July 2012

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

Updated Fields and Pipelines
This month's release includes updated versions of the fields and pipeline data layers.  The update follows on from the data collection exercise we undertook earlier in the year as part of the annual Petroleum Permits Map production process ...

Industry Summary
Origin Energy Limited has announced that the initial proved and probable (2P) reserves have increased in the Kupe field located in PML 38146 in the offshore Taranaki Basin, New Zealand ...

Permit Updates and Changes
In the Surat/Bowen Basin, Petrel Energy Ltd has signed a conditional sales and purchase agreement with Comet Ridge Ltd whereby Comet will acquire Petrelís conventional and CSG interests in PEL 6, PEL 427 and PEL 428 for $750,000 cash ...

 


Monthly Update


Updated Fields and Pipelines

This month's release includes updated versions of the fields and pipeline data layers.  The update follows on from the data collection exercise we undertook earlier in the year as part of the annual Petroleum Permits Map production process.

The new fields and pipeline data will automatically replace your existing data when the monthly update is installed.

If you have any queries about the new data, or if you have pipeline routes or field outlines you would like us to incorporate into the GPinfo database, please contact Angela Willett on 02 6027 5208 or by email to angela.willett@pb.com.


Industry Summary

Company News

Origin Energy Limited has announced that the initial proved and probable (2P) reserves have increased in the Kupe field located in PML 38146 in the offshore Taranaki Basin, New Zealand. Initial 2P sales gas reserves increased 18.3% to 323 petajoules, LPG reserves increased 22.8% to 1,368 kilotonnes while condensate reserves dropped slightly, down 1.8% to 18.3 million barrels. The field is currently providing 10-15% of New Zealandís gas demand and more than 50% of the countryís LPG demand. (Source: Origin Energy announcement, 10/07/2012, Energy News Premium, 11/07/2012).

Nexus Energy has finalised key equity terms with joint venture partners Shell and Osaka Gas for the Crux project. The terms for the new deal are similar to those announced in January, Shell emerged with 80% of the Crux project and operatorship, Nexus with 17% and Osaka Gas with 3%. Nexus also retains a 12 month option to sell 2% of its participating interest in the Joint Venture to Shell for $75 million. The crucial difference between January and the deal finalised this week is the scope of the project. The January deal envisaged Crux gas and liquids sold to Shell for processing at the Prelude floating LNG facility. Under the arrangement, the goal is to develop a separate floating LNG facility at Crux for processing gas from the joint venture. Once the deal has been signed off, the JV will apply to have the existing production licence over AC/L9 converted into a retention lease. (Source: Nexus Energy announcement 04/07/2012, Energy News Premium, 04/07/2012 and 06/07/2012).

Australia Pacific LNG and Kansai Electric Power Company have signed a Sale and Purchase Agreement for the supply of approximately 1 million tonnes of LNG per year for 20 years. Under the terms of the agreement, Australia Pacific LNG will supply Kansai Electric with LNG from the LNG facility on Curtis Island, with deliveries anticipated to commence in 2016. The agreement is conditional on Australia Pacific LNG making a final investment decision on the second phase of the project. (Source: Origin Energy announcement, 29/06/2012).

In May, Woodside announced it would sell a 14.75% stake in the Browse Joint Venture to Japan Australia LNG (MIMI Browse). The equity offer was subject to pre-emption rights from Browse partners BHP Billiton Petroleum, BP Chevron and Shell. In an update this morning, Woodside said none of the partners elected to match the MIMI offer while the Foreign Investment Review Board also advised it did not object to the equity sale. Woodside is now working with the Browse JV partners to finalise the sale, making MIMI a party to the Browse joint ventures. (Source: Woodside Petroleum announcement, 03/07/2012)
.

Development News

Chevron Corporation, through its Australian subsidiaries, has signed additional binding agreements with Tokyo Electric Power Company (TEPCO) for LNG off-take and equity in the Chevron operated Wheatstone Project. Under the agreements, TEPCO will purchase an additional 0.4 million tons per annum of LNG from the Wheatstone project for up to 20 years. Additionally, TEPCO has teamed up with Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha to form PE Wheatstone (PEW), which will acquire from Chevron an 8% stake in the Wheatstone onshore liquefaction facilities, and 10% in the Wheatstone and Iago offshore gas fields. The joint venture PEW is owned 99.9% by Pan Pacific Energy, and 0.1% by TEPCO. Pan Pacific Energy is in turn held by Mitsubishi 39.7%, Nippon Yusen Kabushiki Kaisha 10.2%, TEPCO 8.02% and JOGMEC 42.08%. (Source: Chevron Corporation announcement, 18/06/2012, JOGMEC announcement, 18/06/2012).

Origin Energy and its joint venture partners have reached a final investment decision on a second train at the Australia Pacific LNG Project on Curtis Island off Gladstone in Queensland. Furthermore, the Subscription Agreement facilitating the acquisition by Sinopec Group of an additional 10% shareholding in Australia Pacific LNG has completed. Sinopecís shareholding in Australia Pacific LNG has now increased from 15% to 25%, ConocoPhillips and Originís shareholding has diluted from 42.5% to 37.5% each. Sinopecís additional equity provides APLNG with a net payment of US$1.4 billion for value determined as at January 1, 2011. The amount was adjusted for Sinopec's share of capital expended, resulting in Sinopec injecting a total of US$2.1 billion into APLNG. (Source: Origin Energy announcement, 04/07/2012 and 12/07/2012).

INPEX Corporation and Total SA have reached agreement for INPEX and other project group participants to transfer a 6% interest of the Ichthys LNG Project equity interest to Total taking its overall equity stake in Ichthys from 24% to 30%. The Ichthys LNG Project equity interest includes participating interest in production licenses WA-50-L and WA-51-L and exploration licence WA-285-P
.  (Source: INPEX Corporation announcement, 12/07/2012).

Discoveries

Santos Limited, operator of the ATP 752P joint venture, has had success at its Cuisinier 5 and Cuisinier 6 oil appraisal wells in the Queensland Cooper Basin. At Cuisinier 5, wire line logs confirmed the presence of a 12.8 metre gross oil column in the oil-bearing sands of the Murta Formation over the interval 1,632.0 to 1,644.8 metres with interpreted net oil pay of 2.0 metres. The well has been cased and suspended as a future oil producer. Cuisinier 6 has also been cased and suspended after intersecting a 6 metre gross oil column. Wire line logs confirmed the presence of a 5.6 metre gross oil column in the oil-bearing sands of the Murta Formation with interpreted net oil pay of 3.8 metres. (Source: Senex Energy announcement, 22/06/2012 and 04/07/2012).

Senex Energy Ltd has had continued success in the Cooper Basin with their Snatcher 5 appraisal well. The Snatcher 5 well in PEL 111 has been cased and suspended after intersecting a 4 metre gross oil column. Net oil pay of 2.4 metres was interpreted from wire line logs, with the well recovering 2.6 barrels of oil and minor oil-mud emulsion on testing. (Source: Senex Energy announcement, 04/07/2012).

Beach Energy and joint venture partner Cooper Energy have had success at Christies 7 well on the western flank of the Cooper Basin. Christies 7 penetrated two oil-bearing zones, hitting a 5.5 metre gross oil column in the mid-Namur sandstone and an additional 3 metre gross oil column in the Hutton sandstone. Christies 7 will be cased and suspended for completion as a mid-Namur oil producer, and will be linked to the Christies production facilities. (Source: Cooper Energy announcement, 05/07/2012).

 


Permit Updates and Changes

New South Wales

In the Surat/Bowen Basin, Petrel Energy Ltd has signed a conditional sales and purchase agreement with Comet Ridge Ltd whereby Comet will acquire Petrelís conventional and CSG interests in PEL 6, PEL 427 and PEL 428 for $750,000 cash.  The transaction is subject to completion of due diligence and gaining joint venture and NSW Government consents.

In the Clarence-Moreton Basin, the current farm-in agreements between Red Sky and Clarence Moreton Resources in PEL 457, PEL 478 and PEL 479 will be terminated and replaced with a tripartite farmin agreement between ERM Power, Red Sky and Clarence Moreton Resources.  ERM Power will initially be assigned 30% in PEL 457 and PEL 479 and 35% in PEL 478.  Total payments to the parties for the interests of up to $7.45m will be staged with payments to be made on achievement of key milestones.  ERM Power will drill a minimum of 2 wells and one optional well in each permit to increase its interests to 60% of PEL 457 and PEL 479 and 80% of PEL 478.  It will fund 80% of each well in PEL 457 and PEL 479 and 100% of each well in PEL 478.  ERM will subscribe for 150 million shares in Red Sky giving it a shareholding of 9.5%.   The transaction is conditional upon Red Sky shareholder and Board approval and further due diligence.  Furthermore, ERM Power will have the option over the next three years to purchase the remaining interests in any or all of these permits.

Also in the Clarence-Moreton Basin, ERM Gas has option to purchase 100% of  PELA 135, PSPAPP 47 and PSPAPP 48 at a cost of up to $800,000.

Acer Energy has applied for four new licences in the Barka and Murray Basins -

Licence             Basin               Area (sq km)

PELA 139
            Barka                9,911
PELA 140            Barka                7,035
PELA 141
            Murray               9,936
PELA 142            Murray               9,889


Northern Territory

In the Browse Basin, INPEX Corporation has acquired a 50% participating interest in and operatorship of AC/P 36 from Murphy Oil Corporation. Murphy holds the remaining 50%. The transaction is subject to the satisfaction of certain conditions including approval by the Australian government.

In the Vulcan Basin, MEO Australia transferred interests in permits AC/P 50, AC/P 51 and AC/P 53 to their subsidiary Vulcan Exploration P/L in May 2012.

In the Georgina Basin, PetroFrontier Corp has entered into a binding farm-in agreement with Statoil Australia AS whereby Statoil will farm into four exploration permits, EP 103, EP 104, EP 127 and EP 128, and two exploration permit applications, EP(A) 213 and EP(A) 252. Statoil will have the option to earn up to 65% of PetroFrontierís working interest in the permits in exchange for exploration program related payments and carried costs of up to US$210 million over three phases.

In the Amadeus Basin, application EP(A) 133 has undergone a partial relinquishment and now covers 8,520 sq km.

In the McArthur Basin, applications EP(A) 182 and EP(A) 244 have undergone partial relinquishments and now cover 10,513 sq km and 6,190 sq km respectively.

In the Money Shoal Basin, the area for application EP(A) 215 has been extended and now covers 11,662 sq km.

In the Money Shoal Basin, applications EP(A) 216 and EP(A) 224 have undergone partial relinquishments and now cover 8,650 sq km and 4,005 sq km respectively.

In the McArthur Basin, application EP(A) 217 has undergone a partial relinquishment and now covers 15,847 sq km.

In the Birrindudu Basin, the area for application EP(A) 228 has been extended and now covers 9,405 sq km.

In the McArthur Basin, the area for application EP(A) 239 has been extended and now covers 11,772 sq km.

In the Pine Creek Basin, the area for application EP(A) 255 has been extended and now covers 14,319 sq km.

In the Money Shoal Basin, EP(A) 303 is a new application by MBS Oil P/L.

In the Timor Basin, NT/RL 2 and NT/RL 4 are in the process of being renewed.


Queensland

In the Bowen Basin, Kogas has notified Blue Energy that it intends to exercise its farm-in option on ATP 814P.  This has initiated discussions, on a non-exclusive basis, on potential farm-in terms for the licence.

In the Surat/Bowen Basin, ATP 889P was granted to Pure Energy Resources on 15/06/2012.  The licence will expire on 14/06/2016.  Overlapping applications ATP 879P, ATP 880P, ATP 881P, ATP 882P, ATP 883PATP 884P, ATP 885P, ATP 886P, ATP 887P, ATP 888P, ATP 890P
and ATP 891P have been refused.

Exoma Energy has accepted the offer of ATP 1127P (Galilee Basin), ATP 1130P (Eromanga Basin), ATP 1137P (Eromanga Basin) and ATP 1150P (Eromanga Basin).  The grant of the licences is subject to Native Title Agreements being obtained within a two year period ending May 2014.

In the Cooper Basin, PL 55 is in the process of being renewed.

In the Surat Basin, PL 297 (over the Combabula field) and PL 404 (over the Reedy Creek field) were granted on 09/07/2012.  The licences will expire on 08/07/2042.  Subsequently, ATP 606P was reduced to exclude these licences and now covers a reduced area of 1,079 sq km.

Geothermal

In the Nagoorin Basin, EPG 17 is in the process of being renewed.


South Australia

In the Cooper Basin, a 6 month suspension period has been granted to the work program for PEL 100.  The licence is in suspension from 26/06/2012 to 25/12/2012 inclusive. The licence will expire 07/11/2015.

In the Cooper Basin, a 12 month suspension period has been granted to the work program for PEL 105. The licence is in suspension from 09/07/2012 to 08/07/2013 inclusive. The licence will expire 08/07/2013.

In the Eromanga Basin, a 6 month suspension period has been granted to the work program for PEL 444. The licence is in suspension for the period 11/07/2012 to 10/01/2013 inclusive. The licence will expire 11/01/2015.

In the Eromanga Basin, PEL 568 and PEL 569 have been granted to SAPEX Ltd on 15/06/2012. The licenses will expire 14/06/2017. The work program for both permits is as follows Ė

Year 1: G&G studies
Year 2: 250k 2D seismic, G&G studies
Year 3: 1 well, G&G studies
Year 4: 1 well, 250k 2D seismic
Year 5: 1 well

In the Murray Basin, PELA 610 is a new application by Dunstone.

In the Cooper Basin, PRLA 28 is a retention licence application by Santos Ltd.

Geothermal Permits

In the Eromanga Basin, GEL 264 and GEL 265 have been surrendered with effect from 05/06/2012.

In the Gawler Block, 12 month suspension periods have been granted to the work programs for GEL 294 and GEL 295. The licenses are in suspension for the period 01/07/2012 to 30/06/2013 inclusive. The licenses will expire 08/02/2016.

In the Cooper Basin, GEL 309 and GEL 310 have been surrendered with effect from 05/06/2012.

In the Cooper Basin, 12 month suspension periods have been granted to the work programs for GEL 316, GEL 317 and GEL 320. The licenses are in suspension for the period 01/06/2012 to 31/05/2013 inclusive. The licenses will expire 02/06/2015.

In the St Vincent Basin, GEL 573 has been granted to Torrens Energy (SA) P/L on 30/05/2012. The licence will expire 29/05/2017.

In the Cooper Basin, GRL 3, GRL 4, GRL 5, GRL 6, GRL 7, GRL 8, GRL 9, GRL 10, GRL 11 and GRL 12 have been renewed to 10/05/2017.



Tasmania

In the Bass Basin, T/41P expired on 19/06/2012 and now reverts to vacant acreage.



Victoria

Offshore in the Gippsland Basin, 3D Oil is at an advanced stage of farm-out negotiations in relation to VIC/P 57.

Onshore in the Otway Basin, PEP 167 has been renewed to 01/07/2017 over a reduced area of 407 sq km
.



Western Australia

In the Perth Basin, DR 11 is pending suspension.

In the Perth Basin, EP 408 is in the process of being renewed.

In the Carnarvon Basin, EP 444 is in the process of being surrendered.

In the Canning Basin, EP 463 has been surrendered.

On the Scadden Embayment, SPA 4/08-9 AO and SPA 5/08-9 AO have been withdrawn.

In the Perth Basin, STP-SPA-0013 is now under application as STP-EPA-0064.

In the Canning Basin, STP-PRA-0004 and STP-PRA-0005 are production licence applications by Buru Energy Ltd 50% and Diamond Resources (Fitzroy) P/L 50%.

In the Canning Basin, TP/24 has been surrendered.

In the Perth Basin, gazettal T 10-1 is under application as TTP-EPA-0002.

In the Barrow Basin, gazettal T 11-1 is under application as TTP-EPA-0003.

In the Barrow Basin, gazettal T 11-2 is under application as TTP-EPA-0001.

In the Dampier Basin, WA-254-P expired on 11/05/2012. The permit holders have been exempted from the Year 5 work requirement.

In the Browse Basin, WA-274-P has been renewed to 27/06/2017 over a reduced area and now covers 1,671 sq km. Work program is as follows -

Year 1: G&G studies $0.3m
Year 2: 1 well $30m
Year 3: G&G studies $0.3m
Year 4: 1 well $30m
Year 5: G&G studies $0.3m

In the Browse Basin, WA-281-P has been renewed to 31/05/2017 over a reduced area and now covers 1,168 sq km. Work program is as follows -

Year 1: G&G studies $0.3m
Year 2: 240k 3D seismic $3m
Year 3: G&G studies $0.3m
Year 4: 1 well $30m
Year 5: G&G studies $0.3m

In the Barrow Basin, WA-290-P is in the process of being renewed.

Octanex NL and Strata Resources P/L have transferred their interests in WA-323-P and WA-330-P to Octanex wholly owned subsidiary Winchester Resources NL.

In the Browse Basin, WA-343-P is in the process of being renewed.

In the Carnarvon Basin, a 6 month suspension has been granted to the Year 6 work program for WA-383-P. Year 6 has been extended from 14/08/2012 to 14/02/2013. The licence will expire 14/02/2013.

In the Carnarvon Basin, a 6 month suspension has been granted to the Year 3 work program for WA-427-P. Year 3 has been extended from 02/04/2012 to 02/10/2012. The licence will expire 02/10/2015.

Geothermal

In the Perth Basin, GEP 7 and GEP 9 have been surrendered.

Also in the Perth Basin, GEP 8 has undergone a partial relinquishment and now covers 73 sq km.


New Zealand

In the Waikato Basin, PEP 381204 has been renewed to 09/04/2017 over a reduced area and now covers 252 sq km. Work program is as follows -

6 months: studies
36 months: 300k 2D seismic, 300k 2D seismic reprocessing
48 months: studies
60 months: 75k 2D seismic reprocessing, 1 well
72 months: 75k 2D seismic reprocessing
84 months: studies
96 months: 1 well

In the Taranaki Basin, extension of land application PEP 38746 EX has undergone a partial relinquishment and now covers 5.4 sq km.

In the Taranaki Basin, PEP 38773 has been renewed to 06/07/2016 over a reduced area and now covers 35 sq km. Work program is as follows -

12 months: studies, 140k 2D seismic reprocessing
24 months: studies
42 months: 1 well
52 months: well testing
60 months: 13k 2D seismic reprocessing
84 months: 10k seismic
96 months: studies
102 months: 1 well
108 months: well testing

In the Great South Basin, PEP 50119 is in the process of being renewed.

In the Great South Basin, an extension of land application has been granted for PEP 50122. PEP 50122 now covers 15,740 sq km.

In the Southland Basin, PEP 53669 was granted to GE-CO Drilling Ltd on 10/07/2012. The licence will expire 09/07/2017. Work program is as follows -

6 months: studies
12 months: 1 well
24 months: studies, 1 well
36 months: studies
60 months: 3k 2D seismic, 1 well, studies


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