We would like to welcome the following new users of GPinfo who have joined us in the last few months ...

 

AWE is set to increase its stake in the BassGas project after Innamincka Petroleum ended its option to acquire a stake in the project.  Innamincka said it was unable to secure the funding it needed for the deal ...

 

In the Darling Basin, PEL 422 and PEL 424 are in the process of being renewed  ...


Welcome New Users

We would like to welcome the following new users of GPinfo who have joined us in the last few months -

Adelaide Energy in Adelaide, the Australian Institute of Marine Science in Townsville, Cooper Energy, Mitsubishi Australia and PTTEP all in Perth, Hunt Oil in Dallas and the NSW Department of Mineral Resources in Maitland.


Industry Summary

Company News

AWE is set to increase its stake in the BassGas project after Innamincka Petroleum ended its option to acquire a stake in the project. Innamincka said it was unable to secure the funding it needed for the deal and that its directors did not have confidence the transaction could be successfully completed in the timeframe required. All capital raising activities aimed at acquiring a 7.5% stake in the project have since ceased. In November, AWE and Innamincka agreed to split CalEnergy’s 15% stake in BassGas equally. Innamincka was required to pay $40 million for the stake, failing which AWE would acquire the interest. The BassGas project in T/L1 and T/RL1 of the Bass Basin consists of an offshore, unmanned wellhead platform which is connected by pipeline to the gas processing facility at Lang Lang in Victoria. The project began gas sales in 2006 and has a field life of at least 20 years. AWE’s interest following Innamincka’s pull-out will be 57.5%. (Source: www.petroleumnews.net, 01/03/2010).

Santos announced that the PNG LNG Project participants have finalised a binding Sale and Purchase Agreement (SPA) with CPC Corporation of Taiwan for the long-term sale and purchase of liquefied natural gas (LNG) totalling approximately 1.2 million tonnes per annum. Under the agreement, the PNG LNG Project will supply LNG to CPC Corporation for a period of 20 years. With the finalisation of this SPA, all of the PNG LNG Project’s production capacity has been committed on a long-term basis. Finalisation of the financing arrangements with lenders is expected later this month. The PNG LNG Project is an integrated development that includes gas production and processing facilities, onshore and offshore pipelines and LNG plant facilities with a capacity of 6.6 million tonnes per annum.  Santos has a 13.5% interest in PNG LNG.  Other participants are entities of ExxonMobil (33.2% and operator), Oil Search (29%), Independent Public Business Corporation (PNG Government, 16.6%), Nippon Oil Exploration (4.7%), Mineral Resources Development Company (PNG landowners, 2.8%) and Petromin PNG Holdings Limited (0.2%). (Source: Santos ASX announcement 02/03/2010).

Westside Corporation has formed a joint venture with Mitsui E&P for the acquisition of the Dawson Seamgas coal seam gas fields in the Bowen Basin. Under the agreement, Westside will be the operator with a 51% interest in the project while Mitsui will hold the remaining 49%. Westside will pay Anglo Coal $26.8 million for its stake in PL 94, which holds Dawson Seamgas, and will raise the funds through a combination of placements, an entitlement offer and other facilities. (Source: www.petroleumnews.net, 04/03/2010).

Royal Dutch Shell PLC and PetroChina have made a joint takeover offer worth $3.3 billion (Aus.) for Brisbane-based coal seam methane gas (CSM) player Arrow Energy Ltd. Arrow has received the nonbinding conditional bid from a company jointly owned by Shell and PetroChina under which Arrow shareholders would receive $4.45 (Aus.)/share in cash plus one share in a new company comprising Arrow’s international business. Arrow had been planning to list 20% of its international arm on the Singapore or Hong Kong stock exchanges after an initial public offering to be held during the first half of the 2010-11 financial year. As of March 8, the company recommended that its shareholders take no immediate action in relation to their shares. (Source: Oil & Gas Journal, 08/03/2010).

Liquefied Natural Gas Ltd has extended its heads of agreement with Arrow Energy for the sale of the Fisherman’s Landing LNG plant to June 30, 2010, and is keeping its options open in the event the sale falls through. Both companies also amended the agreement to state it would be a non-exclusive arrangement that could be terminated by either party with a one-day written notice, and termination would not impose liability on either party. LNG Ltd said while it was disappointed the Arrow sale had not been finalised, the revision allowed it to actively appraise all other opportunities to develop Fisherman’s Landing. Last month, Arrow agreed to acquire Fisherman’s Landing from LNG Ltd for about $168 million, including an upfront payment of $A51 million in cash and options. However, the Shell/PetroChina bid for Arrow has cast doubt over this deal with many suggesting the bidders would rather reserve Arrow’s coal seam gas resources for Shell’s planned CSG-LNG project. (Source: www.petroleumnews.net, 16/03/2010).

The proposed merger between Orion Petroleum and Gas2Grid has been terminated after a revised expert opinion found the merger was neither fair nor reasonable to Orion shareholders. In a statement, Orion said that after consultation with Gas2Grid and the fact that it was no longer possible to implement the merger before March 31, the two companies had agreed to immediately terminate the merger implementation agreement. “Orion and Gas2Grid will continue to explore mutually beneficial opportunities to work together in the future and, should there be an opportunity to do so, the market will be updated as and when required,” the company said. No break fees were payable by either company on termination of the agreement. Orion and Gas2Grid announced their intention to merge last November by way of two schemes of arrangement with Orion to acquire all the shares and options in Gas2Grid. Each Gas2Grid shareholder was to receive one Orion share for every 2.25 Gas2Grid shares held, while each option holder was to get one Orion option for every 2.25 Gas2Grid shares. (Source: www.petroleumnews.net, 12/03/2010).

Development News

Santos’s Henry development in Victoria’s Otway Basin has started producing gas into the Casino network. Mitsui, which has a 25% interest in the development, said production began on February 21 from the Henry 2 and Netherby 1 wells. The two wells are connected by a subsea pipeline back to the existing Casino infrastructure. Production from the Henry and Netherby fields was expected to start in mid-2009 but was pushed back due to a delay in the availability of the contracted pipelay vessel which was to install the pipeline to the production facilities. Santos has previously said the two fields would produce 120 terajoules of gas per day. Santos is operator and holds a 50% interest in the Casino-Henry development while Australian Worldwide Exploration and Mitsui E&P Australia each have 25%. (Source: www.petroleumnews.net, 24/02/2010).

BHP Billiton has brought its Pyrenees oil development offshore Western Australia into production ahead of schedule. About half the planned 13 subsea wells are ramping up from first oil while the remaining wells will be brought into production over the next six months. The full project includes a subsea gathering system and the Pyrenees Venture floating production, storage and offloading vessel, which is capable of producing up to 96,000 barrels of oil and re-injecting 60 million cubic feet of gas per day. Pyrenees is located about 45 km off the coast of Exmouth, Western Australia, and about 20 km east from the Stybarrow development. Gas produced by the development will be re-injected into the reservoir of the nearby Macedon gas field for future recovery. (Source: www.petroleumnews.net, 01/03/2010).

GE Oil & Gas has won a new contract to supply Chevron’s Gorgon project with power generation and subsea equipment, bringing the company’s order book for the project to over $US1.1 billion ($A1.2 billion). Under the new contract, GE will supply five 130 MW Frame-9 gas turbines to meet the power generation needs of Barrow Island’s gas treatment and liquefaction facilities. In addition, GE’s drilling and production business will supply the subsea production system which will be installed 60-140 km offshore Barrow Island. The new contract adds to the $US400 million contract secured last October for the supply of three compression trains for LNG production and six compression trains for carbon dioxide sequestration. The gas turbines will be manufactured in France and Italy before being shipped to Australia between July 2012 and mid-2013. The subsea equipment will be managed from GE’s Perth office with equipment manufactured around the world. First deliveries of the subsea equipment are expected in the second quarter of 2011. (Source: www.petroleumnews.net, 04/03/2010).

Mitsui OSK Lines (MOL) has inked deals with ExxonMobil for the construction and charter of liquefied natural gas vessels for the PNG LNG and Gorgon LNG projects. Under the PNG LNG agreement, MOL will charter two existing 177,000 cubic metre capacity LNG carriers co-owned by Itochu Corporation. MOL also entered into two heads of agreement for the construction and long-term charter of four LNG vessels for the PNG LNG and Gorgon LNG project. The vessels are planned to be built in China with delivery expected in 2014-16. First LNG from PNG LNG and Gorgon is expected in 2014. The Exxon-operated PNG LNG project is expected to cost about $US15 billion ($A16.6 billion) with a production capacity of 6.6 million tonnes per annum of LNG. (Source: www.petroleumnews.net, 04/03/2010).

Discoveries

PTTEP Australasia’s purchase of Stuart Petroleum’s 50% stake in AC/P33 in the Timor Sea has paid dividends with the Oliver 2 well encountering an 81 m gas column. The company said the gas find supported its strategic objectives of expanding investment activities in Australia, including the development of a floating liquefied natural gas business. Oliver 2 was drilled by the Songa Venus semi-submersible rig to a total depth of 3,233 m in the Oliver field within AC/P33. The field was discovered by a BHP-led consortium in 1988 when the Oliver 1 discovery well encountered oil, gas and condensate in the Plover Formation at a depth of 2,929 - 3,097 m. Stuart sold its 50% stake in AC/P33 to PTTEP last October and recently received $10.29 million from the sale. AC/P33 covers 421 sq km and is just 40 km away from the Jabiru and Challis fields where PTTEP is operator. (Source: www.petroleumnews.net, 24/02/2010).
 

Permit Updates and Changes

New South Wales

In the Darling Basin, PEL 422 and PEL 424 are in the process of being renewed.

In the Eromanga Basin, PEL 443 was renewed until 23/01/2012 with reduction in area and now covers 4,046 sq km.

In the Surat Bowen Basin, PEL 6 is in the process of being renewed.

In the Clarence-Moreton Basin, the following multiple competing applications are being processed:

PELA 129 is under application by Metgasco Ltd and also under application as PSPAPP 45 by Tito Trapuzzano and PSPAPP 49 by Clarence Moreton Resources Ltd.

PELA 130 is under application by Metgasco Ltd and also under application as PSPAPP 44 by Tito Trapuzzano and PSPAPP 47 by Clarence Moreton Resources Ltd

PSPAPP 48 is under application by Clarence Moreton Resources Ltd and also under application as PELA 128 by Tito Trapuzzano.
 
PSPAPP 46 is under application by Clarence Moreton Resources Ltd and also under application as PELA 127 by Tito Trapuzzano
.


 

Northern Territory

In the Timor Basin, PTTEP Australasia has acquired 100% interest from Stuart Petroleum and Albers Group companies in AC/P 33.
 


 

Queensland

In the Eromanga Basin, Strike Energy has withdrawn from the Solitaire block of ATP 549P Australian Gasfields now holds 100%.

In the Eromanga Basin, ATP 809P has undergone partial relinquishment and now covers a reduced area of 3,612 sq km.

Geothermal Permits

In the Eromanga Basin, EPG 90 is under application by Clean Energy Australasia P/L.

In the Cooper Basin, EPG 91 is under application by KUTh Exploration P/L.


 

South Australia

In the Cooper Basin, PEL 101 was renewed until 22/01/2015 with a reduction in area and now covers 154 sq km.

Also in the Cooper Basin, Production Licences PPL 46, 47 and 52 were renewed for the life of the field.

In the Arrowie Basin, PELA 528 is under application by Near Surface Geothermal Energy P/L.

Geothermal Permits

In the Arrowie Basin, GEL 128, GEL 129, GEL 161, GEL 162 and GEL 163 are now consolidated into GEL 128 with a total area of 2,200 sq km.  GELs 129, 161, 162 and 163 are revoked.

In the Cooper Basin, GELA 526 and GELA 527 are new applications by Strike Energy Ltd.


 

Tasmania

In the Bass Basin, ARC (Bass Gas) P/L is looking for farmin partners for T/44P.

In the Bass Basin, AWE Petroleum P/L increased its interest by 15% in T/L 1 and T/RL 1 under the terms of previous arrangements with CalEnergy.

Geothermal Permits

In the Tasmania Basin, SEL 3/2009 was granted to Swann & Jenkins P/L. The licence will expire on 15/12/2014.
 


 

Western Australia

 

In the Carnarvon Basin, Carnarvon Petroleum has withdrawn from EP 110 and EP 424.  Pancontinental Oil & Gas and Strike Energy took pro-rata shares of Carnarvon's interest.

In the Perth Basin, EP 419 has been extended to 18/10/2010 and its work program has been varied as follows:

Year 6 – Geotechnical Studies - $0.12m

Various permits have undergone partial relinquishments, as follows -

Licence            Basin                   Area                       Updated Expiry

EP 409              Carnarvon               80 sq km
EP 412
              Carnarvon          1,776 sq km                  01/30/2011
EP 436              Canning             2,419 sq km
EP 438              Canning             5,390 sq km                 22/12/2012
WA-155-P(1)
      Carnarvon             206 sq km                 25/02/2015
WA-155-P(2)      Carnarvon               80 sq km                 25/02/2015
 

In the Gascoyne Basin, the EP 439 joint venture partners have entered into a Farmin Agreement with Lion Petroleum P/L. Lion Petroleum will drill 1 well in 2010 and continue to drill 1 well each permit year to retain the right to a Production Licence. The EP 439 partners have a 10% ORR on all petroleum produced.

 

In the Perth Basin, EP 446 was cancelled.  

 

Also in the Perth Basin, AWE Ltd will farm in for a 90% equity share in EP 455.

 

In the Officer Basin, 2/04-5 EP was granted as EP 468 to Frontier Oil & Gas P/L. The permit will expire on 07/03/2016.

 

Onshore gazettal areas in the Canning and Officer Basins L 08-8, L 08-9, L08-10, L 09-3 and L 09-4 closed for bids on 04/03/2010 and applications are being processed.

In the Browse Basin, WA-285-P is pending renewal.

Geothermal Permits

The following applications have been granted -

Application               Granted as          Basin                             Permit Holder

1/08-9 GEP                   GEP 29             Carnarvon                        Geothermal Energy P/L
4/08-9 GEP                   GEP 30            
Carnarvon                        New World Energy Ltd
6/08-9 GEP                   GEP 31            
Carnarvon                        New World Energy Ltd
8/08-9 GEP                   GEP 32            
Carnarvon                        New World Energy Ltd
9/08-9 GEP                   GEP 33            
Carnarvon                        New World Energy Ltd
10/08-9 GEP                 GEP 34            
Carnarvon                        New World Energy Ltd
11/08-9 GEP                 GEP 35            
Carnarvon                        New World Energy Ltd
12/08-9 GEP                 GEP 36            
Carnarvon                        New World Energy Ltd
1/09-0 GEP                   GEP 37            
Scadden Embayment       Greenpower Energy Ltd
2/09-0 GEP                   GEP 38            
Scadden Embayment       Greenpower Energy Ltd
 


 

New Zealand

The western edge of Reinga Basin gazettal Blocks 11 and 12 extend to the New Zealand Exclusive Economic Zone boundary (NZEEZ).  Polygons have been corrected to fit the NZEEZ boundary.  The closing date for applications for the blocks is 18th August 2010.

Blocks 1 R and 2 R in the Raukumara Block Offer are closed for bids and applications are being evaluated. 

Offshore, in the Taranaki Basin, PEP 38483 and PEP 38524 are available for farmin. 


Papua New Guinea

In the Papuan Basin, Talisman Energy has acquired 50% of Horizon’s interest in PRL 4. 


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