June 2016 GPinfo Update


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 earlier this month …

 

Industry Summary

 

Buru Energy is pleased to announce a substantial upgrade to the upside at its Ungani oil field and revealing that its Laurel Formation unconventional wells flowed at initial peak rates of 44 mmcfd

 

The INPEX-operated Ichthys LNG Project has reached another milestone with the 77 km chain and cable mooring system being pre-laid in the Browse Basin offshore Western Australia

 

Permit Updates and Changes

 

Santos Offshore P/L has transferred its interest in AC/L 1, AC/L 2 and AC/L 3 to PTTEP Australasia (Ashmore Cartier) P/L. PTTEP now holds 100% interest in each licence

 

The Supreme Court of Western Australia has ordered that Oil Basins is to immediately resign as operator of EP 487 and Rey Lennard Shelf to be designated operator

 

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 earlier this 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 find out more and to place your order.

 

Industry Summary                                       

 

Company News

 

Buru Energy is pleased to announce a substantial upgrade to the upside at its Ungani oil field and revealing that its Laurel Formation unconventional wells flowed at initial peak rates of 44 mmcfd. Although not direct indicators of long term productivity, these rates are positive indicators of stimulated reservoir volumes and formation pressures and have averaged blowdown gas rates of up to 13.5 mmcfd. The gas contains 25-38 barrels of condensate per mmcf and the level of CO2 is below 5%, pipeline quality, while other gases are 5.5% ethane and 2.7% propane, and will not require any substantial processing before sale except for removal of the high value liquids content for separate sale. Building on these results, DeGolyer and MacNaughton has estimated the Valhalla-Asgard area of Western Australia’s Canning Basin contains 13 tcf of gross prospective resources in the immediate area of the evaluation, and 1.5 tcf in the immediate area of the Valhalla North 1 and Asgard 1 wells. Turning to the Ungani Trend, Streitberg said Gaffney Cline and Associates has reviewed the field and concluded there could be anywhere from 2.08 million barrels (1C) and 18.8 mmbbl (3C) with a 2C contingent resources of 6.65 mmbbl. (Source: Buru Energy announcement, 16/05/2016).

 

Oil Search has made an agreement to acquire InterOil Corp in a cash and scrip offer valued at $2.2 billion. The consideration for InterOil shareholders comprises 8.05 Oil Search shares plus a contingent value right for each InterOil share. The transaction has been unanimously recommend by both firms’ boards. A special meeting is expected to be held 28/07/2016 where shareholders will cast votes. The transaction is subject to other customary conditions and is expected to close in Q3 2016. In a side deal, a memorandum of understanding was signed by Oil Search and Total SA for Oil Search to sell down 60% of the interest acquired from InterOil in Papua New Guinea retention lease PRL 15 that contains the Elk-Antelope gas field and 62% of InterOil’s exploration assets to Total, subject to closing the InterOil acquisition. (Source: Oil Search announcement 20/05/2016).

 

American Energy Partners has announced that the company will close. The company is said to have started laying off its workers and is set to shut down over the coming weeks. In a statement, AEP’s backers said that after considerable thought and discussion with the McClendon family and employees, a collective decision had been made to wind down the operations. The agreements with Armour Energy and Empire Energy Group over the McArthur Basin remain uncertain. (Source: Energy News Premium, 20/05/2016).

 

Central Petroleum has signed a pre-paid gas sales agreement with Macquarie Bank. Under the agreement, Central will supply 5.2 PJ of gas to be delivered to either Ballera or Moomba over three years, with up to 3.5 PJ of additional gas sales over two subsequent years. The gas can be delivered from any of the three fields which Central has an interest, Dingo, Palm Valley or Mereenie. The start date for gas supply is the earlier of the commencement of the Northern Gas Pipeline (scheduled for some time in 2018) or 01/01/2019. (Source: Central Petroleum announcement, 26/05/2016).

 

Empire Energy Group has again said its proposed farm-out deal over the Greater MacArthur Basin is still in discussion with American Energy Partners in terms of satisfying the conditions precedent and how to resolve the commercial and potential risk of operating in the Northern Territory following the recent announcement of a potential fracking ban. The company says its deal is now held by the McClendon Estate and is subject to the process of the estate restructuring, and would be waiting on the outcome of the Northern Territory election in August regardless. (Source: Empire Energy Group announcement, 31/05/2016).

 

Petronet is reportedly in talks with Exxon Mobil Corp to renegotiate the price of LNG it signed for from the Gorgon project on Barrow Island offshore Western Australia. The original 20-year contract was signed in 2009 between the two companies for 1.4 mtpa of LNG.  Petronet is looking to rework the deal due to low spot prices, compared to which, the long-term supplies are expensive. (Source: Energy News Premium, 01/06/2016).

 

MEO Australia has completed a 2D seismic reprocessing and inversion study over the Beehive prospect in the WA-488-P permit offshore Western Australia. Seismic inversion results have reinforced the interim reprocessing analysis and enhanced the company’s understanding of the Beehive reservoir and seal units. MEO believes this could be a multi-billion barrel, dual-objective, oil prone structure. The Carboniferous objective is a 180 sq km isolated carbonate build up with 400 m of mapped vertical relief. This play type is new and undrilled in the Bonaparte basin. The company believes the Carboniferous objective has the potential for between 97 mmbbl and 2033 mmbbl, with a best 558 mmbbl, while the deeper Ordovician objective could contain between 63 mmbbl and 1220 mmbbl with a best potential of 305 mmbbl. (Source: MEO Australia announcement, 02/06/2016).

 

AWE Ltd has announced a major upgrade of 2P reserves and 2C contingent resource estimates for the Waitsia gas field in the northern Perth Basin, Western Australia. The upgrade follows the extensive evaluation of new core data acquired in 2015 from the Waitsia 1 and Waitsia 2 wells and further analysis of well test data from the Senecio 3 and Waitsia 1 wells. Waitsia gross 2P reserved have increased by 93% to 344 bcf of gas, while Waitsia gross 2P reserves plus 2C contingent resources increased by 30% to 630 bcf of gas. Total gross reserves plus 2C contingent resources for Waitsia, Senecio, Irwin and Synaphea increased by 20% to 867 bcf of gas. (Source: AWE announcement, 03/06/2016).

 

ExxonMobil Corp and BHP Billiton Ltd are considering selling some depleting oil and natural gas fields in Australia, including Kingfish oil field in Bass Strait. Overall the two companies, which have been in 50-50 partnership in the Gippsland basin since 1960, are looking at putting 13 fields, licences, and associated systems in the region on the market. In addition to Kingfish, the fields to be sold include Blackback, Cobia, Dolphin, Flounder, Fortescue, Halibut, Mackerel, Perch, Seahorse, and Tarwhine. There is no indication of any timeframe set for the proposed sale. (Source: Oil & Gas Journal, 16/06/2016).

 


 

Developments

 

The INPEX-operated Ichthys LNG Project has reached another milestone with the 77 km chain and cable mooring system being pre-laid in the Browse Basin offshore Western Australia. This mooring system will be used to secure the project’s two major offshore facilities - the central processing facility and the nearby floating production, storage and offloading vessel at the Ichthys field for at least 40 years of continuous operation. (Source: Oil & Gas Journal, 16/05/2016).

 

The final heavy lift for the Ichthys LNG Project floating production storage and offloading (FPSO) vessel has been completed, just days after the installation of the final module at the onshore LNG plant near Darwin. It took around 12 months to complete the topside lifting program, with a 450 tonne water treatment package the last to be placed on the vessel. Modules, pipe racks and equipment packages have been lifted onto the hull of the FPSO. INPEX said it would now work to complete the final stages of pre-commissioning, ahead of the FPSO’s voyage to Australia for hook up, commissioning and start-up at the field in the Browse Basin, offshore Western Australia. (Source: INPEX announcement, 16/05/2016).

 

BP’s plans for an exploration drilling program in the Great Australian Bight offshore South Australia have fallen short of the regulator’s environmental requirements for a second time. NOPSEMA rejected the plan because it feels it is not appropriate for the nature and scale of the proposed activity, and said that BP has still not demonstrated that it has reduced the risks to the lowest level possible, or that the oiler has carried out sufficient consultations. NOPSEMA has asked for a revised plan to be submitted by 15/07/2016. BP says it is still on track to begin its drilling program late this year. The company said it had allowed sufficient time for the regulatory process to be carried out and it will resubmit by the due date in July. (Source: Energy News Premium, 17/05/2016).

 

Santos is pleased to announce that GLNG train 2 has started producing LNG on Curtis Island, Queensland. The oil and gas producer initially started production at the project in September 2015, and shipped its first cargo from the $18.5 billion project a month later. So far, it has produced more than two million tonnes of LNG from the project and shipped 32 cargoes. (Source: Santos announcement, 26/05/2016, Energy News Premium, 26/05/2016).

 

The Australian government has granted environmental approval to Chevron Australia for Train 4 at the firm’s $54-billion Gorgon LNG Plant on Barrow Island off Western Australia. Valid until yearend 2069, the expansion approval has numerous stringent environmental management, monitoring, and reporting conditions. At this stage, however, Chevron has little inclination to move into a Train 4 mode. The company and its joint venture partners recently began production with Train 1, while Train 2 is due to come online later this year and Train 3 about 6 months after that. The JV’s priority is to complete the foundation project of three trains and has yet to make a decision to proceed with planning of a fourth. (Source: Oil & Gas Journal, 27/05/2016).

 

Santos has revealed plans to spend $3.87m drilling CSG wells in the Liverpool Plains, purely focused on the Narrabri gas project area. Santos has laid out a three-year program to explore in PEL 1, saying in a document obtained under the Government Information (Public Access) Act that it would “explore and appraise two possible CSG targets identified in the Gunnedah Basin”, which is believed to include much agricultural land. Santos said the exploration targeted the late permian coals of the Black Jack Group and the early permian coals of the Maules Creek formation, while the PEL 1 application identified 10 other PELs as part of its contiguous exploration plans. (Source: Energy News Premium, 07/06/2016).

 

 Permit Changes                                                                

 

New South Wales

 

Sydney Basin

PEL 458 expired on 06/06/2016 and has reverted to vacant acreage.

 

Offshore, a suspension and extension for PEP 11 was lodged with NOPTA on 10/06/2016.

Northern Territory

 

Bonaparte Basin

NT/RL 8 was granted to Eni Australia Ltd 100% on 14/06/2016. The licence will expire 13/06/2021. Work program is as follows -

Years 1-5: gas marketing, technical studies, engineering studies, greenhouse gas management study $1m

Money Shoal Basin

NT/P 73 is being relinquished.

Vulcan Sub Basin

AC 15-2 was not offered. The area reverts to vacant acreage.

 

Santos Offshore P/L has transferred its interest in AC/L 1, AC/L 2 and AC/L 3 to PTTEP Australasia (Ashmore Cartier) P/L. PTTEP now holds 100% interest in each licence.

 

AC/P 53 was relinquished on 13/05/2016. The area reverts to vacant acreage.

 

AC/RL 7 is being renewed.

Queensland

 

Bowen Basin

PL 44 and PL 45 were renewed to 25/05/2026 and 25/08/2026 respectively.

 

Phoenix Resources has agreed to acquire a 1% interest in PL 231 from Dome Petroleum Resources.

Cooper Basin

Production licence PL 1013 was granted over the Bolah field on 17/05/2016. The licence will expire on 16/05/2031. As a result, ATP 1189 Aquitaine B block now covers a reduced area of 922 sq km.

 

PL 1014 is an application for replacement production licence over PL 207. The application was lodged on 13/05/2016.

Eromanga Basin

Unsuccessful applications ATP 1165, ATP 1170 and ATP 1176 have been removed as applicant Quasar Energy Ltd has been deregistered. 

 

Local Government Infrastructure Services P/L has applied for geothermal permit EPG 2014.

Galilee Basin

Local Government Infrastructure Services P/L has applied for geothermal permit EPG 2013.

Surat Basin

A retention/production licence application is pending over ATP 608 and ATP 805.

 

Ausam Resources P/L is operator of ATP 754.

 

Arrow’s interests in PL 185 are held by Australian CBM P/L 70% and Arrow CSG (Australia) P/L 30%.

 

Production licence applications PL 478 and PL 479 have been withdrawn.

South Australia

 

Cooper Basin

Geothermal retention licences GRL 20 – GRL 24 have been relinquished.

Eromanga Basin

PEL 87 and PEL 424 have been suspended from 09/07/2016 to 01/01/2017. The licenses have had their expiry dates extended to 09/01/2018.

Officer Basin

PEL 81 has been suspended from 01/04/2015 to 30/09/2016. The licence has had its expiry date extended to 24/12/2017.

Victoria

 

Gippsland Basin

Gazettal V 15-3, which closed on 21/04/2016, was not offered and has reverted to vacant acreage.

 

Mitsui's 35% interest in VIC/L 25 is held by MEPAU A P/L.

 

VIC/RL 1 is in the process of being renewed.

Otway Basin

PEP 168 has had its expiry date extended to 06/06/2017.

 

Offshore, VIC/P 43 is in the process of being renewed.

Western Australia

 

Barrow Sub Basin

EP 307 has been renewed to 25/05/2021. Work program is as follows -

Year 1: geotechnical studies $1000
Year 2: geotechnical studies $1000
Year 3: geotechnical studies $1000
Year 4: geotechnical studies $1000
Year 5: geotechnical studies $1000

Bonaparte Basin

WA-403-P is being relinquished.

 

W 15-2 has been granted as WA-523-P to Carnarvon Petroleum Ltd 100% on 27/05/2016. The licence will expire 26/05/2022. Work program is as follows -

Years 1-3: 1615 sq km 3D seismic reprocessing, licence 3000 km 2D seismic, remapping of reprocessed 2D & 3D seismic, studies $2.83m
Year 4: 210 sq km 3D seismic $2.9m
Year 5: mapping of new data & target selection, well planning $0.3m
Year 6: 1 well $40.3m

Browse Basin

Locations were declared over Crown WA-274-P LC and Lasseter WA-274-P LL on 20/05/2016.

Canning Basin

EP 486 was cancelled on 20/05/2016.

 

The Supreme Court of Western Australia has ordered that Oil Basins is to immediately resign as operator of EP 487 and Rey Lennard Shelf to be designated operator.

Carnarvon Basin

W 15-9 and W 15-13 were not offered. The areas revert to vacant acreage.

 

WA-271-P has been renewed to 01/06/2021 over a reduced area of 719 sq km. Work program is as follows –

Years 1-3: 110 sq km 3D seismic, 700 sq km 3D seismic reprocessing, geotechnical studies $2m
Year 4: geotechnical studies $0.35m
Year 5: 1 well $20m

 

Quadrant Northwest P/L has transferred its 28.6% interest in WA-71-R and WA-335-P to KUFPEC (Perth) P/L. KUFPEC now holds 47.5% in each licence.

 

Location WA-364-P LA was declared over Arnhem on 27/05/2016.

 

Locations were declared over Kentish Knock South WA-365-P LK and Lympstone WA-365-P LL on 27/05/2016.

 

Location WA-367-P LR was declared over Royal Oak on 27/05/2016.

 

The year 6 work program for WA-409-P has been extended by 3 months from 29/04/2016 to 20/07/2016.  The licence has had its expiry date extended to 20/07/2016.

 

WA-428-P has been renewed to 01/06/2021. Work program is as follows -

Years 1-3: 220 sq km 3D seismic reprocessing, geotech studies $1.5m
Year 4: 1 well $20m
Year 5: geotechnical studies $0.35m

 

WA-430-P has been renewed to 01/06/2021 over a reduced area of 480 sq km. Work program is as follows -

Years 1-3: 460 sq km 3D seismic reprocessing, geotech studies $1.75m
Year 4: geotechnical studies $0.35m
Year 5: 1 well $20m

 

WA-59-L was granted to Woodside Energy Ltd 60% and Mitsui E&P Australia P/L 40% on 10/06/2016 for an indefinite term/life of the field.

Dampier Basin

WA-457-P is being relinquished.

 

A suspension and extension for WA-458-P was lodged on the 13/05/2016.

Perth Basin

EP 320 is being renewed.

 

EP 432 has been renewed to 25/05/2021 over a reduced area of 1185 sq km. Work program is as follows -

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

 

EP 454 has been renewed to 12/05/2021. Work program is as follows -

Year 1: G&G studies $0.02m
Year 2: 50 km 2D seismic $1m
Year 3: seismic interpretation, G&G $0.2m
Year 4: 1 well $4m
Year 5: G&G $0.2m

 

EP 495 was granted to Black Rock Mining Ltd 100% on 16/05/2016. The licence will expire on 15/05/2022. Work program is as follows -

Year 1: 250 sq km 3D seismic $5m
Year 2: 1 well $8m
Year 3: geotechnical studies $0.1m
Year 4: 1 well $8m
Year 5: geotechnical studies $0.1m
Year 6: 1 well $8m

 

AWE has entered a share sale agreement with Triangle Energy (Global) Ltd for the sale of AWE's 57.5% interest in the Cliff Head oil field WA-31-L and therefore will not be proceeding with the proposed transaction with Elixir. The upfront consideration is $3.2m of which Triangle has paid a deposit of $0.8m. Settlement of the acquisition is expected to occur on or before 30/06/2016.

 

AWE (Offshore PB) P/L has transferred its interest in WA-512-P to AWE (Houtman) P/L.

Rowley Sub Basin

W 16-7 has been removed from the proposed release areas.

New Zealand

 

Canterbury Basin

A change to the PEP 38264 work program has been approved -

91 months: 1 well
102 months: 3500 sq km 3D seismic acquisition
113 months: 3500 sq km seismic processing
122 months: 2D & 3D basin & petroleum system models, 3D inversion
137 months: 1 well
144 months: 1 well
180 months: 1 well

East Coast Basin

PEP 54858 has been renewed to 10/12/2027. Work program is as follows -

12 months: 7000 sq km multibeam seafloor survey
24 months: 2600 km 2D seismic, 1380 km 2D seismic reprocessing
30 months: G&G
48 months: G&G
54 months: 750 sq km 3D seismic
72 months: technical studies
84 months: 1 well
120 months: 1 well
180 months: 1 well

 

PEP 54861 has been renewed to 10/12/2027. Work program is as follows -

12 months: 7000 sq km multibeam seafloor survey
24 months: 1700 km 2D seismic, 1380 km 2D seismic reprocessing
30 months: G&G
48 months: G&G
54 months: 1250 sq km 3D seismic
72 months: G&G
84 months: 1 well
120 months: 1 well
180 months: 1 well

 

A change to the PEP 55789 work program has been approved -

12 months: 1675 km gradiometric and magnetics data, studies, 100 km 2D seismic reprocessing
42 months: 85 km 2D seismic, studies
48 months: basin modelling report
60 months: 1 well
84 months: 85 km 2D seismic
120 months: 1 well

Taranaki Basin

PEP 38748 was relinquished on the 02/06/2016. The area reverts to vacant acreage.

 

Greymouth Petroleum Taranaki Ltd 50% and Greymouth Petroleum 2008 Ltd 50% have applied for an extension of land over PEP 51152.

 

Kea Petroleum’s liquidators have confirmed the binding sale of its 70% interest in PEP 51153 to TAG Oil subsidiary CX Oil Ltd. All conditions related to the acquisition have been satisfied, including New Zealand regulatory approval of TAG assuming operatorship of the permit. A change to the work program has been approved -

72 months: G&G studies
102 months: 28.5 km gravity data processing
113 months: 1 well

 

Cue Energy Resources is withdrawing from PEP 51313 and PEP 54865.

 

TAG Oil (NZ) Ltd has applied for an extension of land over PEP 57065 and PMP 53803.

 

PML 38138 has been renewed to 20/07/2021.

 

PML 38140 and PML 38141 have been renewed to 20/06/2036.

Papua New Guinea

 

Papuan Basin

PPL 244 was due to expire on 24/02/2016. A new licence application is pending over a slightly different area.

 

According to industry information, PPL 294 no longer exists. ExxonMobil has applied for APPL 507 over an overlapping area.

 

PPL 312 has been renewed as PPL 563.  Grant and expiry dates are yet to be verified.

 

PPL 317 has been renewed as PPL 564.  Grant and expiry dates are yet to be verified.

 

According to Peak Oil (PNG), PPL 352 was granted for 6 years in August 2013. Grant and expiry dates are yet to be verified.

 

                                                                                                                                   

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