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July 2014


Industry Summary

Woodside Petroleum Ltd has signed a binding buy-back agreement with Shell Energy Holdings Australia Ltd to purchase 78.3 million of its shares from Shell for $2.7 billion ...

Permit Updates and Changes

In the Vulcan Basin, offers for the grant of AC 13-1 and AC 13-2 have been made to the applicants, acceptance is pending ...
 

Industry Summary

Company News

Woodside Petroleum Ltd has signed a binding buy-back agreement with Shell Energy Holdings Australia Ltd to purchase 78.3 million of its shares from Shell for $2.7 billion. In addition, Shell has entered an agreement to sell another 78.3 million shares through an underwritten sell down to institutional investors at $41.35 per share. The first sale of 73.8 million Woodside shares (representing 9.5% of issued share capital) completed 18/06/2014 with Shell’s holding in Woodside reducing to 13.6%. The buy-back portion of the sale is still to be completed; on completion Shell’s holding in Woodside will reduce to 4.5%.  (Source: Woodside announcement, 17/06/2017 & 18/06/2014).

Magnum Hunter Resources has increased its offer for Ambassador Oil & Gas to 1 Magnum Hunter share for every 23.6 Ambassador shares, representing a price of 38c per Ambassador share. In addition, Magnum Hunter is offering cash in place of its stock to shareholders. Magnum Hunter’s revised offer comes after Drillsearch announced its revised unconditional bid on 16/06/2014. The Ambassador board has left the ultimate decision on which offer is best to shareholders, using its target statement to set out the advantages and disadvantages of each. Drillsearch has extended the closing date of its offer to Ambassador shareholders to 21/07/2014. Rival bidder Magnum Hunter Resources’ offer is set to close on 23/07/2014.  
(Source: Magnum Hunter announcement, 17/06/2014, Ambassador Oil & Gas announcement, 01/07/2014 & 09/07/2014).

Strike Energy has built on a previous gas deal with Orora Ltd, adding a further 15 PJ of gas to the 30 PJ agreed with Orora. The gas sales agreement supersedes and replaces the agreement reached between the two companies earlier this year, taking on the same terms of supply over a 10 year period beginning in 2017. The supply will come from Strike’s Southern Cooper Basin gas project, which is also due for start-up in 2017. (Source: Strike Energy announcement, 23/06/2014).

The Nexus Energy administrators have been in negotiations with Seven Group Holdings in relation to a short term funding facility. Seven Group Holdings had put forth a $30 million loan through its subsidiary Network Investment Holdings to protect Nexus’ main assets. Nexus was placed into voluntary administration after shareholders struck down Seven’s takeover bid of 2c per share. The administration team applied to court for approval of the funding, as well as a limit to the liability of administrators. Further to this, the court has granted an extension of the convening period to 04/08/2014 to allow time for the sale of the company’s assets. It remains to be seen whether Seven will opt to buy Nexus’ main assets, these being the Longtom project in Bass Strait, the Crux gas field in the Browse Basin and the Echuca Shoals venture in the Timor Sea.  (Source: Nexus Energy announcement, 25/06/2014 & 30/06/2014).

Roc Oil has been approached by two additional potential suitors ahead of its proposed merger with Horizon Oil. At this time, information in relation to the identities of the third parties has not been released. Roc Oil has advised shareholders do not need to take any action, and there is no certainty that the proposals will develop into formal offers.  (Source: Horizon Oil announcement, 25/06/2014, Roc Oil announcement, 10/07/2014).

The suspension placed on Metgasco’s Rosella E01 well in northern New South Wales will remain in place, after a review by the NSW Office of Coal Seam Gas (OCSG). Metgasco appeared in the NSW Supreme Court on 04/07/2014 to request a judicial review of the decision made by the OCSG. The company said that while the court has agreed to Metgasco’s request to expedite the hearing, due to existing court commitments, the first available date for the hearing is likely to be no earlier than October.  (Source: Metgasco announcement, 07/07/2014).

Landbridge Group Co has declared its bid for WestSide Corporation unconditional and finalised its offer at 40c per WestSide share, pending the possible introduction of a rival bid. WestSide directors recommend that shareholders now accept the Landbridge offer, subject to no higher offer being received. The offer period has been extended to 22/07/2014.  (Source: WestSide Corporation announcement, 27/06/2014 & 04/07/2014).

Icon Energy has extended the completion of conditions for its gas sales agreement with Shantou SinoEnergy to 30/06/2015. The agreement covers the supply of 40 million tonnes of LNG over 20 years. Icon will have to deliver proved and probable reserves of at least 2 tcf of gas and obtain all required authorisations including for the development and operation of any feedstock fields and LNG facilities. In return, Shantou will have to obtain any necessary import approvals from Chinese government authorities to allow the construction and operation of the receiving facilities and the purchase and import by it of LNG under the LNG Sales Agreement. (Source: Icon Energy announcement, 30/06/2014).

Lakes Oil has signed a letter to supply Victorian gas to Simplot Australia. Simplot has sought out the deal with Lakes as part of its goal to reduce energy usage by 25% per tonne of production over a 10 year period. In addition to this, the company is looking to achieve a net carbon reduction from its revised energy usage. The supply is subject to the execution of a formal supply agreement, final commercialisation of the Wombat field as wells as a lifting of the state’s moratorium on drilling for gas onshore Victoria.  (Source: Lakes Oil announcement, 04/07/2014).

Agreement has been reached between New Zealand Oil & Gas and Genesis Energy over the payment of overriding royalties from the Kupe oil and gas field. The agreement will increase New Zealand Oil & Gas net profit after tax for the 2013-14 financial year by $5 million. The impact in the 2013-14 financial year will reflect payments relating to that financial year as well as for prior years. New Zealand Oil & Gas expects its future revenue from Kupe will increase by $1-2 million each year. The overriding royalty has been under negotiation for several years. Negotiations are continuing with another Kupe partner, Origin Energy.  (Source: New Zealand Oil & Gas announcement, 01/07/2014).

Developments

GDF Suez and Santos announced that the Bonaparte LNG Project will consider other potential development options in addition to the floating LNG concept to develop the Petrel, Tern, and Frigate
fields. These options will include a pipeline connection to Darwin. The partnership says that while the fields have material value and have been fully appraised, the future development using FLNG does not currently meet the companies’ commercial requirements despite being technically robust. As a result the proposed Bonaparte FLNG development will not be taken into front-end engineering and design stage at the moment.  (Source: Santos announcement, 19/06/2014).

Buru Energy has received its final approvals from the Western Australian Department of Mines and Petroleum to begin operations at its Laurel formation tight gas pilot exploration program in the Canning Basin. It comes after the Environment Minister upheld the Environmental Protection Authority’s conclusion that Buru Energy’s “small scale, limited duration ‘proof of concept’ exploration proposal is unlikely to have a significant effect on the environment” and that the DMP was the appropriate regulatory agency to assess and monitor the program. The DMP’s determination included approval of the operation and safety plans for the program as well as the company’s environmental plan, which was lodged with the regulatory body late last year. Buru plans to test tight gas flows using hydraulic fracturing stimulation at existing vertical exploration wells along its Laurel Formation prospect. The program will begin during the Kimberley dry season this year.  (Source: Buru Energy announcement, 23/06/2014).

Saipem’s pipelay work for the Ichthys field has begun, with its Semac 1 semi-submersible barge beginning its 164 km shallow water component of the work. The pipeline will deliver gas and some condensate from the Ichthys offshore central processing facility to the onshore facilities at Bladin Point near Darwin for further processing, with 18km of the shallow pipeline to run through Darwin Harbour. Furthermore, the construction phase of the project has passed the 50% completion mark, the Ichthys project has moved into its next phase, beginning the assembly of its LNG processing facilities at Bladin Point. (Source: Energy News Bulletin, 01/07/2014 & 02/07/2014).

The final module for the first LNG train at the Gorgon Project has arrived on Barrow Island, off Western Australia’s Pilbara coast. The arrival completes the delivery of 21 modules needed for the project’s first LNG processing train. The milestone follows the arrival of the first carbon dioxide compressor and domestic gas modules. The domestic gas module will condition and raise the pressure of the natural gas to a suitable level to be transported through the project’s 90 km pipeline from Barrow Island to the mainland.  (Source: Energy News Bulletin, 01/07/2014).

Bechtel has completed installation of the first LNG production train for the Gladstone LNG Facility on Curtis Island, Queensland. The $20 billion project will have two trains—the second due for completion late this year. Work is now under way to connect the individual parts of the first production train. They will then be tested as part of the overall system. The first train is made up of 82 modules, which were built at Bechtel’s module yard facility in the Philippines before being transported to Curtis Island.  (Source: Energy News Bulletin, 11/07/2014).

Discoveries

Woodside Petroleum’s Toro 1 exploration well in permit WA-430-P has intersected approximately 150 metres of gross natural gas and 65 metres net gas within the Mugaroo Formation target. Following drilling, wireline logging has been conducted and confirmed the presence of a gas column through pressure measurements and gas sampling. The well will be plugged and abandoned as planned. (Source: Woodside Petroleum announcement, 02/07/2014).
 


Permit Updates and Changes

Northern Territory

In the Vulcan Basin, offers for the grant of AC 13-1 and AC 13-2 have been made to the applicants, acceptance is pending.

In the Vulcan Basin, AC/P 32 has been renewed to 23/06/2019 over a reduced area of 336 sq km. Work program is as follows –

Year 1: well planning & approvals $1.2m
Year 2: 1 well $25
Year 3: geotechnical & engineering studies $0.5m
Year 4: geotechnical studies $0.25m
Year 5: 1 well $25m

In the Vulcan Basin, the year 4 work program for AC/P 4 has been extended by 3 months from 24/06/2014 to 23/09/2014. The licence has had its expiry date extended to 23/09/2015.

On the Ashmore Platform, AC/P 46 was relinquished on 16/06/2014.

In the Browse Basin, AC/P 48 was relinquished on 27/06/2014.

In the Vulcan Basin, Apache Northwest P/L has an option to elect to acquire a 70% interest and assume operatorship of AC/P 50 and AC/P 51. Apache has until 30/09/2014 to exercise the option.  If it does so, the option will commence upon the permit renewals scheduled for April 2015.

In the Vulcan Basin, AC 13-2 has been granted as AC/P 58 on 23/06/2014 to Murphy Australia Oil P/L 60% and Mitsui E&P Australia P/L 40%. The licence will expire on 22/06/2020. Work program is as follows –

Year 1: 776 sq km 3D seismic reprocessing, 1620 sq km tensor gravity, G&G $0.79m
Year 2: 776 sq km 3D PSTM seismic reprocessing, AVO studies, G&G $1.05m
Year 3: G&G $0.1m
Year 4: 776 sq km 3D PSTM seismic reprocessing, G&G $0.77m
Year 5: well plan, G&G $0.2m
Year 6: 1 well, studies $60.1m

In the Bonaparte and Petrel Sub Basins, NT 13-2 and NT 13-3 have not been re-released. The areas revert to vacant acreage.

In the Petrel Sub Basin, the year 5 work program for NT/P 80 has been extended by 12 months from 24/06/2014 to 23/06/2015. The licence has had its expiry date extended to 23/06/2016.

In the Beetaloo and Amadeus Basins, the Northern Territory Government has released two new onshore blocks EPNT 14-1 and EPNT 14-2.  Bids close on 12/12/2014.

In the Georgina Basin, Baraka Energy has reached a resolution with Statoil and Petrofrontier over a work program dispute for the EP 127 and EP 128 permits. Baraka’s claim that the 2014 work program and budget is invalid will be withdrawn. Similarly, Statoil and Petrofrontier have withdrawn their claim that Baraka is in default of meeting cash calls. The parties have agreed that Baraka has elected not to contribute to the 2014 work program and budget, and that Baraka’s 25% participating interest in each permit will be diluted accordingly. The extent of the dilution will be based on the final work program expenditures, at which time a further announcement will be made.


Queensland

In the Surat Basin, ATP 608 and ATP 608 Rookwood Block have undergone partial relinquishments and now cover reduced areas of 327 sq km and 208 sq km respectively.

In the Eromanga Basin, ATP 624 has been refused and now reverts to vacant acreage.

In the Galilee Basin, ATP 642P was granted to EOIL P/L 100% on 10/06/2014 over a reduced area of 7,834 sq km.  The licence will expire 30/06/2018.  Work program is as follows -

Year 1: G&G review
Year 2: gravity to identify basement faulting
Year 3: detailed gravity or 40 km seismic
Year 4: 1 exploration well (to pre-Permian basement)
(01/07/2014 to 30/06/2018)

In the Eromanga Basin, ATP 656 was granted to Blue Energy (Qld) P/L 100% on 17/06/2014.  The licence will expire on 30/06/2018.  Work program is as follows -

Year 1: G&G review
Year 2: 75 km seismic
Year 3: 1 exploration well to base of the Permian
Year 4: 25 km seismic
(01/07/2014 to 30/06/2018)

Also in the Eromanga Basin, ATP 657 was granted to Blue Energy (Qld) P/L 100% on 17/06/2014.  The licence will expire on 30/06/2018.  Work program is as follows -

Year 1: seismic reprocessing, G&G review
Year 2: 160 km seismic, select drilling location
Year 3: 2 wells to Hutton
Year 4: 2 wells to Hutton
(01/07/2014 to 30/06/2018)

In the Eromanga Basin, ATP 658 was granted to Blue Energy (Qld) P/L 100% on 17/06/2014.  The licence will expire on 30/06/2018.  Work program is as follows -

Year 1: G&G review including seismic re-interpretation
Year 2: 160 km seismic
Year 3: 2 wells (one to base of Permian)
Year 4: 2 wells
(01/07/2014 to 30/06/2018)

Also in the Eromanga Basin, ATP 660 was granted to Blue Energy (Qld) P/L 100% on 17/06/2014.  The licence will expire on 30/06/2018.  Work program is as follows -

Year 1: G&G review including seismic re-interpretation
Year 2: 100 km seismic
Year 3: 1 exploration well to base of the Permian
Year 4: 1 well
(01/07/2014 to 30/06/2018)

In the Eromanga Basin, ATP 662 was granted to EOIL P/L 100% on 10/06/2014. The licence will expire on 30/06/2018.  Work program is as follows -

Year 1: G&G review
Year 2: semi regional or detailed gravity
Year 3: 50 km seismic
Year 4: 1 exploration well (to pre-Permian basement)
(01/07/2014 to 30/06/2018)

In the Bowen Basin, ATP 814 has undergone a partial relinquishment and now covers a reduced area of 1,114 sq km.

In the Cooper Basin, Beach recently acquired an independent prospective resource report for ATP 855 and is in the process of planning a fracture stimulation program in Q1 2015 of Geoffrey 1, Hervey 1, Redland 1 and Etty 1.

In the Bowen Basin, ATP 1182 was granted to U&D Mining Industry (Australia) P/L 100% on 10/06/2014. The licence will expire on 30/06/2018.  Work program is as follows -

Year 1: G&G review, gravity, field work
Year 2: 2 gravity surveys, 5-15 km seismic, 1 well to 400m, well analysis
Year 3: G&G review, 6-24 km seismic, 3 wells to 500m, well analysis
Year 4: G&G review, 3 wells to 500m, well analysis
(01/07/2014 to 30/06/2018)

In the Surat Basin, ATP 1183 was granted to NAVGAS P/L 100% on 12/06/2014. The licence will expire on 30/06/2018.  Competing applications ATP 1184 and ATP 1185 have been refused.  Work program is as follows -

Year 1: data review and log analysis, seismic reprocessing, 100 km 2D seismic, 1 well to 1780m
Year 2: 1 well to 1800m
Year 3: 2 wells to 1480m and 1820m
Year 4: 2 wells to 1650m and 1700m
(01/07/2014 to 30/06/2014)

In the Surat Basin, PCA 137 has been withdrawn.

In the Bowen Basin, PCA 153 and PCA 154 were granted to Santos QNT PL 50% and Australia Pacific LNG P/L 50% on 26/06/2014.  The licences will expire 25/06/2029.

In the Surat Basin, PL 2 has undergone a partial relinquishment and now covers the following reduced areas:  PL 2 A - 42 sq km, PL 2 B - 46 sq km and PL 2 C - 36 sq km.


South Australia

In the Simpson and Eromanga Basins, the work programs for PEL 288 to PEL 290 and PEL 331 have been extended by 12 months from 02/06/2014 to 01/06/2015. The licenses have had their expiry dates extended to 30/05/2020.

In the Eromanga Basin, the work program for PEL 424 has been extended by 12 months from 09/07/2014 to 08/07/2015. The licence has had its expiry date extended to 08/06/2016.

In the Otway Basin, the PEL 629 work program has been extended by 6 months from 02/06/2014 to 01/12/2014. The licence has had its expiry date extended to 03/03/2019.

In the Cooper Basin, Senex Energy and Origin Energy have completed the two farm-in agreements announced 24/02/2014. Origin is earning 40% in PEL 637 by investing $65 million in Stage 1. Upon completion of Stage 2, Origin has the option to increase its working interest and become operator in PEL 637 by 10% via an additional $40 million. Furthermore, following the agreement a new permit, PEL 638, was excised from PEL 514. PEL 638 is administered by two joint ventures: PEL 638 Deeps joint venture and PEL 638 Shallows. Interests in PEL 638 Shallows are Stuart Petroleum Cooper Basin Oil P/L 80% and Planet Cooper Basin P/L 20%. Separately, Senex and Origin have reached agreement with Planet Gas in PEL 638 D Deeps joint venture for Senex and Origin to increase its interest by funding Planet’s share of the Stage 1 and Stage 2 work programs. Through Stage 1 Origin will earn 33.75% interest. Origin may increase its interest to 45% upon completion of Stage 2. Senex will hold a 45% interest by the end of Stage 2 and Planet Gas will reduce to 10%.

In the Eromanga Basin, PEL 88 has been renewed to 23/06/2019. Work program is 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

In the Cooper Basin, PEL 90 has been renewed to 23/06/2019. Work program is 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

In the Cooper Basin, PPL 60 and PPL 70 are being renewed.

In the Cooper Basin, Beach Energy Ltd 50% and Great Artesian Oil & Gas P/L 50% have applied for PPLA 257 over 10 sq km.

In the Cooper Basin, PRL 85 to PRL 104 have been granted to Beach Energy Ltd 75% operator and Cooper Energy Ltd 25% on 06/06/2014. The licenses will expire on 05/06/2019.

In the Cooper Basin, PRL 111 to PRL 115 have been granted to Santos Ltd 100% on 19/06/2014. The licenses will expire on 18/06/2019.

In the In the Cooper Basin, Stuart Petroleum Cooper Basin Oil P/L 80% operator and Planet Cooper Basin P/L 20% have applied for PRLA 118 to PRLA 128.

Geothermal

In the Adelaide Fold Belt, GEL 486 is being renewed.

Sequestration

In the Eromanga Basin, the work programs for GSEL 612 to GSEL 625 have been extended by 12 months from 02/06/2014 to 01/05/2015. The licenses have had their expiry dates extended to 30/05/2020.


Tasmania

Offshore in the Otway Basin, T/30P is in the process of being renewed.

Also in the Otway Basin, Beach Energy has signed a binding sales and purchase agreement to acquire 20% of T/49P from 3D Oil for $3 million in cash.


Victoria

Offshore in the Gippsland Basin, the Year 4 work program for VIC/P 47 has been suspended to 15/11/2014, and the term of the permit has been extended to 15/11/2015.  The Year 4 work program has been varied:  carry out integrated seismic, well stratigraphy and well depositional facies study within Gurnard Formation; reassess, redisplay and re-interpret seismic inversion study conducted by Schlumberger in 2011; reappraisal of the gas resource for the Judith field; conceptual field development and design; petrophysical evaluation of Whale 1 and Flathead 1; economic analysis of gas tie-in and production possibilities to Flathead/Whale and commercial viability studies.

Also in the Gippsland Basin, 3D Oil has executed binding agreements with Carnarvon Hibiscus P/L, Althea Corp Ltd and HiRex Petroleum Sdn Bhd in relation to funding restructuring and ownership of VIC/P57 and VIC/L31.  3D Oil will need to obtain shareholder approval and a meeting of shareholders is expected to be convened shortly.

In the Otway Basin, VIC/P 62 was renewed to 10/07/2019 over a reduced area of 2,478 sq km.  Work program is as follows -

Year 1: G&G studies $0.25m
Year 2: G&G studies $0.5m
Year 3: 1 exploration well $35m
Year 4: G&G, engineering & commercial studies, 40 sq km 3D seismic $4.5m
Year 5: 1 exploration well, technical review $35m

Onshore in the Otway Basin, a 12 month suspension and extension has been issued for PEP 150.  The permit expiry date has been extended to 25/08/2019.

Also in the Otway Basin, PEP 151 has had its expiry date extended to 15/05/2017.

In the Otway Basin, Lakes Oil NL has acquired 100% of PEP 167 and PEP 175 from Bass Strait Oil Co.  Lakes will be responsible for the ongoing work programs and will make a cash payment to Bass Strait Oil Co.  Transfers have been lodged and the acquisition is subject only to regulatory approvals.  In addition, the permits have had their expiry dates extended to 01/03/2019 and 17/04/2019 respectively.

In the Otway Basin, PEP 168 has had its expiry date extended to 06/06/2015.

Also in the Otway Basin, PEP 171 has had its expiry date extended to 25/08/2019.


Western Australia

In the Carnarvon Basin, Tap (Shelfal) P/L has transferred its 6.555% interest in WA-155-P (2) to subsidiary Tap (NCB) P/L.

In the Carnarvon Basin, location WA-202-P L was declared over Gungurru/Cherring on 10/06/2014.

In the Dampier Basin, the year 3 work program for WA-209-P is now - 198 sq km 3D seismic $4.86m.

In the Carnarvon Basin, the year 5 work program for WA-253-P has been extended by 18 months from 29/06/2014 to 29/12/2015. The licence has had its expiry date extended to 29/12/2015.

In the Browse Basin, PetroChina and ConocoPhillips have not exercised their pre-emption rights in relation to Karoon’s sale of its 40% in WA-315-P and WA-398-P to Origin. Subject to regulatory approval, transfer documentation for the permits will be completed by the relevant parties, with the sale expected to be finalised in the next 1-2 months.

In the Barrow Basin, Tap (Shelfal) P/L has transferred its interest in WA-320-P to subsidiary Tap (NCB) P/L.

In the Carnarvon Basin, the year 3 work program for WA-323-P has been extended by 9 months from 06/04/2014 to 05/01/2015. The licence has had its expiry date extended to 05/01/2017. Furthermore, the year 3 work program is now - 1 well, 270 sq km 3D seismic reprocessing, geotechnical studies $27m.

In the Dampier Basin, the year 3 work program for WA-330-P has been extended by 12 months from 06/04/2014 to 05/04/2015. The licence has had its expiry date extended to 05/04/2017. Furthermore, the year 3 work program is now - 150 sq km 3D seismic reprocessing, geotechnical studies $2.5m.

In the Barrow Basin, WA-334-P expired 06/07/2014. The area reverts to vacant acreage.

In the Carnarvon Basin, Japan Energy E&P Australia P/L has transferred its interest in WA-412-P to Finder No 9 P/L. Finder now holds 100%.

In the Petrel Sub Basin, WA-446-P was relinquished on 01/07/14.

In the Carnarvon Basin, the work program for WA-489-P is now -

Year 1: license Mary Rose 3D seismic, 1670 sq km 3D seismic reprocessing, G&G studies $4.88m
Year 2: Metocean data acquisition, G&G studies, 98 sq km 3D seismic reprocessing $2.02m
Year 3: G&G studies $0.5m
Year 4: G&G studies $0.5m
Year 5: 1 well, G&G studies $41m
Year 6: G&G studies $1m

In the Carnarvon Basin, AWE Australia P/L has transferred its interest in WA-497-P to AWE (Carnarvon) P/L.

In the Dampier Basin, Carnarvon Petroleum Ltd is in the process of transferring its interest in WA-501-P to Apache Energy.

In the Browse Basin, WA-504-P was granted on 13/06/2014 to Santos Browse P/L 60% Operator and INPEX Browse E&P P/L 40%. The licence will expire on 12/06/2020. Work program is as follows -

Year 1: licence 80 sq km 3D seismic $0.93m
Year 2: G&G studies $03.m
Year 3: G&G studies $0.3m
Year 4: G&G studies $0.3m
Year 5: airborne gravity & magnetic survey $1m
Year 6: G&G studies $0.3m

In the Browse Basin, WA-28-R, WA-29-R, WA-30-R, WA-31-R and WA-32-R are being renewed.

In the Canning Basin, the Coastal farm-out between Buru, Mitsubishi and Apache has been completed. Buru and Mitsubishi have transferred 25% each in EP 390, EP 471, EP 473 and EP 438 to Apache Onshore Holdings P/L.

In the Carnarvon Basin, EP 470 is being relinquished.

In the Canning Basin, Oil Basins and its joint venture partner Backreef Oil have failed to reach a resolution on ownership of the EP 487 permit in the Derby Block. Oil Basins is now pushing for immediate payment of cash calls associated with work in the permit, and has lodged an application with the Western Australian State Administrative Tribunal asking it to order the removal of Backreef from the permit title.

In the Perth Basin, EP 488 was granted to UIL Energy Ltd 100% on 28/05/2014. The licence will expire 27/05/2020. Work program is as follows -

Year 1: 66 km 2D seismic $0.6m
Year 2: 100 km 2D seismic $1m
Year 3: 1 well $5m
Year 4: 35 sq km 3D seismic $1m
Year 5: 1 well $5m
Year 6: geotechnical studies $0.5m

In the Perth Basin, EP 489 was granted to UIL Energy Ltd 100% on 28/05/2014. The licence will expire 27/05/2020. Work program is as follows –

Year 1: 35 km 2D seismic $0.35m
Year 2: 40 km 2D seismic $0.4m
Year 3: geotechnical studies $0.15m
Year 4: 1 well $5m
Year 5: 40 km 2D seismic $0.4m
Year 6: geotechnical studies $0.15m

In the Officer Basin, STP-EPA-1 and STP-EPA-2 have been refused.

In the Carnarvon Basin, TL/7 is being renewed.

In the Browse Basin, TR/5 is being renewed.

In the Browse Basin, R 2 is being renewed.


New Zealand

In the East Coast Basin, PEP 38346 and PEP 52694 were relinquished on 04/07/2014.

In the Taranaki Basin, PEP 38451 was renewed to 30/09/2021. Work program is as follows –

30 months: 250 km 2D seismic reprocessing, remote sensing study
33 months: 3100 km 2D seismic
54 months: 1150 km 2D seismic
60 months: 1500 km 2D seismic reprocessing
72 months: 1800 sq km 3D seismic
92 months: 1 well
108 months: 600sq km 3D seismic reprocessing
114 months: 1000 km 2D seismic
128 months: 1 well
180 months: 1 well

In the Taranaki Basin, Kea Oil & Gas Ltd has transferred its interest in PEP 52333 to Kea Offshore Taranaki Ltd.

In the Taranaki Basin, PEP 54827 expired 19/06/2014 and the area reverts to vacant acreage.

In the Taranaki Basin, PEP 54867 was relinquished on 30/06/2014.


Papua New Guinea

In the Papuan Basin, the Y1&2 well commitments for PPL 269 have been deferred to Y3, 4 & 5.  The approval of the work program variation by the PNG DPE satisfies one of the conditions of the sale agreement between New Guinea Energy (Kirkland Ltd) and Santos (Barracuda Ltd).

A renewal has been offered on PPL 287.  The licence is being renewed over a reduced area of 3,760 sq km. Santos will acquire 50% of the licence subject to regulatory approvals.

PPL 294 and PPL 299 are in the process of being renewed.

In the Cape Vogel Basin, PPL 303 expired on 24/06/2014 and now reverts to vacant acreage.

In the North New Guinea Basin, PPL 304 expired on 24/06/2014 and now reverts to vacant acreage.


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