Monthly Update
The February 2012 data update is now available ...

2012 NZ Block Offer
From 2012, New Zealand Petroleum & Minerals will publish annual Block Offers. This involves exploration companies competitively tendering on an annual basis for permits to explore for oil and gas in specific areas ...

Industry Summary
WestSide Corporation Ltd advises that it has received an indicative, conditional, non-binding proposal from an unnamed party to acquire all the shares in the company for a cash consideration of $0.65 per share ...

Permit Updates and Changes
In the Eromanga Basin, Northern Territory Oil Ltd has applied for special prospection authority PSPAPP 54 over 35,545 sq km ...
 


Monthly Update


2012 NZ Block Offer

From 2012, New Zealand Petroleum & Minerals will publish annual Block Offers. This involves exploration companies competitively tendering on an annual basis for permits to explore for oil and gas in specific areas known as "blocks". The previous, priority-in-time method of permitting has now been removed.

The areas that have been short-listed for inclusion in the 2012 Release are included in GPinfo this month.  Please note that the proposed areas and associated boundaries have not been finalised and are subject to change prior to the launch of the Release.

Further information on the new block offer approach please
click here.


Industry Summary

Company News

WestSide Corporation Ltd advises that it has received an indicative, conditional, non-binding proposal from an unnamed party to acquire all the shares in the company for a cash consideration of $0.65 per share, valuing the company at $165 million. WestSide advised it had not yet formed a view as to the merits of the indicative proposal, saying there was no guarantee any formal, binding proposal would be received. (Source: WestSide announcement, 13/02/2012).

WestSide is also pleased to announce a significant upgrade to total Proved, Probable and Possible reserves (3P), after receiving a new reserves report on the Meridian SeamGas gas fields in the Bowen Basin. The report by MHA Petroleum Consultants found WestSide’s 3P reserves have increased 96% or 356 petajoules to 725PJ. Proved and probable (2P) reserves rose 17% to 258PJ and proved (1P) reserves jumped 86% to 6.5PJ. (Source: WestSide announcement, 16/02/2012).

Tap Oil Ltd has executed an agreement to sell its wholly owned subsidiary Tap (Harriet) P/L to a subsidiary of Apache Corporation for US$10 million. Tap (Harriet) P/L holds a 12.2229% interest in the Harriet Joint Venture as well as a 10% interest in WA-45-R, WA-46-R and a 20% interest in WA-334-P. Subject to approvals, Apache will assume all the liabilities and legal benefits of Tap (Harriet) P/L from an effective date 01/01/2012. (Source: Tap Oil announcement, 13/02/2012).

Shell has confirmed that it intends to sell its remaining 24% stake in Woodside Petroleum. Shell chief financial officer Simon Henry said Shell’s remaining stake in Woodside no longer fitted the company’s long-term plans but would only be sold at the right price. (Source: Energy News Premium, 06/02/2012).

Drillsearch Energy Ltd is pleased to announce that QGC P/L has given notice that it will exercise options it holds to subscribe to just over 31.5 million Drillsearch shares at 62 cents per share, raising $19.6 million of additional funding for Drillsearch. Following the issue of these shares, QGC will hold 9.4% of the issued ordinary shares in Drillsearch. (Source: Drillsearch Energy announcement, 01/02/2012).

Senex Energy have today announced their interest in PEL 115 will increase to 55% by committing to fund Orca Energy’s remaining 20% share of the cost of an unconventional gas well in the permit at an estimated cost of $1 million. In addition to the farm-in deal, Senex will subscribe to 115 million new shares in Orca to acquire a 19.99% holding in the company. Orca will issue the shares to Senex immediately at an issued price of 3.5 cents per share, the total cost to Senex will be $4.025 million. (Source: Senex Energy announcement, 01/02/2012).


Development News

Australia Pacific LNG P/L and Sinopec have today signed an amendment to their existing LNG sales agreement increasing the supply of LNG from 4.3 million tonnes per annum to 7.6 mtpa of LNG through to 2035 from Australia Pacific LNG’s facility on Curtis Island, Queensland. The signing of the agreement finalises the marketing of the second train. Furthermore, the parties have signed a Subscription Agreement for Sinopec to subscribe for an additional 10% interest in Australia Pacific LNG for a net consideration of US$1.1 billion. On completion, the ownership interest of Sinopec in Australia Pacific LNG will be 25%, with ConocoPhillips’ and Origin Energy’s ownership interest reducing to 37.5% each. The deal is subject to approvals by the Chinese Government and the Australian Foreign Investment Review Board and is conditional on Australia Pacific LNG reaching a final investment decision on the second train. (Source: Australia Pacific LNG announcement, 20/01/2012).

Clough has won a $350 million offshore hook up and commissioning contract for Chevron’s Wheatstone LNG project.
Clough will provide labour, materials and an accommodation support vessel to assist Chevron with pre-commissioning, commissioning of integrated float-over deck systems, offshore hook-up, and start-up over a 40 month period. (Source: Energy News Premium, 02/02/2012).

Horizon Oil Ltd is pleased to advise that its board has today approved the Final Investment Decision on the Stanley field gas condensate recovery project in Western Province, PNG. Horizon expects to produce about 140 million cubic feet of gas, from which 4000 barrels per day would be recovered using a two train refrigeration plant. Any gas not sold would be re-injected into a reservoir and saved until required for sale, negotiations with potential buyers is currently underway. First production is targeted for the end of 2013. Furthermore, State nominee Petromin PNG Holdings Ltd is entitled to acquire up to a 22.5% interest at the time of award of a Production Development Licence by reimbursement of Horizon Oil and Talisman's allowable past costs associated with that interest and funding ongoing project costs.  At that time, anticipated to be during Q3 in 2012, Horizon Oil and Talisman's interests will reduce to 38.75% each. (Source: Horizon Oil announcement, 27/01/2012).

The BAM Clough joint venture has received a Letter of Intent from the JKC Joint venture for a $140 million construction contract for work on the Ichthys LNG project. The scope of the work involves the design and construction of the module offloading facility for Ichthys. It is a key facility that will be used to offload modules being supplied under other subcontracts to assemble the LNG liquefaction plant. Construction is scheduled to commence in early 2013 with completion anticipated in early 2014. (Source: Energy News Premium, 07/02/2012).

The BAM Clough joint venture has also been awarded a $400 million jetty design and construction contract from Bechtel for the Wheatstone LNG project offshore Western Australia. The contract includes design and construction of a 1.2km jetty with an operations platform and product-loading platform with a single LNG and condensate berth along with associated piping modules and insulation. (Source: Oil & Gas Journal,
09/02/2012)
.
 


Permit Updates and Changes

New South Wales

In the Eromanga Basin, Northern Territory Oil Ltd has applied for special prospecting authority PSPAPP 54 over 35,545 sq km.

Also in the Eromanga Basin, PEL 443 expired on 23/01/2012
.


Northern Territory

In the Bonaparte Basin, a 12 month suspension period has been granted to the Year 5 work program for AC/P 24. Year 5 has been extended from 07/10/2011 to 07/10/2012. The licence will expire 07/10/2012.

In the Browse Basin, AC/P 36 and AC/RL 8 are being renewed.

In the Vulcan Basin, AC/P 43 has been cancelled due to work commitments not being met.

In the Vulcan Basin, AC/RL 7 has been renewed to 11/12/2016.

In the Amadeus Basin, a 12 month suspension period has been granted to the Year 5 work program for EP 125. Year 5 has been extended from 06/12/2011 to 06/12/2012. The licence will expire 06/12/2012.

In the Bonaparte Basin, Beach Energy has granted Somerton Energy options to earn up to an 18% interest in EP 126 and EP(A) 138 and up to an 8.25% interest in EP(A) 135 and NTC/P 10. If Somerton chooses to exercise the options, it will have to spend up to $1.5 million on geophysical surveys in 2012 to earn a 5% stake in the onshore tenements and a 10% stake on the offshore permits. Somerton would then have to spend another $6.7 million to earn the full interests in the permit.

In the Ord Basin, EP 200 has been granted to Wiso Oil P/L. The licence will expire 15/02/2017.

In the Wiso Basin, EP 205 has been granted to Wiso Oil P/L. The licence will expire 15/02/2017.

In the Victoria River Basin, EP 207 has been granted to Wiso Oil P/L. The licence will expire 15/02/2017.

In the Pedirka Basin, a 12 month suspension period has been granted to the Year 5 work program for EP 93. Year 5 has been extended from 31/10/2011 to 31/10/2012. The licence will expire 31/10/2012.

In the Pedirka basin, Rawson Resources has extended the option with Central Petroleum for permit EP 97 by one year and varied it so the farm-in agreement now covers the Simpson, Beejah and Pelinor blocks, and no longer includes the Dune prospect. Rawson will now independently seek partners for the drilling of the Dune prospect.

In the Beetaloo Basin, a 12 month suspension period has been granted to the Year 5 work program for EP 98. Year 5 has been extended from 31/12/2011 to 31/12/2012. The licence will expire 31/12/2012.

In the Birrindudu Basin, EP(A) 265 has undergone a partial relinquishment and now covers a reduced area of 16,175 sq km.

In the Bonaparte Basin, a 12 month suspension period has been granted to NT/P 69. The licence will expire 09/10/2012
.


Joint Petroleum Development Area

JPDA 06-103 has had its expiry date extended to 15/01/2013.


Queensland

In the Eromanga Basin, ATP 269P has been renewed to 31/12/2011 over a reduced area of 636 sq km.  All companies, aside from Entek Energy, participated in the pre-emption of the sale of 20% of IOR's interest.  Interests after the exercise of pre-emption rights are Beach Energy Ltd 45.798%, Entek  Energy Ltd 28.15%, Mawson Petroleum P/L 19.262% and Gidgealpa Oil P/L 6.79%.  In addition, Entek Energy is in the process of selling is 28.15% interest.

In the Eromanga Basin, Great Artesian Oil & Gas has taken over as operator of ATP 549P West.

In the Surat Basin, ATP 645P has undergone a partial relinquishment and now covers a reduced area of 917 sq km.

In the Surat Basin, ATP 648P has been reduced in area due to the grant of production licences PL 278, PL 442, PL 466 and PL 474. ATP 648P now covers 80 sq km.   All production licences were granted on 09/12/2011 and will expire on 08/12/2041.

In the Clarence/Moreton Basin, ATP 746P is due to be granted shortly, after it was offered to and accepted by Arrow Energy P/L.

In the Surat/Bowen Basin, Cydonia Resources holds 25% of the non-conventional resources of ATP 840P.

In the Bowen Basin, PL 54 is in the process of being renewed.

In the Surat Basin, Bounty Oil & Gas through its subsidiary Ausam Resources P/L has signed contracts to acquire the remaining joint venture interests totalling 75.522% in PL 119.

In the Bowen Basin, Vale’s interests in PL 269, PL 270, PL 271, PL 290, PL 291 and PL 292 are held by Rio Doce Australia P/L.

In the Bowen Basin, PL 398 was granted on 06/01/2012 and will expire on 05/01/2042.   ATP 768P has been reduced as a result and now covers 1,785 sq km
.

Sequestration

In the Surat Basin, EPQ 7 was granted to Carbon Transport & Storage Corp (CTSCO) P/L on 20/01/2012.  The licence will expire on 19/01/2024.

Geothermal

In the Galilee Basin, applications EPG 10, 12, 14 and 15 have been withdrawn.

In the Cooper Basin, application EPG 52 has been withdrawn.


South Australia

In the Cooper Basin, Senex Energy have increased their interest in PEL 115 to 55% by committing to fund Orca Energy’s remaining 20% share of the cost of an unconventional gas well in the permit at an estimated cost of $1 million.

In the Otway Basin, PEL 154 and PEL 155 are in the process of being renewed.

In the Cooper Basin, Senex Energy Ltd have purchased the remaining interest in PRL 16 and PPL 209 from Beach Energy Ltd. Senex now holds 100% interest in both permits.

Geothermal

In the St Vincent Basin, a 2 month suspension period has been granted to the Year 5 work program for GEL 226. Year 5 has been extended from 23/01/2012 to 23/03/2012. The licence will expire on 23/03/2012.

In the Pirie-Torrens Basin, a 2 month suspension period has been granted to the Year 5 work program for GEL 230. Year 5 has been extended from 23/01/2012 to 23/03/2012. The licence will expire on 23/03/2012.

In the Adelaide Fold Basin, GEL 337, GEL 338, GEL 339, GEL 503, GEL 504 and GEL 507 now consolidated under GEL 337. GEL 337 now covers 2,948 sq km.

In the St Vincent Basin, a 2 month suspension period has been granted to the Year 3 work program for GEL 425. Year 3 has been extended from 23/01/2012 to 22/03/2012. The licence will expire on 24/03/2014.

In the Adelaide Fold Basin, GEL 523 and GEL 524 now consolidated under GEL 523. GEL 523 now covers 2,612 sq km.

In the Arrowie Basin, GEL 576 has been granted to Near Surface Geothermal Energy P/L. The licence will expire 16/01/2017.


Tasmania

In the Bass Basin, T/38P was surrendered on 08/12/2012.

Also in the Bass Basin, T/42P and T/43P are in the process of being renewed
.



Victoria


In the Otway Basin, the work program for VIC/P 42 (V) is as follows -

Year 1: G&G studies
Year 2: G&G studies
Year 3: 50k 3D seismic
Year 4: G&G studies
Year 5: G&G studies
Year 6: 1 well, G&G studies

In the Gippsland Basin, VIC/P 66 has had its work program varied. Year 3 now consists of 3D rather than 2D seismic.

Sequestration

In the Gippsland Basin, sequestration gazettal area GIPP001 has been awarded as VIC/GIP001 to the Victorian Dept of Primary Industries’ CarbonNet Project.  The licence was awarded on 10/02/2012 and will expire 09/02/2018. The licence gives the CarbonNet Project the right to explore for potential greenhouse gas storage formations within the licence area
.



Western Australia


In the Perth Basin, EP 413 and EP 447 are pending suspension.

In the Canning Basin, EP 463 is being relinquished.

In the Yilgarn Block, Special Prospecting Authority with Acreage option SPA 1 AO has been granted to Southern Sky Energy. The licence will expire 22/05/2012.

In the Canning Basin, STP-SPA-0027 and STP-SPA-0028 are Special Prospecting Authority applications.

In the Canning Basin, TP/24 is being relinquished.

In the Dampier Basin, WA-209-P has been renewed over a reduced are and now covers 323 sq km. The licence will expire 27/12/2016.

In the Dampier Basin, permit WA-246-P ceased on 23/11/2011.

In the Perth Basin, Roc’s interest in WA-31-L has increased from 37.5% to 42.5% from December 2011 following the acquisition of an additional 5% from CIECO Energy Australia P/L for US$2.1. Final government approval is anticipated in Q1 2012.

In the Carnarvon Basin, WA-357-P expired on the 19/01/2012 and is not being renewed.

In the Barrow Basin, WA-358-P has been renewed over a reduced area and now covers 321 sq km. The licence will expire 05/02/2017. Work program is as follows –

Year 1: seismic interpretation, geotechnical studies $0.15m
Year 2: 325k 3D seismic reprocessing $0.45m
Year 3: seismic interpretation, geotechnical studies $0.2m
Year 4: 1 well $45m
Year 5: seismic interpretation, geotechnical studies $0.2m

In the Carnarvon Basin, OMV Australia has withdrawn from WA-362-P and WA-363-P. OMV’s interest in each permit was assigned to the Octanex Group 13.333% and Eni 26.667%.

In the Browse Basin, WA-371-P is in the process of being renewed.

In the Carnarvon Basin, a 3 month suspension period has been granted to the Year 6 work program for
WA-374-P
. Year 6 has been extended from 24/01/2012 to 24/04/2012. The licence will expire 24/04/2012.

In the Bonaparte Basin, WA-375-P and WA-376-P expired 05/02/2012 and are not being renewed.

In the Carnarvon Basin, Shell was initially required to commit to drilling a well by 21/02/2011 or re-assign 100% interest in WA-394-P to Octanex. Octanex has agreed to defer Shell’s requirement to drill a well until year 3 of any renewal of this permit, if and when renewed, on the basis that Shell has applied to vary the year 6 work program to enable it to commit to acquire a new seismic survey
.


New Zealand

In the Canterbury Basin, New Zealand Oil and Gas has taken over as operator for permit PEP 38259. Roc Oil has withdrawn from the permit increasing Beach's equity to 35%.

In the Taranaki Basin, PEP 38491 and PEP 51988 were surrendered on 20/01/2012.

In the West Coast Basin, PEP 38512 has been renewed over a reduced area and now covers 21 sq km. The licence will expire 25/01/2015.

In the Taranaki Basin, PEP 38746 EX is an Extension of Land application by Petrochem Ltd.

In the Taranaki Basin, PEP 38775 was surrendered on 1/2/2012.

In the Taranaki Basin, PEP 52181 EX is an Extension of Land application by Roc Oil (Taranaki) P/L 50%, TAG Oil (Offshore) Ltd 20%, L&M Energy Ltd 15% and AGL Upstream Gas (MOS) P/L 15%
.


Papua New Guinea

In the Papuan Basin, PPL 266 is in the process of being renewed over a reduced area of 4,185 sq km.

Also in the Papuan Basin, the work program for PPL 268 has been varied -

Years 1-2: 50k 2D seismic, 1 exploration well
Years 3-5: 50k 2D seismic, 1 exploration well, licence review and commercialisation options

In the Papuan Basin, work program for PPL 269 is as follows -

Years 1-2: -reprocess 100k 2D seismic, 1 exploration well

A number of licences have been granted.  Grant and expiry dates are yet to be verified -

Basin               Licence           Area (sq km)     Licensee

N New Guinea   PPL 313              2,144             YLP Holdings Ltd
Papuan             PPL 323              1,276             Tescom Ltd
Papuan             PPL 324              5,156             Tescom Ltd
Papuan             PPL 328                  85             Twinza Oil (PNG) Ltd
Papuan             PPL 334              4,788             Samchang PNG Ltd
Papuan             PPL 336                  85             Samchang PNG Ltd
Papuan             PPL 364            16,682             New Ports Holding 2 (PNG) Ltd

A number of new applications are pending -

Basin               Licence          Area (sq km)     Licensee

Cape Vogel       APPL 382          15,141            Destinee Energy Ltd
Papuan             APPL 388          10,956            Petro Energy Ltd
N New Guinea   APPL 391            2,406            Taurus Oil Ltd
Papuan             APPL 394            2,657            Taurus Oil Ltd
Cape Vogel       APPL 397          18,182            Penant Resources Ltd
Cape Vogel       APPL 398          15,725            Pento Resources & Energy
New Ireland       APPL 406          17,201            Petromin PNG Holdings Ltd
New Ireland       APPL 407          18,156            Petromin PNG Holdings Ltd
New Ireland       APPL 408          18,069            Petromin PNG Holdings Ltd
New Ireland       APPL 409          11,954            Petromin PNG Holdings Ltd
New Ireland       APPL 410          18,662            Petromin PNG Holdings Ltd
New Ireland       APPL 411          18,243            Petromin PNG Holdings Ltd
New Ireland       APPL 412          18,060            Petromin PNG Holdings Ltd

In the Papuan Basin, State nominee Petromin PNG Holdings Ltd is entitled to acquire up to a  22.5% interest in PRL 4 at the time of award of a Production Development Licence by reimbursement of Horizon Oil and Talisman's allowable past costs associated with that interest and funding ongoing project costs.  At that time, anticipated to be during Q3 in 2012, Horizon Oil and Talisman's interests will reduce to 38.75% each
.


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