January 2011

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

Goodbye
We are very sad to say goodbye to two members of our team ...

Industry Summary
Drillsearch Energy and Innamincka Petroleum have decided to terminate their friendly merger after a small number of key Innamincka shareholders voted against it ...

Permit Updates and Changes
See GPinfo for details of the 2011 proposed Federal Offshore Acreage Release areas ...
 


Monthly Update

The January 2011 data update is now available.

Sequestration Permits

This month we have added new data layer for sequestration permits to the GPinfo database.  The layer contains only a small number of permits at the present time but this will grow as the industry becomes more established.

The layer is called Sequestration and is found in the PERMITS group in your Map Manager. The layer can be queried using the Query Manager in the same way the Permits layer is queried, and the location of sequestration permits can be established using the Finder tool.

The Sequestration layer should display at the start of your first session after the January data update has been installed.

These areas exist over the same areas as petroleum and geothermal permits.  We suggest you switch on Transparency for the new layer so that graphical objects that display underneath them are not obscured. Switch on transparency by clicking on the Toggle transparency button to the right of the layer name in the Map Manager.

If the Sequestration layer is not of interest to you, simply switch the layer off.

We welcome your feedback on the new dataset and hope you will work with us to maintain its accuracy and extend its scope.

Can't see the new layer?

Display of the new layer 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 January update has been installed.

If the January update has been installed but you still can't see the layer, 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.


Goodbye

We are very sad to say goodbye to two members of our team.

Rob Healy has been running our Perth office for many years, first as the founder and Managing Director of Meridian GIS before Meridian's merger with Encom and subsequent merger with PBBI. He will be sorely missed as the face of GPinfo in Perth and by his team here in Sydney as an excellent colleague and champion.

Lidia Novosel joined PBBI last year as a Research Analyst, helping us through a busy year with great diligence and commitment and covering for Angela Willett as she took a well earned sabbatical. PBBI's loss is Santos' gain. Lidia is joining Santos in Adelaide as a Production Optimisation Engineer.

We wish both Rob and Lidia all the very best for the future.

Lidia has been replaced in the Sydney office by Catherine Speed. Catherine joins our team at a very busy time as we begin our preparations for the APPEA Conference. We very much appreciate your support during this transitional phase and hope you will work with Catherine as you have with Angela and Lidia to assist us in maintaining our high data standards.

A new member of the team will be recruited into our Perth office in the coming weeks.

 


Industry Summary

Company News

Drillsearch Energy and Innamincka Petroleum have decided to terminate their friendly merger after a small number of key Innamincka shareholders voted against it. The merger by way of a scheme of arrangement was recommended by both boards and while 96.85% of Innamincka’s shareholders voted in favour of the resolution, the remaining shareholders held a disproportionately larger number of shares, leading to 59.66% of the votes in favour and 40.34% against the scheme, below the required level of shareholder support. The two companies had five business days for consultations to determine whether the scheme or another transaction might go ahead using an alternative approach, or agree to hold another shareholder meeting. However, the companies announced on 22/12/2010 that the merger implementation agreement had been terminated. (Source: PetroleumNews, 23/12/2010).

Transerv Energy and Latent Petroleum are merging under an agreement that would forge an oil and gas junior with Canadian and Australian assets. Under the merger implementation agreement, Transerv will acquire all shares in Latent by issuing 17.64 billion Transerv shares and 336 million unlisted options exercisable within four years of issue at 1.5c each. The shares will be placed in escrow for 12 months, allowing Transerv shareholders to preserve their benefits from any success at the Amazon well. Latent managing director Stephen Keenihan will take up the same role for the combined company, while its operations director Brent Villemarette will be Transerv’s chief technical officer. The newly enlarged Transerv will hold a 35% operating interest (up from 10%) in the Warro tight gas project. It will also take a 50% interest in the Alberta project in Canada. (Source: PetroleumNews, 24/12/2010).

Beach Energy’s interest in Impress Energy increased to 65.58% at the close of trade on 12/01/2011. Beach is attempting to acquire Impress with its offer of 8.5c per Impress share and has urged remaining Impress shareholders to accept the offer, which has now been extended to close on February 21. However, the company may not be able to complete a full takeover due to the 20% held by Victoria Petroleum. (Source: ASX,12/01/2011, EnergyNewsPremium, 11/01/2011).

Development News

Chevron has awarded the Clough Sea Trucks joint venture a $300 million contract for the domestic gas scope of work on the Gorgon liquefied natural gas project. The work involves the transportation and installation of about 90 kilometres of 20-inch pipeline, both offshore and onshore, from Barrow Island to the Dampier Bunbury Natural gas pipeline. Clough will carry out project management and installation engineering with its derrick pipe lay barge, Java Constructor, utilised for pipeline installation together with the shallow water lay barge, Clough Challenge. Clough will also undertake, solely, the onshore cross-country portion of the pipeline, supervised by resources from its Clough Seam Gas division. Engineering and procurement will start immediately with site works expected to be start and be completed in 2012. (Source: PetroleumNews, 17/12/2010).

The introduction of South Korean state utility Korea Gas as a partner and gas buyer for the Santos-operated Gladstone liquefied natural gas project has been welcomed by several parties. Resources and Energy Minister Martin Ferguson and Queensland Resources Council chief executive Michael Roche said the deal for Kogas to take a 15% stake in the project and buy 3.5 million tonnes of LNG per annum for up to 20 years represented a further step towards a potential final investment decision for the project. Ferguson added it was a significant trade deal with Korea that had the potential to create jobs and deliver long-term economic benefits. This view was shared by Roche, who said GLNG and other similar ventures would create up to 18,000 jobs for Queenslanders over the next five years. Under the deal Kogas bought a 15% stake in GLNG from Santos and Petronas (7.5% each) and agreed to buy 3.5MMtpa of gas for at least 15 years, with an option to extend the agreement by another five years. The deal could bring in more than $70 billion over 20 years. Concurrently, Santos sold an additional 7.5% stake to Total, giving the French supermajor a 27.5% stake in GLNG. Santos has taken another step towards FID announcing the completion of a $500 million institutional placement last Friday. The placement completes the equity funding for its 30% share of the GLNG project (Source: PetroleumNews, 20/12/2010).

Santos and its partners have approved the $US16 billion Gladstone LNG (GLNG) project in Queensland, allowing major works for upstream field development, pipeline and liquefied natural gas plant to begin. GLNG includes development of CSG resources in the Bowen and Surat Basins in southeast Queensland, construction of a 420 km gas transmission pipeline from the fields to Gladstone and two LNG trains with combined nameplate capacity of 7.8 million tonnes per annum on Curtis Island. Partners in the project are operator Santos (30%), Petronas (27.5%), Total (27.5%) and Kogas (15%). (Source: EnergyNewsPremium, 13/01/2011).

Shell and Petrochina have taken a major step forward for their planned coal seam gas-to-liquefied natural gas project at Curtis Island, releasing invitations to tender for the front end engineering design contract. The invitations to tender have been sent to four Australian and international consortia and represent the first phase in the development of the multibillion dollar Arrow LNG plant (previously called Shell Australia LNG project), which will source gas from Arrow Energy’s CSG reserves in the Surat and Bowen Basins. The four consortia include the venture between KBR, China’s Huanqiu Contracting & Engineering Corporation, John Holland and Leighton; Chiyoda, CB&I and Saipem; Technip, JGC and Clough; and the Foster Wheeler/WorleyParsons venture. The successful group will be responsible for carrying out the FEED for the LNG plant, with the decision on who will construct the plant to be made at a later stage. (Source: PetroleumNews, 22/12/2010).

Thailand’s PTT Exploration and Production will reportedly form a $US1 billion ($A981.1 million) joint venture with Linde Group and SBM Offshore to develop a floating liquefied natural gas vessel for the Cash-Maple gas field in the Timor Sea. The Bangkok Post reported that under the joint venture, Linde and SBM will provide technical design advice and study the FLNG project in detail while PTTEP will continue drilling for gas and assessing reserves. (Source: PetroleumNews, 31/12/2010).


Discoveries

Shell Todd Oil Services Ltd. plans a major review of the Maui gas field region in the Taranaki basin off New Zealand. The JV contracted drillship Noble Discoverer to drill an exploration well, Ruru 1, on the edge of the field in February to March. It also engaged Electromagnetic Geoservices ASA of Norway to conduct an electromagnetic survey (New Zealand’s first) across the Maui field itself. The multimillion dollar electromagnetic survey is being run by the Boa Galatea vessel and is expected to take a month to complete. It will begin with laying a grid of receivers on the seabed across production lease PML 381012 before transmitting electromagnetic waves during the survey. Maui field, discovered in 1969, had initial gas reserves of 3 tcf and once supplied 90% of New Zealand’s demand that exceeded 200 petajoules/year. The field now supplies only about 30% of the current annual market of 150-170 petajoules. However the new exploration initiative indicates Shell Todd thinks more reserves can be found to prolong the field’s life and lead to renewing the production lease before it expires in June 2015. (Source: Oil & Gas Journal, 12/01/2011).
 


Permit Updates and Changes

Proposed Areas – 2011 Federal Offshore Acreage Release

See GPinfo for details of 2011 proposed Acreage Release areas.  Proposed areas have been allocated temporary names in GPinfo, pending their formal release at the APPEA Conference in April. Permits named AVAIL* are the proposed 2011 areas. Please note that the proposed areas have not been finalised and are still subject to change. Closing dates are yet to be announced.


2010 Federal Offshore Acreage Release

A number of areas from the 2010 and 2009 Offshore Acreage Release have been re-released and will now close on 12/05/2011: NT 10-1, W 10-1, W 10-11, W 10-12, W 10-13, W 10-15, W 10-17 and W 09-17.


New South Wales

In the Sydney Basin, AGL's interest in PEL 2 was transferred to AGL Upstream Investments P/L 100%.

Also in the Sydney Basin, expiry date of PEP 11 was extended to 03/10/2012 after 3 month suspension to Year 5. Asset Energy increased its interest to 85% on completion of the New Seaclem 1 well.

PELA 133 and PELA 134 are new exploration permit applications by Macquarie Energy P/L, 100%, in the Clarence-Moreton Basin.

Also in the Clarence-Moreton Basin, applications PSPAPP 51 and PSPAPP 52 were refused.


Northern Territory

In the Timor Basin, AC/P 33 has had its expiry date extended to 24/03/2011.

In the Pedirka Basin, EP 97 is being renewed.

In the Vulcan Basin, regulatory approval for MEO's acquisition of 100% in AC/P 50 and AC/P 51 from Silver Wave Energy has been received. Settlement of US$270,000 will be paid to Silver Wave, who has an option to acquire 10% in each permit prior to expiry of Year 3 by repaying 20% of MEO's costs (including acquisition costs).

In the Amadeus Basin, Trident Energy failed to make good on certain JV cash payments for EP 115. As the result, farm-out agreement with Trident Energy has been terminated and Trident returned its interest to Central Petroleum's wholly-owned subsidiary, Frontier Oil & Gas.

Magellan Petroleum has received 1 month extension from Santos to finalise its acquisition of 40% in NT/P 48 in the Bonaparte Basin. The completion date for the acquisition has been extended to 31/01/2011.


Geothermal Permits


Application GEP 27832 was withdrawn on 23/12/2010.


Queensland

In the Galilee Basin, ATP 1041P and ATP 989P were granted to Pangaea Galilee P/L 100%, on 16/10/2010. Both licences will expire on 15/02/2022. Competing applications ATP 1038P, ATP 1039P, ATP 1040P, ATP 1042P, ATP 987P, ATP 988P and ATP 990P were refused.

In the Eromanga Basin, ATP 944P was granted to Bow Energy Ltd, 100%, on 07/12/2010. Licence will expire on 31/12/2022. Competing application ATP 945P was refused.

In the Adavale and Surat Basins, Seymour Energy P/L is a preferred tenderer for ATP 1069P, ATP 1070P, ATP 1074P and ATP 1093P.

In the Eromanga and Surat Basins, Surat Gas P/L is a preferred tenderer for ATP 1072P, ATP 1095P and ATP 1098P.

In the Bowen Basin, Santana Resources Company is a preferred tenderer for ATP 1079P.

Also in the Bowen Basin, BG International (Aus) P/L is a preferred tenderer for ATP 1101P.

In the Carpentaria Basin, Armour Energy P/L is a preferred tenderer for ATP 1087P.

ATP 364P in the Bowen Basin was renewed as ATP 1103P on 23/12/2010. Licence will expire on 23/12/2010.

In the Cooper Basin, ATP 259P is being renewed over a reduced area
(see GPinfo details for new area). In the Eromanga Basin, ATP 545P is being renewed.

In the Surat Basin, PL 12 is being renewed.

Also in the Surat Basin, PL 258 was granted on 06/12/2010.  The licence will expire on 31/12/2040.

In the Narrows Basin, ATP 716P was renewed to 31/10/2019.

Also in the Eromanga Basin, ATP 560 is being renewed over a reduced area.  ATP 560P MI McIver Block has been relinquished, ATP 560P UE covers a reduced area of 49 sq km and the remainder of ATP 560P covers a reduced area of 796 sq km.

In the Eromanga and Surat Basins, Drillsearch/Great Artesian Oil & Gas acquired Bandanna Energy/Traditional Oil Exploration's remaining Queensland interests in ATP 539P, ATP 549P West and PL 18 for $150,000.

In the Eromanga and Cooper Basins, Native Title Agreements have been reached for the following Drillsearch Energy’s exploration permit applications: ATP 920P, ATP 924P, ATP 927P, ATP 932P, ATP 940P and ATP 959P. Exploration permits are expected to be issued in mid 2011.


Geothermal Permits


In the Carpentaria Basin,
geothermal permit application EPG 18 was not granted.

Sequestration Permits


Preferred tenderers for 2010 GHG Gazettal areas are as follows -

Gazettal                       Basin               Preferred Tenderer

QLR2010-1-11               Surat                EPQ 10
QLR2010-1-12              
Surat                EPQ 12
QLR2010-1-13              
Surat                EPQ 13
QLR2010-1-5                
Galilee              EPQ 4
QLR2010-1-8                 Surat                EPQ 5
QLR2010-1-9    
            Surat                EPQ 6
QLR2010-1-10              
Surat                EPQ 8
 


South Australia

In the Cooper Basin, Innamincka Petroleum is buying SCGAU's interest in PEL 103, PRL 14, PRL 17 and PRL 18. The transaction is subject to finalisation of sale and purchase agreement with SCGAU P/L. Upon completion of the transaction, Innamincka's interest will increase to 62.5%.

In the Otway Basin, Beach Energy and Somerton Energy are farming in to PEL 495. After the farm-in, the participants will be: Somerton Energy-15%, Cooper Energy-50%, Beach Energy-35%. Beach will pay $220,000 cash, 35% of back costs and 70% of the first well on the permit. Beach will manage the drilling of the first well in the permit and will then be nominated as the operator. Somerton Energy will earn 15% by a cash payment of $95,000, payment of $95,000 as reimbursement of 15% past costs and contributing 30% of the cost of drilling Sawpit-2 exploration well. The farm-in is subject to SA Government approval.

In the Eromanga Basin, PEL 110 has had its expiry date extended to 10/05/2015.

In the Stansbury Basin, PEL 73 has had its expiry date extended to 26/03/2013.

In the Cooper Basin, production licences PPL 48, 53 and 58 have been renewed for indefinite term/life of field.

Work Program details for recently granted PEL 174 have been made available and are as follows -

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

Geothermal Permits


In the Gawler Craton Basin, GEL 294 and GEL 295 have had their expiry dates extended to 07/02/2014.



Victoria


PEP 166
in the Gippsland Basin has had its expiry date extended to 02/01/2014. Lakes Oil intends to notify Latrobe Fuels that if they are not in a position to complete their obligations to drill 2 wells, then the farm-in agreement for Gormandale Block will be terminated.

VIC/P 54 in the Gippsland Basin was renewed to 18/10/2015 over a reduced area of 338 sq km.

Geothermal Permits

In the Gippsland Basin, GEP 12 and GEP 13 have had their expiry date extended to 13/05/2013.

In the Lachlan Fold, GEP 24 has had its expiry date extended to 26/11/2014.



Western Australia


In the Canning Basin, Mitsubishi Corporation has earned initial 40% in the following Buru Energy’s permits by funding 2010 exploration program: EP 371, EP 390, EP391, EP 428, EP 431, EP 436, EP 471 and EP 472. Mitsubishi will earn an additional 10% by funding 2011 exploration program.

In the Canning Basin, Oil Basins has executed confidentiality agreements with interested farm-in partners for both the Backreef Area L 6 BR and 5/07-8 EP.

In the Carnarvon Basin, Woodside Petroleum will acquire Roc's 20% in WA-351-P for $US15.75 million ($A15.9 million) subject to JV and Government approvals.

In the Exmouth Basin, regulatory approvals for the farm-out of a 65% interest in WA-389-P have been received and Woodside has paid CUE $US5 million to cover back costs. Woodside has become permit operator.

EP 439 in the Gascoyne Basin has had its expiry date extended to 01/05/2012.

EP 463 in the Canning Basin has had its expiry date extended to 10/07/2015.

EP 61 in the Barrow Basin was renewed to 22/12/2015.

TL/4 in the Barrow Basin was renewed to 22/12/2031.

TP/24 in the Canning Basin was renewed to 10/07/2015.

TR/1 in the Barrow Basin was renewed to 22/12/2015. Work program is as follows –

Year 1 - 400k 2D seismic reprocessing - $0.1m
Year 2 - geophysical studies - $0.2m
Year 3 - 80k 2D seismic - $4m
Year 4 - 1 exploration well - $5m
Year 5 - 100k 2D seismic - $4.5m
Year 6 - 1 exploration well - $6m

WA-34-R in the Bonaparte Basin was renewed to 20/12/2015. Work program is as follows –

Year 1
- geotechnical and marketing studies - $0.02m
Year 2 -
geotechnical and marketing studies - $0.02m
Year 3 - geotechnical and marketing studies - $0.02m
Year 4 - geotechnical and marketing studies - $0.02m
Year 5 - geotechnical and marketing studies - $0.02m

Offshore in the Exmouth Basin, WA-269-P was renewed to 22/12/2015 over a reduced area of 2,596 sq km. Work program is as follows –

Year 1 - 1000k 3D seismic reprocessing - $1.5m
Year 2 - 1 exploration well - $25m
Year 3 - geotechnical studies - $0.8m
Year 4 - 300k 3D seismic reprocessing - $0.5m
Year 5 - geotechnical studies - $0.8m

Also in the Exmouth Basin, WA-347-P was renewed to 04/04/2016 over a reduced area of 2,607 sq km. Work program is as follows –

Year 1 - geotechnical studies - $0.786m
Year 2 - 1200k 2D seismic - $4.3m
Year 3 - geotechnical studies - $0.8m
Year 4 - 1 exploration well - $45m
Year 5 - geotechnical studies - $0.8m

In the Browse Basin, WA-342-P was renewed to 03/01/2016 over a reduced area of 1,755 sq km. Work program is as follows –

Year 1 - 1 exploration well - $20m
Year 2 - geotechnical studies - $0.25m
Year 3 - geotechnical studies - $0.25m
Year 4 - geotechnical studies - $0.25m
Year 5 - geotechnical studies - $0.25m 

 

In the Carnarvon Basin, WA-361-P was renewed to 30/01/2016 over a reduced area of 649 sq km. Work program is as follows –

Year 1 - geotechnical studies - $0.2m
Year 2 - geotechnical studies, 150k 3D seismic - $2m
Year 3 - geotechnical studies, 3D seismic interpretation - $0.25m
Year 4 - geotechnical studies, 1 exploration well - $20m
Year 5 - geotechnical studies - $0.2m

In the Canning Basin, application 3/06-7 was granted as EP 473 to Buru Energy Ltd 100%, on 21/12/2010. The licence will expire on 20/12/2016. Work program is as follows –

Year 1 - G&G studies, 2D seismic reprocessing - $0.075m
Year 2 -  200k 2D seismic - $1.8m
Year 3 - G&G studies - $0.075m
Year 4 - 1 exploration well - $1.8m
Year 5 - G&G studies - $0.05m
Year 6 - 1 exploration well - $1.8m

Also in the Canning Basin, application 30/07-8 was granted as EP 474 to Buru Energy Ltd on 21/12/2010. The licence will expire on 20/12/2016. Work program is as follows –

Year 1 - geotechnical studies, 400k 2D seismic, 2D seismic reprocessing - $3.25m
Year 2 - 2 exploration wells - $8m
Year 3 - geotechnical studies - $0.05m
Year 4 - 200k 2D seismic - $1.6m
Year 5 - geotechnical studies - $0.05m
Year 6 - 1 exploration well - $4m

Offshore in the Carnarvon Basin, application 13/08-9 was granted as EP 475 to Energetica Resources P/L 100% on 04/01/2011. The licence will expire on 03/01/2017. Work program is as follows –

Year 1 - geotechnical studies - $0.2m
Year 2 - 65k 2D seismic reprocessing - $0.3m
Year 3 - 125k 2D seismic - $1.1m
Year 4 - 2D seismic interpretation - $0.2m
Year 5 - 1 exploration well - $6.5m
Year 6 - geotechnical studies - $0.2m

In the Carnarvon Basin, WA-323-P, WA-330-P and WA-9-R are being renewed.

In the Browse Basin, WA-341-P is being renewed.

In the Barrow Basin, EP 307 is being renewed.

In the Perth Basin, WA-381-P and WA-382-P are being relinquished.
 

New Zealand

Offshore in the Canterbury Basin, PEP 38262 was renewed to 21/08/2015 over a reduced area of 6,749 sq km. Work program is as follows –

72 months - technical studies
84 months - commit or surrender, 1 exploration well
96 months - 600k 3D seismic, commit or surrender, 1,000 line km 2D seismic, technical studies
108 months - other activity, commit or surrender
120 months - 1 exploration well

Onshore in the Taranaki Basin, 2010 onshore gazettal Block 1 T was granted as PEP 53247 to Mosaic Oil NZ Ltd (operator) 75% and  L&M Energy Ltd 25%. The licence will expire on 14/12/2015. Work program is as follows –

12 months - 30k 2D seismic, 160K 2D seismic reprocessing, technical studies, commit or surrender
24 months - 1 appraisal well
36 months - technical studies, commit or surrender
48 months - technical studies, commit or surrender
60 months - 2D seismic to define a drilling location or 1 exploration well

Also in the Taranaki Basin, APP 52278 was granted as PMP 52278 to Contact Energy Ltd 100%. The licence is for underground gas storage operations and will expire on 15/12/2050.


Papua New Guinea

Horizon Oil has commenced legal proceedings in respect of Minister of Petroleum and Energy's decision not to renew PRL 5.


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© 2011 Pitney Bowes Business Insight