If you have any new or updated field or pipeline data that you would like us to include on the map and also incorporate into GPinfo, please let us know ...

 

Liquefied Natural Gas Limited has executed a conditional Heads of Agreement with Arrow Energy Limited to sell the entire Fisherman’s Landing LNG project through the sale of LNG Ltd’s 100% owned subsidiary Gladstone LNG P/L ...

 

In the Sydney Basin, Arrow Energy will earn 15% in PEL 458 by completing Phase 1 consisting of drilling two core holes and the acquisition of 50k seismic for an expected cost of about $3m.  Arrow can earn an extra 35% by completing Phase 2  ...


Data Check

As part of our preparation for releasing the 2010 edition of the Petroleum Permits of Australasia Map at APPEA in Brisbane in May, we are starting to collect updated field and pipeline data. If you have any new or updated field or pipeline data that you would like us to include on the map and also incorporate into GPinfo, please let us know.

Also, please take a moment to check any information in GPinfo that you are familiar with - company details, office addresses, personnel and permit ownership.  We greatly appreciate any help you can give us in maintaining the accuracy of our database.

For all data related matters, please contact our Information Analyst Lidia Novosel on 02 9923 5819 or click here to send an email.
 


Industry Summary

Company News

Liquefied Natural Gas Limited (LNG Ltd) has executed a conditional Heads of Agreement with Arrow Energy Limited to sell the entire Fisherman’s Landing LNG project (Gladstone LNG Project) through the sale of LNG Ltd’s 100% owned subsidiary Gladstone LNG P/L for a combination of cash, milestone payments, royalties and Arrow options. This agreement supersedes the previously announced InfraCo/TrainCo release on 04 January 2010 that contemplated ongoing equity investment in the Gladstone LNG project by LNG Ltd. The new agreement is subject to the completion of confirmatory due diligence by Arrow, and LNG Ltd gaining shareholder approval at a meeting to be held within the next 45 days.  (Source:  LNG ASX/Media Release, 11/02/2010).

Santos announced a 42% or 427 mmboe increase in its year-end proved and probable (2P) reserves, taking the company’s total 2P reserves to a record 1.44 billion barrels of oil equivalent. Santos 2P CSG reserves have increased by 60% to 3,748 PJ. This significant reserves increase is a result of the consistent delivery of Santos’ transformational LNG growth strategy.  2P reserves dedicated to Santos’ portfolio of LNG projects are now more than 700 mmboe or almost 50% of total 2P reserves. The overall reserves increase was net of 2009 production of 54.4 mmboe.  It represents a 2P reserves replacement ratio for 2009 of 885% and is the company’s sixth successive annual increase in its reserves position. On a proved (1P) basis, year-end reserves increased to 647 mmboe, after allowing for 2009 production of 54.4 mmboe.  This represents a 1P reserves replacement ratio of 338% for 2009 and 223% on a 3-year rolling-average basis.  (Source:  Santos ASX/Media Release, 08/02/2010).

ROC Oil P/L, operator of Basker-Manta-Gummy (BMG) project, has obtained preliminary results from its first full field reservoir simulation study of the Basker and Manta reservoirs. As a result of this work, following an independent review by Resource Investment Strategy Consultants (RISC), estimated gross remaining 2P oil reserves at the BMG project as at 31 December 2009 dropped from 18 million barrels to 3.1 mmbbl, assuming no further development activity is undertaken. ROC advises that the BMG project reserve downgrade has resulted in an impairment of ROC’s carrying value of its interest in the BMG project of US$98.8 million (before and after tax), subject to final audit and Board approvals. The BMG project impairment charge will be incorporated in the 2009 Annual Financial Results, which will be released on February 25th(Source:  ROC Oil ASX releases, 03/02/2010 and 22/02/2010).

L&M Energy is now the largest dual-focused conventional petroleum and coal seam gas player in New Zealand, following shareholder support for the acquisition of private former “sibling” L&M Coal Seam Gas. At a special general meeting in Wellington on 22/02/2010, about 94% of L&M Energy shareholders approved the listed company taking over Christchurch-based L&M CSG. Both companies were originally part of the L&M Group but L&M Energy was spun off in a January 2007 listing on the Australian Securities Exchange and New Zealand Exchange. L&M Energy is acquiring 100% of the issued share capital in L&M CSG by issuing 444 million L&M Energy ordinary shares to L&M CSG’s shareholders and 56 million unlisted options to members of L&M CSG’s directors, employees and consultants. (Source: www.petroleumnews.net, 23/02/2010).

Development News

The Browse LNG partners have awarded contracts for the project’s basis of design phase, which would determine the major design parameters for its development. Bechtel Oil, Gas and Chemical and Kellogg Brown & Root were awarded dual contracts for the onshore component while the scope for the offshore facilities was handed to a joint venture between WorleyParsons Services and Granherne. JP Kenny was awarded the contract for the subsea and pipelines scope. The basis of design phase would be followed by front-end engineering and design in 2011 to enable a final investment decision by mid-2012.  (Source:  www.petroleumnews.net, 10/02/2010).

Chevron and its partners in the Wheatstone liquefied natural gas project have reportedly agreed to government terms for the renewal of the two permits covering the field, including spending at least $1 billion on moving the project ahead. The retention renewal offer by the WA and federal governments for permits WA-17-R and WA-16-R included provisions that the Wheatstone partners complete a reservoir study and a preliminary field development plan within a year; complete front-end engineering and design studies and submit a production licence application within two years; and carry out technical, marketing and engineering studies. The cost was assessed to be about $1 billion over the five years of the renewed retention lease, the West Australian reported.  (Source:  www.petroleumnews.net, 15/02/2010).

ICON Energy has expressed confidence in its ATP 626P Surat Basin permit by committing to drill four new pilot production wells. The new wells will be drilled after the end of the current 13-well program at a time to be announced. Icon has previously drilled three pilot production wells around Lydia-1 in ATP 626P, which are currently being dewatered. Icon is using permeability and coal interval measurement data collected from its current drilling program to develop a comprehensive picture of the coal formations in ATP 626P. Meanwhile, Icon is collecting and analysing data from the Dominic-1 well to develop a working permeability model to help shortlist a number of sites for the four new wells. Preliminary analysis of data from Dominic-1 indicated good permeabilities over the interval 940-1100m.  (Source:  www.petroleumnews.net, 18/02/2010).

The Queensland government has awarded Arrow’s wholly-owned subsidiary Surat Gladstone Pipeline P/L a Petroleum Pipeline Licence to develop a  470 km buried high-pressure steel gas transmission pipeline between Arrow’s CSG operations near Dalby in the Surat Basin and the proposed Fisherman’s Landing LNG plant at Gladstone. The pipeline will initially deliver about 90 petajoules of gas per year to supply the first train at Fisherman’s Landing, which will be capable of producing 1.5 million tonnes of LNG per annum (mtpa). Construction on the pipe is expected to start in 2011 with first gas supplied to the plant in late 2012. Arrow said while the cost of the pipeline had yet to be finalised, it was expected to remain within prior guidance of about $550 million.  (Source:  Arrow Energy ASX announcement, 19/02/2010).

Drillsearch Energy announced the commencement of first commercial oil production at the Chiton oil field in PEL 91 of the Cooper Basin, which could potentially increase the company’s annual oil production by 200% in the near term. Drillsearch holds a 60% interest in PEL 91 while Beach is operator with a 40% interest. Initial production from the field began at a choked back rate of 245 barrels of oil and 478 barrels of water per day in order to manage storage capacity and oil trucking logistics. In further developments, Drillsearch and Beach have agreed to expand the exploration program for PEL 91 with the Aquillus 3D seismic survey.  (Source:  Drillsearch ASX announcement, 05/02/2010).

Wireline testing at Origin Energy’s Rockhopper-1ST1 sidetrack well in Bass Basin have confirmed all but two of the sands have low permeability. The company said while it was not possible to obtain formation fluids from the low permeability sands, a mixture of filtrate and formation water was recovered from two of the sands. All data from the sidetrack and the original Rockhopper discovery will be analysed and integrated with seismic mapping to determine oil and gas resources in the structure. Rockhopper-1ST1, drilled by the Kan Tan IV semi-submersible drilling rig to a total depth of 3196m, will be plugged and abandoned as planned before the rig is released to another operator.  (Source:  www.petroleumnews.net, 19/02/2010).

BOW Energy’s sixth well in its nine-well proven and probable reserve certification campaign at the Blackwater coal seam gas field has intersected the thickest Rangal Coal Measures to date. The company said the BWP-7 was drilled to a depth of 453m and intersected 17.8m of coal with the top of the Rangal seam containing 8.7m of coal, more than double elsewhere in the field. Bow added that initial analysis of testing indicated good permeability. Wet weather in the area has delayed the drilling of the next well, BWP-8, to later this week and has also hampered the start of long-term production testing of two initial appraisal wells, BWP-3 and BWP-4.  (Source:  www.petroleumnews.net, 23/02/2010).


Permit Updates and Changes

New South Wales

In the Sydney Basin, Arrow Energy will earn 15% in PEL 458 by completing Phase 1 consisting of drilling two core holes and the acquisition of 50k seismic for an expected cost of about $3m.  Arrow can earn an extra 35% by completing Phase 2 which consists of a core hole and five spot production tests to a minimum cost of $7m.

In the Gunnedah Basin, Arrow Energy is operator of PEL 464 and is farming in.  It will earn 15% for completing Phase 1 which includes a seismic program for $1m.  Arrow can earn an extra 35% by completing Phase 2 which consists of core hole and other seismic for $5m.

In the Clarence-Moreton Basin, PELA 113 and PELA 114 were granted to Clarence Moreton Resources P/L 100% as PEL 478 and PEL 479 respectively on 11/12/2009.  Licences will expire on 11/12/2012.

Also in the Clarence-Moreton Basin, Metgasco has applied for PELA 129 and PELA 130 and for production licence PPLA 9 over the Casino field.

In the Clarence-Moreton Basin, PSPA 30 expired on 23/01/2010 and now reverts to vacant acreage.

In the Murray Basin, PSPA 31 expired on 23/01/2010 and now reverts to vacant acreage.

Clarence Moreton Resources P/L has applied for the following special prospecting authorities in the Clarence-Moreton Basin: PSPAPP 46, PSPAPP 48, PSPAPP 50.
 


 

Northern Territory

Offshore in the Vulcan Basin, the work program for AC/P 21 was amended as follows:

Year 1 - 490k 3D seismic reprocessing - $1.5m
Year 2 - geotechnical studies - $0.25m
Year 3 - geotechnical studies - $0.25m
Year 4 - 1 well - $30m
Year 5 - geotechnical studies - $0.25m

In Pedirka Basin, EP(A) 130 was revised with reduction in area.

Onshore in the Bonaparte Basin, Bonaparte Oil Ltd has applied for EP(A) 175 over 12,628 sq km.

Offshore in the Bonaparte Basin, NT/P70 held 80% by Australian Oil & Gas Corporation and 20% by National Gas Australia P/L has been cancelled.

Offshore in the Arafura Basin, NT/P 74 and NT/P 75 held 50% by Samson International (Australia) Pty Ltd and 50% by ConocoPhillips (Arafura Basin) Pty Ltd have been surrendered as of 10/02/2010.
 


 

Queensland

Various permits have undergone partial relinquishments, as follows -

Licence       Basin                   Area  

ATP 633P     Eromanga          1,270 sq km
ATP 647P
     Surat                     95 sq km
ATP 684P     Bowen               1,418 sq km
ATP 780P     Drummond         5,195 sq km
ATP 803P     Surat/Bowen         852 sq km
ATP 818P   
 Surat                 1,552 sq km

In the Surat Basin, ATP 859P was cancelled.


 

South Australia

In the Otway Basin, EPP 36 was cancelled.

In the Cooper Basin, Drillsearch has reached agreement to purchase Magellan Petroleum (Southern)'s interests in PPL 212, PRLA 26 and PEL 107 for a consideration of $550,000.

In the Cooper Basin, Beach Energy is the operator of PRL 25 and the Beach farmin block PEL 106 B.

Geothermal Permits

In the Arrowie Basin, GEL 181 was renewed to 21/11/2014.

Also in Arrowie Basin, GEL 156, GEL 178, GEL 180 are in the process of being renewed.

In the Adelaide Fold Belt, Earth Heat Ltd has applied for the following Geothermal Exploration Licences: GELA 523 over 2,004 sq km, GELA 524 over 2,651 sq km, GELA 525 over 2,962 sq km.
 


 

Tasmania

SEL 13/2009 has been withdrawn by Empire Energy.

The name of Great Southland Minerals application area was corrected to EL 14/2009.

Geothermal Permits

Onshore, SEL 9/2009 was granted to Gullewa Geothermal P/L over 3,075 sq km.
 


Victoria

In the Otway Basin, VIC/P 50 and VIC/P 61 were cancelled on 07/01/2010 and 28/01/2010 respectively.

Also in the Otway Basin VIC/RL 7 has expired.

In the Gippsland Basin, application for PRL 4 has been declined and PEP 158 and PRL 4 are no longer current tenements.


 

Western Australia

In the Carnarvon Basin, WA-352-P was cancelled on 20/01/2010.

Also in the Carnarvon Basin, the work program for years 4 to 6 for WA-391-P has been varied as follows:

Year 4 - 3D seismic interpretation, geotechnical studies - $0.35m
Year 5 - 3D seismic interpretation, geotechnical studies - $0.35m
Year 6 - 1 well - $25m

In the Barrow Basin, WA-290-P has been extended to 09/06/2011 and its work program has been varied as follows:

Year 4 - 400 sq km 3D seismic reprocessing - $0.25m
Year 5 - 1 well - $9m

In the Canning Basin, EP 390 has been renewed and now covers a reduced area of 1,624 sq km.

In the Gascoyne Basin, SPA 9/09-0 AO is under application by New Standard Onshore Pty Ltd.

In the Bangemall Basin, the following applications by Pangaea Resources Pty Ltd have been refused: SPA 5/09-0 AO and SPA 6/09-0 AO.

In the Savory Basin, the following applications by Pangaea Resources Pty Ltd have been refused: SPA 7/09-0 AO and SPA 8/09-0 AO.

Geothermal Permits

The following areas are currently under application -

Application          Gazettal          Basin                  Applicant

3/09-0 GEP            G09-164          Northeast             New World Energy Ltd
4/09-0 GEP            G09-246       
  Northland             Greenpower Energy Limited
5/09-0 GEP            G09-257         
Northland             Greenpower Energy Limited
6/09-0 GEP            G09-245         
Northland             Greenpower Energy Limited
7/09-0 GEP            G09-256         
Northland             Greenpower Energy Limited
8/09-0 GEP            G09-163         
Northeast             Kagara Ltd
9/09-0 GEP            G09-144         
Northeast             Green Rock Energy Ltd

Onshore, in the Perth Basin, the following applications have been withdrawn by Gradient Energy Ltd: 17/08-9 GEP, 18/08-9 GEP, 19/08-9 GEP, 20/08-9 GEP, 21/08-9 GEP and 22/08-9 GEP.


 

New Zealand

In Solander basin, Solid Energy NZ Ltd has applied for APP 52359 over 1,391 sq km.

In the Murchison Basin, Blackwater 08 Ltd has applied for APP 52404 over 373 sq km.

In the Taranaki Basin, Austral Pacific Energy (NZ) Ltd has applied for a 4.9 sq km extension to PMP 38156.

Onshore in the Taranaki Basin Block 1 T has been made available. The closing date for applications is 03/05/2010.

Offshore, in the Reinga Basin, 6 new blocks have been made available.  The closing date for applications for Block 7 R, Block 8 R, Block 9 R, Block 10 R, Block 11 R and Block 12 R is 18/08/2010.


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