Re-release of 2011 Offshore
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).
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).
New South Wales
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.
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.
Papua New Guinea
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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