Energy News Premium 07/12/2011).

The first phase of the Woodside operated Greater Western Flank Project will go ahead after the North West Shelf partners approved the $2.5 billion plan. The Phase 1 project will develop the Goodwyn GH and Tidepole fields, via a subsea tie-back to the existing Goodwyn A platform. The Phase 1 project is the first development of the broader Greater Western Flank area, with project start-up expected in early 2016. (Source: Woodside announcement 08/12/2011).

Kencana Petroleum has secured a contract from Bechtel International to fabricate and load process equipment modules for the Wheatstone LNG Project located at Ashburton North, Western Australia. The contract value is estimated at approximately $134 million and includes fabrication, assembly, testing and loading of process equipment modules for the Wheatstone LNG Plant facility. (Source: Energy News Premium 09/12/2011, LNG World News 08/12/2011).

Sinopec has signed a non-binding agreement to increased its stake and take additional gas from the Australian Pacific Liquefied Natural Gas Project. Sinopec has agreed to increase its interest in the project from 15% to 25%, reducing Origin Energy’s and ConocoPhillips interests to 37.5% each. Sinopec will also purchase an additional 3.3 million tonnes per annum of LNG through to 2035. Earlier in the year Sinopec agreed to take 4.3 million tonnes per annum from the project over 20 years to 2015. (Source: Energy News Premium 12/12/2011, Origin Energy announcement 12/12/2011).

Leighton Holdings subsidiary John Holland has secured a $370 million contract to design and construct the accommodation village for Chevron’s Wheatstone LNG Project. The accommodation village will have 3800 beds, recreation centres, a football oval, swimming pool, tennis courts, medical centre and dining facilities. Work on the village will begin immediately and is expected to be completed in the second quarter of 2014. (Source: Energy News Premium 13/12/2011).

Liquefied Natural Gas Ltd and the Gladstone Ports Corporation have agreed to extend its lease at Fisherman’s Landing to 30 June 2012, which could push Liquefied Natural Gas Ltd’s Gladstone LNG plant back by six months. The company will now have to satisfy a number of conditions if it hopes to hang onto the lease, including the procurement of gas supply for the LNG project. LNG Ltd will then have another six months to satisfy any “remaining conditions”, which primarily relate to obtaining necessary approvals for the project. (Source: Energy News Premium 13/12/2011)
.

Discoveries

Westside Corporation is pleased to announce they have brought the Pretty Plains 10 coal seam gas well into production. Pretty Plains 10 is the second of seven new Meridian SeamGas dual lateral production wells in Queensland’s Bowen Basin. Production rates from the well exceed 800,000 cubic feet of gas per day, producing from just two of the multiple seams available for future production. (Source: Energy News Premium 23/11/2011).

Blue Energy has cased and suspended its Sapphire 4 coal seam gas well in the Bowen Basin, Queensland, as a future pilot production test well. Sapphire 4 intersected 62m of net coal in the Rangal, Fort Cooper and Moranbah coal measures and flowed gas to surface from the Fort Cooper during an open hole drill stem test.
The results are currently being assessed and planning for the completion and testing phase is currently underway. (Source: Energy News Premium 28/11/2011).

The Growler oil field in the western flank of the Cooper Basin continues to be a success with the latest appraisal well Grower 9 extending the limits of the field. Wire line logs confirmed the presence of a 17.5m gross oil column in the Birkhead Formation with interpreted net oil pay of at least 11.5m. The well has been cased and suspended as a future production well and is expected to be brought online as an oil producer during December 2011. (Source: Senex Energy announcement 28/11/2011).

Exoma Energy Ltd is pleased to report that independent well log and petrophysical evaluation has confirmed the company’s recent Katherine 1 well in the Galilee Basin has the potential to be a significant onshore oil resource. Studies indicate that the Katherine West structure, based on the results of the Katherine 1 and Toobrac 1 wells, may contain up to 177 million barrels of oil in place. Exoma said further drilling would be needed to move some of the estimates into reserves, and will begin this process by drilling a follow-up core well in early 2012. (Source: Exoma Energy announcement 05/12/2011, Energy News Premium 05/12/2011)
.
 


Permit Updates and Changes

New South Wales

In the Surat/Bowen Basin, PEL 427 is in the process of being renewed.

In the Sydney Basin, PEL 483 was cancelled on 11/11/2011 at the request of the licence holder.

In the Surat/Bowen Basin, PEL 6 is in the process of being renewed.

In the Clarence/Moreton Basin, applications PSPAPP 44 and PSPAPP 45 were refused on 28/11/2011
.


Northern Territory

In the Amadeus Basin, EP(A) 286 is a new application by Palatine Energy P/L.

In the Daly Basin, EP(A) 287 is a new application by Arafura Oil P/L.

In the Bonaparte Basin, Eni SpA has been announced as the buyer of a major interest in Evans Shoal. Eni have agreed to buy a 40% equity share from Santos in NT/P 48. Separately, Eni agreed to sell a 7.5% equity share in NT/P 48 to Shell Development (Australia) P/L. Both transactions are subject to approvals. Once approved, interests in NT/P 48 will be Shell Development (Australia) P/L 32.5% and operator, Eni SpA 32.5%, Petronas Carigali (Australia) P/L 25% and Osaka Gas Australia P/L 10%.

Also in the Bonaparte Basin, Eni Australia Ltd has committed to the acquisition of the Blackwood 3D seismic survey, meeting one of the conditions of the NT/P 68 farm-in agreement. Eni will pay MEO’s share of the costs to acquire and process the 3D seismic survey. Eni will have 365 days from completion of the acquisition to elect whether or not to exercise its option to drill, and pay 100% of the Blackwood 2 well in order to retain its 50% interest in the Blackwood gas discovery.

In the Bonaparte Basin, NT/P 71 and NT/P 72 were surrendered on the 23/11/2011.

Also in the Bonaparte Basin, NT/P 77 and NT/P 78 were cancelled on the 30/11/2011
.


Joint Petroleum Development Area

JPDA 06-105 has had its conditions suspended for three months.   New expiry date is 21/12/2011.


Queensland

In the Eromanga Basin, ATP 267P is in the process of being renewed.

Also in the Eromanga Basin, ATP 582P has undergone a partial relinquishment and now covers a reduced area of 22,030 sq km.

In the Bowen Basin, ATP 768P has been renewed to 30/09/2020.

In the Surat Basin, production licence PL 212 was granted on 22/11/2011.  The licence will expire on 21/11/2041.  As a result, ATP 632P now covers a reduced area of 1,522 sq km.

In the Surat Basin, Australian-Canadian Oil Royalties will acquire 100% of PL 18 and PL 40 and 50% of PL 280 from Brisbane Petroleum and Delbaere Associates. ACOR will issue 21,850,000 common shares and has agreed to pay the vendors US$3 million within 12 months of the closing of the acquisition.  ACOR will pay an ORR of 3% to the vendors on production from PL 18, PL 40 and PL 280. Closing date is anticipated as January 2012
.


South Australia

In the Cooper Basin, Acer Energy Ltd has acquired AGL Energy Ltd’s 37.5% interest in permits PRL 14, PRL 17, PRL 18, PEL 103 and PEL 103A and AGL’s 35% interest in PEL 101 for a consideration of $6 million.

In the Otway Basin, Kea Petroleum (Australia) P/L has now become the operator of PEL 155. Kea will earn a 50% interest in the permit after the drilling of Nangwarry 1.

In the Cooper Basin, a six month suspension period has been granted to the Year 5 work program for PEL 90. Year 5 has been extended from 02/05/2012 to 01/11/2012. The licence will expire on 01/11/2013.

In the Arrowie Basin, PELA 578 has undergone a partial relinquishment and now covers a reduced area of 9,354 sq km.

In the Stuart Shelf Basin, PELA 601 and PELA 602 are new applications by NAVGAS P/L.

In the Otway Basin, PPL 62 has been renewed for an indefinite term.

Geothermal Permits

In the Adelaide Fold Basin, GEL 505 and GEL 506 have been surrendered.

In the Gawler Craton Basin, GELA 243 has undergone a partial relinquishment and now covers a reduced area of 208 sq km
.


Tasmania

In the Bass Basin, AWE has agreed to sell 11.25% of T/L 1 and 2.75% of T/18P to Toyota Tsusho Gas E&P Trefoil P/L for a cash consideration of A$80.125 million. The sale is effective 1/11/2011 and is subject to joint venture and government approvals.

Also in the Bass Basin, T/37P expired on 08/12/2011 and now reverts to vacant acreage.

Onshore, SEL 58/2008 has undergone a partial relinquishment and now covers a reduced area of 32 sq km
.

Geothermal Permits

Onshore Tasmania, SEL 26/2005 has been renewed to 06/08/2016.



Victoria


Offshore in the Gippsland Basin, VIC/L 5, VIC/L 6, VIC/L 7 and VIC/L 8 have been renewed for an indefinite term.

Also in the Gippsland Basin, VIC/P 41 has been renewed to 28/11/2016 over a reduced area of 539 sq km. Work program is as follows -

Year 1: G&G studies
Year 2: 70k 3D seismic
Year 3: G&G studies
Year 4: 1 well
Year 5: G&G studies

In the Otway Basin, V 10-1 V was granted as VIC/P 42 (V) to Origin Energy Resources Ltd on 28/11/2011.  The licence will expire on 28/11/2017.

In the Gippsland Basin, VIC/RL 1 was renewed to 28/11/2016.

Onshore in the Gippsland Basin, Armour Energy has the right to earn 51% in PEP 166 with a total expenditure of $9 million over two years.  Armour Energy will spend $4.25 million during Year 1 to drill the Holgate 1 well along with a second cored hole on the Yallourn-Morwell anticline to earn 25% in PEP 166.   This will be followed by a Year 2 commitment of $4.75 million to drill an additional open hole well to earn a 51%.

In the Otway Basin, Armour Energy has the right to earn 51% in PEP 169 from Lakes Oil (and assume operatorship) by drilling the Moreys Prospect with a $2.5 million well.  The deal is subject to completion of due diligence investigation.

In the Gippsland Basin, PEP 172 has been offered to and accepted by Icon Energy Ltd.  Licence will be granted once Icon Energy has addressed provisions of the Native Title Act.

Also in the Gippsland Basin, VIC/G 10-3 has been offered as PEP 173 to Icon Energy Ltd 100%.  Licence will be granted once Icon Energy has addressed provisions of the Native Title Act
.



Western Australia


In the Perth Basin, an eight month suspension period has been granted to the Year 3 work program for DR 11. Year 3 has been extended from 04/11/2011 to 04/07/2012. The licence will expire on 04/07/2012. Varied work program is as follows –

Year 1: geotechnical studies
Year 2: geotechnical studies
Year 3: 2 wells, 10k 2D seismic $5.05m

In the Canning Basin, DR 9 is pending suspension.

In the Canning Basin, a 15 month suspension period has been granted to the Year 5 work program for EP 104. Year 5 has been extended from 03/10/2011 to 31/01/2013. The licence will expire on 31/01/2013.

In the Perth Basin, Empire Oil & Gas has executed two Farmin Agreements with Origin Energy Ltd for exploration permits EP 368 and EP 426. Origin will fund 80% of the costs of the North Erregulla 3D seismic survey, earning Origin a 40% interest in each of the permits.
Empire will remain operator of both permits following the survey and will carry out drilling programs. Origin will become operator once a decision to carry out an appraisal and development program is made.

In the Canning Basin,
a 13 month suspension period has been granted to the Year 5 work program for EP 371. Year 5 has been extended from 31/12/2011 to 31/01/2013. The licence will expire on 31/01/2013.

In the Canning Basin, a 13 month suspension period has been granted to the Year 6 work program for EP 428. Year 6 has been extended from 31/12/2011 to 31/01/2013. The licence will expire on 31/01/2013.

In the Perth Basin, a six month suspension period has been granted to the Year 6 work program for EP 430. Year 6 has been extended from 19/09/2011 to 19/03/2012. The licence will expire on 19/03/2012.

In the Canning Basin, a 15 month suspension period has been granted to the Year 6 work program for EP 431. Year 6 has been extended from 06/10/2011 to 31/01/2013. The licence will expire 31/01/2013. Varied work program for Year 6 is – 1 well, geotechnical studies $3.1m

In the Canning Basin, a 13 month suspension period has been granted to the Year 6 work program for EP 436. Year 6 has been extended from 31/12/2011 to 31/01/2013. The licence will expire 31/01/2013.

In the Perth Basin, Key Petroleum Ltd have assigned 22.5% interest in EP 437 to Empire Oil & Gas NL after the acquisition of Gulliver Productions P/L.

In the Perth Basin, EP 445 has been cancelled by the Department of Mines and Petroleum.

In the Perth Basin, STP-PRA-0001 and STP-PRA-0002 are new production licence applications by Empire Oil Company (WA) Ltd 68.75%, ERM Gas P/L 21.25% and Wharf Resources plc 10%.

In the Barrow Basin, TP/7 is pending suspension.

In the Carnarvon Basin, WA-246-P now covers a reduced area of 161 sq km following the grant of retention licenses WA-45-R and WA-46-R.

In the Browse Basin, Osaka Gas Australia P/L has acquired a 1.2% participating interest in WA-285-P and WA-37-R from INPEX Browse Ltd. INPEX now holds 74.8% and Total E&P Australia holds the remaining 24% in each of the permits.

In the Carnarvon Basin, a six month suspension period has been granted to the Year 6 work program for WA-359-P. Year 6 has been extended from 31/01/2012 to 31/07/2012. The licence will expire on 31/07/2012.

In the Carnarvon Basin, OMV Australia P/L has given notice of their intention to withdraw from further participation in WA-362-P, WA-363-P, WA-386-P and WA-387-P.

In the Carnarvon Basin, retention licence WA-44-R has been granted over areas formerly WA-255-PC and WA-255-P FO on 23/11/2011. The licence will expire on 22/11/2016. Work program is as follows –

Year 1: engineering & economic studies
Year 2: engineering & economic studies
Year 3: engineering & economic studies
Year 4: engineering & economic studies
Year 5: engineering & economic studies

In the Carnarvon Basin, WA-45-R and WA-46-R have been granted to Apache Northwest P/L 45%, Kufpec (Perth) P/L 20%, Santos Offshore P/L 15%, Pan Pacific Petroleum (SA) P/L 10% and Tap (Harriet) P/L 10% on 23/11/2011. Licences will expire on 22/11/2016.


New Zealand

In the Taranaki Basin, PML 38839 has been renewed to 31/12/2032.

In the Southland Basin, PEP 38220 is in the process of being renewed.

In the Waikato Basin, PEP 38605 is in the process of being renewed.

In the Taranaki Basin, PEP 51150 EX is an Extension of Land application by Taranaki Ventures Ltd
.


Papua New Guinea

In the Cape Vogel Basin, PPL 257 was renewed to November 2016 over a reduced area of 3,574 sq km.  Work program is as follows -

Years 1-2: integrate studies, field studies, integrate seismic interpretation and structural studies US$0.5m

In the North New Guinea Basin, PPL 258 is being renewed over a reduced area of 4,722 sq km.

In the Papuan Basin, PPL 259 was renewed to 29/06/2016 over a reduced area of 2,823 sq km.  Work program is as follows -

Years 1-2: 100k 2D seismic, 1 exploration well, G&G studies US$26m

In the Papuan Basin, work program for PPL 260 is as follows -

Years 1-2: field mapping to mature leads, generation and modelling of structural cross-sections, G&G studies, generation of a prospects and leads inventory

In the Papuan Basin, PRL 28 was granted for five years in November 2011 over the Ubuntu field.  Interests are:  Eaglewood Energy Inc 40% (operator), Talisman Niugini Ltd 50% and P3 Global Energy Co Ltd 10%.


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© 2011 Pitney Bowes Business Insight