July 2011

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

2012 Industry Area Nominations

Industry stakeholders are invited to nominate vacant offshore areas to be considered for release in 2012 ...

Industry Summary
Santos is pleased to announce that it has reached binding agreements to give effect to the acquisition of 100% of the outstanding ordinary shares in Eastern Star Gas Ltd ...

Permit Updates and Changes
In the Gloucester Basin, PSPAPP 53 was withdrawn at the request of Pangaea Oil & Gas ...
 

Monthly Update

The July 2011 data update is now available.

Data Change

The following change was made to the GPinfo data structure in June -

Layer Wells (table PDWells)

New fields -

Basin at Surface - basin that is at the surface
Basin Lower - basin that is below the basin at the surface
Basin Lowest - basin that is below both of the above basins



Notes

  1. Basin fields are populated for Australian wells.  Basin identifiers were calculated by intersecting GPinfo's well locations with Geoscience Australia's Sedimentary Basins dataset.

    We are attempting to source basin definitions for New Zealand and Papua New Guinea so as to bring non-Australian wells into line.

    Australian wells (with a very small number of exceptions) have an entry in at least the Basin at Surface field, and in many cases in one or both of the secondary basin fields also.
     
  2. Basins are layered in some areas and consequently a basin that is the Basin at Surface in one area might be the Basin Lower or Basin Lowest in another area. 

    For example, the Carnarvon Basin is the Basin at Surface over a large area of the Northwest Shelf (see Goodwyn wells).  However, there are several patches of the Carnarvon Basin bordering on the main area that lie under sub-basins such as Barrow (see Pasco wells), Dampier (see Tusk wells), Exmouth (see Macedon wells).  In these areas the Carnarvon Basin is Basin Lower rather than Basin at Surface.

    If you are using a Query to identify all wells that are in the Carnarvon Basin, you need to search for wells where either of the Basin at Surface or the Basin Lower is "Carnarvon".
     
  3. Sedimentary Basin polygons are available as a free download from Geoscience Australia. The data set can be attached as a user data layer in GPinfo.  Click here to go to the Free Data Downloads page on GA's website.
     
  4. We will be reviewing Basin identifiers for Permits in the coming weeks to ensure consistency between the Wells and Permits databases.

Can't see the new data?

Correct display of the new fields 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 June update has been installed.

If the June update has been installed but you still can't the basin fields, 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.

 


2012 Industry Area Nominations

Industry stakeholders are invited to nominate vacant offshore areas to be considered for release in 2012.  The sustainable annual release of quality petroleum exploration acreage, to provide the global petroleum exploration industry with a variety of investment opportunities in Australian waters, is a key objective of the Australian Government.  Noting the Australian Government’s objective of a sustainable, annual petroleum exploration acreage release offering quality exploration investment opportunities it is possible that not all nominated areas will be included in the 2012 Acreage Release.  For further details on the nomination process, please visit -

http://www.ret.gov.au/Documents/par2011/2012-nominations/index.html

(Source:  Australian Petroleum News, Department of Resources Energy and Tourism, July 2011).

Summary of Areas Available for Bidding

Release/Round                   Areas                                   Bid Closing Date

2010 Acreage re-release        W 10-7, W10-21, W10-22            13/10/2011

2011 Acreage Release          AC 11-1 & AC 11-2                      13/10/2011

First Round                          W 11-1, W 11-10 to W11-15
                                           V 11-1 to V 11-6 & T 11-1

2011 Acreage Release          NT 11-1 and NT 11-2                    12/04/2012

Second Round                      W 11-2 to W 11-9
                                           W 11-16 to W 11-18

(Source:  Australian Petroleum News, Department of Resources Energy and Tourism, July 2011).
 


Industry Summary

Company News

Santos
is pleased to announce that it has reached binding agreements to give effect to the acquisition of 100% of the outstanding ordinary shares in Eastern Star Gas Ltd and the subsequent sale of a 20% working level interest in ESG’s permits in the Gunnedah Basin, northern NSW, for A$284m to TRUenergy Holdings P/L

Pursuant to these transactions, Santos will assume operatorship and own 80% of ESG’s coal seam gas permits with TRUenergy owning the remaining 20%.  The acquisition of Eastern Star Gas will be conducted via a recommended scheme of arrangement under which ESG shareholders will receive 0.06803 Santos shares for every 1 ESG share held.  (Source:  Santos Ltd, 18/07/2011).

Consistent with ConocoPhillips’ previously stated strategies and focus on value creation for its shareholders, ConocoPhillips’ board of directors has approved pursuing the separation of the company’s Refining & Marketing and Exploration & Production businesses into two stand-alone, publicly trade corporations via a tax-free spin-off of the refining and marketing business to ConocoPhillips shareholders.  The separation of the companies is expected to be completed in the first half of 2012.  (Source:  ConocoPhillips announcement, 14/07/2011).

APA Group says a long-term gas transportation agreement with Power and Water Corp underpins the $63 million purchase of the Amadeus gas pipeline in the Northern Territory.  The 1,630km pipeline was commissioned in 1986 and transports gas to Darwin, Katherine and other locations to fuel power generation in the territory.  Since 1986, the Amadeus Gas Trust has leased the pipeline from a consortium of financial institutions and NT Gas as trustee for the Amadeus Gas Trust has managed and operated the pipeline.  APA holds a 96% stake in the NT Gas and the Amadeus Gas Trust.  APA said the acquisition of the pipeline was supported by the long-term contract with the NT government-owned electricity provider, and complements its interest in the Bonaparte and Wickham Point pipelines.  (Source:  Energy News Premium, 17/06/2011).

Sentry Petroleum has signed memorandum of understanding with Ergon Energy that could potentially lead to the sale of gas from its Queensland coal seam gas tenements.  Under the the non-binding MoU, the two companies have agreed to enter negotiations for the purchase and sale of potential gas for use in Ergon’s Barcaldine power generation station.  The power station is immediately north of Sentry’s permits ATP 862P and ATP 865P, where the company has kicked off a CSG drilling campaign.  (Source:  Energy New Premium, 17/06/2011).

Metgasco has signed a memorandum of understanding with Richmond Dairies in Casino, NSW, to supply it with gas, the first such supply deal for the company.  The company expects a final sales agreement to be signed by the end of this year with first sales to the Richmond Dairies plant starting in the third quarter of 2012.  (Source:  Energy News Premium, 17/06/2011).

Metgasco advises that coal seam gas drilling and testing results from PEL 13 have been assessed by independent reserve certifiers, MHA Petroleum Consultants (Denver), resulting in a significant increase in Metgasco’s overall gas reserves.  PEL 13 reserves have been certified as 31.2 petajoules proved and probable, 302.4 petajoules of proved, probable and possible and 1334.1 petajoules of 2C continent resource.  (Source:  Metgasco announcement, 14/07/2011).

Following final compilation and submission of the dataset developed from the 2010 drilling campaign in the Galilee Basin to Netherland, Sewell and Associates, the independent Dallas-based resource assessment specialist has assessed that the wells drilled to date by Blue Energy in ATP 813P have delineated 554 petajoules of 3C contingent resource (recoverable) together with a further 1,142 petajoules of prospective resource (recoverable).  The contingent resources have been identified principally around the existing five wells drilled by Blue Energy, whilst the prospective source relates to some of the inter-well areas, but does not include the majority of the permit area.  This resource assessment relates to approximately 25% of the ATP 813P permit area.  (Source:  Blue Energy announcement, 29/06/2011).

As a direct result of a data sharing agreement between Blue Energy, Netherland, Sewell and Associates and several other coal seam gas operators in Queensland, NSAI has revised its assessment of the Sapphire Block in ATP 814P.  Based on adjacent well and production data from the data sharing arrangement, together with Blue Energy’s Sapphire 1, 2 and 3 coreholes, NSAI has identified 39 petajoules of proved, probable and possible reserves within the Fort Cooper and Rangal Coal Measures in the Sapphire Block.  The recent assessment of reserves in the Sapphire Block is comprised of Possible reserves only.  (Source:  Blue Energy announcement, 21/07/2011).

Arrow Energy has secured full ownership of the coal seam gas-fired Braemar-2 power station near Dalby after buying ERM Power’s 25.1% stake.  The equal joint venture between Shell and PetroChina has been producing domestic gas for almost a decade and currently provides about 20% of Queensland’s gas supply.  (Source:  Energy News Premium, 04/07/2011).

Galilee Energy Ltd today announced that the operator of the Galilee Gas Project has completed the project’s first coal seam gas resource estimation.  The Contingent Resource estimation of 259 petajoules of 2C and 1,090 petajoules of 3C resources covers 450 sq km of ATP 529P held in 50/50 joint venture with the operator, AGL Energy Ltd.  (Source:  Galilee Energy announcement, 30/06/2011).

Bow Energy Ltd has obtained further proved and probable certified reserves in the Blackwater CSG field (ATP 1025P) increasing Bow’s total certified reserves to 238 petajoules of proved and probable and 2,752 petajoules of proved, probable and possible reserves.  Based on the data from pilot production wells adjacent to Bow’s Blackwater CSG field, along with Bow’s previous core hole data, MHA Petroleum Consultants Inc have certified within the Rangal coal measures of Bow’s Blackwater field (ATP 1025P) a further 89 petajoules of proved and probable and 13 petajoules of proved, probable and possible.  (Source:  Bow Energy Announcement, 19/07/2011).

Advent Energy could be sitting on a 18.4 BCF gas resource in the Weaber gas field in RL 1, Western Australia, according to an independent assessment carried out by Resource Investment Strategy Consultants.  As part of its plan to commercialise its gas assets in the Bonaparte Basin, Advent handed over all available well data and seismic to RISC, which calculated a 2C (best case) continent resource of 11.5 BCF.  The 18.4 BCF figure is the audited mean resource based on the data supplied to RISC.  (Source:  Energy News Premium, 24/06/2011)
.

Fluor Corp has landed a major three-year contract with Woodside Petroleum to provide engineering, procurement and construction services.  Under the contract, which includes the option of three one-year extensions, Fluor will carry out capital projects for all activities that may be undertaken through project lifecycles for Woodside’s production projects group.  (Source:  Energy News Premium, 29/06/2011).

Development News

ConocoPhillips and Origin Energy have provided further confidence with a final investment decision on the Australia Pacific liquefied natural gas project will be made soon with the award of a $US45 million ($A42 million) pipe coating contract.  Malaysia’s Wah Seong Corp secured the contract to provide coating for more than 700k of pipes.  The APLNG joint venture plans to make a final investment decision on the project mid-year.  (Source:  Energy News Premium, 05/07/2011).

Germany-based consultant GL Noble Denton has secured a contract to provide verification services for BG Group’s Queensland Curtis liquefied natural gas project.  Under the two-year contract, GL Noble will inspect the installation of the 540k underground pipeline between fields in the Surat Basin to the QCLNG plant on Curtis Island, near Gladstone.  (Source: Energy News Premium, 13/07/2011).

Inpex’s Ichthys liquefied natural gas project has been given the green light by Federal Environment Minister Tony Burke, removing one of the last hurdles for the project.  Burke said the approval for the 8.4 million tonne per annum plant, which includes strict environmental conditions, was made after a thorough assessment, including expert advice and consideration of public submissions.  Inpex must develop a greenhouse gas management strategy outlining the measures and offsets it proposes to reduce greenhouse gas emissions before production can commence.  It must also put in place measures to minimise waste and noise impacts, including noise generated from pile driving and blasting.  There will be conditions imposed on the dredging and spoil disposal to ensure it is managed to world’s best practice to protect marine life, including dolphins, dugongs and turtles.  With the help form an expert panel, the company must develop and implement a rigorous management plan including measures to prevent, detect and respond to impacts on marine life and to allow dredging methods and mitigation measures to be changed to adapt to new information.  Inpex will be required to permanently protect and manage around 20,000 hectares of vegetation as well as marine habitat for inshore dolphins, marine turtles and dugongs.  Ichthys is planned to deliver 8.4 million tonnes per annum of LNG and 1.6 million tonnes of liquefied petroleum gas per year as well as 100,000 bbls of condensate per day at peak.  First gas is expected in 2016.  (Source:  Energy News Premium, 28/06/2011).

PTTEP Australasia has joined the race to develop the world’s first floating liquefied natural gas facility, confirming it is planning a FLNG project in the Timor Sea that could beat Shell’s Prelude project to production.  In documents submitted to the Federal Department of Environment, PTTEP said it proposed to develop a FLNG facility that would produce gas from the Cash-Maple field in AC/RL 7, the southern group of fields in AC/L7 including the Montara field, and the Oliver field in AC/P33.  Front-end engineering and design work is expected to start in the fourth quarter and a final investment decision on the 2 million tonne per annum project is target for the fourth quarter of next year.   Following FID, the vessel is expected to be ready for start-up in late 2016.  (Source:  Energy News Premium, 06/07/2011).

Following its submission last week for environmental approval to develop a floating liquefied natural gas project in the Timor Sea, PTTEP Australasia has teamed up with SBM Offshore and Linde Group.  The three companies have signed a partnership agreement for the project, which would produce gas from the Cash-Maple field in AC/RL 7, the southern group of fields in AC/L 7 including the Montara field and the Oliver field in AC/P33.  Netherlands-based SBM Offshore will contribute its mooring system technology, marine expertise and be involved in the gas processing on the FLNG topsides.  Germany’s Linde Group will build the topside of the floating, production, storage and offloading units, based on its natural gas liquefaction technology.  A final investment decision is expected towards the end of 2012 with production target to start up in late 2016.  (Source:  Energy News Premium, 11/07/2011).

The Federal Government has expressed confidence in Shell’s Prelude floating liquefied natural gas project with the grant of major project facilitation.  Shell made a final investment decision on the project, which would take gas from the Prelude and Concerto fields in WA-371-P permit in May.  Prelude will be capable of producing 3.6 million tonnes of LNG per annum, 1.3 million tonnes of condensate per annum and 400,000 tonnes of LPG per annum.  (Source:  Energy News Premium, 11/07/2011).

FMC Technologies is the latest company to win a contract with Shell following its final investment decision on the Prelude floating liquefied natural gas project to supply subsea production and associated topside systems.  The companies also announced an aftermarket agreement whereby FMC Technologies Australia will perform installation and commissioning services for the project.  (Source:  Energy News Premium, 29/06/2011).

Air Products has become the latest supplier to win a contract for Shell’s floating liquefied natural gas facility, with the company to supply its proprietary coil wound LNG heat exchanger.  (Source:  Energy News Premium, 01/07/2011).

Western Australia industry had a big win with Chevron awarding the largest local contract, valued at US$2.3 billion (A$2.1 billion) for its Gorgon liquefied natural gas project.  The Australian operating unit of Kentz and CBI & I secured the mechanical, electrical and instrumentation contract that is expected to create more than 1,500 jobs over four years at Barrow Island and another 150 at the Australian Marine Complex at Henderson, south of Perth.  The joint venture will provide the structural, mechanical pipping, electrical, instrumentation and commissioning support for the construction of three LNG trains, including associated utilities and a domestic gas processing and compression giant.  (Source:  Energy News Premium, 15/07/2011).

AGC Industries has won a second Gorgon contract, this time tying up a $12 million deal to fabricate and supply the adjustable pipe support structures for the massive project.  The contract scope includes the fabrication, supply, testing, inspection, storage and delivery of adjustable pipe support structures weighing more than 900 tonnes.  (Source:  Energy News Premium, 30/06/2011).

Subsea 7 has become the latest company to secure a contract for Chevron’s Gorgon project, winning the US$80 million (A$75.4 million) subsea umbilicals contract.  The Norwegian seabed-to-surface engineering, construction and services provider will transport and install subsea umbilicals and structures from Barrow Island to the Gorgon and Jansz fields.  (Source:  Energy News Premium, 19/07/2011).

Woodside’s plans for the Browse liquefied natural gas project at James Price Point in Western Australia’s Kimberley region seem to be falling into place with a landmark native title agreement to be signed today.  The native title agreement will be signed by the WA Government, Woodside and traditional owners, allowing Woodside to proceed with initial works.  The agreement will include a $1.5 billion compensation package to be delivered over 30 years to the traditional owners and an initial commitment of 300 jobs for Aboriginal people during construction.  The agreement also guarantees traditional owners are involved in “all phases of the gas precinct development and precinct management”.  Source:  Energy News Premium, 30/06/2011).

Woodside advises that it has revised the expected cost and schedule of the Pluto LNG Project following its regular review of the progress of the project.  The first LNG cargo is now estimated for March 2012.  The revised estimate is attributable to slower than expected progress on the commissioning of the onshore gas plant, seven weeks for direct weather delays and an allowance for an increased contingency.  The revised estimate is expected to result in a A$900 million increase in cost to a total of A$14.9 billion.  (Source:  Oil Voice, 22/06/2011).

Apache Energy is pushing ahead with plans to make full use of the production capacity of the Ningaloo Vision floating production storage and offloading vessel through the development of the Coniston and Novara oil fields.  The company lodged an application for environmental approval of the development on the North West Shelf as a tie-back to the existing Van Gogh oil project late last week.  The Ningaloo Vision, which normally produces up to 40,000 bopd from Van Gogh, Apache’s first oil development with an FPSO, has a production capacity of up to 63,000 bopd.  That leaves just slightly more than enough capacity for the Coniston and Novara development, which is expected to produce an average 22,000 bopd during its first year of production.  Apache plans to develop the fields which span WA-35-L and WA-225-P by drilling six subsea production wells from the Coniston field and one subsea production well from the Novara field.  Drilling is scheduled to start in March next year and continue for about nine months to December 2012. The development is expected to have a production life of around 20 years.  (Source:  Energy News Premium, 22/06/2011).

Empire Oil & Gas has moved a step closer to commercialising its Gingin West and Red Gully gas fields in the Perth Basin, with a gas sales agreement expected within the next three months.  The company said it had signed a non-binding term sheet with Alcoa of Australia that provided a 90-day period to finalise a gas sales agreement for the supply of gas from the two fields in EP 389. The term sheet also includes a pre-payment for a portion of the gas sales, with the funds to be used to construction and commission the Red Gully gas and condensate plant, including condensate storage  tanks and road tanker load out along with the construction of the flow line from the plant to existing natural gas pipeline infrastructure.  The final design is dependent upon whether gas is transported in the Parmelia or Dampier to Bunbury National Gas pipelines, both 288km away.  The condensate will be sold to BP for its Kwinana refinery.  (Source:  Energy News Premium, 17/06/2011).

Partners in the Cuisinier oil field in the Cooper Basin, Queensland, are poised to enjoy greater production.  Bow Energy said both the Cuisinier 2 and Cuisinier 3 appraisal wells had produced oil during testing and would be placed on pump, with oil pumped to the Cuisinier 1 site.  Cuisinier 1 itself has been producing more than 350 bopd since it started production in May 2010.  (Source:  Energy News Premium, 04/07/2011)
.
 


Permit Updates and Changes

New South Wales

In the Gloucester Basin, PSPAPP 53 was withdrawn at the request of Pangaea Oil & Gas.

Geothermal

In the Gloucester Basin, EL 7350 expired on 10/06/2011
.


Northern Territory

In the Timor Basin, AC/P 33 is in the process of being renewed.

In the Vulcan Basin, AC/P 34 has been renewed to 10/07/2016.

In the Vulcan Basin, offshore release area AC 10-2 was granted as AC/P 53 to MEO Australia Ltd on 07/07/2011. Licence will expire on 06/07/2017. Work program is as follows -

Year 1: 825k 3D seismic reprocessing $0.3m
Year 2: 150k 2D seismic $0.3m
Year 3: geotechnical studies $0.25m
Year 4: geotechnical studies $0.25m
Year 5: 1 exploration well $25m
Year 6: geotechnical studies $0.25m

In the Vulcan Basin, AC/P 54 was granted to PTTEP Australasia (Ashmore Cartier) P/L on 07/07/2011. Licence will expire on 06/07/2017. Work program is as follows -

Guaranteed
- 300k 3D seismic survey, 1 exploration well, geotechnical studies $40.3m
Non-Guaranteed - 1 exploration well, 300k 3D seismic reprocessing, geotechnical studies $35.7m

In the Timor Basin, AC/RL 6 is in the process of being renewed.

In the Vulcan Basin, the conditions for the sale of Cue Energy Resources Ltd's 20% interest in AC/RL 7 to PTTEP Australia (Ashmore Cartier) P/L have been met. PTTEP now holds 100% interest in the permit.

In the Amadeus Basin, EP 106 has had its expiry date extended to 27/03/2014.

In the Beetaloo Basin, Hess Australia has made a payment of $US17.5 million ($A16.24 million) to Falcon Australia which may see Hess earn a 62.5% working interest in Beetaloo Basin permits EP 76, EP 98 and EP 117. Once regulatory approvals have been granted the companies can begin conducting an extensive seismic program over the agreement area.  On completion Hess may elect to acquire 62.5% interest in the permits.

In the Bonaparte Basin, EP 126 was granted to Territory Oil & Gas P/L 100% on 15/06/2011. Licence will expire on 14/06/2016.

In the McArthur Basin, EP 171 and EP 176 were granted to Armour Energy P/L on 29/06/2011. Licenses will expire on 28/06/2016. Competing applications EP(A) 186 and EP(A) 185 have been withdrawn.

In the Bonaparte Basin, the Eni Australia Ltd farm-in to NT/P 68 has been finalised. Eni now holds a 50% participant interest and is operator of the permit.
Furthermore, Petrofac Energy Development has elected not to exercise their option to acquire a 5% interest in NT/P 68 and the Tassie Shoal Project. The option expired 30/06/2011 leaving Meo Australia’s subsidiaries TSP Arafura Petroleum and Oz-Exoil each with 25% interest in the permit.

In the Bonaparte Basin, NT/RL 1 is in the process of being renewed.


Queensland

In the Eromanga Basin, ATP 545P and ATP 677P have been relinquished.

Tokyo Gas has acquired a 1.25% interest from the BG Group in a number of licenses:  ATP 621P (including production licences PL 261 and PL 262), ATP 632P FO (including production licences PL 201, PL 211 and PL 212), ATP 647P BG, ATP 767P, ATP 768P FO, ATP 795P (including production licences PL 311 and PL 312), ATP 852P (including production licences PL 299, PL 397, PL 398, PL 399, PL 400, PL 401, PL 402, PL462, PL 463, PL 464, PL 465, PL467 and PL 468), ATP 899P and ATP 965. Tokyo Gas will reimburse BG Group for 1.25% of costs incurred in respect of the tenements.

In the Maryborough Basin, ATP 674P and ATP 733P are pending grant after a Native Title Agreement was executed and Environmental Authority issued by the Queensland Government.

In the Surat Basin, ATP 687P was granted to Arrow Energy P/L on 07/06/2011.  The licence will expire on 30/06/2015.

In the Bowen Basin, Mitsui E&P Australia has executed a farm-in agreements to acquire 49% of Westside's 50% interests in ATP 688P and ATP 769P.  Mitsui will pay Westside approximately $11.5m (equivalent to 49% of Westside's acquisition and continuing exploration costs within the tenements to date).  Settlement is scheduled to occur following Queensland Ministerial approval of the change in tenement interests.  In addition, Westside and QGC have re-structured the joint venture arrangements covering ATP 688P and ATP 769P.  Westside has assumed full operatorship of ATP 688P as well as operatorship of part of ATP 769P (ATP 769P W in GPinfo).  The Central Block of ATP 769P is now held 100% by BNG (Surat) P/L.  BNG (Surat) continues as operator of the remaining portions of ATP 769P.

In the Surat/Bowen Basin, Kea Petroleum will have earned 50% of ATP 837P after the drilling of Hoadleys 1 and one other well.

In the Bowen Basin, ATP 854P has undergone a partial relinquishment and now covers 801 sq km.

In the Cooper Basin, Icon has transferred 40% in ATP 855P to Beach.  Beach will drill an unconventional well into the strata comprising the Roseneath, Epsilon and Murteree sequence and case and suspend the well suitable for fracture stimulation. Beach will fund Icon's share of the farmin operations at an estimated cost of $16m, with the exception of a $1.75m contribution to be made by Icon.  The cost of the fracture stimulation, completing and flow testing the well will be paid by the Joint Venture parties in proportion to their participating interests.  Beach will operate the permit.

In the Surat/Bowen Basin, Adelaide Energy has terminated its agreement with Red Sky Energy (through subsidiary Cydonia Resources) under which Red Sky could earn rights to gas in ATP 904.  In consideration for this termination, Red Sky will issue 15 million of its ordinary shares to Adelaide Energy with a 12 month escrow period.  Adelaide Energy now has an unencumbered 100% interest in ATP 904.

In the Surat Basin, production licence PL 279 was granted on 27/06/2011 and will expire on 26/06/2014.

In the Surat Basin, PL 4 was renewed as PL 314 and PL 5 was renewed as PL 315.  Both licences will expire on 26/06/2014.

In the Cooper Basin, PL 411 has had its application area varied and now covers 111 sq km.

In the Bowen Basin, PL 449 has had its application area varied and now covers 137 sq km.

In the Bowen Basin, Santos QNT P/L 50% and Australia Pacific LNG P/L 50% have applied for production licences PL 475 and PL 476 over 3.1 sq km and 37 sq km respectively.


Geothermal

In the Georgetown Basin, EPG 9 has been relinquished.

In the Eromanga Basin, Ergon Energy holds geothermal production licence GL 1.  The licence was granted on 01/09/2010 and will expire on 31/08/2015
.


South Australia

In the Otway Basin, EPP 34 expired on 24/06/2011. The Joint Venture has advised the permit will not be renewed.

In the Otway Basin, EPP 35 was surrendered with effect from 23/06/2011.

In the Duntroon Basin, offshore release area S10-1 has been granted as EPP 41 to Bight Petroleum Ltd on 07/07/2011. Licence will expire on 06/07/2017. Work program is as follows -

Guaranteed - 768K 3D seismic survey, bathymetry survey, geochemical sampling survey, 1 exploration well, geotechnical studies $63.625m
Non-Guaranteed – 1,969k 3D seismic survey, 2 exploration wells, geotechnical studies $156.2m

In the Duntroon Basin, offshore release area S10-2 has been granted as EPP 42 to Bight Petroleum Ltd on 07/07/2011. Licence will expire on 06/07/2017. Work program is as follows -

Guaranteed
- 235K 2D swath seismic survey, bathymetry survey, geochemical sampling survey, geotechnical studies $3.975m
Non-Guaranteed - 1 exploration well, 405k 2D swath seismic survey, geotechnical studies $49.9m

In the Cooper Basin, the Sales and Purchase agreement for the sale of interests in PEL 100 between Traditional Oil Exploration P/L and Victoria Oil Exploration (1977) P/L has been finalised. Victoria Oil now holds a 5% participating interest in the permit.

In the Eromanga Basin, Brandenburg Metals has deposited CAD$600,000 in escrow with Holloman to meet the second and third payments under the farm-out agreement of PEL 112 and PEL 444. Holloman expects the agreement with Brandenburg to be finalised shortly.

In the Otway Basin, Beach Energy Ltd has acquired 66.7% interest from Somerton Energy in PEL 186.

In the Cooper Basin, PEL 516 has had its expiry date extended to
02/11/2015.

In the Cooper Basin, PEL 96 has had its expiry date extended to 12/11/2014.

In the Eromanga Basin, PELA 575 is a new application
by Strike Energy Ltd.

In the Cooper Basin, PPL 57 and PPL 59 are in the process of being renewed.

Geothermal Permits

In the Otway Basin, GEL 212 has been renewed to 23/07/2016.

In the Adelaide Fold Basin, GEL 227 was surrendered on 03/06/2011 with effect from the 20/01/2011.

In the Pirie-Torrens Basin, GEL 230 has had its expiry date extended to 23/01/2012.

In the Cooper Basin, GEL 267 has been extended. GEL 276 and GEL 277 are now consolidated under GEL 267.

In the Cooper Basin, GEL 269 has been extended. GEL 270, GEL 271 and GEL 272 are now consolidated under GEL 269.

In the Cooper Basin, GEL 273 has been extended. GEL 274 and GEL 275 are now consolidated under GEL 273.

In the Gawler Craton Basin, approval has been received for the transfer of geothermal licenses GEL 294 and GEL 295 from Teck Australia P/L to Oz Minerals Carrapateena P/L. Oz Minerals now holds 100% interest in the permits. Licenses will expire 08/02/2015.

In the Cooper Basin, GEL 316 has been extended. GEL 323 and GEL 324 are now consolidated under GEL 316.

In the Cooper Basin, GEL 317 has been extended. GEL 318 and GEL 319 are now consolidated under GEL 317.

In the Cooper Basin, GEL 320 has been extended. GEL 322, GEL 390, GEL 391 and GEL 392 are now consolidated under GEL 320.

In the Cooper Basin, GEL 346, GEL 347 and GEL 348 have been surrendered with effect from 19/02/2011
.


Tasmania

Onshore Tasmania, Terra Tasmania Resources P/L have applied for EL 30/2011 over 4,953 sq km.



Victoria


In the Otway Basin, PEP 164 was cancelled on 30/06/2011.

Also in the Otway Basin, PEP 168 has had its expiry date extended to 06/06/2013.

In the Gippsland Basin, VIC/L 15, 16, 17 and 18 were renewed to 14/06/2032.

Also in the Gippsland Basin, VIC/P 57 is in the process of being renewed
.



Western Australia


In the Canning Basin, Oil Basins Ltd have reached an agreement with Backreef Oil P/L to become Unconventional Shale Gas (USG) operator in 5/07-8 EP upon grant of permit. Backreef will remain operator for conventional oil exploration. Furthermore, Oil Basins are seeking third party farm-in partners for CSG & USG rights.

In the Canning Basin, New Standard Energy Ltd has entered a non-binding Heads of Agreement with ConocoPhillips P/L to negotiate the potential for Conoco to farm-in to New Standard’s Goldwyer Project. Conoco will fund up to $US109.5 million ($A103 million) over four phases of exploration work including drilling, coring and evaluating wells. Furthermore, Conoco will make an upfront payment to New Standard of $A1 million for prior costs. In return, Conoco will have the right to earn up to 75% working interest in the project, reducing New Standard’s working interest to 25%. The permits subject to the proposed farm-in agreement include EP 443, EP 450, EP 451, EP 456 and application areas 1/09-0, 2/09-0 and 5/09-0.

In the Perth Basin, Empire Oil and Gas has signed a non-binding term sheet with Alcoa of Australia giving the parties 90 days to finalise a Gas Sales Agreement for the 2 gasfields; Gingin West and Red Gully located in EP 389.

In the Perth Basin, EP 430 has undergone a partial relinquishment and now covers a reduced area of 149 sq km.

In the Perth Basin, EP 432 has had its expiry date extended to 10/04/2012.

In the Canning Basin, EP 456 has undergone a partial relinquishment and now covers a reduced area of 12,928 sq km.

In the Perth Basin, EP 368 has had its expiry date extended to 09/06/2015.

In the Perth Basin, TP/15 has had its expiry
date extended to 26/11/2011.

In the Carnarvon Basin, Offshore release area W 10-20 is under offer.

Offshore areas W 10-21, W 10-22 and W 10-7 have been re-released. Closing date is 13/10/2011.

In the Bonaparte Basin, WA-279-P was surrendered on
08/07/2011.

In the Barrow Basin, WA-320-P is in the process of being renewed.

In the Carnarvon Basin, WA-353-P and WA-354-P were surrendered on 20/06/2011.

In the Carnarvon Basin, WA-356-P has had its expiry date extended to 19/12/2011.

In the Exmouth Basin, Diamond Resources Exmouth P/L has recently entered into a farm-in agreement with Shell Development (Australia) P/L for 25% interest in WA-384-P. Japan Oil, Gas and Metals National Corporation (JOGMEC) will provide equity capital covering up to 75% of the exploration expenditures incurred by Diamond Resources. The farm-in agreement is subject to regulatory approvals.

In the Barrow Basin, Offshore release area W 10-18 was granted as WA-455-P
to Chevron Barcoo P/L on 07/07/2011. Licence will expire on 06/07/2017. Work program is as follows -

Year 1: 600k 2D seismic $1.75m
Year 2: geotechnical studies $0.75m
Year 3: 1 exploration well $4m
Year 4: geotechnical studies $0.25m
Year 5: geotechnical studies $0.25m
Year 6: 1 exploration well $4m

In the Barrow Basin, Offshore release area W 10-19 was offered as WA-456-P to Chevron Barcoo P/L on 07/07/2011. Licence will expire on 06/07/2017. Work program is as follows -

Year 1: geotechnical studies $0.5m
Year 2: 1 exploration well $4m
Year 3: 1 exploration well $4m
Year 4: geotechnical studies $0.25m
Year 5: geotechnical studies $0.25m
Year 6: 1 exploration well $4m

In the Dampier Basin, W 10-14 was offered as WA-457-P to Flow Energy Ltd on 07/07/2011. Licence will expire on 06/07/2017. Work program is as follows -

Year 1: geotechnical studies, 403k 3D seismic reprocessing, 200k 2D seismic reprocessing $0.75m
Year 2: 322k 3D seismic $3.25m
Year 3: geotechnical studies $0.3m
Year 4: geotechnical studies $0.3m
Year 5: 1 exploration well $22m
Year 6: geotechnical studies $0.5m

In the Dampier Basin, W 10-10 was offered as WA-458-P to Flow Energy Ltd on 07/07/2011. Licence will expire on 06/07/2017. Work program is as follows -

Year 1: geotechnical studies, 355k 3D seismic reprocessing, 50k 2D seismic reprocessing $0.65m
Year 2: 242k 3D seismic $2.5m
Year 3: geotechnical studies $0.3m
Year 4: geotechnical studies $0.3m
Year 5: 1 exploration well $22m
Year 6: geotechnical studies $0.5m

In the Bonaparte Basin, WA-6-R is in the process of being renewed.


New Zealand

The Reinga and Northland Block Offers closed on 18 August 2010. Both Northland and Reinga Block Offers attracted interest from local and international companies but no permit awards were announced. The Northland locks included Block 1 N, Block 2 N, Block 3 N, Block 4 N, Block 5 N and Block 6 N and the Reinga Blocks included Block 7 R, Block 8 R, Block 9 R, Block 10 R, Block 11 R and Block 12 R.

In the Solander Basin, APP 53599 has undergone a partial relinquishment and now covers a reduced area of 4,335 sq km.

In the East Coast Basin, interests in PEP 38342 have been transferred from Discovery Geo Corporation to ECEV III Ltd. ECEV III is now the operator and holds 100% interest in the permit.

In the East Coast Basin, PEP 38346 is in the process of being renewed.

In the East Coast Basin, PEP 38349 has undergone a partial relinquishment and now covers a reduced area of 5,126 sq km.

In the Taranaki Basin, PEP 38485 was
surrendered on 15/07/2011.

In the Taranaki Basin, Westech Energy’s withdrawal from PEP 38491 has been finalised. NZOG Offshore Ltd now holds 100% of the permit.

In the Westland Basin, PEP 38521 was surrendered on 23/06/2011.

In the Taranaki Basin, PEP 38524 has undergone a partial relinquishment and now covers a reduced area of 1,847 sq km.

In the Taranaki Basin, Greymouth Petroleum Ltd has transferred their interests in PEP 38746 and PEP 38773 to subsidiary Petrochem Ltd. Furthermore, PEP 38773 is in the process of being renewed.

In the Waikato Basin, PEP 50348 was surrendered on
23/06/2011.

In the West Coast Basin, an extension of land has been granted for PEP 50279. The permit now covers 4,802 sq km.

In the West Coast Basin, PEP 50558 was surrendered on 23/06/2011.

In the Taranaki Basin, PEP 51149 has undergone a partial relinquishment and now covers a reduced area of 578 sq km.

In the Taranaki Basin, PEP 51321 was surrendered on 15/07/2011.

In the Taranaki Basin, Roc Oil has transferred their interest in PEP 52181 to subsidiary Roc Oil (Taranaki) P/L.

In the Taranaki Basin, PEP 53537 was granted to OMV New Zealand Ltd 65% and Octanex NZ Ltd 35% on 05/07/2011. Licence will expire on 04/07/2016. Work program is as follows -

18 months
: studies, 400k 2D seismic reprocessing, 100k 2D seismic, 18k 3D seismic
24 months: studies
36 months: 1 well
60 months: studies

In the Taranaki Basin, PML 38146 has had its expiry
date extended to 26/06/2031
.


Papua New Guinea

In the Papuan Basin, PPL 239 and PPL 240 have been renewed to 18/05/2015 over a reduced area of 1,711 sq km and 1,536 sq km respectively.

Also in the Papuan Basin, PPL 260 has been renewed to 13/03/2016 over a reduced area of 3,255 sq km
.


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© 2011 Pitney Bowes Business Insight