June 2011

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

Updated Fields and Pipelines
The June update includes new versions of the fields and pipeline layers ...

Industry Summary
Marathon Oil Corp announced today that its Board of Directors has approved the spin-off of its downstream business through the distribution of shares of Marathon Petroleum Corp to holders of Marathon Oil common stock ...

Permit Updates and Changes
In the Sydney Basin, PEL 2 is in the process of being renewed ...
 

Monthly Update

The June 2011 data update is now available.

Data Change

A change has been made to the GPinfo data this month -

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.

 


Updated Fields and Pipelines

The June update includes freshened versions of the fields and pipeline 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 pipelines 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 any pipeline routes or field outlines you would like us to incorporate into the GPinfo database, please contact Angela Willett on 02 4572 1083 or by email to
angela.willett@pb.com.

 


Industry Summary

Company News

Marathon Oil Corp
announced today that its Board of Directors has approved the spin-off of its downstream business through the distribution of shares of Marathon Petroleum Corp to holders of Marathon Oil common stock.  The distribution of MPC shares is expected to occur on 30/06/2011, with Marathon Oil shareholders receiving one share of MPC common stock for every two shares of Marathon Oil common stock held at the close of business on 27/06/2011.  Following the distribution of MPC common stock, MPC will be an independent, publicly traded company and Marathon Oil will retain no ownership interest.  (Source:  Marathon Oil announcement, 25/05/2011).

Further to GB Energy Limited’s announcement dated 08/06/2011 and GB Energy’s announcement yesterday, GB Energy provides the following update.  As the prospectus offer did not achieve minimum subscription, one of the conditions precedent under the share sale agreement with Cooper Energy Ltd to acquire all the shares in Worrior (PPL 207) P/L has not been met.  Cooper Energy has today given GB Energy notice that the Share Sale Agreement is terminated.  As a result, GB Energy will not be issuing securities to Cooper Energy and the following assets will not be acquired under the Share Sale Agreement:  30% in PPL 207, 25% in PEL 90, 30% in PEL 93.  (Source:  GB Energy announcement, 10/06/2011).

GB Energy advises that it has received from Cooper Energy Ltd a notice terminating the following farmouts due to the relevant conditions precedent of each farmout not being satisfied:  PEL 100 (9.165%), PEL 110 (10%) and PEL 495 (20%).   (Source:  GB Energy announcement, 10/06/2011).

Westside Corp and QGC have restructured the joint venture arrangements covering their coal seam gas exploration tenements ATP 688P and ATP 769P.  The Central Area within ATP 769P will become 100% owned by QGC, leaving the balance of the tenement within the existing joint operating agreements.   QGC will retain its 50% in ATP 688P and a 50% interest in joint operating area of ATP 769P.  The restructure also heightens the potential for Mitsui E&P Australia to acquire 49% of Westside’s 50% joint venture interests in the two tenements.  Westside will also assume operatorship over a significantly larger proportion of ATP 769P.  (Source:  Westside announcement, 09/06/2011).

Bow Energy Ltd has certified the first reserves in Norwich Park (ATP 1031P) increasing Bow’s total reserves to 149 petajoules of proved and probable, 2,739 petajoules of proved, probable and possible and 2,528 petajoules of contingent resources.  As previously announced, Bow has reached an agreement to share exploration and production data with a number of CSG companies operating in the Bowen Basin.  This has allowed data on adjacent exploration permits and petroleum leases to be extrapolated across permit and/or lease boundaries.  (Source:  Bow Energy announcement, 09/06/2011).

Development News

AusGroup has secured a $50 million fabrication contract for Chevron’s Gorgon liquefied natural gas project.  Under the contract, AusGroup subsidiary AGC Industries will manufacture 8,200 pipe spools of various diameters, weighing about 7,500 tonnes for the Gorgon project.  (Source:  EnergyNewsPremium, 24/05/2011).

KCA Deutag has marked its entry in Australia, selected as one of the two drilling contractors to carry out front-end engineering and design work for a modular platform drilling rig for Woodside Petroleum’s Browse liquefied natural gas project.  FEED work for the 3,000 horsepower MPDR, which can be transferred between dry tree units and be capable of drilling large bore gas wells up to 9,000m, has already begun and is expected to take six months to complete.  (Source:  EnergyNewsPremium, 08/06/2011).

Santos today announced that gas production had commenced from the Halyard 1 well, located in the Greater East Spar development area offshore Western Australia. Halyard gas will be produced via the East Spar pipeline and processed through the Varanus Island gas plant, which also processes Santos’ gas from the John Brookes field.  (Source:  Santos Ltd announcement, 02/06/2011).

Inpex has secured major project facilitation status and pipeline licences for its Ichthys liquefied natural gas project, 200k off the coast of Western Australia. The project has yet to receive the environmental green light from the federal government.  Ichthys is planned to deliver 8.4 million tonnes 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. (Source:  EnergyNewsPremium, 01/06/2011).

Shell has made its final investment decision for the Prelude floating liquefied natural gas project off Australia’s northwest.  The project, which had already received environmental approval from Federal Environment Minister Tony Burke in November last year, takes gas from the Prelude and Concerto fields in WA-371-P.  While both fields, with total estimated reserves of 3 TCF of gas and about 120 mmbbls of condensate, were previously considered to be too small for a standalone development, FLNG technology has allowed Shell to proceed with a development.  The development will be capable of producing 3.6 million tonnes of LNG per annum, 1.3 million tonnes per annum of condensate and 400,000 tonnes per annum of liquefied petroleum gas.  (Source:  EnergyNewsPremium, 20/05/2011).

Shell has wasted no time in pushing ahead with its commitment for the Prelude floating liquefied natural gas project, giving a Technip Samsung Consortium the all clear to proceed with the construction of the FLNG vessel.  TSC will provide engineering, procurement, construction and installation of what will be the world’s largest floating offshore facility which will be deployed at Shell’s Prelude gas field, 200k off the coast of Western Australia.  (Source:  EnergyNewsPremium, 31/05/2011).

Texas-based services giant KBR has secured a contract to carry out engineering design services for three coal seam gas pipelines that will carry CSG from gas fields in central Queensland to Curtis Island.  The company will carry out the work for the McConnell Dowell and Consolidated Contractors Company joint venture for BG group’s Queensland Curtis LNG project and Origin Energy and ConocoPhillips' Australia Pacific LNG project.  For the QCLNG project, KBR will design a pipeline from central Queensland to the coast that consists of more than 580k of pipeline.  The second and third pipelines will be designed for both projects and consist of a 42 inch diameter high pressure transmission pipeline from the main line valve in the Queensland mainland across the Narrows to the Curtis Island delivery station.  KBR said the shared design for the Narrows pipelines was the result of an agreement between QCLNG and APLNG. 
(Source:  EnergyNewsPremium, 02/06/2011).

Discoveries

Transerv is pleased to advise that the latest drilling results from the Warro onshore gas project in WA have confirmed the field’s significant potential, with the intersection of high-quality tight gas sands in the reservoir section from 3,750m to the 4,137m target depth.  The logs from the Warro 4 well have also confirmed the continuation and strong correlation of the reservoir section and sand zones with the three previous Warro wells.  The planned reservoir stimulation across the two primary sandstone intervals in Warro 4 is currently expected to take place in July.  (Source:  Transerv Energy announcement, 19/05/2011).
 


Permit Updates and Changes

New South Wales

In the Sydney Basin, PEL 2 is in the process of being renewed.

In the Surat Bowen Basin, PEL 427 is in the process of being renewed.

In the Clarence Basin, Red Sky's option to earn an additional 40% in PEL 457 and PEL 479 has lapsed. Negotiations are continuing on a revised farm-in.

In the Sydney Basin, PEL 458 is in the process of being renewed.

In the Gunnedah Basin, Norwest Hydrocarbons’ renewal application for PEL 467 was withdrawn on 12/05/2011 and the licence has now expired.

In the Darling Basin, PEL 471 is in the process of being renewed.

In the Gunnedah Basin, PEL 480, PEL 481 and PEL 482 were cancelled on 12/05/2011 at the request of holder, Surat Resources.

In the Eromanga and Darling Basins, Norwest Hydrocarbons withdrew its applications for PELA 87, PELA 90, PELA 91 and PELA 94 on 12/05/2011.

In the Eromanga Basin, Cydonia Resources withdrew its applications for PELA 117, PELA 118, PELA 119, PELA 120, PELA 121 and PELA 122 on 12/05/2011.


Northern Territory

In the Vulcan Basin, AC/RL 1 is in the process of being renewed.

In the Daly Basin, EP(A) 218
is a new application by Arafura Oil.

In the Pedirka Basin, EP 97 has been renewed to 22/05/2016.

In the Petrel Sub Basin, offshore release area NT 10-1 closed 12/05/2011 and is under consideration.

In the Bonaparte Basin, Santos will not be selling their 40% interest in NT/P 48 to Magellan Petroleum Australia Ltd as the conditions of the deal have not been satisfied by the 31/05/2011 deadline. Santos will keep their 40% interest in the permit and will remain the operator.

In the Bonaparte Basin, MEO Australia Ltd has entered a binding agreement with Eni Australia Ltd to acquire interests in NT/P 68. Eni will earn 50% in the Heron discovery by funding two wells and has the option to withdraw from the agreement within 60 days of the first well being drilled. Furthermore, Eni has the option to earn 50% in the Blackwood gas discovery by funding 500 sq km of 3D seismic and drilling one well.  Eni can earn an additional 25% interest by funding MEO’s share of the work program needed to reach a final investment decision in either Heron or Blackwood. The agreement is subject to regulatory approvals.


Queensland

In the Eromanga Basin, Harlow Australia was granted ATP 635P on 12/05/2011.  The licence will expire on 31/10/2021.

In the Bowen Basin, ATP 655P has been renewed to 31/10/2011.

In the Surat Basin, exploration licence application ATP 687P has been varied and now covers a reduced area of 2,102 sq km.

Also in the Surat Basin, ATP 747P was granted on 23/05/2011 over a reduced area of 2,477 sq km.  The licence will expire on 31/05/2015.

In the Surat Basin, ATP 823P was relinquished and now reverts to vacant acreage.

In the Surat-Bowen Basin, Kea Petroleum have committed to Hoadleys 1 due to be drilled in ATP 837P in early July.  On completion of the well, Kea Petroleum will have earned 50% in the licence.

In the Eromanga Basin, PL 50 and PL 51 are in the process of being renewed.

In the Surat Basin, PL 56 was renewed to 29/01/2013.

In the Bowen Basin, PL 67 is in the process of being renewed.

In the Surat Basin, PL 70 is in the process of being renewed.

In the Surat Basin, Linc Energy has withdrawn its production licence applications PL 283 and PL 285.

In the Surat Basin, the Australia Pacific LNG P/L consortium has applied for production licences PL 470 and PL 471 over the Horse Creek field
.

Also in the Surat Basin, Australian CBM P/L has applied for production licence PL 472 over the Avon Downs field.

In the Bowen Basin, Xstrata Coal Queensland has applied for PL 473 over 133 sq km.

In the Surat Basin, the QGC P/L-led consortium has applied for production licence PL 474 over the Clunie field.


South Australia

In the Cooper Basin, PEL 104 has had its expiry date extended to 03/04/2015.

Also in the Cooper Basin, PEL 111 has had its expiry date extended to 13/07/2012.

In the Eromanga Basin, Brandenburg Metals Corp has been announced as the farm-in partner for Holloman Energy’s PEL 112 and PEL 444 permits. Brandenburg can earn a 44% working interest in the permits by funding exploration and development expenditures. The farm-in is subject to various approvals and the execution of a definitive agreement.

In the Arckaringa Basin, PEL 124
has had its expiry date extended to 02/10/2014.

In the Otway Basin, PEL 127 has had its expiry date extended to 14/09/2011.

In the Otway Basin, PEL 154 and PEL 155 have had their expiry date extended to 31/12/2011.

Also in the Otway Basin, PEL 187 was surrendered on 24/05/2011.

In the Eromanga Basin, PEL 424 and PEL 87 have had their expiry date extended to 08/07/2014.

In the Cooper Basin, PPLA 239 is a new application by Beach Energy Ltd 50% and Great Artesian Oil & Gas P/L 50%.

Geothermal Permits

In the Otway Basin, GEL 170 has had its expiry
date extended to 23/07/2016.

In the Cooper Basin, GEL 267, GEL 269, GEL 270, GEL 271, GEL 272, GEL 273, GEL 274, GEL 275, GEL 276 and GEL 277 have had their expiry dates extended to 23/05/2014.

In the Eromanga Basin, GEL 296, GEL 304, GEL 305, GEL 306, GEL 307 and GEL 350 were surrendered with effect from 06/03/2011.

GEL 316, GEL 317, GEL 318, GEL 319, GEL 320, GEL 322, GEL 323, GEL 324, GEL 390, GEL 391 and GEL 392 have had their expiry dates extended to 02/06/2014.

In the Gawler Craton Basin, GEL 563, GEL 564 and GEL 565 have been granted to Roxby Geothermal P/L on 18/05/2011 and will expire on 17/05/2016.


Tasmania

Onshore Tasmania, SEL 58/2008 has undergone a partial relinquishment and now covers 1,298 sq km.



Victoria


In the Otway Basin, VIC/P 43 has been renewed to 30/05/2016 over a reduced area of 787 sq km.

In the Gippsland Basin, VIC/P 45 expired on 15/05/2011 and now reverts to vacant acreage.



Western Australia


In the Yilgarn Block Basin, DR 13 was surrendered on 10/05/2011.

In the Perth Basin, EP 381 is in the process of being renewed.

In the
Merlinleigh Basin, the application to renew EP 406 has been refused.

In the Perth Basin,
EP 413 has had its expiry date extended to 01/02/2012.

In the Carnarvon Basin, EP 441 is in the process of being renewed.

In the Canning Basin, EP 465 has had its expiry date extended to 27/01/2016.

In the Carnarvon Basin, R 3 is in the process of being renewed.

Tap Oil has terminated the sale of its assets in TL/2, TP/7 and WA-8-L to Hardie Energy Group. Tap and Hardie have mutually agreed to terminate the $2 million sale and purchase agreement as the approvals required to complete the deal seem unlikely to be satisfied within the timeframe provided.

In the Carnarvon Basin, TP/23 is in the process of being renewed.

The following offshore release areas closed 12/05/2011 and did not receive any bids: W 09-17, W 10-7, W 10-12, W 10-13, W 10-15 and W 10-26. A decision is currently pending on whether the areas will be re-released.

Offshore release areas W 10-1, W 10-3, W 10-4, W 10-5, W 10-6, W 10-8, W 10-9, W 10-11, W 10-17, W 10-23, W 10-24 and W 10-25 closed 12/05/2011 and are currently under consideration.

In the Carnarvon Basin, Shell Development (Australia) has signed a deal with Chevron to become both a gas supplier and equity participant in the Wheatstone and Iago gas fields. Under the agreement Shell will now hold an 8% stake in the Wheatstone and Iago gas fields in permits WA-253-P, WA-16-R and WA-17-R. Participants for the Wheatstone Unit are as follows: Chevron Australia P/L 73.6%, Apache Julimar P/L 13%, KUFPEC Australia P/L 7% and Shell Development (Australia) P/L 6.4%.

In the Carnarvon Basin, WA-253-P has undergone a partial relinquishment and now covers 81 sq km.

In the Carnarvon Basin, BHP has exercised its pre-emptive right over Japan Australia LNG (MIMI) P/L to acquire an additional 25% from Tap Oil in permit WA-351-P.

In the Carnarvon Basin, WA-353-P and WA-354-P are in the process of being renewed.

In the Barrow Basin, WA-358-P has had its expiry date extended to 19/10/2011.

In the Carnarvon Basin, the farm-in agreement between Moby Oil & Gas Ltd and Exoil Ltd has been approved. Under the agreement Moby will earn 95% interest of Exoil’s 30% in WA-359-P. Interest split in the permit is as follows: Apache Northwest P/L 40%, Cue Exploration 30%, Moby Oil & Gas Ltd 28.5% and Exoil Ltd 1.5%.

In the Carnarvon Basin, WA-364-P and WA-365-P are in the process of being renewed.

In the Browse Basin, WA-371-P has undergone a partial relinquishment and now covers a reduced area of 502 sq km.

WA-39-R has been granted to Chevron Australia P/L 50% and Chevron (TAPL) P/L 50%. Licence will expire 06/05/2016.

In the Carnarvon Basin, WA-430-P has had its expiry date extended to 02/04/2016.

In the Browse Basin, production licence WA-44-L has been granted to Shell Development (Australia) P/L on 20/05/2011. Licence granted for indefinite term.

In the Carnarvon Basin, offshore release area W 10-16 was granted as WA-453-P to Apache Energy Ltd 100% on 09/06/2011. Licence will expire on 08/06/2017. Work program is as follows -

Year 1: 80k 3D seismic reprocessing $0.285m
Year 2: geotechnical studies $0.2m
Year 3: geotechnical studies $0.2m
Year 4: 1 well $25m
Year 5: geotechnical studies $0.2m
Year 6: geotechnical studies $0.2m

In the Bonaparte Basin, offshore release area W 10-2 was granted as WA-454-P to MEO Australia Ltd 100% on 09/06/2011. Licence will expire on 08/06/2017. Work program is as follows -

Year 1: geotechnical studies, 300k 2D seismic $0.3m
Year 2: geotechnical studies, 750k 2D seismic $0.25m
Year 3: 400k 3D seismic $4m
Year 4: geotechnical studies $0.25m
Year 5: 1 well $20m
Year 6: geotechnical studies $0.25m


Geothermal Permits

In the Carnarvon Basin, GEP 30, GEP 31, GEP 32, GEP 33, GEP 34, GEP 35 and GEP 36 have had their expiry dates extended to 22/08/2017.


New Zealand

In the Southland Basin, GE-CO Drilling Ltd has withdrawn their application for prospecting permit APP 53051 and replaced it with exploration permit application APP 53669.

Greywolf Goldmining NL applications APP 53424, APP 53570 and APP 53239 have been rejected by the New Zealand Ministry of Economic Development.

In the East Coast and West Southland Basins respectively, APP 53618 and APP 53621 are new applications by L&M Energy Ltd.

In the West Southland Basin, APP 53626 is a new application by Antipodean Resources Ltd.

In the Cook Strait Basin, APP 53674 is a new application by Rawson Taranaki Ltd 50% (operator) and Zeanco (NZ) Ltd 50%.

In the Taranaki Basin, PEP 38459 has had its expiry date extended to 31/10/2014.

In the Taranaki Basin, Mighty River Power has withdrawn from PEP 51149. Participants in the permit are now as follows: Todd Exploration Ltd 61.425%, Cue Taranaki P/L 20% and Mosaic Oil NZ Ltd 18.575%.

In the Taranaki Basin, New Zealand Energy Corp has entered an agreement with AGL Upstream Gas (MOS) to acquire their 50% interest in PEP 51151 for $A2 million. Further more, L&M Energy Ltd have entered a conditional agreement with NZEC in which LME will gain 100% free-carry regarding their costs incurred from drilling the Talon 1 well.  The agreement is subject to various approvals, once it has been finalised interests in the permit will be LME 50% and NZEC 50% with operatorship being transferred to NZEC.


Papua New Guinea

In the Papuan Basin, PPL 190 expired on 17/06/2011.

In the Papuan Basin, Oil Search has been granted an extension on PPL 219 over a reduced area over the Mananda field.  The licence now covers 428 sq km and will expire on 14/02/2012.  In addition, the Oil Search-led consortium has applied for APPL 386 over the Gobe area, previously covered by PPL 219.

In the Papuan Basin, PPL 244 has been renewed to 24/02/2016 over a reduced area of 1,361 sq km.  In addition, Oil Search Ltd has applied for APPL 385 over the relinquished portion of PPL 244 which covers 1,361 sq km.

In the Cape Vogel Basin, PPL 257 is in the process of being renewed, as is PPL 258 in the North New Guinea Basin.

In the Papuan Basin, New Guinea Energy has reached agreement for Talisman to undertake further assessment work directed towards the first well in PPL 268.  When the licence extension is granted, the parties have 30 days to agree whether to drill the well.  If Talisman and NGE agree to drill the first well, Talisman will pay US$12m as well as 50%.

In the Papuan Basin, PPL 254, PPL 255 and PPL 256 were renewed by top-file applications PPL 379, PPL 380 and PPL 381.  All three licences were granted on 17/05/2011 and will expire on 16/05/2017.

Horizon Oil has acquired an additional 10% in PRL 21 from Elevala Energy Ltd taking Horizon’s interest in the permit to 45%. Talisman Niugini Ltd and Dabajodi International Energy Ltd hold 35% and 20% interest respectively.

In the Papuan Basin, PRL 4 has had its expiry date extended to 04/08/2011.


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© 2011 Pitney Bowes Business Insight