March 2016 GPinfo Update


Data Update

 

The March 2016 data update is now available …

 

Many thanks to Beach Energy for supplying us with verified information for more than 300 Beach-operated wells. The wells have been checked and included in this month’s GPinfo update …

 

Industry Summary

 

Beach Energy Ltd is pleased to advise that the Federal Court of Australia has approved the scheme of arrangement to implement the proposed merger of Beach and Drillsearch Energy Ltd. All conditions relating the scheme have now been completed …

 

Wood Group Kenny has secured a contract with Woodside Petroleum to provide detailed design of the flowline system for the Greater Western Flank Phase 2 on the North West Shelf offshore WA

 

Permit Updates and Changes

 

In the Timor Basin, following completion of the Laminaria-Corallina sales agreement and subject to certain conditions being satisfied, Talisman Oil & Gas (Australia) P/L will be the sole legal and beneficial owner of AC/L 5 ...

 

In the Maryborough Basin, Blue Energy has applied to consolidate ATP 613, ATP 674 and ATP 733 into a single project area.  The company believes that there is potential for significant shale gas …
 

 

Data Update

 

The March 2016 GPinfo data update is now available.


 

Thanks

 

 

Many thanks to Beach Energy for supplying us with verified information for more than 300 Beach-operated wells. The wells have been checked and included in this month’s GPinfo update.

 

We ensure the accuracy of the GPinfo data by gathering and cross-referencing information from multiple sources, and input from our users is a vital part of that process. If you would like to contribute data updates, corrections or additions, we would very much appreciate your assistance.
 

 

Industry Summary                                       

 

Company News

 

Beach Energy Ltd is pleased to advise that the Federal Court of Australia has approved the scheme of arrangement to implement the proposed merger of Beach and Drillsearch Energy Ltd. All conditions relating the scheme have now been completed, as a result the scheme has been implemented and Drillsearch is now a wholly owned subsidiary of Beach.  (Source: Beach Energy announcement, 18/02/2016, Drillsearch Energy announcement, 01/03/2016).

 

A proposal by BP to search for oil in the Great Australian Bight off the coast of South Australia will be examined by a Senate committee. Last November, NOPSEMA rejected BP’s first application for failing to meet all of its environmental requirements. Greens senator for South Australia, Robert Simms, said the inquiry would give the community and experts a chance to have their say while BP prepared its second application. The committee will examine BP's plans, and the environmental and economic impacts on marine reserves, whales, tourism and the fishing industry. The committee is due to report its findings on 12/05/2016. (Source: Energy News Premium, 23/02/2016, ABC Online, 22/02/2016).

 

Houston American Energy Corp has entered into an agreement to acquire 12.5% of the ordinary shares of Tamboran Resources for $US1 million. Closing of the acquisition is subject to receipt by Tamboran of a minimum of A$705,000 of additional funding from the sale of ordinary shares to parties other than Houston American Energy. (Source: Houston American Energy Corp announcement, 22/02/2016).

 

Origin Energy has signed a non-binding heads of agreement with ENN LNG Trading Company for the supply of 500,000 tonnes of LNG per year for a period of five years. The parties have the ability to extend the supply period by an additional five years. Origin has flexibility to supply ENN from its portfolio interests. Deliveries of LNG are expected to begin in 2018 or 2019 after completion of ENN’s Zhoushan receiving terminal in China. (Source: Origin Energy announcement, 01/03/2016).

 

Woodside Petroleum Woodside Petrhas terminated its contract with Malaysia’s Bumi Armada for the charter of the Armada Claire floating production, storage, and offloading vessel, which is stationed in the Balnaves oil field offshore northwest Australia. The vessel has been there since the field came on stream in August 2014. However the contract termination may be headed for the courts as Bumi Armada believes the purported notice of termination is invalid. The company says it is a cancellation of convenience or a repudiation of the contract by Woodside and Bumi is therefore entitled to compensation from Woodside. Bumi intends to enforce its rights under the contract, including the initiation of legal proceedings. (Source: Oil & Gas Journal, 07/03/2016).

 

NT Labor’s continued support in the Northern Territory for a moratorium on hydraulic fracturing is bad news for the oil and gas industry and those who would benefit from its planned near-term investment of more than $1 billion in developing the Northern Territory’s onshore gas resources. APPEA Director South Australia/NT Matthew Doman said planned investment of more than $1 billion between now and 2020 could not proceed with a fracking ban in place. Chief Minister Adam Giles said a proposal by Labor to block fraccing in the NT was “creating sovereign risk in the NT and already costing Territorians their jobs”. There are 55 gas wells operating in the Amadeus Basin’s three producing fields, many of which have been fracced and producing for decades. The Sydney-based Pangaea confirmed to NT News that it has suspended its 2016 drilling program and is looking at seeking approvals for a new or delayed work program. (Source: APPEA Media Release, 14/02/2016, Energy News Premium, 01/03/2016).

 


 

Developments

 

Wood Group Kenny has secured a contract with Woodside Petroleum to provide detailed design of the flowline system for the Greater Western Flank Phase 2 (GWF-2) on the North West Shelf offshore Western Australia. Under the contract, Wood Group Kenny will also support related procurement and construction processes. This award follows the successful completion of the flowline front-end engineering design (FEED) for GWF-2. (Source: Oil & Gas Journal, 22/02/2016).

 

INPEX has completed the installation of 140 kilometres of rigid subsea flowlines for its Ichthys LNG Project in the Browse Basin, approximately 220 kilometres offshore Australia. The company said this was the final infield pipelay and a significant achievement in the project’s offshore installation campaign. The infield flowlines were installed in water depths up to 275 metres to carry reservoir fluids from 20 subsea wells to the project’s two massive floating processing facilities–a central processing facility and floating production storage and offloading facility. The Ichthys project is due to start production in late 2017. (Source: Energy News Bulletin, 24/02/2016).

 

Cape plc has secured a contract with Samsung Heavy Industries (SHI) in South Korea for Shell’s Prelude FLNG Unit. The contract is for the installation of insulation to the cryogenic pipework on the process topside on Shell’s Prelude FLNG unit. The unit is a global project with the key location for fabrication being in Geoje, South Korea. The substructure and topsides are currently under construction in SHI’s shipyard. Once complete, the Prelude FLNG unit will be moored 475 kilometres north-east of Broome in Western Australia. (Source: Offshore Energy Today, 22/02/2016).

 

Valmec has been awarded an initial two-year $24 million contract supporting the 9 million tonne per annum Australia Pacific LNG Plant at Gladstone, Queensland. It has secured a long term services contract with Origin Energy to provide specialist technicians and equipment as part of its preventative and corrective maintenance services to Origin. Service works under the contract, which has extension options for a further two years, are expected to start immediately and will be managed from Valmec’s facilities in Dalby, Queensland. (Source: Energy News Bulletin, 02/03/2016).

 

The ConocoPhillips-operated Australia Pacific LNG Plant has passed an important milestone, with the transition from project development to operations in January, having now sent six cargoes of Queensland’s CSG into global markets as valuable LNG. The change in circumstances was marked by a tour of the facility by Queensland premier Annastacia Palaszczuk as well as representatives from all levels of government, industry and the community of the Curtis Island facility. (Source: Energy News Bulletin, 04/03/2016).

 

Chevron Corporation has started producing liquefied natural gas (LNG) and condensate at the Gorgon Project on Barrow Island off the northwest coast of Western Australia, a milestone for a development that has been hit by cost blowouts and delays and now becomes operational amid a slump in prices. The first LNG cargo is expected to be shipped mid-March. At full capacity, Gorgon is expected to contribute 18% of Australia’s total future LNG production delivering 15.6 mtpa, and at one stage was expected to produce 6% of global LNG demand. (Source: Chevron Corporation announcement, 07/03/2016, Energy News Premium, 08/03/2016).

 

A long-running dispute over unpaid government royalties could threaten the viability of the PNG LNG Project and heighten concerns around sovereign risk in Papua New Guinea ahead of two key development decisions. Landowners around the Southern Highlands project’s fields, one of PNG LNG’s major sources of gas, are threatening to shut down production, claiming they are owed royalties from the government. They say that millions are already owed under the agreements that allowed the gas field development, and billions more will be due as early as this year. They have given the government two weeks to come to the table or they will close production down at the Hides, Juha and Angore fields. (Source: Energy News Premium, 09/03/2016).

 

Jemena has completed its $150 million expansion of the Eastern Gas Pipeline (EGP). The expansion increases the pipeline’s capacity by around 20%, enabling it to carry an additional 22 PJ per year, enough to supply around one million homes with gas. The project is underwritten by a 15-year gas transportation agreement between Jemena and AGL Energy and has been facilitated by adding two new midline compressor stations, at Michelago in southern New South Wales and Orbost in East Gippsland, and additional delivery facilities in Wilton, NSW, which will help secure reliable transportation of gas through NSW and the ACT. (Source: Minister for Resources, Energy and Northern Australia announcement, 29/02/2016).

 

 

Permit Changes                                                                 

 

New South Wales

 

In the Sydney Basin, EnergyAustralia is in the process of withdrawing from PEL 6 and PEL 434.

 

Also in the Sydney Basin, Geodynamics Ltd is in the process of relinquishing geothermal permits EL 5560 and EL 5886.

 


 

Northern Territory

 

In the Timor Basin, following completion of the Laminaria-Corallina sales agreement, and subject to certain conditions being satisfied, Talisman Oil & Gas (Australia) P/L will be the sole legal and beneficial owner of AC/L 5.

 

In the Vulcan Sub Basin, a suspension and extension for AC/P 54 was lodged 02/03/2016.

 

In the Browse Basin, the year 1 work program for AC/P 59 has been extended by 12 months from 20/03/2016 to 19/03/2017. The licence has had its expiry date extended to 19/03/2022. A change to the work program has been approved –

 

Year 1 - 660 sq km MC3D seismic, 660 sq km PSTM 3D seismic reprocessing, 660 sq km PSDM 3D seismic reprocessing $3.9m

 


 

Queensland

 

In the Eromanga Basin, ATP 267 has been renewed to 30/11/2019.

 

Also in the Eromanga Basin, Santos has withdrawn from the farm-in to ATP 549 West.   Great Artesian Oil & Gas P/L now holds 66.666% of the licence.

 

In the Maryborough Basin, Blue Energy has applied to consolidate ATP 613, ATP 674 and ATP 733 into a single project area.  The company believes that there is potential for significant shale gas accumulations.

 

In the Surat Basin, Armour Energy (Surat Basin) P/L has completed the acquisition of 24.748% of ATP 1190 Bainbilla, 50.64% of ATP 1190 Weribone, 72% of PL 71 (Exploration) and 75% of PL 30 from Origin Energy and its subsidiaries.

 

In the Surat/Bowen Basin, PL 1008 was granted on 25/02/2016 to BG International (Aus) Ltd Partnership 73.75%, CNOOC Coal Seam Gas Co 25% and Tokyo Gas QCLNG P/L 1.25%.  The licence will expire on 24/02/201.  Underlying exploration areas ATP 768 FO and ATP 852 have subsequently being relinquished as these areas are now wholly covered by granted production licences.  In addition, overlapping production licence application PL 501 has been withdrawn and PCA 106 has lapsed.

 

In the Carpentaria Basin, EPG 2012 is a geothermal application by Local Government Infrastructure Services P/L 100% over 390 sq km.

 


 

South Australia

 

In the Duntroon Basin, a change to the EPP 41 work program has been approved –

 

Years 1-3 - 850 sq km 3D seismic, G&G studies, 1 well $63.63m

 

Also in the Duntroon Basin, a change to the EPP 42 work program has been approved –

 

Years 1-3 - 181 sq km 3D seismic, G&G studies $3.96m

 

In the Eucla Basin, PEL 143 has been suspended by 12 months from 16/02/2016 to 15/02/2017. The licence has had its expiry date extended to 15/05/2021.

 

In the Eromanga Basin, PEL 444 has been renewed to 11/01/2021 over a reduced area of 1170 sq km. Work program 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 Officer Basin, PEL 499 has been suspended by 12 months from 15/02/2016 to 14/02/2017. The licence has had its expiry date extended to 12/01/2018.

 

In the Arckaringa Basin, PEL 500 has been suspended by 12 months from 01/04/2016 to 31/03/2017. The licence has had its expiry date extended to 11/04/2020.

 

In the Cooper Basin, PEL 512 has been suspended by 12 month from 19/01/2016 to 18/01/2017. The licence has had its expiry date extended to 27/04/2020.

 

In the Pirie-Torrens Basin, sequestration permit GSEL 662 was granted to ARP TriEnergy P/L 100% on 05/02/2016. The licence will expire on 04/02/2021. Work program 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: G&G studies

 

In the Eucla Basin, sequestration permits GSEL 584 – GSEL 587 have been suspended by 12 months from 15/02/2016 to 14/02/2017. The licenses have had their expiry dates extended to 15/05/2021.

 


 

Tasmania

 

In the Tasmania Basin, EL 3/2013 has undergone a partial relinquishment and now covers a reduced area of 2185 sq km.

 


 

Victoria

 

In the Gippsland Basin, Santos has completed the sale of its 35% interest in the Kipper gas field to Mitsui E&P Australia P/L.

 


 

Western Australia

 

In the Browse Basin, WA-314-P was renewed on 14/10/2015.

 

In the Browse Basin, WA-341-P expired on 02/03/2016. The area reverts to vacant acreage.

 

In the Carnarvon Basin, a suspension and extension for WA-359-P was lodged on 17/02/2016.

 

In the Browse Basin, WA-396-P and WA-397-P are being relinquished.

 

In the Carnarvon Basin, a suspension and extension for WA-409-P was lodged on 17/02/2016.

 

In the Carnarvon Basin, a suspension and extension for WA-476-P was lodged on 19/02/2016.

 

In the Rowley Sub Basin, the year 2 work program for WA-487-P has been extended by 15 months to 21/05/2017. The year 3 work program has been extended by 12 months to 21/05/2017.

 

In the Rowley Sub Basin, WA-495-P is being renewed.

 

In the Carnarvon Basin, a change to the WA-498-P work program has been approved –

 

Years 1-3 - 80 sq km 3D seismic reprocessing, G&G studies $0.385

 

In the Dampier Basin, a suspension and extension for WA-499-P was lodged 24/02/2016.

 

In the Perth Basin, Elixir Petroleum and AWE have agreed to extend the exclusivity period and the period in which to meet the conditions precedent on the sale of the Cliff Head oil field WA-31-L to 15/03/2016.

 

In the Barrow Sub Basin, Hydra Energy (WA) P/L is transferring its 10% interest in WA-33-R to Quadrant Oil Australia P/L. Subject to approval and registration by NOPTA, Quadrant will hold 58.815%.

 

In the Perth Basin, the year 5 work program for EP 416 has been extended by 3 months from 31/03/2016 to 30/06/2016. The licence has had its expiry date extended to 30/06/2016.

 

In the Carnarvon Basin, the years 1 - 4 work program for EP 435 have been suspended by 12 months from 08/03/2015 to 08/03/2016. The licence has had its expiry date extended to 08/03/2017. The year 5 work program has been varied –

 

Year 5 – magnetotelluric survey, electroseismic survey $0.225m

 

In the Perth Basin, Eneabba Gas has entered into a binding agreement for the sale of its Perth Basin interests to UIL Energy. UIL will acquire the permits via the purchase of Oceanhill P/L and GCC Methane P/L that respectively own STP-EPA-90 and EP 447 in exchange for shares in UIL Energy. Completion of the transaction is subject to Ocean Hill becoming the sole registered and beneficial owner of STP-EPA-90 and the issue of the exploration permit, Eneabba and UIL shareholder approval and lodgement by Eneabba of a prospectus.

 

In the Canning Basin, EP 448 is being renewed.

 

In the Perth Basin, Dyas Australia P/L and Mazarine Energy Australia P/L have transferred their interest in EP 469 to Warrego Energy P/L.

 

In the Canning Basin, applications STP-EPA-134 and STP-EPA-135 have been withdrawn. The areas revert to vacant acreage.

 

In the Canning Basin, R 1 is being renewed.

 


 

New Zealand

 

In the Taranaki Basin, PEP 381203 has been relinquished. The area reverts to vacant acreage.

 

In the Taranaki Basin, a change to the work program for PEP 51149 has been approved –

 

90 months - 1 well

108 months - 30 km 2D seismic

 

In the Taranaki Basin, Kea has entered into a conditional agreement for the sale of its 70% interest in PEP 51153. MEO will not exercise pre-emptive rights and has agreed that the incoming party will be appointed operator of the permit. Accordingly, MEO has withdrawn its application to assume operatorship. The transaction is subject to regulatory approval.

 

In the West Coast Basin, a change to PEP 57068 work program has been approved –

 

24 months - LIDAR survey, 10 km 2D seismic, 1 well

 

In the Pegasus Basin, Statoil has agreed to acquire 30% working interest in PEP 57073 from OMV. OMV will remain operator with 70% interest. The deal is subject to regulatory approval.

 


 

Papua New Guinea

 

In the Papuan Basin, Oil Search has submitted application APPL 545 as a top-file of PPL 260 over an increased area.

 

Also in the Papuan Basin, Total has an option to acquire 50% of PRL 10 from Oil Search when a well is drilled in 2017.

 

Cott Oil & Gas Ltd's disposal of its 40% of PRL 38 was approved by shareholders on 15/02/2016.

 


 

Timor-Leste

 

In the Timor-Leste Basin, S06-04 has had its expiry date extended by 2.5 years.  The licence will expire on 28/02/2018.  There is no change to the area.

 

 

                                                                                                                                   

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