January 2015

Monthly Update

The January 2015 data update is now available ...

Industry Summary

New Zealand Oil & Gas Limited has informed Cue Energy that it has entered into arrangements to acquire 19.99% of the shares in Cue Energy.  The holding was purchased off-market from Todd Petroleum Mining Company at A$0.10 cents per share for a total value of A$13.96 million ...

Permit Updates and Changes

In the Vulcan Basin, the year 5 work program for AC/P 21 has been extended by 12 months from 13/01/2015 to 12/01/2016. The licence has had its expiry date extended to 12/01/2016 ...

 


Monthly Update

The January 2015 GPinfo update is now available.


Data Change

A new field has been added to the end of the Wells record.  The field will be used to record general notes relating to a well and will be displayed in the Details and Browser windows (if populated).


Layer Wells (table PDWells)
Field Comments
Type Text (255 characters)
 


Industry Summary

Company News

New Zealand Oil & Gas Limited
has informed Cue Energy that it has entered into arrangements to acquire 19.99% of the shares in Cue Energy.  The holding was purchased off-market from Todd Petroleum Mining Company at A$0.10 cents per share for a total value of A$13.96 million.  (Source:  Cue Energy announcement, 22/12/2014).

Talisman Energy Inc is pleased to announce that it has entered into a definitive agreement with Repsol SA under which Repsol will acquire all of the outstanding common shares of Talisman for US$8 per share in cash.  The purchase price for the common shares represents a 75% premium to the 7-day volume weighted average share price and a 60% premium to the 30-day volume weighted average price.  Total transaction value is approximately US$13 billion, including Talisman’s current debt.  In addition, under the transaction, Talisman will be allowed to pay aggregate cash dividends of US$0.18 per common share prior to closing, including the dividend declared and payable on 31/12/2014.  The combination of the two companies creates a global E&P company with improved scale, enhanced capabilities and more attractive opportunities for future growth.  The combined company will possess the financial flexibility necessary to maximise the value of Talisman’s large undeveloped resource base.  (Source:  Talisman announcement, 16/12/2014).

The Directors of Mosman Oil & Gas Ltd are pleased to update shareholders in respect to the takeover for MEO Australia Ltd.  Mosman has previously advised its intention to make a takeover offer for the entire issued share capital of MEO.  Recently, the Mosman Directors stated that they continued to believe that there was a strong possibility that the proposed merger between MEO and Neon Energy Ltd would not occur, and that the Mosman takeover bid affords the MEO shareholders a viable alternative.  Today MEO announced that late on 19/12/2014 Neon issued MEO with a notice that effectively terminated the proposed merger. Further, they stated that MEO considers the notice of termination is valid, subject to confirmation of receipt of a reimbursement fee of $400,000.  As a result, MEO acknowledged that it expects Mosman to proceed with its intention to make a takeover bid for all of the shares in MEO as announced to the market on 11/12/2014.  (Source:  OilVoice, 22/12/2014).

Hess Corporation announced today that its subsidiary, Hess Exploration Australia P/L, has signed a non-binding Letter of Intent with the North West Shelf JV. Hess intends to develop its natural gas discoveries in its deepwater permits offshore north-western Australia and, subject to execution of binding agreements, toll the production through existing NWS processing and liquefaction facilities in Karratha, Australia.  Hess would then market liquefied natural gas to customers in Asia Pacific.  (Source:  Hess Announcement, 22/12/2014).

Empire Oil & Gas is pleased to advise that the company has officially embarked on the aggressive exploration program planned for its onshore Perth Basin acreage, agreeing to acquire a state-of-the-art geophysical survey.  Under the contract signed with CGG Aviation (Australia) P/L, the survey will comprise 12,775 km across approximately 10,000 sq km of Perth Basin tenements.  The survey will be flown over the entirety of EPs 368, 426, 389, 440, 454, 430, 480 and 416. (Source:  Empire Oil & Gas announcement, 19/12/2014).

In December 2014, the Supreme Court of NSW made an order to permit the Deed Administrators to effect the transfer of all of the issued shares in Nexus to SGH Energy (No 2) P/L, a subsidiary of Seven Group Holdings.  Nexus was removed from the ASX on 07/01/2015. (Nexus Energy announcement, 07/01/2015).

Neon Energy has received a writ of summons from Evoworld Corporation commencing proceedings for orders from the Supreme Court of Western Australia in relation to the validity of voting at the company’s AGM held on 12/11/2014 at which Evoworld’s takeover attempt for the company was denied. Neon said it was carefully reviewing the notice to ensure that it complied with applicable laws and its own constitution. (Source: Neon Energy announcement, 16/12/2014).

Development News

Beach Energy has unveiled conceptual development plans for its Martlet and Balgowan prospects in the Cooper Basin.  Beach has so far spent about $4.1 million developing the Martlet field, which is analogous to commercially producing fields in PEL 91, including Stunsail, Pennington and Bauer.  The field will run through a new production facility near Martlet 1 before it is trucked to the Growler facility for transportation to the Lycium hub.  Balgowan is analogous to Bauer, Chiton and Hanson fields in PEL 91 and is proposed to be developed via a 4km flowline to the proposed Stunsail facility.  The oil will then be transported from Stunsail to the Bauer flowline, or trucked directly to the Lycium hub as required.  Development of Balgowan is expected to cost about $1.3 million, with the Stunsail facility expected online towards the end of 2015 and the tie-in of Balgowan 1 before the end of June 2016.   (Source:  Energy News Premium, 29/12/2014).

The second train of BG Group’s Queensland Curtis LNG Project is on track to start up in the third quarter of 2015.  The announcement came after first cargo was loaded on to the Methane Rita Andrea on 28th December.  The second cart of LNG from the facility will be loaded on to the Methane Mickie Harper which is expected in Gladstone in the first week of January.  QCLNG is the world’s first LNG project to be supplied by coal seam gas.  The start of production from the plant’s first LNG train is the result of more than four years of development and construction on Curtis Island.  At plateau production, expected during 2016, QCLNG will have an output of about 8 million tonnes of LNG a year.  (Source:  Energy News Premium, 30/12/2014).

Woodside, as operator of the Browse FLNG Development, advises that a revised schedule into front-end engineering and design (FED) has been agreed by the Browse Joint Venture.  Woodside has completed basis of design (BOD) as well as key pre-FEED work for the proposed development and is now progressing additional strategic activities.  Woodside anticipates that the development will be in a position to enter the FEED phase in mid-2015 and is targeting a final investment decision (FID) in mid-2016.  (Source:  Woodside announcement, 16/12/2014).

Origin Energy Limited, as operator of the BassGas Joint Venture, has confirmed that another milestone has been achieved in the BassGas Mid Life Enhancement (MLE) project, with the successful lift of the export compression and condensate pumping modules into place on the Yolla offshore platform.  (Source:  Origin announcement, 16/12/2014).

Ezra Holdings has won a $130 million subsea construction contract from Apache to service the Julimar Project, offshore Western Australia. Ezra’s subsea services division will complete the work, providing project management, engineering, transportation and subsea installation of an electro-hydraulic steel tube umbilical, two heavy lift subsea manifolds flying leads and jumpers. The company will also take care of the procurement, fabrication, transportation and installation of diver-less tie-in spools for the project. Ezra has begun the project management and engineering work, with the offshore execution expected to start around mid-year. (Source: Energy News Bulletin, 12/01/2015).

Pan Pacific Petroleum and New Zealand Oil & Gas have completed a review of the increase in Tui reserves attributable to the Pateke 4H well, and estimate a total increase in proved & probable reserves of 2.4 mmbbls gross, 360,000 bbls net to Pan Pacific as at 01/01/2015.  This comprises 1.9 mmbbls from the Pateke 4H accumulation and an additional 0.5 mmbbls from the other Tui area fields as a result of the extension of economic field life.  This estimate includes any additional oil which will be used as fuel. (Source:  New Zealand Oil & Gas announcement, 06/01/2015).

Discoveries

Drillsearch and Beach Energy are expecting a 2P reserves increase at their Bauer field, according to Beach.  The joint venture completed its six-well development campaign in the field last month with the Bauer 18 well which as cased and suspended as a future producer.  Bauer 18 intersected the target top Namur sandstone 7m high to prognosis with 6.6m of additional net oil pay.  An additional 4.2m oil-bearing interval of overlying McKinlay member was also encountered.  (Source:  Energy News Premium, 09/01/2015).

Senex Energy Ltd is pleased to report strong production testing results at the Vanessa conventional gas field in the South Australian Cooper Basin.  Senex has completed production testing of the Vanessa 1/ST exploration well, located in PEL 182, during which gas flowed to surface at an average rate of 5 mmcfd from the Epsilon and Toolachee formations on a 42/64” choke.  Material condensate was produced at a rate of 15 bbls per mmcfd.  (Source:  Senex announcement, 11/12/2014).

AWE continues to make good progress on preparations for conventional flow testing of the Senecio 3 well to further appraise the recently discovered Waitsia gas field.  Flow testing is planned to commence in late January 2015, subject to regulatory approvals and the arrival of equipment, and will take approximately 6 weeks to complete.  Preparations are also under way for drilling additional appraisal wells on the Waitsia gas field in 2015.  (Source:  AWE announcement, 22/12/2014).

Drillsearch and Santos have made a wet gas discovery in PEL 513 with the Yarowinnie South 1 well. Drillsearch’s preliminary interpretation of wireline logs has confirmed an aggregate best estimate of almost 15m of net gas pay over several intervals in a gross Patchawarra Formation of 410m. As a result, the well has been cased and suspended as a future wet gas producer. (Source: Drillsearch announcement, 08/01/2015).

 


Permit Updates and Changes

Northern Territory

In the Vulcan Basin, the year 5 work program for AC/P 21 has been extended by 12 months from 13/01/2015 to 12/01/2016. The licence has had its expiry date extended to 12/01/2016.

Also in the Vulcan Basin, the year 4 and year 5 work program for AC/P 33 are now –

Year 4: G&G studies $0.25m
Year 5: 1 well $20m

In the Amadeus Basin, High Peak Royalties Ltd has a 2% overriding royalty on any production that results from EP 156 and EP(A) 155.


Queensland

Offshore in the Carpentaria Basin, Q/23 has had its Year 6 work program suspended for 6 months to 20/06/2015.  The expiry date of the licence has been extended to 20/06/2015.

In the Cooper Basin, ATP 259 has been renewed as ATP 1189.  The licence will expire on 31/12/2018.  Work program is as follows -

Years 1-4: G&G studies & evaluation, 300 km 2D seismic (or equal 3D seismic), 400 sq km 3D seismic, drill 8 wells targeting Jurassic/Cretaceous and Permian intervals
(01/01/2015 to 31/12/2018)

Also in the Surat Basin, Senex has transferred its 30% of ATP 574 to the QGC group.  New interests are QGC P/L 40%, BG International (Aus) P/L 33.75%, CNOOC Coal Seam Gas Company P/L 25% and Tokyo Gas QCLNG P/L 1.25%.

In the Maryborough Basin, Beach Energy has a 4% ORR on ATP 647 and ATP 733.  Both licences are held by Blue Energy (Maryborough) P/L 100%.  In addition, the expiry dates on the licences have been extended to 31/12/2018.

In the Surat/Bowen Basin, the QGC joint venture has transferred 100% of ATP 767 to Stuart Petroleum Cooper Basin Gas P/L.

In the Eromanga Basin, ATP 784 was granted on 18/12/2014.  The licence will expire on 31/12/2018.  Twinza Oil has an agreement in place to acquire 100% of the licence.  Work program is as follows -

Year 1: G&G studies
Year 2: G&G studies, 150 km seismic
Year 3: G&G studies, 1 well to the base of Murta formation
Year 4: 1 well to base of Murta formation
(01/01/2015 to 31/12/2018)

In the Surat/Bowen Basin, the QGC joint venture has transferred 100% of ATP 795 to Stuart Petroleum Cooper Basin Gas P/L.

Also in the Surat/Bowen Basin, ATP 852 now covers a reduced area of 131 sq km due to the grant of production licence PL 507.

In the Surat/Bowen Basin, the QGC joint venture has transferred 100% of ATP 889 to Stuart Petroleum Cooper Basin Gas P/L.

In the Surat Basin, ATP 1178 has had its expiry date extended to 01/05/2019.

In the Adavale Basin, PL 65 is in the process of being renewed.

In the Surat Basin, an application has been made under the 2004 P&G Act to renew PL 74 as PL 512.

Also in the Surat Basin, Senex has transferred its 20% of PL 171 to the QGC group.  New interests are Roma Petroleum 53.75%, BG International (Aus) P/L 20%, CNOOC Coal Seam Gas Company P/L 25% and Tokyo Gas QCLNG P/L 1.25%.

In the Surat/Bowen Basin, production licence applications PL 400 and PL 402 were withdrawn following the grant of overlapping production licences PL 505 and PL 507.

In the Cooper Basin, Santos has withdrawn production licence applications PL 409 and PL 410.

In the Surat/Bowen Basin, PL 463 has been withdrawn following the grant of overlapping production licences PL 507.

In the Bowen Basin, PL 485 was granted to Aquila Coal P/L 50% and Bowen Central Coal P/L on 10/12/2014.  The licence will expire on 09/12/2044.

In the Surat/Bowen PL 507 was granted to BG International (Aus) Ltd Partnership 75%, CNOOC Coal Seam Gas Company P/L 25% and Tokyo Gas QCLNG P/L on 10/12/2014.  The licence will expire on 09/12/2044.

In the Surat Basin, PL 1009 and PL 1010 were granted to QGC P/L 43.75%, BG International (Aus) Ltd Partnership 30%, CNOOC Coal Seam Gas Co 25% and Tokyo Gas QCLNG on 10/12/2014.  The licences will expire on 09/12/2044.  Overlapping exploration licence ATP 621 and production licences PL 261 and PL 262 were withdrawn.

In the Bowen Basin, PCAs 135, 136 and 139 were granted on 04/12/2014.  The licences will expire on 03/12/2029.


South Australia

In the Cooper Basin, PEL 182 has been reduced in area due to the grant of PRL 135. PEL 182 now covers 1,747 sq km.

In the Pirie-Torrens Basin, Marathon Resources has signed a non-binding term sheet to undertake due diligence investigations to farm into the Leigh Creek Energy Project. Marathon will have receive an exclusive right to do due diligence on ARP TriEnergy’s tenements PEL 650, PELA 582, PELA 643, PELA 644, PELA 647 and PELA 649 until 31/12/2014 in return for spending $400,000 on exploration. Marathon will also earn a 10% undivided interest in the tenements for spending $600,000 on exploration as part of the joint venture.

In the Cooper Basin, PPLA 259 and PPL 243 have been consolidated. PPL 243 now covers an increased area of 3.6 sq km.

In the Otway Basin, PRL 1 is being renewed.

In the Cooper Basin, Tellus and Senex Energy have executed an agreement which has the effect of amending the prior farmin agreement between the parties. Senex will fully fund the acquisition, processing and interpretation of a 3D seismic program in PRL 108, PRL 109 and PRL 110. The seismic program is intended to prove up a drilling location and will result in Senex acquiring an additional 7% interest in the PRLs. The program will begin in the first quarter of 2015.

In the Cooper Basin, PRL 135 was granted to Victoria Oil Exploration (1977) P/L 57% and Acer Energy Ltd 43% on 05/12/2014. The licence will expire 04/12/2019.


In the Cooper Basin, PRL 151 to PRL 172 were granted to Beach Energy Ltd 40% (operator) and Great Artesian Oil & Gas P/L 60% on 16/12/2014. The licenses will expire 15/12/2019.

In the Cooper Basin, PRL 18 is being renewed.

In the Cooper Basin, PRL 26 was granted to Beach Energy Ltd 15% (operator), Great Artesian Oil & Gas P/L 45%, Drillsearch Gas P/L 30% and Rawson Resources Ltd 10% on 02/12/2014. The licence will expire 07/12/2019.

Geothermal

In the Arrowie Basin, GEL 254 was relinquished on 02/01/2015.


Victoria

Offshore in the Otway Basin, AWE has elected not to proceed with the acquisition of a 60% interest in VIC/P 67.  Tap Oil has until 13/02/2015 to exercise its option to acquire 10% for US$2.95 million (covering the second year commitment seismic costs).  WHL Energy currently holds 100% of the licence.

In the Gippsland Basin, Cooper Energy will acquire a 50% interest in VIC/RL 3 and the Orbost Gas Plant from Santos.  Consideration comprises an initial cash payment of $2.5 million by Cooper Energy, then funding 100% of the initial $50 million project costs.  The acquisition cost to Cooper Energy is effectively $27.5 million.  FEED is expected to require expenditure of $25-$29 million.  The acquisition is subject to regulatory approval and finalisation and approval of the FEED budget by the parties.


Western Australia

In the Dampier Basin, the year 3 and year 4 work program for WA-209-P are now -

Year 3: 98 sq km 3D seismic, 98 sq km 3D PSDM seismic, 160 sq km PSDM reprocessing $5.8m
Year 4: rock physics, inversion & QI studies $0.3m

In the Carnarvon Basin, WA-347-P was relinquished on 08/01/2015.

In the Carnarvon Basin, WA-348-P is being relinquished.

In the Carnarvon Basin, Woodside has entered into a binding transaction with Apache Corporation to acquire Apache’s Wheatstone LNG and Balnaves oil interests. Under the terms of the agreement, Apache will sell its equity ownership in subsidiary Apache Julimar Pty Ltd which owns a 13% interest in the Wheatstone LNG project and a 65% interest in the WA-49-L block which includes the Julimar/Brunello offshore gas fields and the Balnaves oil development. The acquisition is subject to regulatory approvals, pre-emption and joint venture participant consent. The transaction is expected to close in the first quarter of 2015.

In the Petrel Sub Basin, the year 5 work program for WA-407-P has been extended by 12 months from 19/01/2015 to 18/01/2016. The licence has had its expiry date extended to 18/01/2017.

In the Browse Basin, the year 6 work program for WA-410-P has been extended by 6 months from 05/02/2014 to 04/08/2015. The licence has had its expiry date extended to 04/08/2015.

In the Bonaparte Basin, the year 5 and year 6 work program for WA-420-P are now -

Year 5: geotechnical studies, seismic mapping, lead & prospect evaluation $0.25m
Year 6: seismic inversion, geotechnical studies $0.25m

In the Browse Basin, CalEnergy does not intend to remain as a participant in exploration permit WA-424-P from the commencement of permit year 4, being 13/04/2015. At the commencement of permit year 4, IPB will hold 100% interest.

In the Barrow Basin, WA-455-P and WA-456-P were cancelled on 05/01/2015.

In the Browse Basin, CalEnergy does not intend to exercise its option in WA-471-P to gain a 25% interest.

In the Perth Basin, EP 321 has been renewed to 04/12/2019 over a reduced area of 666 sq km. Work program is as follows –

Year 1: geotechnical studies $0.25m
Year 2: geotechnical studies $0.25m
Year 3: 100 sq km 3D seismic $1.5m
Year 4: 1 well $10m
Year 5: geotechnical studies $0.25m

In the Canning Basin, a trial date has been set in relation to the proper construction of the Canning Basin Royalty Deed regarding permits EP 371, EP 390, EP 391, EP 428, EP 431, EP 436, L 15 and R 1. The proceedings have been listed for trial on 14/04/2015 and 15/04/2015.

In the Perth Basin, EP 407 has been reduced in area due to the grant of R 7. EP 407 now covers 963 sq km.

In the Carnarvon Basin, EP 424 is being relinquished.

In the Carnarvon Basin, EP 444 and EP 466 were relinquished on 23/12/2014.

In the Carnarvon Basin, the year 4 work program for EP 449 has been extended by 12 months from 22/12/2014 to 22/12/2015. The licence has had its expiry date extended to 22/12/2017.

In the Perth Basin, Titan Energy plans to sell its interest in EP 455.

In the Canning Basin, the year 4 work programs for EP 477 and EP 478 have been extended by 12 months from 31/01/2016 to 31/01/2017. The licenses have had their expiry dates extended to 31/01/2017.

In the Canning Basin, Buru Energy's agreement to acquire Backreef Oil's 50% in EP 487 expired 31/12/2014.

In the Perth Basin, the Pinnacle Desert, Red Desert, Painted Desert and Little Painted Desert are excluded from exploration within EP 492.

In the Perth Basin, STP-RLA-2 has been granted as R 6 to Latent Petroleum P/L 57% and Alcoa of Australia Ltd 43% on 05/12/2014. The licence will expire 04/12/2019. Work program is as follows –

Year 1: seismic reprocessing $0.25m
Year 2: geotechnical studies $0.25m
Year 3: 1 well, technical studies $15.25m
Year 4: reservoir studies $0.5m
Year 5: marketing studies $0.25m

In the Perth Basin, STP-RLA-3 has been granted as R 7 to Latent Petroleum P/L 57% and Alcoa of Australia Ltd 43% on 05/12/2014. The licence will expire 04/12/2019. Work program is as follows -

Year 1: seismic reprocessing, 1 well $15.25m
Year 2: 1 well $15m
Year 3: geotechnical studies $0.25m
Year 4: reservoir studies $0.5m
Year 5: marketing studies $0.75m

In the Canning Basin, an exploration application has been lodged for SPA 13 AO.

In the Officer Basin, an exploration application has been lodged for SPA 14 AO.

In the Savory Basin, an exploration application has been lodged for SPA 15 AO.

In the Canning Basin, SPA 17 AO is under application as STP-EPA-131. STP-EPA-131 has been varied and now covers a reduced area of 5,461 sq km.


New Zealand

In the East Coast Basin, application APP 56365 has been varied and now covers a reduced area of 370,052 sq km.

In the Taranaki Basin, PEP 53247 was relinquished 22/12/2014.


Papua New Guinea

National Petroleum Co PNG acquired 100% of the shares in Cue Energy Resources’ wholly-owned subsidiary Cue PNG Oil Co P/L effective 20/11/2014.  The asset interests held by the subsidiary are - 

 PDL 3

5.569%

 PRL 9

14.894%

 PRL 14

10.94%

 SE Gobe Unit

3.286%

 


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