June 2012

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

Re-release of 2011 Offshore Acreage
A number of areas from the 2011 Acreage Release are being re-released for industry consideration, with bidding closing on 08/11/2012 ...

Industry Summary
Cooper Energy’s takeover bid for Somerton Energy has officially gone unconditional after Somerton’s major shareholder Beach Energy accepted Cooper’s share and cash option for its 55.44% stake in Somerton ...

Permit Updates and Changes
In the Clarence/Moreton Basin, PEL 13 is in the process of being renewed ...

 


Monthly Update


Re-release of 2011 Offshore Acreage

A number of areas from the 2011 Acreage Release are being re-released for industry consideration, with bidding closing on 08/11/2012. These include the following -

  -  AC 11-1
  -  V 11-3, V 11-4 and V 11-6
  -  NT 11-2
  -  W 11-3, W 11-6, W 11-7, W 11-16 and W 11-17
 


Industry Summary

Company News

Cooper Energy’s takeover bid for Somerton Energy has officially gone unconditional after Somerton’s major shareholder Beach Energy accepted Cooper’s share and cash option for its 55.44% stake in Somerton Energy. On the 06/06/2012, Cooper Energy announced the off-market takeover offer has been extended and now ends on 20/06/2012. Cooper will now proceed to compulsory acquisition of the remaining shares in Somerton. (Source: Cooper Energy announcement, 23/05/2012 and 06/06/2012).

Nexus Energy Ltd has expanded the scope of its original agreement with Shell Development (Australia) and Osaka Gas for the Crux field in the Browse basin, Western Australia. The expanded deal now includes an earlier standalone FLNG development and an Integrated Recycle Project followed by backfill to Prelude. Accordingly, the timeline for completion of documentation has been extended until the end of June 2012. Following completion, a new Joint Venture will be formed for AC/L9, Shell will assume an 80% stake and operatorship of AC/L9, Nexus will retain 17% while Osaka Gas will hold 3%. (Source: Nexus Energy announcement, 29/05/2012).

New Zealand Energy Corp has entered into a binding agreement with Origin Energy to acquire four Petroleum Mining Licenses, PML 38138, PML 38139, PML 38140 and PML 38141, as well as the Waihapa Production Station and associated gathering sales infrastructure. Under the terms of the agreement, NZEC has agreed to pay Origin consideration in the amount of CDN$42 million in cash. A $5 million deposit is payable immediately with the remainder due on closing, which is expected to occur in October 2012. Origin will retain a 5% ORR on all hydrocarbons produced by NZEC from the Petroleum Licenses. (Source: New Zealand Energy Corp announcement, 31/05/2012).

Magellan Petroleum is pleased to advise that the asset swap transaction with Santos is now completed. In September 2011 Magellan Petroleum entered into a Sales Agreement with Santos for the transfer of Santos interest in the Palm Valley field and in the Dingo field of 48% and 66% respectively to Magellan. Magellan has transferred their 35% interest in the Mereenie field to the Santos Entities. (Source: Magellan Petroleum announcement, 30/05/2012)
.

Development News

Woodside chief executive officer Peter Coleman has said the first cargo of LNG from its $A14.9 billion Pluto LNG Project is on its way to foundation customers, Kansai Electric and Tokyo Gas, in Japan. Pluto is expected to contribute 17-21 million barrels of oil equivalent to Woodside’s 2012 production, in line with previous guidance. (Source: Energy News Bulletin, 14/05/2012).

Chevron Corporation has signed a non-binding Heads of Agreement with Tohoku Electric Power Company Incorporated for the delivery of liquefied natural gas from the Wheatstone Project located in Western Australia. Under the agreement, Chevron, together with Apache Energy and Kuwait Foreign Petroleum Exploration Company, is expected to deliver up to 1 million tons per annum of LNG to Tohoku for up to 20 years. (Source: Chevron announcement, 14/05/2012).

Prime Minister Julia Gillard has officially launched the construction of the Ichthys LNG Project at a ground breaking ceremony at Blaydin Point near Darwin, Northern Territory. Furthermore, INPEX and other project group companies have reached an agreement with Chubu Electric Power Co Inc to transfer a 0.735% interest in the Ichthys LNG Project. The Ichthys Project equity interest includes permits WA-285-P, WA-50-L and WA-51-L. Based on the agreement, the Ichthys LNG project equity interest will be as follows: INPEX 72.07%, Total 24%, Tokyo Gas 1.575%, Osaka Gas 1.2%, Chubu Electric 0.735% and Toho Gas 0.42%. The stakes of Tokyo Gas, Osaka Gas, Chubu Electric and Toho Gas are still subject to approval by the Australian government. (Source: Energy News Premium, 21/05/2012, INPEX Corporation announcement, 16/05/2012).

AGL Energy has been given the green light to construct the Newcastle Gas Storage Facility at Tomago, near Newcastle. Expected to be completed in 2015, the site will incorporate a processing plant that will be capable of processing up to 66,500 tonnes of LNG per year. An insulated non-pressurised LNG storage tank capable of containing 30,000T of LNG, equivalent to 1.5 petajoules of natural gas, and an associated containment area will also be built at the facility. (Source: AGL announcement, 11/05/2012).

Origin Energy Limited and its APLNG Project partners have signed agreements with the Export-Import Bank of China for a $US8.5 billion project finance facility. The project finance facility provides funding for the downstream parts of the project, including the liquefaction facilities on Curtis Island near Gladstone, and will underpin the development of Australia Pacific LNG’s CSG to LNG project. The facility is subject to the APLNG Joint Venture reaching final investment decision on the second phase of the project. (Source: Origin Energy announcement, 24/05/2012, Energy News Premium 11/06/2012).

Liquefied Natural Gas Limited has advised the term to secure gas for the first train for its Gladstone ‘Fisherman’s Landing’ LNG Project has been extended to 31/12/2012. LNG Ltd originally had until 30 June to secure the gas for the site under a proviso by the Gladstone Ports Corporation for the lease. However GPC has now agreed to give LNG Ltd an extension until the end of the year and a further six months after that to satisfy any remaining conditions including necessary approval to resume construction of the LNG project. (Source: Energy News Premium, 04/06/2012)
.

Discoveries

Beach Energy and Strike Energy are pleased to announce that the Davenport 1 unconventional evaluation well in PEL 94 has encountered one of the thickest coal seams ever recorded in the Cooper Basin. Preliminary log data indicated the well penetrated thick coals and shales through the Toolachee Formation, Roseneath Shale, Epsilon Formation, Murteree Shale and Patchawarra Formation. More than 100m of net coal was encountered including one seam with more than 45m of net coal and two further seams with net coal thickness above 20m. Elevated gas shows were also recorded across the target formations. A sidetrack well is currently being drilled to recover cores from the Patchawarra Formation after which the PEL 94 Joint Venture will case and suspend the well for future testing. (Source: Strike Energy announcement, 18/05/2012).

Beach Energy and Drillsearch Energy’s Bauer oil field in PEL 91 of the Cooper Basin has begun producing oil following the initial commissioning of production facilities. Initial gross production has commenced at a rate of 800 barrels of oil per day. Following full commissioning of the Bauer production facilities and completion of crude assay testing, production is expected to increase to 2,000 barrels per day. Further production increases are expected once an export pipeline from the Bauer facility to the Lycium oil hub is completed. Pipeline construction is anticipated by year’s end. (Source: Drillsearch Energy announcement, 22/05/2012).

Production testing of the Oil Basin operated Backreef 1 well in the Canning Basin has confirmed the presence of oil but will need to find a better updip location in the Backreef Area for a successful oil producer. Oil Basins perforated a 4m section of the Gumhole formation with initial flow rates recorded in excess of 1,000 barrels per day. Downhole build-up was for a period of two hours and although flow was indicated, no liquid flowed to the surface. The 0.2 litres of oil was light, and enough for Oil Basins to suggest updip drilling in the future. (Source: Oil Basins Ltd announcement, 29/05/2012).

Buru Energy Ltd has produced first oil from the Ungani field following commencement of the extended production test. The commencement of test production from the field is a very significant milestone for Buru, the EP 391 joint venture, the Canning Basin and for Western Australia. The Ungani 1/ST1 well produced initial test rates in excess of 2,000 barrels of oil per day. The well will now be produced at varying rates to allow estimates of longer term sustainable flow rates and reservoir productivity, as well as to establish flowing parameters through the extended production test facilities. (Source: Buru Energy announcement, 01/06/2012).

Senex Energy’s Snatcher 4 oil appraisal well at the Snatcher oil field in the Cooper Basin has been cased and suspended as a future oil producer after successfully intersecting a 10 metre gross oil column in the Birkhead formation. The oil column was recorded over the interval 1756.2 to 1783.6 metres and is interpreted to have net oil pay of at least 6.5m. (Source: Senex Energy announcement, 31/05/2012).

Santos’ Cuisinier 4 appraisal well located in ATP 752P of the Queensland Cooper Basin has been cased and suspended as a future oil producer after intersecting a 23.4 metre gross oil column. Wire line logs confirmed the presence of the 23.4 m oil column in the oil bearing sands of the Murta Formation with preliminary estimates indicating a minimum of 9m of net oil pay. (Source: Senex Energy announcement, 05/06/2012).

 


Permit Updates and Changes

New South Wales

In the Clarence/Moreton Basin, PEL 13 is in the process of being renewed.

In the Surat Basin, PEL 450 is in the process of being renewed.

In the Murray Basin, PEL 472, PEL 473 and PEL 474 are in the process of being renewed.

In the Clarence/Moreton Basin, PSPAPP 46 and PSPAPP 49 have been withdrawn at the request of the applicant.

In the Darling Basin, Acer Energy has signed a conditional sales and purchase agreement to acquire Petrel's 100% interests in PEL 422, PEL 424 and PEL 471.  Acer will pay Petrel $300,000 to secure 100% of the Darling Basin permits with the majority payable upon registration.

In the Sydney Basin, PELA 138 replaces PELA 136 which was nullified due to not being lodged in accordance with the Act.

Ormil Operations P/L is acquiring all of the ordinary shares in Sydney Basin CBM P/L and is farming in for 20% in PEL 442 (now application PELA 138), PEL 444 and PEL 454. Ormil Operations will also have the option to earn an additional 30% by providing $7 million in funding for JV work by 30/06/2014.


Northern Territory

In the Georgina Basin, EP 161 has been granted to Tamboran Resources P/L on 21/05/2012. The licence will expire 20/05/2012.

In the McArthur Basin, EP(A) 297 is a new application by Oates, T.

In the McArthur Basin, EP(A) 299  is a new application by Tamboran Resources P/L.

In the Birrindudu Basin, EP(A) 300 is a new application by Oates, T.

In the Arunta Basin, EP(A) 302 is a new application by Oates, T.

In the Bonaparte Basin, Santos has entered into an agreement with ConocoPhillips and SK E&S to earn 37.5% interest in the Caldita (NT/P 61) and Barossa (NT/P 69) gas discoveries. Under the terms of the agreement, SK will fund up to US$520 million in carry obligations and contingent milestone payments. SK will fund the first US$260 million of a three well appraisal program, expected to begin in 2013. Following completion of the appraisal program, SK will have the option to increase its interest to 49.5%.

In the Petrel Sub Basin, NT/RL 1 has been renewed to 11/04/2017. Work program is as follows -

Year 1: appraisal well, subsurface & facility studies, commercial studies $30m
Year 4: subsurface & facility studies, marketing studies $0.4m
Year 3: subsurface & facility studies, commercial studies $0.5m
Year 4: marketing studies $0.25m
Year 5: subsurface & facility studies, commercial studies $0.5m


Geothermal

Central Petroleum’s subsidiary Central Geothermal P/L has relinquished its three geothermal permits GEP 27833, GEP 27834 and GEP 27835.


Queensland

Preferred tenderers have been announced for the onshore Gazettal that closed on 14/11/2011.  These are as follows -

Gazettal Area     Licence           Preferred Tenderer

PLR 2011-1-3       ATP 1104P       Chi Oil & Gas P/L
PLR 2011-2-1       ATP 1107P       Armour Energy Ltd
PLR 2011-2-2       ATP 1112P       Eureka Petroleum P/L
PLR 2011-2-4       ATP 1114P       Eureka Petroleum P/L
PLR 2011-2-2       ATP 1112P       Eureka Petroleum P/L
PLR 2011-2-5       ATP 1117P       Eureka Petroleum P/L
PLR 2011-2-6       ATP 1122P       Pangaea Resources P/L
PLR 2011-2-7       ATP 1127P       Exoma 2-7 P/L
PLR 2011-2-8       ATP 1130P       Exoma 2-8 P/L
PLR 2011-2-9       ATP 1137P       Exoma 2-9 P/L
PLR 2011-2-10     ATP 1141P       Australian Shale Oil Resources Co Ltd
PLR 2011-2-11     ATP 1148P       Australian Shale Oil Resources Co Ltd
PLR 2011-2-12     ATP 1150P       Exoma 2-12 P/L
PLR 2011-2-13     ATP 1161P       Real Energy Queensland P/L
PLR 2011-2-14     ATP 1173P       Seymour Energy P/L
PLR 2011-2-16     ATP 1174P       Santos QNT P/L


In the Eromanga Basin, ATP 862P has undergone a partial relinquishment and now covers a reduced area of 4,988 sq km.

In the Adavale Basin, ATP 864P and ATP 865P have undergone partial relinquishments and now cover reduced areas of 4,711 sq km and 4,909 sq km respectively.

In the Bowen Basin, Sunshine 685 P/L 50% and Santos QNT P/L 50% have applied for Potential Commercial Areas PCA 122 over 77 sq km, PCA 123 over 233 sq km and PCA 124 over 155 sq km
.


South Australia

In the Cooper Basin, a 12 month suspension period has been granted to the work program for PEL 101. The licence is in suspension from 02/04/2012 to 01/04/2013 inclusive. The licence will expire 22/01/2016.

In the Cooper Basin, a 12 month suspension period has been granted to the work program for PEL 103. The licence is in suspension for the period from 26/04/2012 to 25/04/2013 inclusive. The licence will expire 28/01/2015.

In the Cooper Basin, a 6 month suspension period has been granted to the work program for PEL 110. The licence is in suspension for the period from 11/04/2012 to 10/10/2012 inclusive. The licence will expire 09/11/2015.

In the Eromanga Basin, Holloman Energy has completed its farm-out of PEL 112 and PEL 444 to Terra Nova Minerals. Terra Nova will receive a 55% working interest in the permits by funding seismic acquisition and a six-well drilling campaign. The first $4.7 million payable under the farm-out has already been transferred to escrow, with Terra Nova to start seismic as soon as possible.

In the Arckaringa Basin, PEL 117, PEL 121 and PEL 122 have been renewed over reduced areas and now cover 6,358 sq km, 6,442 sq km and 5,596 sq km respectively. The licenses will expire 02/04/2017. The work program for the 3 permits 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 Eucla Basin, PEL 143 has been granted to Ahava Energy P/L on 16/05/2012. The licence will expire 15/05/2017. Work program is as follows –

Year 1: G&G studies
Year 2: 1 well
Year 3: data review
Years 4 and 5: 1 well or 200k 2D seismic

In the Otway Basin, Kea Petroleum has signed a deed of termination for the 50% farm into PEL 155.

In the Cooper Basin, a 6 month suspension period has been granted to the work program for PEL 182. The licence is in suspension for the period from 02/04/2012 to 01/10/2012 inclusive. The licence will expire 22/11/2014.

In the Otway Basin, PEL 186 has been renewed over a reduced area and now covers 709 sq km.  The licence will expire 27/04/2017. Work program is as follows –

Year 1: 70k 3D seismic
Year 2: G&G studies
Year 3: G&G studies
Year 4: G&G studies
Year 5: 1 well

In the Arckaringa Basin, a 12 month suspension period has been granted to the work program for PEL 500. The licence is in suspension for the period from 01/04/2012 to 31/03/2013 inclusive. The licence will expire 11/04/2016.

In the Cooper Basin, Ambassador Oil & Gas has reached an agreement to farm into the PEL 516 Shocking Block and will earn a 60% interest in the block from Senex Energy by drilling the Shocking oil exploration well.

In the Eromanga Basin, PELA 511 has undergone a partial relinquishment and now covers 7,098 sq km.

In the Eromanga Basin, Discovery Energy Corp. has entered into an Option to Purchase Agreement with Liberty Petroleum Corporation to acquire 100% in the PELA 512 licence. Discovery Energy Corp is to pay a total of $US4.05 million to Liberty Petroleum. Liberty will retain a 7% royalty interest in the permit.

In the Arckaringa Basin, PELA 604 is a new application by SAPEX Ltd.

In the Adelaide Fold Basin, the area for application PELA 606 has been extended and now covers 8,504 sq km.

In the Eromanga Basin, PELA 608 is a new application by Tri-Star Energy Company.

In the Eromanga Basin, PELA 609 is a new application by Menzel P/L 50% (operator) and Blackfire Resources P/L 50%.

In the Cooper Basin, PPLA 240 and PPLA 241 are production licence applications by Senex Energy Ltd.

Geothermal Permits

In the Otway Basin, GEL 214 has been renewed to 31/10/2016. Furthermore, a 12 month suspension period has been granted to the work program for GEL 214. The licence is in suspension for the period from 02/11/2011 to 01/11/2012 inclusive. The licence will expire 31/10/2017.

In the Cooper Basin, GEL 220 has been renewed to 23/01/2017.

GEL 226, GEL 230, GEL 278, GEL 285, GEL 293, GEL 407 and GEL 425 have been surrendered with effect from 17 May 2012.

GEL 571, GEL 572, GEL 573 and GEL 574 have been granted to Torrens Energy (SA) P/L on 30/05/2012. The licenses will expire 29/05/2017.

In the Eromanga Basin, GEL 603 has been granted to MNGI P/L 100% on 02/05/2012. The licence will expire on 01/05/2017.

In the St Vincent Basin, the area for application GELA 266 has been extended and now covers 104 sq km.

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 are in the process of being renewed.



Tasmania

All work programs for offshore Tasmanian permits have been updated.  Please see GPinfo for details.

In the Gippsland Basin, T/18P covers 725 sq km after being renewed in August 2011.  Please see GPinfo for corrected renewed area.

Geothermal

In the Tasmania Basin, SEL 57/2008 was relinquished on 04/05/2012.



Victoria

All work programs for offshore Victorian permits have been updated.  Please see GPinfo for details.

In the Otway Basin, V 11-1 did not get any bids and was not re-released.  This area now reverts to vacant acreage.

In the Otway Basin, Strategic Resources has reached formal agreement, and has Joint Venture approval, to assign 7.5% of VIC/P 41 to Oil Basins Ltd.  Oil Basins Ltd will now hold 12.5% of the licence (subject to Government registration).

Also in the Gippsland Basin, the correct expiry date for VIC/P 47 is 15/11/2014.

In the Gippsland Basin, the correct expiry date for VIC/P 54 is 13/10/2015.

In the Otway Basin, Trident Energy Ltd transferred a 20% interest in VIC/P 62 to Loyz Oil Australia P/L in February 2012.  Consideration for the transaction was A$650,000.  Loyz Oil Australia can earn a further 31% after completion of the agreed 3D seismic acquisition phase and a further 19% after issuing a seismic interpretation report thereby bringing its total potential interest to 70%.

In the Otway Basin, Retention Lease VIC/RL 11 was granted over the Martha field and VIC/RL 12 was granted over the Blackwatch field on 02/05/2012.  The licences will expire on 01/05/2017. Work undertaken on VIC/RL 11 is deemed to satisfy the work commitment of VIC/RL 12 and vice versa.  Work program is as follows -

Year 1: review regional well results and seismic $0.05m
Year 2: review recent exploration and nearby field development $0.05m
Year 3: gas market opportunity review $0.05m
Year 4: engineering studies, well design $0.05m
Year 5: project feasibility $0.05m


Onshore in the Otway Basin, PEP 163 has had its expiry date extended to 18/10/2013.  A nine month suspension and extension was registered on 08/05/2012.

In the Gippsland Basin, PEP 166 has had its expiry date extended to 02/10/2014.  A nine month suspension and extension was registered on 08/05/2012.  In addition, Holdgate 1 has spudded.  Armour Energy is funding this well as part of its program to earn 51% of the licence.

In the Otway Basin, Armour Energy has completed the drilling of the Moreys 1 well to earn a 51% interest in PEP 169.



Western Australia

In the Perth Basin, a 6 month suspension period has been granted to the Year 5 work program for EP 321. Year 5 has been extended from 05/04/2012 to 05/09/2012. The licence will expire 05/09/2012.

In the Perth Basin, EP 389 has been renewed over a reduced area to 26/04/2017 and now covers 1,541 sq km.  Work program is as follows –

Year 1: geotechnical studies, 1 well $11.9m
Year 2: 50k 3D seismic $2m
Year 3: 3D seismic reprocessing & interpretation $0.3m
Year 4: 1 well $5m
Year 5: geotechnical studies $0.1m

In the Perth Basin, a 6 month suspension period has been granted to the Year 5 work program for EP 407. Year 5 has been extended from 13/04/2012 to 13/09/2012. The licence will expire 13/09/2012.

In the Perth Basin, EP 413 and EP 426 are pending suspension.

In the Carnarvon Basin, a 6 month suspension period has been granted to the Year 4 work program for EP 424. Year 4 has been extended from 14/01/2011 to 13/07/2011. The licence will expire 13/07/2013.

In the Perth Basin, a 12 month suspension period has been granted to the Year 6 work program for EP 430. Year 6 has been extended from 19/03/2012 to 19/03/2013. The licence will expire 19/03/2013.

In the Perth Basin, Titian Energy has received the necessary approvals to increase its interest in EP 455 to 18.5%. The Western Australian Department of Mines and Petroleum has approved a 12 month suspension of the Year 5 work program. The DMP has also agreed that the terms of the permit have not been extended, resulting in Year 5 and Year 6 running concurrently, with an expiry date remaining unchanged at 21/06/2013.

In the Perth Basin, EP 479 has been granted to Empire Oil Company (WA) Ltd on 06/06/2012. The licence will expire 05/06/2018. Work program is as follows –

Year 1: geotechnical studies $0.25m
Year 2: 1 well $1.5m
Year 3: geotechnical studies $0.25m
Year 4: 4 wells $5m
Year 5: engineering studies $1.5m
Year 6: geotechnical studies $0.25m

In the Perth Basin, EP 480 has been granted to ERM Gas P/L 60% (operator) and Empire Oil Company (WA) Ltd 40% on 06/06/2012. The licence will expire 05/06/2018. Work program is as follows –

Year 1: geotechnical studies $0.25m
Year 2: 2 wells $3m
Year 3: 50k 2D seismic $1m
Year 4: 4 wells $5m
Year 5: engineering studies $1.5m
Year 6: geotechnical studies $0.25m

The following are new Special Prospecting Authority applications -          

Perth Basin             STP-SPA-0006
Carnarvon Basin      STP-SPA-0022, STP-SPA-0024 and STP-SPA-0033
Canning Basin         STP-SPA-0030 and STP-SPA-0040
Officer Basin           STP-SPA-0034
Savory Basin           STP-SPA-0035

In the Barrow Basin, TL/5 and TL/6 are in the process of being renewed.

In the Perth Basin, TP/15 has been renewed over a reduced area and now covers 540 sq km. The licence will expire 23/05/2017. Work program is as follows –

Year 1: geotechnical studies $0.16m
Year 2: seismic interpretation, 15k 2D seismic $0.5m
Year 3: seismic interpretation $0.2m
Year 4: 1 well $6m
Year 5: geotechnical studies $0.12m

In the Browse Basin, WA-281-P has been renewed to 31/05/2017. 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

INPEX and other project group companies have reached an agreement with Chubu Electric Power Co Inc to transfer a 0.735% interest in the Ichthys LNG project. Based on the agreement, the Ichthys LNG project equity interest covering permits WA-285-P, WA-50-L and WA-51-L will be as follows: INPEX 72.07%, Total 24%, Tokyo Gas 1.575%, Osaka Gas 1.2%, Chubu Electric 0.735% and Toho Gas 0.42%.

In the Carnarvon Basin, WA-35-R has been renewed to 16/04/2017. Work program is as follows –

Year 1: engineering, marketing, economic & reservoir studies $0.1m
Year 2: engineering, marketing, economic & reservoir studies $0.1m
Year 3: engineering, marketing, economic & reservoir studies $0.1m
Year 4: engineering, marketing, economic & reservoir studies $0.1m
Year 5: engineering, marketing, economic & reservoir studies $0.1m

In the Carnarvon Basin, WA-374-P has been renewed over a reduced area and now covers 2,097 sq km. The licence will expire 24/05/2017. Work program is as follows –

Year 1: 1 well, geotechnical studies $31m
Year 2: 1 well, geotechnical studies $31m
Year 3: seismic reprocessing, geotechnical studies $1.2m
Year 4: 1 well, geotechnical studies $31m
Year 5: geotechnical studies $0.1m

In the Browse Basin, a 12 month suspension period has been granted to the Year 2 work program for WA-424-P. Year 2 has been extended from 13/07/2011 to 12/07/2012. The licence will expire 12/07/2016.

In the Petrel Sub Basin, WA-6-R has been renewed to 11/04/2017. Work program is as follows –

Year 1: appraisal well, subsurface & facility studies, commercial studies $30m
Year 4: subsurface & facility studies, marketing studies $0.4m
Year 3: subsurface & facility studies, commercial studies $0.5m
Year 4: marketing studies $0.25m
Year 5: subsurface & facility studies, commercial studies $0.5m


New Zealand

New Zealand Petroleum & Minerals has officially launched the tender process for 23 exploration blocks. Two blocks TAR1 and TAR2 originally proposed to be part of the tender have been withdrawn. Blocks 12CB1, 12TAR8 and 12WAI1 have undergone partial relinquishment and now cover 1,751 sq km, 524 sq km and 486 sq km respectively. Bidding for the 23 blocks closes 15/10/2012.

In the Otago Basin, PEP 38219 has undergone a partial relinquishment and now covers 744 sq km.

In October 2011, Loyz Oil Pte Ltd entered into a binding MOU with STP Energy to acquire a certain participating interest in the permit PEP 38479. Loyz Oil paid a US$1.5 million deposit to STP, which is refundable if the Definitive Agreement is not executed within 180 days from the date of the MOU. In April 2012, the date was extended to 240 days from the date of the MOU, making 22/06/2012 the new date for the Definitive Agreement to be executed.

In the Great South Basin, PEP 50122 EX has undergone a partial relinquishment and now covers 11.9 sq km.

In the Waikato Basin, PEP 52043 was surrendered on 14/06/2012.

In the Taranaki Basin, New Zealand Oil & Gas has entered into conditional agreements with AGL and TAG for offshore Taranaki permit PEP 52181. AGL and TAG recently increased their equity in the permit to 42.86% and 57.14% respectively through the recent withdrawals of ROC Oil and L&M Energy. NZOG will be assigned 17.14% equity from TAG immediately and will assume Operatorship of the permit upon the official withdrawal of ROC, effective 18/06/2012. Conditional on the joint venture making the drilling commitment, NZOG will pay AGL US$3 million and will be assigned AGL’s 42.86% equity in the permit, taking NZOG’s interest to 60%. TAG will retain the other 40%.

In the Solander Basin, PEP 52359 was surrendered on 14/06/2012.

Rawson Taranaki Ltd and joint venture partner Zeanco (NZ) Ltd have entered an agreement with TAG Oil (NZ) Ltd for the sale of their three exploration permits PEP 52589, PEP 52676 and PEP 53674. TAG will pay NZ$2.8 million for 100% of the permits. A 10% deposit has been received on signing, with the balance receivable following government approval.

In the Southland Basin, PEP 53572 was surrendered on 14/06/2012.

New Zealand Energy Corp has entered into a binding agreement with Origin Energy to acquire four Petroleum Mining Licenses in the Taranaki Basin New Zealand, PML 38138, PML 38139, PML 38140 and PML 38141, as well as the Waihapa Production Station and associated gathering sales infrastructure. Under the terms of the agreement, NZEC has agreed to pay Origin consideration in the amount of CDN$42 million in cash. A $5 million deposit is payable immediately with the remainder due on closing, which is expected to occur in October 2012. Origin will retain a 5% ORR on all hydrocarbons produced by NZEC from the Petroleum Licenses.

In the Taranaki Basin, PML 38141 EX is an extension of land application by New Zealand Energy Corp.


Papua New Guinea

In the Papuan Basin, PPL 405 was granted to Gini Energy Ltd 100% on 08/05/2012.  The licence will expire on 07/05/2018.  Work program is as follows -

Years 1-2: G&G studies, 2D seismic, field work, establish inventory of leads and prospects, 1 exploration well (minimum expenditure US$2.4m)

Years 3-4: post well studies, seismic, finalise leads and prospects map, option to drill and appraisal well if exploration well is a discovery (minimum expenditure US$23m)
Years 5-6: incorporate years 1, 2, 3 and 4 well and seismic results, identify and mature drillable structure, drill second exploration well (minimum expenditure of US$21m)


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