July 2016 GPinfo Update


Data Update

 

The July 2016 data update is now available …

 

This month's update includes new versions of the Fields and Pipelines layers …

 

2016 Petroleum Permits Map & eBook

 

The 2016 editions of the Petroleum Permits of Australasia Map and Book were released at the APPEA Conference held in Brisbane last month and are now available for purchase …

 

Industry Summary

 

Australia Pacific LNG has confirmed its first LNG shipment to Kansai Electric Power Company has departed, bound for Japan. Under the sales and purchase agreement, which was signed in 2012

 

The Woodside Petroleum Ltd – Mitsui E&P Australia P/L joint venture has given final approval for the $1.9 billion Greater Enfield Project offshore Western Australia. Located in the Carnarvon Basin about …

 

Permit Updates and Changes

 

AC 14-1 was granted as AC/P 60 to Total E&P Holdings (Australia) P/L on 21/06/2016. The licence will expire on 20/06/2022. Work program Years 1-3: G&G studies, seismic planning, 700 sq km 3D seismic …

 

Production licence PL 418 over the Durham Ranch field was granted on 16/06/2016. The licence will expire on 15/06/2046. As a result, ATP 592 has undergone a partial relinquishment and now covers a reduced …

 

The July 2016 GPinfo data update is now available.
 



Fields & Pipelines

 

This month's update includes new versions of the Fields and Pipelines layers. Our thanks to those companies who supplied and assisted in the verification of updated data for display on the 2016 Petroleum Permits Map, and for giving their permission for its inclusion in GPinfo.

 

Petroleum Permits Map & eBook             

 

The 2016 editions of the Petroleum Permits of Australasia Map and Book were released at the APPEA Conference held in Brisbane last month and are now available for purchase.

 

 

 

This year for the first time the Permits Book is available in PDF format as an eBook, with updates issued quarterly at no extra cost.

 

Please click here to download an order form.

 

Industry Summary                                       

 

Company News

 

Australia Pacific LNG has confirmed its first LNG shipment to Kansai Electric Power Company has departed, bound for Japan. Under the sales and purchase agreement, which was signed in 2012, Kansai Electric will receive approximately 1 million tonnes of LNG each year for 20 years. APLNG has now sent 27 shipments of CSG as LNG into the global market since APLNG began in January, and Train 2 is expected to start production before the end of the year. (Source: Origin Energy announcement, 30/06/2016, Energy News Premium, 30/06/2016).

 

Eneabba Gas Ltd has extended the due date for satisfaction of conditions for completion of the agreement with UIL Energy Ltd to 22/07/2016. The extension allows for delays with the processing of the transfer of the Ocean Hill permit EP 495 to Eneabba, which is a precondition for completion of the sale agreement with UIL. (Source: Eneabba Gas announcement, 30/06/2016).

 

ExxonMobil Corp has made a superior offer for InterOil Corp outbidding Oil Search Ltd for the company’s large natural gas reserves in Papua New Guinea and the possibility to export the fuel from PNG. Exxon is offering a fixed price of $US45 per InterOil share paid in ExxonMobil shares and a contingent resource payment of US$0.90 per million cubic feet equivalent of Elk-Antelope 2C resource in excess of 6.2 tcf, subject to a cap of 10 tcf. InterOil has advised that it intends to make a change in its recommendation and enter into an arrangement agreement with ExxonMobil. Oil Search and Total now have at least three days to put a counter-offer to the InterOil board. (Source: Energy News Premium, 18/07/2016).

 

The liquidator of Linc Energy has finalised a contract to sell the majority of its assets to an unnamed buyer. Creditors voted to wind up Linc in May and sell its assets to recover debts of $320 million. Creditors also agreed to write off the value of a loan that Linc made to subsidiary SAPEX, the subsidiary that holds South Australian shale gas assets, that could see SAPEX sold off. (Source: Energy News Premium, 07/07/2016).

 

Transerv Energy has formed a strategic alliance with Norwest Energy to facilitate the farmout and drilling of the Xanadu prospect in TP/15. As part of the alliance, Transerv Energy will acquire 100 million shares for $200,000 in Norwest Energy at an issue price of $0.002 per share. Transerv will have the right to participate in farmout wells and earn a material interest in all the Perth Basin areas in which Norwest is a participant (TP/15, EP 368, EP 426, EP 413, L 14 and EP 492) on the successful completion of appropriate farmout arrangements. (Source: Transerv Energy announcement, 11/07/2016).

 

The Supreme Court has ruled in favour of Armour Energy ordering that the farm-out agreement with AEGP Australia P/L, a subsidiary of American Energy Partners, should be completed. Armour considered that all of the conditions precedent relating to the Northern Territory tenements had been satisfied and issued a notice to complete in January, but AEP failed to complete by 02/02/2016. Armour instituted proceedings in the court seeking an order that the farm-out agreement should be completed; a declaration that Armour used all reasonable endeavours to ensure that the relevant condition as to the assignment of all relevant native title agreements; or a declaration that Armour is entitled to terminate the farm-out agreement. If AEP complies with the order it needs to pay Armour $US13 million and subscribe for $A3.37 million worth of shares, around 16.8 million at 20c per share. (Source: Armour Energy announcement, 15/07/2016).

 

The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) has granted BP a request to delay its newest environmental plan submission on its twice-rejected plans for the planned Stromlo 1 well in the Great Australian Bight. NOPSEMA now expects the third iteration of the environmental plan to be lodged by 31/08/2016, at which time the assessment will recommence. (Source: Energy News Premium, 13/07/2016).

 


 

Developments

 

The Woodside Petroleum Ltd – Mitsui E&P Australia P/L joint venture has given final approval for the $1.9 billion Greater Enfield Project offshore Western Australia. Located in the Carnarvon Basin about 60 km off Exmouth, the project will involve development of the Laverda Canyon, Norton over Laverda, and Cimatti oil accumulations. The first two are in production licence WA-59-L, while Cimatti lies in WA-28-L. The oil reserves will be developed and produced via a 31 km subsea tie-back to the Ngujima-Yin floating production, storage and offloading vessel. The Greater Enfield Project requires development of six subsea production wells and six water-injection wells, supported by subsea multiphase booster pumps in the Laverda area and gas lift in the Cimatti area. Total 2P reserves in the three accumulations are thought to be 69 mmboe. First oil is scheduled for mid-2019. (Source: Woodside Petroleum announcement, 27/06/2016).

 

Origin Energy and its partners in the Australia Pacific LNG project, ConocoPhillips and Sinopec, are looking to expand Spring Gully, one of Queensland’s largest CSG fields. Origin has started the process to see the development of the Spring Gully South-West area within PL 418. Origin plans to drill 11 wells and link them to PL 195 and PL 204, areas where CSG production has been ongoing for more than a decade. Origin says the 11 wells will be drilled over nine months and are expected to operate for around 30 years. Petroleum activities are scheduled to start later this year, with gas production likely to commence by mid-2017. Commonwealth environment authorities are inviting public comments on whether the Spring Gully SW needs to be referred for a full review under federal environmental legislation, although existing activities for Spring Gully have been previously referred under the EPBC Act and determined to be not a controlled action, and Origin will be banking on more of the same. (Source: Energy News Premium, 24/06/2016).

 

Intertek has been awarded a contract to extend provision of quality assurance services into the operational phase of INPEX’s Ichthys LNG Project. Under the 3-year agreement, Intertek will continue to provide local and global inspection, expediting and auditing services to the Ichthys LNG Project throughout the remainder of construction activities, as well as during operation of the facilities and pipeline. When construction is complete, the Ichthys LNG Project will produce up to approximately 8.9 mmtpa of LNG and 1.6 mmtpa of LPG, as well as 100,000 bpd of condensate at peak. (Source: Energy News Bulletin, 29/06/2016).

 

Chevron Corp has said that production at the Gorgon Project on Barrow Island remains suspended. Production at the AUS$54 billion LNG facility initially stopped on 01/07/2016 due to a gas leak. Although the facility was still able to export its second ever cargo on 03/07/2016 via the Marib Spirit tanker, there have not been any other exports since. The next cargo was originally planned for export between the 9th and 11th of July via the Asia Excellence vessel. Nevertheless, this vessel is currently waiting approximately 100 km off of the Gorgon site, alongside another Gorgon project ship, the Asia Endeavour. (Source: Energy News Premium, 13/07/2016).

OneSubsea has been awarded an engineering, procurement and construction contract totaling approximately $300 million from Woodside Energy Ltd. OneSubsea will supply a subsea production system and a dual multiphase boosting system for the Greater Enfield Project, offshore northwest Australia. The scope of contract includes six horizontal SpoolTree subsea trees, six horizontal trees for the water injection system, six multiphase meters, a high-boost dual pump station with high-voltage motors, umbilical, topside, subsea controls and distribution, intervention and workover control systems, landing string, and installation and commissioning services. (Source: Energy News Bulletin, 18/07/2016).


 

Discoveries

 

The 30 day production testing of the Stairway Sandstone at Mereenie has proven that the formation can flow pipeline quality gas at commercial rates. Central Petroleum and partner Santos have just completed a production test of the reservoir in the Mereenie field, proving an average flow rate to surface of 1.5 mmcfd from the West Mereenie 15 well. The test recorded low nitrogen content of 2.6%, well below East Coast gas specifications. Central says the flow rate is highly encouraging given the well was not designed initially to optimise production from the Stairway Sandstone, and so higher rates may have been achieved if the well had been designed specifically for production from the zone. The Stairway Sandstone is not an existing producer in the field, and under the Mereenie reserves certification is classified as part of the 182 PJ of 2C contingent resources the joint venture holds. The company now hopes that it can convert the contingent resources to certified reserves for sale into east coast gas contracts via the Northern Gas Pipeline. (Source: Central Petroleum announcement, 27/06/2016).

 

During the past month the South Australian and South-west Queensland Cooper Basin joint ventures have drilled four wells, all of which have been cased and suspended as future gas producers

In the Tirrawarra-Gooranie field, Tirrawarra 92 and Tirrawarra 91, were cased and suspended as future producers following high side gas and oil pay outcomes. Tirrawarra 92 intersected a net 39m of gas in the Patchawarra Formation and a total of 36m of oil across the Patchawarra and Tirrawarra formations, while Tirrawarra 91 intersected 45m of net Patchawarra gas sands and 30m of oil sands across both formations. In Queensland, Dunadoo 1 and Coolah 3, were cased and suspended as future producers following identification of gas pay in the Toolachee Formation, which was in line with pre drill estimates. Dunadoo 1 encountered net gas pay of 15m within a 71m gross section while Coolah 3 encountered net gas pay of 16m within a 74m gross section. (Source: Beach Energy announcement, 06/07/2016).

 

Carnarvon Petroleum says that its Outtrim East 1 exploration well has been recorded as an oil discovery, opening up the potential of a new hub development for it and operator Quadrant Energy. While warning that it could take months to report on the final results of the well, Carnarvon boss Adrian Cook said that early interpretation of fluorescence data indicates the well has discovered the presence of hydrocarbons in the target interval. The joint venture elected not to complete the full suite of logging activities, believing sufficient information has been acquired. Some 91m of core has been recovered from the well and is being transported to shore for evaluation at laboratories in Perth, to help the partners determine the extent and quality of the net reservoir and estimate the oil-in-place and recoverable volumes in the Outtrim and Outtrim East structures. (Source: Carnarvon Petroleum announcement, 11/07/2016).

 

Transerv Energy and Alcoa have successfully completed re-testing operations of the Warro 4 well in the Perth Basin. Over the last week the gas flows from the C-Sand were maintained at rates between 0.7 and 0.95 mmcfd with associated water rates ranging from 950-1500 bwpd. As the well did not require a jet pump to maintain flow, in-well pressure and temperature logging was successfully carried out while the well was flowing to determine the nature and source of the reservoir fluids. Transerv and Alcoa said they had achieved all their objectives and the data would be analysed along with that from Warro 5 and Warro 6 to determine the appropriate next steps for tight gas project. (Source: Transerv Energy announcement, 12/07/2016).

 

 Permit Changes                                                                

 

Northern Territory

 

Bonaparte Basin

AC 14-1 was granted as AC/P 60 to Total E&P Holdings (Australia) P/L on 21/06/2016. The licence will expire on 20/06/2022. Work program is as follows –

Years 1-3: G&G studies, seismic planning, 700 sq km 3D seismic $8.7m
Year 4: G&G studies $0.5m
Year 5: G&G studies $1m
Year 6: 1 well $25m

 

The year 6 work program for NT/P 82 has been suspended by 18 months from 13/05/2016 to 12/11/2017.  The licence has had its expiry date extended to 12/11/2017. A change to the year 6 work program has also been approved -

Year 6: 1000 sq km 3D seismic, G&G $9m

McArthur Basin

EP 171 and EP 176 are being renewed.

Money Shoal Basin

NT/P 73 was relinquished on 29/06/2016.

Victoria Basin

Applications EP(A) 316 and EP(A) 317 were withdrawn on 27/06/2016.

Vulcan Sub Basin

MEO Australia Ltd has executed an agreement granting Rouge Rock P/L an option to acquire a 45% interest in AC/P 50 and AC/P 51 in exchange for undertaking and funding the remainder of the primary work program on both permits.

 

AC 15-1 was granted as AC/P 61 to Finder No 1 P/L on 23/06/2016. The licence will expire on 22/06/2022. Work program is as follows -

Years 1-3: 330 sq km 3D seismic reprocessing, G&G studies $0.5m
Year 4: 200 sq km reservoir characterisation data, G&G $0.175m
Year 5: G&G studies $0.075m
Year 6: 1 well $15m

Queensland

 

Bowen Basin

Production licence PL 418 over the Durham Ranch field was granted on 16/06/2016.  The licence will expire on 15/06/2046.  As a result, ATP 592 has undergone a partial relinquishment and now covers a reduced area of 1244 sq km.

Galilee Basin

ATP 1015 has undergone a partial relinquishment and now covers a reduced area of 2759 sq km.

Surat Basin

PL 70 is in the process of being renewed.

 

Bobwyns P/L's 1.25% ORR on PL 1009 and PL 1010 was acquired by QGC through the Deed of Assumption Overriding Royalty on 17/12/2013.

South Australia

 

Cooper Basin

The suspension of PEL 512 approved 25/02/2016 has temporarily ceased. The licence is now due to expire 05/10/2019.

 

PRL 105 – PRL 110, PRL 116 – PRL 117 and PRL 50 – PRL 84 have been suspended from 12/05/2016 to 11/05/2017. The licenses have had their expiry dates extended to 10/05/2020.

 

PRL 18 – PRL 128 have been suspended from 12/05/2016 to 11/05/2017. The licenses have had their expiry dates extended to 24/11/2020.

Tasmania

 

Otway Basin

T/30P has had Year 1-3 of the work program suspended for 12 months to 18/09/2019. 

Years 1-3: 530 sq km 3D seismic, geotechnical studies, including seismic mapping & interpretation and 1 exploration well

Victoria

 

Gippsland Basin

A suspension, extension and variation on VIC/P 70 was lodged with NOPTA on 29/06/2016.

 

VIC/L 9 and VIC/L 19 are in the process of being renewed.

Otway Basin

A suspension and extension on VIC/P 67 was lodged with NOPTA on 24/06/2016.

Western Australia

 

Barrow Sub Basin

JX Nippon O&G Exploration (Australia) P/L has agreed to transfer its 10% interest in WA-320-P to Quadrant Permits P/L.

Canning Basin

EP 449 was relinquished on 01/07/2016.

Carnarvon Basin

Applications STP-EPA-122 and TTP-EPA-5 have been withdrawn.

 

WA-14-R and WA-15-R are being renewed.

 

BP Exploration (Alpha) Ltd is selling its 12.5% interest in WA-22-R, WA-23-R, WA-24-R, WA-39-L and WA-40-L to Shell Australia P/L.

 

WA-253-P and WA-478-P are being relinquished.

 

WA-351-P expired on 27/06/2016. The area reverts to vacant acreage.

 

A suspension and extension was lodged for WA-497-P on 29/06/2016.

Dampier Basin

A suspension and extension was lodged for WA-452-P on 30/06/2016.

Perth Basin

Transerv Energy has a right to participate in farmout wells and earn a material interest in all the Perth Basin areas in which Norwest is a participant (TP/15, EP 368, EP 426, EP 413, L 14 and EP 492) on the successful completion of appropriate farmout arrangements.

 

EP 426 has been renewed to 20/06/2021 over a reduced area of 1163 sq km. Work program is as follows –

Year 1: G&G studies $0.2m
Year 2: 100 km 2D seismic $1m
Year 3: seismic interpretation, G&G studies, seismic processing $0.2m
Year 4: 1 well $2m
Year 5: G&G studies $0.2m

 

Origin Energy Developments P/L has transferred its interest in L 14 to Origin Energy Resources Ltd.

 

Application STP-EPA-123 has been withdrawn.

 

Triangle Energy has completed the acquisition of AWE’s 57.5% participating interest in the Cliff Head oil field WA-31-L, through the acquisition of 100% of the shares of AWE subsidiaries AWE (Offshore PB) P/L and AWE Oil (Western Australia) P/L.

Petrel Sub Basin

MEO Australia Ltd has reached agreement to assign its 50% interest in WA-454-P to Origin Energy Resources Ltd.

Roebuck Basin

Suspension and extensions were lodged for WA-435-P, WA-436-P, WA-437-P and WA-438 on 24/06/2016.

Rowley Sub Basin

A suspension and extension was lodged for WA-479-P on 06/07/2016.

New Zealand

 

Taranaki Basin

PEP 53374 has been renewed to 08/03/2024. Work program is as follows –

30 months: seismic interpretation report
39 months: 200 sq km 3D seismic
48 months: process acquired seismic
60 months: process seismic to PSDM
72 months: interpret acquired seismic
84 months: 1 well
108 months: 1 well
138 months: 1 well

 

PMP 38156 has been renewed to 25/07/2027.

 

Contact Energy has applied for an extension of land over sequestration licence PMP 52278.

Waikato Basin

PEP 381204 was relinquished on the 24/06/2016.

Papua New Guinea

 

North New Guinea Basin

PPL 549 was granted to Rawson Resources on 27/05/2016.  The licence will expire on 26/05/2022.

Papuan Basin

Oil Search and Total have signed a MOR. Oil Search will sell down 60% of the PRL 15 interests acquired from InterOil and 62% of InterOil’s exploration assets to Total.  The deal is subject to closing the InterOil acquisition. Total’s acquisition of equity will be on the same terms as Oil Search’s proposed acquisition of InterOil.  Following completion of the sell-down process, Oil Search and Total will share, on a pro-rata basis, all costs and liabilities in respect of acquiring InterOil as well as any future Contingent Value Rights payable to InterOil shareholders, at or above a 2C resource of 6.5 TCF equivalent for Elk-Antelope. After paying for the additional equity in PRL 15, and equity in InterOil’s exploration assets, Total will also pay Oil Search a further cash amount of US$141.6 million on 01/07/2017 and US$230 million at FID for the Papua LNG Project.

 

On 30/06/2016, Cott Oil & Gas sold Cott Oil & Gas (PNG) Ltd to Twinza Oil.  Cott Oil & Gas (PNG) Ltd holds a 40% interest in PRL 38.  Consideration for the sale was A$8 million. The second instalment of A$1.94 million was made on 30/06/2016 and effected the sale. The third and final payment of A$4 million is due to be paid on 31/12/2016.

 

                                                                                                                                   

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