February 2011

Monthly Update
The February 2011 data update is now available ...

Industry Summary
Beach Energy will request a delisting of Impress Energy from the Australian Securities Exchange ...

Permit Updates and Changes
In the Gunnedah Basin, PEL 433 is being renewed ...
 

Monthly Update


Industry Summary

Company News

Beach Energy will request a delisting of Impress Energy from the Australian Securities Exchange once its all-cash takeover offer of 8.5 cents per share ends on 21st February 2011.  (Source:  EnergyNewsPremium, 03/02/2011).

Molopo Energy Ltd is pleased to announce a major reserves upgrade for its Queensland acreage held under ATP 564P and ATP 602P.  These permits contain the Mungi, Harcourt, Harcourt North, Lilyvale and Timmy fields.  The certification has estimated 328 BCF of proven and probable and 789 BCF of proven, probable and possible reserves, net to Molopo.  The reserves certifiers estimated an additional total contingent resource recoverable volume of 568 BCF giving a total recovery potential of 1,357 BCF for the area reviewed.  (Source:  Molopo Energy Announcement, 31/01/2011).

Victoria Petroleum has received independent certification of initial gas reserves in coal seam gas permits PL 171 and ATP 574P in the eastern Surat Basin, underscoring the quality and highly productive nature of these permits located within Queenslandís energy hub.  Independent certifiers Netherland, Sewell and Associates Inc have ascribed proved, probable and possible reserves and proved and probable reserves of 160.1 PJ and 34 PJ respectively.  (Source: Victoria Petroleum Announcement, 28/01/2011).

Adelaide Energy has been holding talks with Australian and international gas storage developers to commercialise the gas storage potential at depleted reservoirs at Katnook-Ladbroke.  The company said investigations into the potential were maturing and that it continued to progress its front-end engineering and design studies into a small-scale electricity generation plant next to the Katnook plant, which would use otherwise stranded acid gas from Ladbroke Grove as feedstock.  (Source:  EnergyNewsPremium, 26/01/2011).

Linc Energy has extended its memorandum of understanding with BP Australia that includes a take-or-pay agreement for Lincís proposed gas-to-liquids facility in South Australia.  Under the MOU, BP will be the first customer to purchase a minimum of 14,000 bbls or 70% of the initial 20,000 bbl of ultra-clean diesel to be produced at Lincís proposed South Australian production plant.  Lincís first plant is expected to produce more than 2 billion bbls of sulphur-free diesel through underground coal gasification and gas to liquids over its life.  (Source:  EnergyNewsPremium, 25/01/2011).

Chevron has signed a sales and purchase agreement with Japanís Kyushu Electric Power for 300,000 tonnes of liquefied natural gas per annum from its offtake at Gorgon LNG.  The binding agreement for up to 20 years beginning in 2015 was welcomed by Chevron Asia Pacific Exploration & Production Co-President Jim Blackwell, who said both Gorgon and Wheatstone were positioned to meet growing demand for natural gas in the Asia-Pacific region.  (Source:  EnergyNewsPremium, 25/01/2011).

South Korean state-owned utility Korea Gas could divert part of its 15% stake in the Santos-operated Gladstone liquefied natural gas project in Queensland.  Dow Jones newswires reported the utility could sell a 10% stake in GLNG and quoted a Kogas official as saying the company was planning to discuss a possible sale with Korean and Japanese companies. 
(Source:  EnergyNewsPremium, 10/02/2011).

Development News

Liquefied Natural Gas Ltd is poised to move ahead with the development of the Fishermanís Landing project at Gladstone after a subsidiary of China National Petroleum Corp agreed to buy a 19.9% stake in the company.  Under the share placement term sheet, signed by LNG Ltd and China Huangui Contracting & Engineering Corp (HQCEC) in Beijing last night, the CNPC subsidiary will invest about $25.6 million through the subscription of 53.25 million shares.  The shares will be priced at 48 cents per share, or 80% of the volume weighted average market price of LNG Ltd shares, calculated over the five days prior to the issue date of the placement.  HQCEC will also consider a direct investment in the liquefied natural gas project and a purchase of the proposed initial 3 million tonne per annum LNG production capacity from the first two trains.  (Source:  EnergyNewsPremium, 28/01/2011).

SubSea 7 SA confirmed today the award of a contract valued at approximately $160 million to SapuraAcergy Sdn Bhd from PTTEP Australasia (Ashmore Cartier) Pty Ltd for the development of the Montara development project.  SapuraAcergyís scope under the contract involves the engineering, procurement, load out, transportation and construction activities for the removal and disposal of the existing topside and transportation and installation of new pipelines, risers, umbilicals, spools, manifolds, FPSO mooring systems and a new replacement topside, all of which is to be undertaken at PTTEPís Montara Development Project in water depths of approximately 80m.  (Source: OilVoice, 24/01/2011).

BHP Billitonís future development of the Stybarrow oil field, off northwestern Australia could be guided by a 4D seismic survey it plans to shoot in March.  The survey will be the first operational survey following 4D baseline studies carried out over the field in WA-32-L and WA-36-L in late 2008.  (Source:  EnergyNewsPremium, 21/01/2011).

Eastern Star Gas Ltd today announced two major initiatives.  Firstly, AMEC, in association with Zetkin, MWH and Unidel, has been appointed by Eastern Star as operator of the Narrabri Coal Seam Gas Joint Venture to do a feasibility study and review options for the development of upstream gas production, processing and compression facilities, followed immediately by front end engineering and design of selected options.  Secondly, Hitachi Ltd and Toyo Engineering Corp have been appointed to undertake FEED for Eastern Starís LNG Newcastle Project.  FEED work for the LNG project will involve optimisation, design and detailed costing of the project, including LNG storage tank, jetty and loading facilities.  (Source:  Eastern Star Gas Announcement, 07/02/2011).

Shell has said it is making good progress on its Prelude floating liquefied natural gas development off Western Australia despite moving away from the previously stated aim of making a final investment decision by early 2011.  The company is still planning to make a decision this year though, with Chief Executive Officer Peter Vosser saying the ďprime workĒ was down to the technical and costing side of the project. 
(Source:  EnergyNewsPremium, 04/02/2011).
 


Permit Updates and Changes

New South Wales

In the Gunnedah Basin, PEL 433 is being renewed.

In the Surat Basin, Eastern Star Gas has simplified interests in PEL 6 by purchasing  the interests held by two private parties for $110,000.  These private interests held 1.25% in the PEL 6 coal seam gas and conventional rights in PEL 6 and 2.5% in the coal seam gas and conventional rights in the Edendale area of PEL 6.  The transaction will result in Eastern Star Gas holding 80% and 5% respectively in the CSG and conventional rights of the Edendale area of PEL 6 and 77.5% and 2.5% respectively in the CSG and conventional rights of the remainder of PEL 6.


Northern Territory

Wiso Oil P/L 100% has 13 exploration permit applications pending over EP(A) 199 through to EP(A) 211 in the Ord, Wiso and Georgina Basins.

In the McArthur Basin, Arafura Oil P/L 100% has applied for exploration permit EP(A) 212.


In the Vulcan Basin, Cue is selling its 20% interest in AC/RL 7. The sale is expected to be finalised in the first quarter of 2011.

EP 97 and EP 97 P are being renewed over reduced area in the Pedirka Basin.

In the Georgina Basin, Texalta Petroleum has received CAD $3.25m from Georgina Basin Energy, representing the balance of the CAD $5m which the company agreed to contribute to the work programs in EP 103 and EP 104 to earn a 50% interest. Georgina Basin Energy has taken over as operator. Work programs are now as follows -

Year 1 - seismic reprocessing, interpretation of airborne geophysics, studies
Year 2 - 100k seismic
Year 3 - 150k seismic
Year 4 - 100k seismic
Year 5 - 1 exploration well

Georgina Basin Energy agreed to fund all costs in EP 127 and EP 128 through the completion of one well in each permit to earn 50% from Baraka Petroleum. Baraka retains a 75% interest in the 75 sq km area around the Elkedra 7 well in EP 128.

In the Bonaparte Basin, Magellan Petroleum has been given a four month extension to 31/5/2011 to purchase Santos' 40% stake in NT/P 48. In exchange for the extension, the agreement provides for an additional $10 million bringing the sale price to $110 million.

In the Petrel Sub Basin, permits
NT/P 63 and NT/P 64 have been surrendered at the end of year 5 on the 19/12/2009. Permits did not enter year 6.  Surrender is yet to be finalised by NT Mines.

Alpha Oil & Natural Gas holds 65% interest in NT/P 73 and Gascorp Aust 35% in the Bonaparte Basin.


Queensland

In the Cooper Basin, Bounty Oil & Gas has completed the acquisition of Drillsearch Energy's 2% interest in the Naccowlah Block of ATP 259 and associated production licences. Drillsearch has received A$1.15m comprised of $950,000 in cash and $200,000 in Bounty Oil stock.

In the Surat Basin, ATP 471P is being renewed.

Also in the Surat Basin ATP 683P has been renewed to 29/02/2020.

In the Cooper Basin, Icon Energy will not proceed with the potential farm-in by Beach Energy in permit ATP 855P.

In the Galilee Basin, the farm-in agreement for ATP 974P and ATP 978P with Mitsui has been finalised and drilling should commence in the June quarter.

In the Georgetown Basin, EPG 9 is being relinquished.

In the Adavale Basin, application EPQ 15 was unsuccessful.

In the Surat Basin, PL 3, PL 4, PL 10, PL 11, PL 13, PL 48, PL 49, PL 5, PL 56, PL 6, PL 7, PL 8 and PL 9 are being renewed.

In May 2010 Molopo and Mitsui have exercised their pre-emptive rights and acquired Anglo Coal's interest in ATP 564P and ATP 602P. The interest split for ATP 564P and PL 94 FO  is: Molopo QLD  LLC (operator) 33.56%, Lowell Petroleum 33.56% and Mitsui Moura 32.88%. PL 210 was included in the deal.

In the Bowen Basin, Arrow Energy has withdrawn its production licence applications PL 325 through PL 375.

PL 447 is a new
production licence application by Lowell Petroleum NL 25%, Molopo (Queensland) LLC 25% and Mitsui E&P Australia P/L 37.12% in the Bowen Basin.

In the Bowen Basin, PL 448, PL 449, PL 450, PL 451, PL 452, PL 453, PL 454, PL 455 and PL 456 are new production permit applications by Santos QNT P/L 50% and Australia Pacific LNG P/L 50%.


South Australia

In the Ceduna Basin, S09-1 was granted as EPP 37 to BP Exploration (Alpha) Ltd 100% on 14/01/2011.  The licence will expire on 13/01/2017.  Work program is as follows -

Year 1 - 3,000k 3D seismic - $16m
Year 2 - geotechnical studies - $2m
Year 3 - 1 exploration well - $139m
Year 4 - geotechnical studies - $2m
Year 5 - 2,000k 3D seismic - $10m
Year 6 - 1 exploration well - $139m

Gazettal S09-2 was granted as EPP 38 to BP Exploration (Alpha) Ltd 100% on 17/01/2011.  The licence will expire on 13/01/2017.  Work program is as follows -

Year 1 - 2,400k 3D seismic - $12m
Year 2 - geotechnical studies - $2m
Year 3 - 2 exploration wells - $275m
Year 4 - 2,000k 3D seismic, geotechnical studies - $12m
Year 5 - 1 exploration well0, geotechnical studies - $151m
Year 6 - 1 exploration well - $126m

Gazettal S09-5 was granted as EPP 39 to BP Exploration (Alpha) Ltd 100% on 17/01/2011.  The licence will expire on 13/01/2017.  Work program is as follows -

Year 1 - 3,800k 3D seismic - $19m
Year 2 - geotechnical studies - $2m
Year 3 - 1 exploration well - $124m
Year 4 - 1,000k 3D seismic, geotechnical studies - $8m
Year 5 - 1 exploration well, geotechnical studies - $128m
Year 6 - 1 exploration well - $126m

Gazettal S09-6 was granted as EPP 40 to BP Exploration (Alpha) Ltd 100% on 14/01/2011.  The licence will expire on 13/01/2017.  Work program is as follows -

Year 1 - geotechnical studies - $1m
Year 2 - 2,200k 3D seismic - $11m
Year 3 - geotechnical studies - $2m
Year 4 - geotechnical studies - $2m
Year 5 - 1 exploration well - $126m
Year 6 - geotechnical studies - $2m

In the Cooper Basin,
Innamincka's purchase of 25% from SCGAU in permits PEL 103, PRL 14, PRL 17 and PRL 18 was to be finalised on 30/01/2011. As this has not happened, Innamincka is considering its options to enforce the sale agreement.

In the Cooper Basin, PEL 106 has had its expiry date extended to 08/10/2014.

In the Arckaringa Basin, PEL 118 and PEL 119 have had their expiry dates extended to 01/10/2013.

In the St Vincent Basin, work program for PEL 120 is as follows -

Year 1 - G&G studies
Year 2 - G&G studies
Year 3 - 4 wells
Year 4 - G&G studies
Year 5 - 2 wells

In the Arckaringa Basin, work program for PEL 121 is as follows -

Year 1 - G&G studies
Year 2 - G&G studies
Year 3 - 2 wells
Year 4 - G&G studies
Year 5 - G&G studies

In the Arckaringa Basin, work program for PEL 122 is as follows -

Year 1 - G&G studies
Year 2 - G&G studies
Year 3 - G&G studies
Year 4 - G&G studies
Year 5 - G&G studies,
2 wells, seismic

In the Arckaringa Basin, the expiry date for PEL 123 has been extended to 01/10/2013.

In the Officer Basin, Standard Oil P/L and Dawnpark Holdings P/L have transferred their interests in PELA 140, PELA 141, PELA 142, PELA 143, PELA 147, PELA 148 and PELA 447 to Ahava Energy P/L.

In the Stansbury Basin, PELA 145 was offered to Greenpower Energy in January 2011.

In the Otway Basin, plans to have Otway Energy assume Rawson and Energetica's interests in PEL 154 and PEL 155 did not eventuate.  The licence is still held 37.5% by Rawson Otway and 62.5% by Energetica Otway. The partners are attempting to farm out.

In the Otway Basin, PEL 495 has been farmed out to Beach Energy 35% and Somerton Energy 15%.

Geothermal Permits


In the Eromanga Basin, GEL 191, GEL 192, GEL 193, GEL 194, GEL 195, GEL 196, GEL 197, GEL 198, GEL 199, GEL 200, GEL 201, GEL 202, GEL 203 and GEL 204 have had their expiry dates extended to 01/10/2013.

Sequestration Permits

In the Otway Basin, Gas Storage Retention Licence GSRL 27 was granted to Adelaide Energy 100% on 15/09/2010. The licence will expire on 14/09/2015.



Tasmania


In the Sorell Basin, following Santosí withdrawal in 2010 from T/32P and T/35P, Perenco (SE Australia) took over as operator with 60% and Mitsui E&P increased its interest to 40%.

In the Bass Basin, interests for permits T/37P and T/38P are Exoil Ltd 50%, Gascorp Aust 30% and Setright Oil & Gas 20%. Cue Energy/Galveston Mining Corp has withdrawn. Exoil has agreed to accept Cue's interest.



Victoria


In the Gippsland Basin, Oil Basins holds formal legal rights to 12.5% in permit VIC/P 41.  Beneficial rights will be assigned on completing farm in.

In the Otway Basin, VIC/P 43 is being renewed.



Western Australia


In the Canning Basin, Oil Basins has acquired the remaining 10% of the Backreef joint venture from Backreef Oil and now holds 100% of EP 129 BR. The company has a second and final obligation well to keep the interest by 31/10/2012.

Rough Range Oil farmed out 10% of EP 359 to Bounty Oil & Gas and 10% to Phoenix Resources prior to the drilling of Bee Eater 1.

In the Canning Basin, Mitsubishi Corp has earned an additional 10% in EP 371 and EP 428 by contributing 80% of the costs of the Paradise 1 well (on the boundary of the two permits).  Mitsubishi Corp and Buru Energy now each hold 50%.

In the Carnarvon Basin, EP 412 is being renewed.

In the Perth Basin, interest transfer to Bharat was approved by the WA Government. Bharat now holds 27.803% of permit EP 413.

In the Carnarvon Basin, EP 424 has had its expiry date extended to 13/07/2012.

In the Perth Basin, EP 427 expired 18/01/2011 and EP 430 is being relinquished.

Also in the Perth Basin, Key Petroleum Ltd have earned a 45% interest in EP 437 by drilling 2 wells.

In the Canning Basin, Gas2Grid are seeking a JV partner to fund exploration drilling for permit EP 453.

In EP 454 in the Perth Basin, ERM Gas P/L elected to fund the planning of the Garibaldi seismic survey, earning an additional 12.5%, raising its interest to 25%.

In the Gascoyne Basin, Jurassica Oil & Gas holds 10% in permit EP 460. Interests are Rough Range Oil 69.22%, Longreach Oil 11.33%, Jurassica Oil & Gas 10%, Indigo Oil 5.67%, Falcore 3.15% and Vigilant Oil 0.63%.

Jurassica Oil & Gas also holds 10% in permit EP 461. Interests are Rough Range Oil 69.22%, Longreach Oil 11.33%, Jurassica Oil & Gas 10%, Indigo Oil 5.67%, Falcore 3.15% and Vigilant Oil 0.63%.

In the Carnarvon Basin, Tap's sale of its 75% interest to Oil Basins in permit R 3 has been finalised and contracts signed. Oil Basins holds 100% of the licence.

In the Perth Basin, 50% interest transfer to Bharat was approved by WA Government in permit TP/15.

In the Carnarvon Basin, WA-254-P has had its expiry date extended to 11/05/2010.

In the Carnarvon Basin, Apache is negotiating to acquire Strike and Tap (Shelfal)'s interests in WA-261-P.

In the Exmouth Basin, Total has withdrawn from WA-269-P.  Woodside now holds 66.667% and Japan Australia LNG (MIMI) holds 33.333%.

In the Browse Basin, Karoon Gas has acquired an additional 50% in WA-314-P. Karoon Gas now holds 90% and ConocoPhillips 10%.

In the Browse Basin, work program for permit WA-342-P is as follows -

Year 1 - Geotechnical studies - $0.25m
Year 2 - Geotechnical studies - $0.25m
Year 3 - 1 exploration well - $20m
Year 4 - 1,000k 3S seismic reprocessing - $1.5m
Year 5 - Geotechnical studies - $0.25m

In the Exmouth Basin, Kansai Electric and Tokyo Gas have each acquired 5% from Woodside in WA-348-P.

In the Carnarvon Basin, Tap has exercised is pre-emptive right over Roc's sale to Woodside and has acquired an additional 20% interest from Roc Oil in WA-351-P.

Also in the Carnarvon Basin, the farm-out to Apache has been finalised and Apache has assumed operatorship in WA-359-P and WA-409-P.

In WA-362-P and WA-363-P in the Exmouth Basin, the assignment of 20% from the Octanex group of companies to ENI (10%) and OMV (10%) was completed on 04/02/2011.

Also in the Exmouth Basin, Apache Northwest has concluded a farm-in to obtain 40% from the licence holders in permit WA-388-P.  Apache will fund 100% of the costs of the first exploration well and testing.

In the Carnarvon Basin, WA-399-P expiry date extended to 06/09/2014. Apache Energy has acquired 60%.

In the Bonaparte Basin, Petronas Carigali (Australia) P/L acquired 40% from Total E&P Australia in WA-402-P and WA-403-P.

In the Browse Basin, during 2010 Mitsui E&P Australia P/L acquired 40% from Hunt in permit WA-414-P.

In the Carnarvon Basin, Apache has committed to earning 65% from Finder Exploration in permit WA-418-P.

In the Browse Basin, Nexus has divested its interest for permit WA-424-P to IPM WA 424P P/L and will retain an unspecified ORR on the licence.

Also in the Browse Basin, Mitsui E&P Australia P/L acquired 40% in WA-425-P from Hunt and SK Energy during 2010.

Mitsui E&P Australia P/L acquired 10% from Hunt and 10% from SK Energy in permit WA-431-during 2010.

In the Barrow Basin, WA-450-P has had an interest transfer of 75% under farm-in agreement to Apache approved by WA Government. Apache is now the permit operator.

In the Carnarvon Basin, WA-9-R is being renewed.


New Zealand

APP 53374
is a new exploration permit application by Todd Exploration Ltd 100% in the Taranaki Basin.

In the Taranaki Basin, PEP 38483 was relinquished on 18/01/2011.

Also in the Taranaki Basin, NZOG will hold 100% of PEP 38491 following the withdrawal of Westech.

AWE and Mitsui are withdrawing from PEP 51558 in the Taranaki Basin.

In the Taranaki Basin, TAG Oil has acquired 100% in PMP 38156 D from Genesis Energy and Austral Pacific Energy.


Papua New Guinea

In the North New Guinea Basin, PPL 314 was granted to Bimex Ltd 100%.

In the Papuan Basin, PPL 335 was granted to Samchang PNG Ltd 100%.

In the New Ireland Basin, PPL 345 was granted to Eda Oil Ltd 100%. Grant and expiry dates are being verified with PNG Dept of Petroleum & Energy.

In the Papuan Basin exploration permits PPL 356, PPL 357, PPL 358, PPL 366 and PPL 367 have been granted to Coral Sea Petroleum 100%. Grant and expiry dates are being verified with PNG Dept of Petroleum & Energy
.


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