GPinfo June 2017


2017 Map & Book Available Now

 

The 2017 editions of the Petroleum Permits of Australasia Map and Book were released at the APPEA Conference in Perth last month and are now available for purchase …

 

Nomination of Areas for 2018 Offshore Acreage Release

 

As announced at the 2017 APPEA Conference, the Australian Government is calling for nominations from interested parties for vacant offshore areas to be considered for release in 2018 …

 

Industry Summary

 

Real Energy Corporation Ltd has executed a non-binding memorandum of understanding with Santos Ltd to enable raw gas from Real Energy’s Windorah gas project to be processed into sale gas

 

ExxonMobil Corp has completed construction and is in the final stages of commissioning of its Longford gas conditioning plant in south-eastern Victoria. Start-up of the $1 billion plant, which is designed

 

Permit Updates and Changes

 

BP Developments Australia P/L has transferred its 70% equity interest in EPP39 to Statoil Australia Theta BV. The year 3 work program has been extended by 28 months from 30/06/2017 to 30/10/2019

 

Triangle Energy (Global) Ltd and Royal Energy P/L have jointly (50/50) completed the share purchase agreement to acquire the 42.5% balance of the Cliff Head oil field WA-31-L from Roc Oil

 

2017 Map & Book Available Now             

 

The 2017 editions of the Petroleum Permits of Australasia Map and Book were released at the APPEA Conference in Perth last month and are now available for purchase.

 

Click here to place your order.

 

 

The GPinfo Petroleum Permits Map is an attractive, full colour wall map (1250mm x 870mm) and an essential tool for any company associated with the petroleum industry. It features maps of Australia, Papua New Guinea and New Zealand, including permit, well, field and pipeline information. Detailed insets of areas of exploration interest are also included. It is available in paper and laminated forms. An A3 sized copy of the permits map is free with each full sized map ordered.

 

The Petroleum Permits Book contains fully detailed permit ownership information for Australia, Papua New Guinea and New Zealand, listed by company and by permit. It takes the form of a searchable PDF file which can be viewed on your computer, tablet or smartphone, providing you with the convenience of having access to this valuable data at all times. Quarterly updates to the book are provided at no extra charge over the coming year.

 

 

 

As announced at the 2017 APPEA Conference, the Australian Government is calling for nominations from interested parties for vacant offshore areas to be considered for release in 2018. Nominations are treated as “Commercial-in-Confidence” and can be made online. While expressing interest does not guarantee inclusion in the release, all nominations are considered seriously and are subjected to a rigorous phase of assessment and shortlisting.

 

In considering what areas to release, the Department of Industry, Innovation and Science and Geoscience Australia look at whether there is a new geoscientific story or a new market development that might generate the interest of potential bidders. Synergies with other industry activities such as drilling programs, speculative survey proposals and the Geoscience Australia research agenda are also among the range of factors considered.

 

Further information on how to nominate and the online nomination form can be found here.

 

 

Industry Summary                                       

 

Company News

 

Real Energy Corporation Ltd has executed a non-binding memorandum of understanding with Santos Ltd to enable raw gas from Real Energy’s Windorah gas project to be processed into sale gas and supplied to the east Australian gas market. Santos, together with its joint venture partners, has gas processing facilities at Moomba in South Australia. Real Energy and Santos have agreed upon the terms for gas progressing and transportation services, which remain confidential at this time. The MOU is a key step for the commercialisation of the Windorah project that will allow Santos to take the raw gas and transform it into sales gas via the Moomba hub. An independent geologist has assessed the 3C gas resource of the project at 672 bcf of gas. Real Energy’s Tamarama 1 well, is a critical well in unlocking this gas. (Source: Real Energy announcement, 15/05/2017).

 

A group of rebel shareholders has emerged as a potential spoiler in Macquarie’s $87 million bid for Central Petroleum. The group of Central shareholders, which calls itself OptionCo, has formally submitted a requisition notice calling for a spill of the company’s board. The shareholders claim to hold around 5.04% of the shares on issue and believe the 20c per share offer from Macquarie materially undervalues Central. The shareholders are putting forward an alternative future for Central to remain as an independent company with a new board that would include Stuart Howes, former minister in the Hawke and Keating governments Nick Bolkus and former BP senior executive Colin Goodall. A second option has also emerged from a group led by shareholder Robert Dean, proposing to installing a temporary board of Alan Beasley, Maki Petrovski and John Heugh if the current board quits in the event the scheme fails. Shareholders will vote on the proposal at a meeting to be held on 19/07/2017. (Source: Energy News Premium, 12/05/2017, Central Petroleum announcement, 15/05/2017 and 09/06/2017, Macquarie announcement, 18/05/2017).

 

Pancontinental Oil & Gas NL has executed a binding heads of agreement with Bombora Natural Energy P/L under which it will acquire all of the issued capital of Bombora on the basis of up to 26 Pancontinental shares for each Bombora share. The agreement is subject to the satisfaction of certain conditions and is expected to be completed by 12/07/2017. (Source: Pancontinental Oil & Gas announcement, 07/06/2017).

 

The New South Wales Government has announced plans to increase conventional gas exploration in the state by releasing new areas for exploration. NSW Energy Minister Don Harwin said that the release of the new exploration areas, which would be done under the government’s Strategic Release Framework in the New South Wales Gas Plan, would be in areas that did not raise a conflict between gas exploration and the local community. Areas for potential release would focus on conventional gas opportunities only, with Harwin ruling out any coal seam gas exploration. Any potential exploration projects would also be subject to a rigorous regime that would place communities and the environment first, the Minister said. Geologists have identified the Bancannia Trough, north of Broken Hill, and the Pondie Range Trough, north of Wilcannia, for initial assessment by an advisory body for strategic release. These two areas show good potential for conventional gas resources and are located away from prime agricultural land and residential areas, the Minister said. He added, however, that the Advisory Body would conduct a further assessment of the areas to consider the social, environmental and economic impacts of exploration and would undertake consultation with local communities to determine the areas' suitability for exploration. (Source: Energy News Premium, 07/06/2017, ABC News, 07/06/2017).

 


 

Developments

 

ExxonMobil Corp has completed construction and is in the final stages of commissioning of its Longford gas conditioning plant in south-eastern Victoria. Start-up of the $1 billion plant, which is designed to process gas from the Kipper, Tuna, and Turrum fields, also marks completion of the $5.5 billion Kipper-Tuna-Turrum project, the largest domestic gas development on Australia’s eastern seaboard. The development will supply 1.6 tcf of gas to eastern Australia. The gas conditioning plant will help maintain current gas supply levels from Bass Strait and ensure continued supply of gas to the Australia’s east-coast market. (Source: Oil and Gas Journal, 10/05/2017, Energy News Premium, 10/05/2017).

 

Shell has awarded Sinwa Group a number of new supply agreements totaling $8 million for vessels involved in the Prelude FLNG Project. This is a milestone for the group as it is the highest contract value that Sinwa has secured for a single project in Western Australia and the Northern Territory, catering to the requirements of over 1,000 personnel involved in the Prelude FLNG Project. The group will be servicing its clients requirements through its Darwin facility, which is equipped with complete warehousing facilities, including freezer, chiller, provision and general storages, as well as laydown and hardstand areas. Sinwa expects the commencement of the supply deal in August 2017. (Source: Energy News Premium, 25/05/2017, Sinwa announcement, 24/05/2017).

 

The INPEX-led Ichthys LNG Project is celebrating the safe arrival of the central processing facility (CPF), the world’s largest semi-submersible platform, in the Australian waters of the Browse Basin, where it will be located for 40 years. The CPF, named Ichthys Explorer, will be permanently moored about 220km off Australia's north-west coast in about 250m of water by using 28 giant anchor chains, weighing a combined 25,000 tonnes. Even with the safe arrival of the CPF, INPEX did not give an updated estimate of when Ichthys would start production, but the last guidance given was that it would occur before 31/03/2018. (Source: Energy News Premium, 30/05/2017).

 

APA Group has executed an agreement with Cooper Energy Ltd to acquire the Orbost Gas Processing Plant. The transaction will enable the development of the Sole gas field as a new source of gas supply for south-east Australia from 2019. Under the transaction, Cooper Energy will develop the Sole gas project and APA will acquire, upgrade and operate the Orbost Gas Plant to process gas from Sole and potential other fields. Total cost of the upgrade project including acquisition costs is expected to be $270 million. The transaction remains subject to Cooper completing a debt raising and making a final investment decision on the Sole gas project and obtaining necessary approvals. The anticipated date for financial close is August 2017, with project completion around mid-2019. (Source: APA Group announcement, 01/06/2017, Cooper Energy announcement, 01/06/2017).

 

Liquefied Natural Gas Ltd (LNGL) has decided to abandon the Fisherman’s Landing Project at the Port of Gladstone in Queensland. The project was estimated as requiring a further 2.5 years to be completed, LNGL had planned an initial development based on two trains of 1.5 mtpa each. LNGL had hopes of eventually moving up to four trains for a total capacity of 7 mtpa. Each train required a minimum gas supply of 260 TJ per day, which equates to 1,800 PJ over a 20-year period to be economically viable. However, after a number of years without any success in securing the long-term gas supplies needed to proceed with construction, LNGL has decided to no longer fund the costs associated with maintaining the site and close the project down. (Source: Oil & Gas Journal, 31/05/2017, Energy News Premium, 31/05/2017).

 

AWE Ltd and Origin Energy have announced the beginning of the design competition phase of front-end engineering and design of the Waitsia Gas Project Stage 2. The design for the facilities will include a gas plant capable of processing 100 TJ/d of gas along with carbon dioxide extraction, collection hubs, and flow lines. AWE says the competition will enable the joint venture to establish a high degree of capital cost certainty. Four contractors have been selected to submit designs: Quanta-Suez, ATCO Australia, SNC-Lavalin and Clough. The design competition will begin immediately and will be followed by a commercial phase. AWE is targeting completion of all phases of FEED by yearend. (Source: AWE announcement, 08/06/2017, Oil & Gas Journal, 08/06/2017).

 

TechnipFMC has entered into a three-year agreement with Woodside Energy Ltd in Australia for Riserless Light Well Intervention (RLWI) and subsea services, including intervention, installation, and plug and abandonment services. Under the agreement, TechnipFMC will initially perform installation and RLWI services in the Greater Western Flank Phase 2 (GWF2) development located approximately 175 km northwest of Dampier, Western Australia. TechnipFMC will install subsea trees and deploy its deepwater RLWI stack to perform well intervention services on up to eight subsea wells in the GWF2 development. (Source: Energy News Premium, 08/06/2017).

 


 

Discoveries

 

The Oil Search operated Muruk 1/ST3 appraisal well in the highlands of Papua New Guinea has confirmed a natural gas-rich zone found in the initial Muruk 1 discovery. The sidetrack, drilled just southwest of the discovery well, encountered gas saturation through the entire Toro sandstone reservoir section with no gas-water contact observed. Two cores were cut and a full suite of logging and pressure data tools was run. The information is now being evaluated ahead of a likely production test. Further appraisal of the Muruk discovery is being considered for 2018. (Source: Oil Search announcement, 15/05/2017).

 

Beach Energy and Cooper Energy’s five well development and appraisal campaign has commenced in the Callawonga field. The first two wells of the campaign, Callawonga 14 and Callawonga 18, both intersected the McKinlay Member approximately 2m high to prognosis, extending the reservoir’s western and eastern limits. The third and fourth wells, Callawonga 15 and Callawonga 16, also intersected the McKinlay Member, Callawonga 15 approximately 2.2m high to prognosis, with a 2.2m gross thickness with an interpreted 1.7m of net oil pay and Callawonga 16, 1m low to prognosis, with a 2.3m gross thickness and an interpreted 2m of net oil pay in a clean sand. The four wells have been cased and suspended as future producers. (Source: Beach Energy announcement, 07/06/2017, Cooper Energy announcement, 06/06/2017 and 13/06/2017).

 

TAG Oil has reported the successful drilling and flow testing of its Cheal E8 exploration well, which will now be tied-in to the company’s existing production systems as a permanent producer. The well was drilled on the company’s operated Cheal East permit PEP 54877 in New Zealand’s Taranaki basin. The primary objective was to test the potential of the Urenui formation, with the deeper Mt Messenger formation as the secondary objective. Net pay of approximately 17m of Urenui sands and 4m of Mt Messenger sands was recorded. Following the completion of the Urenui zone, Cheal E8 naturally free flowed oil and gas on choke at an average rate of 318 bopd over a four and a half day test, during which no water production was observed. The Mt Messenger formation is also estimated to be commercial and will be completed in the future. (Source: TAG Oil announcement, 24/05/2017).

 

Senex Energy’s Silver Star 1 is a high impact gas exploration well located in the northern Cooper Basin, targeting basin centered gas in the Patchawarra Trough. Silver Star 1 reached a total depth of 3770m in late April and gas shows were observed in the primary target zone and in the secondary Toolachee and Epsilon Formations. Subsurface modelling for Silver Star 1 demonstrated greater potential productivity with a horizontal section, Silver Star1/DW1, drilled through the Patchawarra Formation. Gas saturation levels in the horizontal section were in line with expectations. The well is being cased and suspended in preparation for fracture stimulation and testing, expected to take place in the second half of the year. (Source: Senex Energy announcement, 07/06/2017).

 

 Permit Changes                                                                

 

Northern Territory

 

Bonaparte Basin

A suspension and extension for NT/P84 was lodged on 11/05/2017.

 

A variation for NT/RL7 was lodged on 02/06/2017.

Vulcan Sub Basin

A suspension and extension for AC/P21 was lodged on 12/05/2017.

Queensland

 

Bowen Basin

ATP 684 is being renewed over a reduced area of 442 sq km.

 

ATP 742 has undergone a partial relinquishment and now covers a reduced area of 561 sq km.

 

ATP 749 has been relinquished and now reverts to vacant acreage.

 

ATP 759 has undergone a partial relinquishment and now covers a reduced area of 1511 sq km.

 

ATP 1103 has undergone a partial relinquishment and now covers a reduced area of 3709 sq km.

 

Potential commercial area PCA 134 has been relinquished.

 

PCA 180 is an application by Eureka Petroleum P/L 100% for a potential commercial area over 232 sq km.

 

PCA 181 is an application by Eureka Petroleum P/L 100% for a potential commercial area over 232 sq km.

 

PCA 182 is an application by Eureka Petroleum P/L 100% for a potential commercial area over 232 sq km.

 

PCA 183 is an application by Eureka Petroleum P/L 100% for a potential commercial area over 77 sq km.

Cooper/Eromanga Basin

ATP 917 has been relinquished and now reverts to vacant acreage.

Eromanga Basin

ATP 732 has undergone a partial relinquishment and now covers a reduced area of 1762 sq km.

Surat Basin

Production licence application PL 225 over the Kainama field has been varied and now covers an increased area of 153 sq km.

 

Production licence application PL 289 has been withdrawn and the area is now covered by PL 225.

 

Production licence application PL 481 has been withdrawn and the area is now covered by PL 225.

Surat/Bowen Basin

ATP 965 has undergone a partial relinquishment and now covers a reduced area of 380 sq km.

 

Potential commercial area PCA 120 was granted to Clark Oil & Gas PL on 31/05/2017. The licence will expire on 30/05/2025.

 

Potential commercial area PCA 121 was granted to Clark Oil & Gas PL on 31/05/2017. The licence will expire on 30/05/2025.

South Australia

 

Ceduna Basin

Statoil Australia Theta BV has transferred its 30% interest in EPP37 and EPP38 to BP Developments Australia P/L.

 

BP Developments Australia P/L has transferred its 70% equity interest in EPP39 to Statoil Australia Theta BV. The year 3 work program has been extended by 28 months from 30/06/2017 to 30/10/2019. The licence has had its expiry date extended to 30/10/2022. A change in work program has been approved –

Year 3: 1 well, geotechnical studies, reservoir studies, post-well data evaluation $126m

 

BP Developments Australia P/L has transferred its 70% equity interest in EPP40 to Statoil Australia Theta BV. The year 3 work program has been extended by 16 months from 30/06/2017 to 30/10/2018. The licence has had its expiry date extended to 30/10/2021. A change in work program has been approved –

Year 3: geotechnical studies, seismic survey design & planning $3m

Cooper Basin

Geothermal applications GELA 655, GELA 656, GELA 657 and GELA 658 have been varied and now cover 2649 sq km, 2674 sq km, 2407 sq km and 2819 sq km respectively.

 

Geothermal retention licences GRL 3, GRL 4 and GRL 8 are being renewed.

 

Geothermal retention licences GRL 5 - GRL 7 and GRL 9 - GRL 12 expired on 10/05/2017.

 

PRL 14 has been renewed to 13/05/2022.

Duntroon Basin

A suspension and extension for EPP42 was lodged on 26/05/2017.

Eromanga Basin

The year 5 work programs for PEL 424 and PEL 87 have been suspended from 10/01/2018 to 09/01/2019. The licences have had their expiry dates extended to 09/01/2019.

Officer Basin

The year 5 work program for PEL 81 has been suspended from 01/04/2017 to 31/03/2018. The licence has had its expiry date extended to 24/06/2019.

Otway Basin

The suspension of geothermal licence GEL 611 has ceased with effect from 24/05/2017. The expiry date is now 15/07/2019.

Victoria

 

Gippsland Basin

An application to surrender VIC/P62 was lodged with NOPTA on 09/05/2017.

Otway Basin

VIC/P67 was cancelled by NOPTA on 23/03/2017 and the area now reverts to vacant acreage.

 

PEP168 has had its expiry date extended to 06/06/2018.

Western Australia

 

Bonaparte Basin

A suspension and extension for WA-523-P was lodged on 04/05/2017.

Browse Basin

A suspension and extension for WA-274-P was lodged on 26/05/2017.

 

The year 2 work program for WA-471-P has been extended by 12 months from 03/05/2017 to 03/05/2018. The licence has had its expiry date extended to 03/05/2022.

 

The year 2 work program for WA-485-P has been extended by 12 months from 13/05/2017 to 13/05/2018. The licence has had its expiry date extended to 13/05/2022.

 

Locations were granted over Lasseter East WA-513-P LL and Lasseter South WA-514-P LL on 31/05/2017.

Canning Basin

Buru Energy Ltd has agreed to transfer its 50% interest in EP 371 and STP-SPA-0065 to Diamond Resources (Fitzroy) P/L.

 

Diamond Resources (Fitzroy) P/L has agreed to transfer its 50% interest in EP 391, EP 431, EP 436, L 20 and L 21 to Buru Energy Ltd.

 

Diamond Resources (Canning) P/L has agreed to transfer its 50% interest in EP 428 to Buru Energy Ltd.

 

Goshawk Energy (Canning Basin) P/L 20% (operator) and Squadron Energy P/L 80% have applied for Special Prospecting Authority Application STP-SPA-0078.

Carnarvon Basin

The year 3 work programs for EP 490 and EP 491 have been extended by 12 months from 27/05/2017 to 27/05/2018. The licenses have had their expiry dates extended to 27/05/2021.

 

The year 3 work program for TP/27 has been extended by 12 months from 27/05/2017 to 27/05/2018. The licence has had its expiry date extended to 27/05/2021.

 

TR/3 has been renewed to 14/05/2022. Work program is as follows –

Year 1: geotechnical studies $0.05m

Year 2: geotechnical studies $0.05m

Year 3: geotechnical studies $0.05m

Year 4: geotechnical studies $0.05m

Year 5: geotechnical studies $0.05m

 

Suspensions and extensions for WA-205-P and WA-208-P were lodged on 26/05/2017.

 

BP's option to acquire 42.5% equity in WA-359-P has been extended to 25/10/2017.

 

The year 5 work program for WA-374-P has been extended by 12 months from 24/05/2017 to 24/05/2018. The licence has had its expiry date extended to 24/05/2018.

 

WA-461-P and WA-463-P are being relinquished.

Dampier Basin

WA-457-P is being relinquished.

 

WA-45-R has been renewed to 11/05/2022. Work program is as follows –

Year 1: purchase 80 sq km 3D seismic $1.3m

Year 2: seismic interpretation & investigation of seismic attributes $0.15m

Year 3: reservoir quality studies, Corvus resource & development options review $0.15m

Year 4: subsurface, engineering & economic evaluation studies $0.15m

Year 5: Corvus resource & development options review $0.15m

Perth Basin

The year 3 work program for EP 480 has been suspended by 3 months from 31/03/2017 to 30/06/2017.

 

Suspension and extensions for EP 488 and EP 489 were lodged on 03/05/2017.

 

Norwest Energy NL has executed farm-out agreements with 3C Group IC Ltd, Triangle Energy (Global) Ltd and Transerv Energy Ltd to formalise the farm-out of TP/15. The terms of the farm-out agreement reflect the February term sheet, whereby 3C Group will contribute 40% of the Xanadu 1 well costs to earn 30% in TP/15, Triangle will contribute 40% to earn 30% and Transerv will contribute 20% to earn 15%.

 

Triangle Energy (Global) Ltd and Royal Energy P/L have jointly (50/50) completed the share purchase agreement to acquire the 42.5% balance of the Cliff Head oil field WA-31-L from Roc Oil. In completing the acquisition, Triangle and Royal have purchased Roc Oil (WA) P/L, which was subsequently renamed Triangle Energy (Operations) P/L.

New Zealand

 

East Coast Basin

PEP 55789 was relinquished on 16/05/2017.

Taranaki Basin

A change to the work program for PEP 54877 has been approved –

57 months: 1 well

 

PEP 57070 is being relinquished.

 

New Zealand Oil & Gas has agreed to purchase Mitsui E&P Australia's 4% interest in the Kupe gas and light oil field PML 38146 for $NZ35 million. The transaction is subject to regulatory approvals and agreement from the joint venture partners who have first right of refusal.

Papua New Guinea

 

Papuan Basin

PPL 340 was renewed on 31/03/2017 to 30/03/2022 over a reduced area of 2210 sq km. Work program is as follows –

Years 1-2: gravity/gradiometry survey

Years 3-4: seismic acquisition

Year 5: 1 well

 

Oil Search (PNG) Ltd has reached agreement to acquire 30% of PPL 474, PPL 475, PPL 476, PPL 477 and PRL 39 from ExxonMobil.

 

PPL 596 was granted to Kina Petroleum Ltd 100% on 31/03/2017. The licence will expire on 30/03/2023. Work program is as follows –

Years 1-2: gravity/gradiometry survey

Years 3-4: seismic acquisition

Years 5-6: 1 well

 

PPL 597 was granted to Kina Petroleum Ltd 100% on 31/03/2017. The licence will expire on 30/03/2023. Work program is as follows –

Years 1-2: gravity/gradiometry survey

Years 3-4: seismic acquisition

Years 5-6: 1 well

 

PPL 598 was granted to Kina Petroleum Ltd 100% on 31/03/2017. The licence will expire on 30/03/2023. Work program is as follows –

Years 1-2: gravity/gradiometry survey

Years 3-4: seismic acquisition

Years 5-6: 1 well

 

                                                                                                                                  

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