February 2017 GPinfo Update


Industry Summary

 

Cooper Energy announces the signing of an expansion to its existing gas sales agreement with AGL Energy Ltd that will increase annual contract quantity from 6.6 PJ to 12 PJ

 

INPEX has hit a major milestone at its Ichthys LNG Project by successfully completing the installation of the subsea infrastructure and equipment to extract gas. The final laying of 49 km of umbilicals …

 

Permit Updates and Changes

 

Total E&P Holdings (Australia) P/L has transferred its 100% interest in AC/P60 to Total E&P Australia Exploration P/L …

 

Cypress Petroleum P/L (a wholly owned subsidiary of TAG Oil Ltd), has completed the acquisition of 100% of PL 17 from Southern Cross Petroleum & Exploration


Industry Summary                                       

 

Company News

 

The Board of DUET Group is pleased to announce that DUET has entered into a scheme implementation agreement with a consortium comprising Cheung Kong Infrastructure Holdings Ltd, Cheung Kong Property Holdings Ltd and Power Assets Holdings Ltd under which it is proposed that one or more members of the consortium will acquire 100% of DUET’s stapled securities for up to $3 cash and a $0.03 payment via a special distribution. Implementation of the schemes will be subject to conditions precedent including shareholder approval, regulatory and court approvals, and a positive independent expert's report to be prepared by KPMG. The parties are hoping to close the deal by mid-May, with a scheme meeting for shareholders planned for April. (Source: DUET Group announcement, 16/01/2016).

 

Cooper Energy announces the signing of an expansion to its existing gas sales agreement with AGL Energy Ltd that will increase annual contract quantity from 6.6 PJ to 12 PJ. There are no other material changes to the agreement, which remains subject to an affirmative final investment decision for the Sole Gas Project from where the gas is to be supplied. The expanded agreement, together with the previously announced contracts with O-I Australia, Alinta Energy and EnergyAustralia, means that a total of 20 PJ of the 25 PJ annual supply anticipated from Sole is now subject to binding agreements. It clears the way for Cooper to take FID and transform the agreements into binding gas sales contracts. Sole FID is expected to occur in the March quarter 2017, with first gas from the project scheduled by March 2019. (Source: Cooper Energy announcement, 18/01/2017).

 

New Zealand Oil & Gas Ltd has now taken full control of Cue Energy Resources Ltd after having launched a takeover of Cue nearly 2 years ago. NZOG has now lifted its stake to a majority 50.01% interest from the 48.1% it obtained at the end of its 2015 takeover attempt. (Source: New Zealand Oil & Gas announcement, 17/01/2017).

 

Dark Horse Resources Ltd is pleased to advise that Lakes Oil NL has today settled on the scrip-based acquisition of the balance of NAVGAS P/L, following approval by Lakes Oil shareholders on 16/01/2017. As a result, Dark Horse will receive 9,278,407,344 fully paid shares in Lakes Oil, which it will hold in addition to its existing interest in 40,000 LKO $10 converting notes. (Source: Dark Horse Resources announcement, 18/01/2017).

 

Pilot Energy is pleased to announce the results of its prospective resources assessment for WA-481-P, further to the prospectivity update release 20/12/2016. WA-481-P is jointly held with Key Petroleum, and located in shallow waters to the west of the onshore Dongara/Beharra Springs/Waitsia gas fields, and the Jingemia/Hovea/Cliff Head oilfields. The joint venture says there are some 435 mmboe in potential, with the largest oil prospect offering potential for up to 78 mmbbls and three prospects that each have best-case prospective resources of 40 mmbbls. In addition to the Cliff Head South, Frankland and Leander Reef areas that were identified in December, a fourth trend in the vicinity of the Dunsborough oil discovery has been upgraded as a focus for future exploration. The new Dunsborough prospects - Bootenal, Burney, Batavia and Yungarra - have a best potential of 35.3 mmbbls, while four prospects at Cliff Head South have a best potential of 106.8 mmbbls. The three Leander Reef prospects have a best potential of 98.1 mmbbls, while the two gas prospects at Frankland could add at least 7.6 bcf. (Source: Energy News, 30/01/2017, Pilot Energy announcement, 30/01/2017).

 

Origin Energy Resources Ltd has submitted the Amungee NW 1H Velkerri B shale gas pool discovery evaluation report to the Northern Territory Government. The submission follows the completion of extended production testing at the Amungee NW 1H well. The well, which successfully flowed at 1.1 mmcfd over almost two months from the Velkerri B Shale, has defined a potential gas-in-place of 61 tcf within an area covering 1968 sq km with a contingent resource of 6.6 tcf. Key points of the report found the results of all wells drilled to date and the regional seismic data assessed the potential for the Velkerri Formation to extend over some 10,000 sq km. Origin said the B shale appears to have similarities with the Marcellus and Barnett shales in the US, and it has so far collected sufficient significant amounts of data from the Amungee NW 1H, Beetaloo W1, Kalala S1, McManus 1, Altree 2 and Walton 2 wells, and Santos' deep Tanumbirini 1, to support that conclusion. Further, the Velkerri B shale is interpreted to be the most continuous of the three individual targets within the Velkerri Formation shale gas play. (Source: Origin Energy announcement, 15/02/2017, Energy News, 15/02/2017).

 

Magnum Gas & Power Ltd has signed a share sale and purchase agreement to purchase 100% of Bombora Natural Energy P/L. Under the agreement, Magnum will acquire all the issued capital of Bombora on the basis of 60 Magnum shares for each Bombora share, which will result in the issue of approximately 2.4 billion shares at latest Magnum closing price of $0.001 per share. The agreement is subject to due diligence, which is expected to be completed by 28/02/2017. (Source: Magnum Gas & Power announcement, 13/02/2017).

 

Shareholders of InterOil Corp have overwhelmingly approved the transaction for sale of the company to ExxonMobil Corp at a special meeting. InterOil reported that more than 91% of the votes cast were in favour of the proposed transaction. This has increased from 80% in the previous vote, held in September 2016, before the company's founder, Phil Mulacek, launched his last legal action in the Canadian courts. The latest shareholder vote was based on ExxonMobil’s revised bid of $45 per share plus $7.07 per share for each tcfe of gas in Elk-Antelope above the 6.2 tcfe reserves figure capped at 11 tcfe. The higher cap increased the potential value from the July offer of $71.87 per share to $78.94 per share. A court hearing in which InterOil is seeking a final order with respect to this amended and restated plan of arrangement is scheduled to be heard on 20/02/2017, with the merger expected to be completed by the end of March. (Source: Energy News: 15/02/2017, Oil & Gas Journal, 15/02/2017).

 


 

Developments

 

INPEX has hit a major milestone at its Ichthys LNG Project by successfully completing the installation of the subsea infrastructure and equipment to extract gas. The final laying of 49 km of umbilicals and flying leads marked the last placement of an intricate subsea network, spread across a 400 sq km area of the Ichthys Field. Included in the extensive subsea gathering system is a 110 m high support structure, five manifolds, 139 km of flow lines, 49 km of umbilicals and flying leads, 2640 tonnes of production and MEG spools, five subsea distribution units and a subsea distribution hub. Finalising the subsea installation means the project is now ready for the arrival of the central processing facility and floating production, storage and offloading facilities, currently under commissioning in South Korea. Once all commissioning activities in the South Korean shipyards are finished, the offshore facilities will be towed to the Ichthys Field and moored for their 40-year operational life by 40,000 tonnes of chain. (Source: Energy News, 16/01/2017).

 

INPEX has let a 5-year, subsea and geoscience services contract to Fugro NV for operations on the Ichthys LNG Project in the Browse basin. The contract includes field operations support, inspection, repair, and maintenance services, with options to extend further. INPEX has now completed installation of the subsea infrastructure for gas-condensate extraction from Ichthys field with the final 49 km of umbilicals and flying leads laid late last week. The field is scheduled to be brought on stream in September. (Source: Energy News, 17/01/2017, Oil & Gas Journal, 17/01/2017).

 

Duet Group’s plans to develop Western Australia’s largest gas storage facility in the Pilbara region have been approved by the state government. The facility at the depleted Tubridgi gas field is expected to be operational mid-year following the signing of an agreement between the government and Duet on Friday. With an expected total construction cost of $69 million, the facility will utilize the depleted onshore gas reservoir, about 30km from Onslow, and will be connected to the Dampier to Bunbury Natural Gas pipeline. The Department of Mines and Petroleum’s Executive Director, Petroleum, Jeff Haworth, said the project would play key role in increasing the state’s energy security once it becomes fully operational. The facility will store around 42 PJ and have a daily injection and withdrawal rate of approximately 50 TJ a day. (Source: Energy News, 06/02/2017).

 

Santos Ltd has submitted a significant development application and associated environmental impact statement (EIS) for its controversial Narrabri coal seam gas project in northwest New South Wales to the state government. The company says the project could supply up to 50% of New South Wales’ gas requirements. The gas will be made available to east coast consumers via a pipeline linking into the existing Moomba-Sydney trunk line. The EIS includes extensive studies and modelling of the environment around the project area, including examination of potential effects on water, flora, fauna, soil, air quality, and noise levels, as well as cultural heritage. (Source: Energy News, 01/02/2017).

 

After a delay of almost two years, Petronet LNG has received its first LNG cargo from the Gorgon project in Western Australia, gaining the gas from partner ExxonMobil's share. The deliveries under the 2009 GSA were originally expected by the end of 2014. The cargo arrived at Petronet LNG's Dahej terminal in Gujarat, as opposed the Kochi terminal in Kerala where it was originally targeted to cater to the needs of power and petrochemicals plants in south India. (Source: Energy News, 17/02/2017).

 

ExxonMobil PNG, operator of the PNG LNG joint venture, said today it has added 2.3 tcf to the existing PNG LNG project fields’ resource base following an independent review by Netherland Sewell Associates Inc. The recertification study, which included all PNG LNG fields, found that the most likely technically recoverable resource is 11.5 tcf, a 25% increase beyond the earlier 9.2 tcf assessment. It was the first review of the fields since 2009. A significant contributor to the increase was the Hides field, due to completion of development drilling including previously undrilled areas of the field, completion of optimised long term depletion plans and production performance since start up in 2014. (Source: Energy News, 17/07/2017).

 

 

 Permit Changes                                                                

 

Northern Territory

 

Bonaparte Basin

Total E&P Holdings (Australia) P/L has transferred its 100% interest in AC/P60 to Total E&P Australia Exploration P/L.

 

NT/RL1 has been renewed to 11/04/2022. Work program is as follows –

Years 1-3: production modelling studies, facilities and development evaluation studies, commercial studies $0.9m
Years 4-5: development project charter and associated execution strategies, preparation of a basis for design to commence concept definition $1m

Pedirka Basin

EP107 and EP93 are being relinquished.

Wiso Basin

12 month suspensions have been granted to EP200, EP205 and EP207. The licences have had their expiry dates extended to 15/02/2018.

Queensland

 

Bowen Basin

ATP 688 now covers a reduced area of 1928 sq km.

Cooper Basin

PLR2015-2-19 is under application as ATP 2021 by Metgasco Ltd 100%.

 

PLR2015-2-17 is under application as ATP 2023 by Bridgeport Energy QLD) P/L 100%.

 

PLR2015-2-18 is under application as ATP 2024 by Bridgeport Energy QLD) P/L 100%.

Eromanga Basin

Santos’ subsidiary Gidgealpa Oil P/L is in the process of disposing of its 6.79% interests in ATP 269, PL 482, PL 483 and PL 484.

 

ATP 539 expired on 31/01/2017.

 

The correct expiry date for ATP 636 is 03/04/2017.

 

PLR2015-2-16 is under application as ATP 2020 by Metgasco Ltd 100%.

 

PLR2015-2-10 is under application as ATP 2022 by Bridgeport Energy (QLD) P/L 100%.

Surat Basin

Cypress Petroleum P/L (a wholly owned subsidiary of TAG Oil Ltd), has completed the acquisition of 100% of PL 17 from Southern Cross Petroleum & Exploration.

 

PLR2016/17-1-3 (tender area PLR201617C) was released on 10/02/2017.  Gazettal closes on 20/04/2017.

South Australia

 

Arckaringa Basin

Arckaringa Coal Chemical Joint Venture Company P/L has applied for PELA 666 over 9285 sq km.

Cooper Basin

The work program conditions for PEL 570 have been suspended by 12 months from 08/03/2017 to 07/03/2018. The licence has had its expiry date extended to 06/03/2020.

 

Subject to regulatory approvals, Beach has agreed to farm-in to 50% of PEL 630. Beach will drill 2 exploration wells in 2017, designed to test the oil and gas-liquids potential of the Eromanga Basin sequence. Bridgeport’s working interest after Beach completes the drilling program is 50%.

 

PEL 82 has been relinquished. The area reverts to vacant acreage.

 

PPL 102 PPL 108, PPL 111 and PPL 114 PPL 117 have been suspended from 06/10/2016 to 05/10/2017. The licences have had their expiry dates extended to 02/11/2019.

 

PPL 41, PPL 51, PPL 55, PPL 68 and PPL 69 have been renewed to 31/12/2032.

 

PPL 56 and PPL 72 have been renewed to 31/12/2034.

 

PPL 60 and PPL 70 have been renewed to 25/05/2035.

 

PPL 61 has been renewed to 17/10/2032.

 

PPL 63 and PPL 64 have been renewed to 23/05/2033.

 

PPL 65 and PPL 67 have been renewed to 17/07/2033.

 

PPL 66 has been renewed to 24/11/2033.

 

PPL 73 and PPL 74 have been renewed to 31/12/2036.

 

PPL 75, PPL 76 and PPL 77 have been renewed to 26/10/2037.

 

PPL 78, PPL 79, PPL 80 and PPL 83 have been renewed to 31/12/2037.

 

Stuart Petroleum P/L 60% and Origin Energy Resources Ltd 40% have applied for PRLA 210 PRLA 220.

 

Stuart Petroleum Cooper Basin Oil P/L 80% and Planet Cooper Basin P/L 20% (Shallows joint venture) have applied for PRLA 221 PRLA 230. Interests in the Deeps joint venture PRLA 221 D – PRLA 230 D are Stuart Petroleum Cooper Basin Oil P/L 53.75%, Origin Energy Resources Ltd 33.75% and Planet Cooper Basin P/L 12.5%.

Gawler Block

Geothermal licences GEL 294 and GEL 295 are being renewed.

Otway Basin

PRL 13 has been renewed to 30/01/2022.

Tasmania

 

Otway Basin

An application to surrender T/34P was lodged with NOPTA on 11/01/2017.

 

Beach is withdrawing from T/49P and its 30% interest will be assigned to 3D Oil for nil consideration.  In addition, Years 4 to 5 of the work program have been varied - 

Year 4: drilling planning & preparation $0.5m
Year 5: 1 exploration well $20m
Year 6: review well results and acquire 750 sq km 3D seismic $10m

Tasmania Basin

Application ERA981 has been refused and now reverts to vacant acreage.

Victoria

 

Gippsland Basin

VIC/P41 was relinquished on 03/01/2017 and now reverts to vacant acreage.

 

Year 5 of the work program for VIC/P47 has been suspended for 9 months to 15/08/2017.  The permit term has been extended to 15/08/2017.

Otway Basin

Cooper Energy (MF) P/L's acquisition of 10% of VIC/L22 from Santos was approved by NOPTA in November 2016.

Western Australia

 

Barrow Sub Basin

WA-13-L has been renewed to 18/02/2022.

 

WA-192-P expired on 11/11/2016. The area reverts to vacant acreage.

 

The year 3 work program for WA-290-P has been suspended for 10 months from 21/04/2017 to 21/02/2018. The licence has had its expiry date extended to 21/02/2020. The year 3 - 5 work requirements have been varied -

Year 3: 272.5 sq km 3D seismic, geophysical studies $5.83m
Year 4: geotechnical studies $0.25m
Year 5: 1 well $40m

 

WA-358-P expired on 05/02/2017. The area reverts to vacant acreage.

 

The year 2 work program for WA-510-P has been suspended by 3 months from 28/01/2017 to 28/04/2017. The licence has had its expiry date extended to 28/04/2021 and a change to the work program has been approved -

Year 2: 407 sq km broadband seismic, geotechnical studies $8.5m
Year 3: process 407 sq km broadband seismic, reprocess 80 sq km 3D seismic, rock physics/QI and 3D seismic inversion studies, geotechnical studies $1m

Bonaparte Basin

Gazettal area W16-2 has been amended and now covers a reduced area of 5056 sq km.

 

WA-6-R has been renewed to 11/04/2022. Work program is as follows –

Years 1-3: production modelling studies, facilities and development evaluation studies, commercial studies $0.9m
Years 4-5: development project charter and associated execution strategies, preparation of a basis for design to commence concept definition $1m

Browse Basin

The Lasseter Location WA-274-P LL has been varied and now covers an increased area of 334 sq km.

 

A Location was declared over Burnside WA-281-P LB on 13/01/2017.

 

A Location was declared over Lasseter Extension WA-281-P LL on 12/01/2017.

 

A variation for WA-285-P was lodged on 08/02/2017.

 

WA-315-P has been renewed to 17/01/2022 over a reduced area of 421 sq km. Work program is as follows –

Years 1-3: assess technical and economic feasibility of field development concepts $0.225m
Year 4: gas marketing and economic evaluation $0.075
Year 5: greenhouse gas management study $0.075

 

WA-398-P has been renewed to 18/01/2022 over a reduced area of 738 sq km. Work program is as follows –

Years 1-3: assess technical and economic feasibility of possible field development concepts $0.375
Year 4: gas marketing and economic evaluation $0.125
Year 5: greenhouse gas management study $0.125

 

A variation for WA-502-P was lodged on 03/02/2017.

Carnarvon Basin

The year 5 work program for EP 475 has been suspended by 16 months from 03/01/2017 to 27/05/2018. The licence has had its expiry date extended to 27/05/2019.

 

Application STP-EPA-0121 has been withdrawn and the area now reverts to vacant acreage.

 

W16-17 closed on 02/02/2017 and is under consideration.

 

W16-26 closed on 02/02/2017 and as no bids were received, the area reverts to vacant acreage.

 

The year 5 work program for WA-205-P has been suspended for 6 months from 20/12/2016 to 20/06/2017. The licence has had its expiry date extended to 20/06/2017.

 

The year 5 work program of WA-356-P has been suspended by 12 months from 01/03/2017 to 01/03/2018. The licence has had its expiry date extended to 01/03/2018.

 

A Location was declared over Blake WA-383-P LB on 16/01/2017.

 

A suspension and extension for WA-387-P was lodged on 27/01/2017.

 

The year 6 work program for WA-418-P has been suspended by 12 months from 29/01/2017 to 29/01/2018. The licence has had its expiry date extended to 29/01/2018.

 

Shell Australia P/L has transferred its 50% interest in WA-439-P to Chevron Australia (WA-439-P) P/L.

 

A variation for WA-498-P was lodged on 07/02/2017.

 

WA-7-R has been renewed to 7/02/2022. Work program is as follows –

Years 1-5: seismic interpretation and reservoir studies, subsurface modelling and prospect evaluation, development concept evaluation/maturation, flow assurance studies $1.2m

Dampier Basin

W16-22 closed on 02/02/2017 and as no bids were received, the area reverts to vacant acreage.

 

WA-448-P is being relinquished.

Perth Basin

EP 389 is being renewed.

 

Norwest Energy has completed the farmout for the remaining 40% interest of the drilling of Xanadu 1 located within TP/15 to 3C Group IC Ltd. 3C Group and Triangle Energy will each contribute 40% of the costs to each earn a 30% interest. Transerv Energy will contribute 20% of the costs to earn a 15% interest. The final joint venture interests in TP/15 are Norwest Energy 25%, 3C Group 30%, Triangle Energy 30% and Transerv Energy 15%.

Petrel Sub Basin

A location was declared over Fishburn WA-459-P LF on 11/01/2017.

New Zealand

 

Taranaki Basin

New Zealand Oil & Gas has accepted Tamarind's offer for its 27.5% interest in the Tui area oil fields PMP 38158. Tamarind will pay NZOG US$750,000 in exchange for all shares in its Tui holding company, Stewart Petroleum. Further, Pan Pacific Petroleum NL has executed agreements to sell all the shares of subsidiary WM Petroleum Ltd, that owns 15% interest in PMP 38158, to Tamarind Classic Resources Ltd. Tamarind will pay US$400,000 for all the shares in WM Petroleum and on completion PPP will make a net payment to Tamarind of US$5.45 million in the form of cash and inventory. PPP is currently in consultation with ASX seeking confirmation as to whether shareholder approval is required.

Papua New Guinea

 

Papuan Basin

PPL 277 is in the process of being relinquished.

 

PPL 338 was renewed to 30/01/2022 over a reduced area of 1706 sq km. Work program is as follows -

Years 1-2: gravity/gradiometry survey
Years 3-4: seismic survey and 1 well - second well may be drilled depending on outcomes of first well
Year 5: licence review

 

PPL 424 has been relinquished.

 

PPL 434 and PPL 435 have had their work programs varied.  Seismic acquisition has been deferred to the final 2 years of the licence.

 

PPL 487 was granted to Oil Search (PNG) Ltd 50% and Esso PNG Robin Ltd 50% on 30/11/2016.  The licence will expire on 29/11/2022. As a result of the grant, overlapping application APPL 545 has been reduced by a single graticular block and now covers 4539 sq km.

 

PPL 504 was granted to Oil Search (PNG) Ltd 100% on 30/01/2016.  The licence will expire on 29/11/2022.

 

PPL 507 was granted to Oil Search (PNG) Ltd 50% and Esso PNG Wren Ltd 50% on 30/11/2016. The licence will expire on 29/11/2022.

 

PPL 576 was granted to Total E&P PNG 2 BV 100% on 30/11/2016.  The licence will expire on 29/11/2012.

 

PPL 581 was granted to Kina Petroleum Ltd 100% on 31/01/2017, over part of the area of PPL 338 that was not renewed (682 sq km).  The licence will expire on 30/01/2023. Work program is as follows - 

Years 1-2: gravity/gradiometry survey
Years 3-4: seismic survey
Years 5-6: 1 well

 

APPL 596 (427 sq km), APPL 597 (256 sq km) and APPL 598 (256 sq km) are applications by Kina Petroleum Ltd 100% over the part of PPL 338 that was not renewed.

 

PRL 15 has been renewed for 5 years to 29/11/2021.

 

PRL 28 is in the process of being renewed.

 

                                                                                                                                  

To unsubscribe click here.

For more information please contact GPinfo support on +61 2 9475 3500 or by e-mail.

Pitney Bowes Australia Pty Ltd, Level 1, 68 Waterloo Road, Macquarie Park NSW 2113, Australia.

Pitney Bowes Australia Pty Ltd is a wholly-owned subsidiary of Pitney Bowes Inc. Pitney Bowes, the Corporate logo, and GPinfo are registered trademarks of Pitney Bowes Inc. or a subsidiary. All other trademarks are the property of their respective owners.

©
2017 Pitney Bowes Australia Pty Ltd. All rights reserved.