GPinfo March 2017


Industry Summary

 

The Supreme Court of Yukon has granted a final order approving the arrangement between InterOil and ExxonMobil. The revised takeover offer was approved by more than 91% of shareholders at a meeting

 

Senex Energy and Beach Energy have had encouraging results at its Hoplite 1 exploration well targeting the Namur, Birkhead and Murta Formations. The well reached a total depth of 2200m encountering …

 

Permit Updates and Changes

 

An application has been made for production licence PL 1025 over the Anya field in the Surat Basin. Applicants are Australia Pacific LNG P/L 31.25%, QGC P/L 30.078%, BG International Ltd …

 

The ASX has determined that shareholder approval is not required for the sale of Pan Pacific Petroleum NL’s subsidiary WM Petroleum Ltd which holds a 15% interest in PMP 38158 to Tamarind Classic

 

Industry Summary                                       

 

Company News

 

The Supreme Court of Yukon has granted a final order approving the arrangement between InterOil and ExxonMobil. The revised takeover offer was approved by more than 91% of shareholders at a meeting on 14/02/2017. The transaction was completed on 22/02/2017 with ExxonMobil acquiring all of the outstanding common shares of InterOil. (Source: InterOil announcement, 20/02/2017 and 22/02/2017). 

 

New Zealand Oil & Gas has updated its analysis of the Barque prospect in the Canterbury Basin, and believes there is more potential than previously thought. NZOG and partner Beach Energy are in advanced discussions with potential partners who can help drill the first modern well within the Clipper permit, PEP 52717. Using 3D seismic shot in 2013, NZOG has just upgraded Barque's potential, now confirmed over three horizons, to a best estimate 11 tcf of gas-in-place and 1.5 billion barrels of oil-in-place, more than twice earlier estimates. The primary reservoir target is now estimated to contain 5.5 tcf of gas and 785 mmbbl of associated condensate. (Source: Energy News, 23/02/2017, New Zealand Oil & Gas announcement, 21/02/2017). 

  

APA Group and Cooper Energy Ltd have executed a non-binding heads of agreement for APA to acquire and upgrade the Orbost gas processing plant in Victoria's Gippsland region. Under the agreement, APA will acquire the plant from Cooper for an amount that reflects Cooper’s expenditure on the facility relating to the Sole project. APA will then fund capital expenditure for its expansion and upgrade, expected to be $250 million, with an aim of eventually using it as a hub for other new gas projects. The deal will leave Cooper free to develop the offshore Sole gas field, and the two companies will sign a gas processing agreement for supply of that gas to the Orbost plant. The companies will also enter another agreement for the processing and delivery of gas to market by APA. (Source: APA Group announcement, 27/02/2017).

 

AWE Ltd and Origin Energy have executed a non-binding term sheet with AGL Wholesale Gas for the first gas sale from Stage 2 of the Waitsia gas project. The term sheet sets out the commercial terms for the sale of 15 TJ per day of gas, or 5.5 PJ per annum, to AGL from Waitsia Stage 2. The term sheet will form the basis of a gas sales agreement which AWE expects to be concluded by mid-2017 on terms that have not been disclosed for commercial reasons. AWE and Origin are jointly marketing Stage 2 gas, with production expected to begin from 2020 for a decade. Work by Origin and AWE is in the pre-front end engineering and design phrase, and a final investment decision is targeted for later this year. (Source: AWE Ltd announcement, 27/02/2017). 

 

In January 2017, Bass Strait Oil Company Ltd proposed to change its company name to Bass Oil Ltd. Shareholders approved the change of name at the general meeting on 13/02/2017 and the company has received notice from the Australian Securities and investment Commission that the change of name has now become effective. (Source: Bass Oil Ltd announcement, 01/03/2017).

 

WHL Energy Ltd has completed its off-market takeover to acquire 100% of Quantify Technology Ltd. WHL Energy has been renamed Quantify Technology Holdings Ltd. The company’s ASX ticker code changed from WHN to QFY. (Source: Quantify Technology announcement, 01/03/2017).

 

Armour Energy has executed an agreement with APA Group that will allow it access to the Roma-to-Brisbane Pipeline at Wallumbilla, a vital link to allow it to supply gas to Australia Pacific LNG and the east coast domestic market.  The agreement with APA is for a 10-year term, providing a connection for up to a 30 TJ/d gas flowrate into the Roma Brisbane Pipeline. Armour also claims that the agreement also further underpins the restart of the Kincora Project. Phase one involves restart of gas production, commissioning and the increase of the production rate to 9 TJ/d, initially sourcing gas from the Newstead storage facility, ahead of other wells being restarted. First gas production and commencement of gas sales is targeted to be achieved by June 2017, and the balance of the restart program is planned to be completed by August/September 2017. Phase two will involve the drilling of new wells plus workovers and stimulations of existing wells to achieve an increase in gas production to 20 TJ/d over a period of 12 to 18 months from first gas production. (Source: Armour Energy announcement, 06/03/2017).

 

The State of Victoria has formally banned fracking in the state, becoming the first state in Australia to do so. The legislation, which passed Parliament on Tuesday, put a permanent ban on onshore unconventional gas exploration methods, including coal seam gas and fracking. Offshore gas exploration will continue. The legislation also extended the moratorium on conventional onshore gas exploration to 30/06/2020. The Government said it would use the moratorium extension to learn more about the impact of conventional gas exploration. (Source: ABC news online, 07/03/2017).

 

Central Petroleum is pleased to announce it has unanimously recommended an improved proposal from Macquarie MPVD P/L, a subsidiary of Macquarie Group, to acquire all shares in Central not already held by Macquarie. The revised proposal is to offer for each share in Central cash consideration of $0.20 plus a contingent value note. It is anticipated that shareholders will have the opportunity to vote on the proposal at a meeting to be held in late May 2017. (Source: Central Petroleum, announcement, 10/03/2017).

 


 

Developments

 

Senex Energy Ltd has sanctioned a major investment in the proposed Western Surat Gas Project by committing $50 million to a 30-well coal seam gas drilling campaign in south-eastern Queensland. The program follows the success of the Glenora pilot program where a number of wells were brought online for continuous production in early February. There was immediate gas flow to surface. Senex is also encouraged by strong gas flows from wells on the Eos block during rehabilitation works. Senex Energy Chief Executive Officer Ian Davies says the results demonstrate that coal seams in the Glenora and Eos blocks have already been partially dewatered by neighbouring operations. The initial 30-well campaign is expected to yield gas production of 10 TJ/day by mid-2018. Stage 2 of the program is potentially to drill, complete, and connect another 30-50 wells throughout 2018. Under this scenario, Senex will be able to transition to a development phase targeting gas production of more than 16 TJ/day by 2019. (Source: Oil & Gas Journal, 21/02/2017, Senex Energy announcement, 21/02/2017).

 

Woodside Petroleum is considering a plan to expand production at its Pluto LNG Plant on the Burrup Peninsula in Western Australia. CEO Peter Coleman spoke of a two-stage program designed to lift capacity at the Pluto facilities, initially using smaller undeveloped gas resources to potentially feed a small train, with a larger expansion to follow possibly using gas from either the Scarborough fields in the Carnarvon Basin or the Browse Basin fields further to the north. The second stage would be a larger expansion possibly using gas from Scarborough field on the Exmouth Plateau. An alternative would be to pipe gas down from the vast resources in the Browse basin fields further north. A decision on the initial expansion of the 4.9 million tpy Pluto plant will be decided in this year’s third quarter. (Source: Oil & Gas Journal, 23/02/2017).

 

Chevron Corporation has entered front end engineering design (FEED) for the Gorgon Stage 2 development. Gorgon Stage 2 will see the existing subsea gathering network in the Gorgon/Jansz-Io fields extended to maintain gas supply to the three existing LNG trains on Barrow Island. Chevron director Laura Boudreau expects FEED to conclude some time in 2018, saying “the FEED will take as long as we need it to for the joint venture participants to have the information they need to make a final investment decision”. (Source: Energy News Premium, 24/02/2017).

 

Cooper Energy has awarded a contract for the fabrication and installation of the subsea infrastructure at its Sole gas field development to Subsea 7. The work involves the subsea tie-back of the Sole field to the onshore gas processing plant. It will include the fabrication and installation of a 64 km subsea pipeline, spool and manifold, as well as installation of a 64 km umbilical along the same route. The work will finish with commissioning of the system. Cooper has not disclosed the value of the contract, but it is believed to be in excess of $US50 million. The deal is subject to a final investment decision being taken for the Sole development project, which is anticipated in the next few months. (Source: Oil & Gas Journal, 01/03/2017, Cooper Energy announcement, 01/03/2017).

 

Upstream Production Services has been contracted for work on Eni’s Blacktip field in the offshore Bonaparte Basin. The contract covers the field and both the offshore and onshore facilities for an initial three years with a number of extension options. Upstream Production Services will provide administration and execution of maintenance activities, logistics, procurement, engineering and operations support in relation to the unmanned wellhead platform and the Yelcherr gas plant, located 12km south west of the town of Wadeye in the Northern Territory. (Source: Energy News, 01/03/2017).

 

Origin Energy is seeking environmental approval to expand its Spring Gully CSG field with the addition more than 100 new wells. The company recently applied under the Environment Protection and Biodiversity Conservation Act for permission to start developing wells in PLs 414, 415, 416 and part of 418, known as the Spring Gully North-West Development Area and PL 417, known as the North-East Development Area. The Spring Gully expansion will involve around 114 wells and associated gathering infrastructure that will connect the fields to the existing gas processing facilities and water treatment facility located on PLs 195 and 204, which form part of the existing Spring Gully CSG project. Origin wants to begin drilling as soon as possible with first gas in the fourth quarter.  (Source: Energy News Premium, 07/03/2017).

 


                                            

Discoveries

 

Senex Energy and Beach Energy have had encouraging results at its Hoplite 1 exploration well targeting the Namur, Birkhead and Murta Formations. The well reached a total depth of 2200m encountering good oil shows in the Birkhead Formation and elevated gas readings across the same interval. Logging and interpretation of results is currently underway, with preliminary indication of 17m of gross section in the Birkhead Formation. A drill stem test is planned for this interval to test flow potential and commerciality. Senex said Hoplite 1 was highly encouraging for current and future Birkhead play fairway activity as the well is located approximately 25km northeast of the Senex-operated Snatcher field. (Source: Senex Energy announcement, 01/03/2017).

 

 

 Permit Changes                                                                

 

Northern Territory

 

Georgina Basin

Total will not proceed with the Stage 2 farmin for EP132 from Central Petroleum. Central will retain 100% and Total's interest will reduce to nil.

McArthur Basin

Application EP299 has been withdrawn. The area reverts to vacant acreage.

 

Minerals Australia P/L 50% and Jacaranda Minerals Ltd 50% have applied for EP353 over 5364 sq km.

Tennant Creek Basin

Application EP260 has been varied and now covers a reduced area of 6790 sq km.

Vulcan Sub Basin

The year 5 work program for AC/P21 has been extended by 6 months from 13/01/2017 to 12/07/2017. The licence has had its expiry date extended to 12/07/2017. The year 5 work program has been varied –

Year 5: geotechnical studies, mapping & update exploration potential, seismic processing, 1 well $30.95m

Queensland

 

Adavale Basin

Seymour Energy Ltd has sold its 100% interest in ATP 1069 and ATP 1093 to Tri-Star Energy Company.

Cooper Basin

ATP 934 has had its expiry date extended to 28/02/2021.

 

PL 189 was due to expire on 06/03/2017. The licence is being renewed as PL 1026.

Eromanga Basin

Key Petroleum Cooper Basin P/L has entered into a sale and purchase agreement with Drillsearch Energy P/L (a subsidiary of Beach Energy Ltd) to acquire 100% of ATP 783, ATP 920 and ATP 924. The deal is subject to Ministerial approval and, as far as the transaction concerns ATP 920 and ATP 924, financial assurances in relation to ATP 920 required from the Government of Queensland under the Queensland Environmental Protection Act (1994) being no greater than $300,000 in aggregate. Consideration is the immediate payment of $125,000 plus the grant to Drillsearch Energy P/L of a royalty equal to 1.5% of the wellhead value of all petroleum produced, saved and sold from the area subject to the ATPs.

 

PL 47 has been renewed to 22/08/2030.

Georgina Basin

Total GLNG Australia will not proceed with the Stage 2 farmin to ATP 909, ATP 911 and ATP 912 from Central Petroleum. Central will retain 100% in the licences and Total's interest will reduce to nil.

Surat Basin

ATP 1190 has under gone a partial relinquishment, and the following area changes apply: ATP 1190 Bainbilla 30 sq km, ATP 1190 Dalkeith 67 sq km and ATP 1190 Rocky Creek East 24 sq km. ATP 1190 Myall has been relinquished. There has been no change in area to ATP 1190 Onerry, ATP 1190 Spring Grove and ATP 1190 Weribone.

 

Potential Commercial Areas PCA 125, 126 and 127 were granted on 07/02/2017. The licences will expire on 06/02/2032. Interests differ in the conventional and CSG horizons. PCA 125, 126 & 127 (excluding Don Juan FO – conventional) are Victoria Oil P/L.  Interests in the Don Juan CSG FO are Senex Energy Ltd 45% and Roma CBM P/L 55%.

 

Bridgeport Energy (QLD) P/L 100% has applied for Potential Commercial Area, PCA 156 over 76 sq km over the Rookwood area.

 

AGL Gas Storage P/L 100% has applied for PCA 157 over the Weribone/Bainbilla area, PCA 158 over the Rocky Creek/Dalkeith area and PCA 159 over the Spring Grove area.  The licenses cover 43 sq km, 91 sq km and 15 sq km respectively.

 

PL 46 has been renewed to 23/02/2025.

 

An application has been made for production licence PL 1025 over the Anya field in the Surat Basin. Applicants are Australia Pacific LNG P/L 31.25%, QGC P/L 30.078%, BG International Ltd 20.625%, CNOOC Coal Seam Gas Co P/L 17.188% and Tokyo Gas QCLNG P/L 0.859%.

South Australia

 

Ceduna Basin

Suspension and extensions for EPP39 and EPP40 were lodged on 03/03/2017.

Cooper Basin

Upon completion of ReNu Energy’s remediation activities and signoff from the Department of State Development, ReNu Energy will apply to have its geothermal retention licenses GRL 3 –GRL 12 converted to geothermal exploration licenses.

 

High Peak Royalties has sold a 1.3% royalty interest over PEL 512 which was acquired by the company in 2013.

 

Subject to regulatory approvals, Beach has agreed to farm-in to 50% of PEL 630. Beach will drill 2 exploration wells in 2017, designed to test the oil and gas-liquids potential of the Eromanga Basin sequence. Bridgeport's working interest after Beach completes the drilling program is 50%.

Gawler Block

Geothermal licences GEL 294 and GEL 295 have been renewed to 07/02/2022 over reduced areas of 333 sq km and 330 sq km respectively.

Victoria

 

Gippsland Basin

Interests in PRL2 Trifon Block are Petro Tech P/L 57.25% and Jarden Corp Australia P/L 42.75%.

 

PRL3 has had its expiry date extended to 26/02/2018.

 

Production licence VIC/L32 replaces VIC/RL3.  The licence was granted on 03/03/2017 for an indefinite term.  Cooper Energy (Sole) P/L will hold 100% once transfers are complete.

Otway Basin

A variation on VIC/P44 was lodged with NOPTA on 03/03/2017.

Western Australia

 

Barrow Sub Basin

EP 358 is being renewed.

 

WA-49-R is being renewed.

Beagle Sub Basin

A variation for WA-468-P was lodged on 21/02/2017.

Bonaparte Basin

The year 5 work program for EP 386 has been suspended by 12 months from 31/03/2017 to 31/03/2018. The licence has had its expiry date extended to 31/03/2018.

 

Retention lease applications over the Ascalon Location WA-407-P LA and the Ascalon Extension Location WA-420-P LA have been refused by NOPTA because it has taken the view that the remote field is unlikely to become viable within the next 15 years. Octanex is seeking to clarify the decision with the Joint Authority.

Browse Basin

Retention lease applications have been lodged over the Crown Location WA-274-P LC and the Lasseter Location WA-274-P L.

 

A retention lease application has been lodged over the Lasseter Extension Location WA-281-P LL.

 

A variation for WA-54-R was lodged on 05/03/2017.

Canning Basin

Re-released gazettal areas L14-3, L14-4, L14-5 and L14-6 closed on 09/03/2017 and are under consideration.

 

Gazettal areas L16-1 and L16-2 closed on 09/03/2017 and are under consideration.

 

Finder Onshore No 1 P/L has applied for Special Prospecting Authority Application STP-SPA-0077.

Carnarvon Basin

Cancellation of EP 435 is pending approval.

 

R 3 has been renewed to 01/03/2022. Work program is as follows - 

Year 1: engineering studies $0.1m
Year 2: engineering studies $0.1m
Year 3: engineering studies $0.175m
Year 4: engineering studies $0.1m
Year 5: economic review $0.1m

 

L15-4 is under application as STP-EPA-0142. The applicant’s name remains confidential at this time.

 

The year 3 work programs for WA-362-P and WA-363-P have been extended by 12 months from 23/02/2017 to 22/02/2018. The licences expiry dates have been extended to 22/02/2020.

 

A suspension and extension for WA-374-P was lodged on 17/02/2017. The Isosceles Location initial application was lodged on 16/02/2017.

 

A retention lease application has been lodged over the Vos Location WA-439-P LV.

 

WA-50-R is being renewed.

 

W16-17 was granted as WA-526-P to Chevron Australia New Ventures P/L 100% on 20/02/2017. The licence will expire on 19/02/2023.

 

A variation for WA-70-R was lodged on 23/02/2017.

Dampier Basin

WA-47-R expired on 22/02/2017. The area reverts to vacant acreage.

Officer Basin

Gazettal areas L16-10, L16-3, L 16-4, L16-5, L16-6, L16-7, L16-8 and L16-9 closed on 09/03/2017 and are under consideration.

Perth Basin

Suspension for EP 480 was lodged on 03/03/2017.

New Zealand

 

Canterbury Basin

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

134 months: technical studies, 1800 sq km 3D seismic reprocessing
161 months: 1 well
168 months: 1 well
180 months: 1 well

East Coast Basin

PEP 54858 and PEP 54861 were relinquished on 27/02/2017. The areas revert to vacant acreage.

Taranaki Basin

The ASX has determined that shareholder approval is not required for the sale of Pan Pacific Petroleum NL’s subsidiary WM Petroleum Ltd, which holds a 15% interest in PMP 38158, to Tamarind Classic Resources Ltd. The transaction is now unconditional and will complete imminently.

West Coast Basin

PEP 57067 was relinquished on 27/02/2017. The area reverts to vacant acreage.

Papua New Guinea

 

Papuan Basin

APPL 558 is an application by Platanus Resources Ltd 100% over 6605 sq km.

 

APPL 580 is an application by Larus Energy (PNG) Ltd 100% over 847 sq km.

 

PPL 363 and PPL 364 have been relinquished.

 

Horizon, through its wholly-owned subsidiary Ketu Petroleum Ltd holds 90% of PPL 372. Jurassic International Holdings Ltd holds the remaining 10%.

 

PPL 574 was granted to Eaglewood Energy (BVI) Ltd 45%, Ketu Petroleum 35%, Mega Fortune International Ltd 10% and Osaka Gas Niugini E&P P/L 10% on 30/11/2016.  The licence will expire on 29/11/2022. There has been a change to the graticular blocks covered by the licence (see GPinfo for details).

 

PPL 579 covers PPL 326 plus an additional 10 graticular blocks.  The licence was granted to Larus Energy (PNG) Ltd 100% in February 2017 and will expire in February 2028.  Years 1 and 2 of the work program are as follows: seismic processing and reprocessing, mapping of Miocene and Mesozoic prospects and leads, petroleum system studies expanded to include Tertiary systems.

 

Diamond Gas Niugini BV has withdrawn from PRL 28 and interests in the licence are now Eaglewood Energy (BVI) Ltd 50%, Talisman Energy Niugini Ltd 40% and P3 Global Energy Co Ltd 10%.

 

                                                                                                                                  

To unsubscribe click here.

For more information please contact GPinfo support on +61 2 9475 3500 or by e-mail.

Pitney Bowes Australia Pty Ltd, Level 1, 68 Waterloo Road, Macquarie Park NSW 2113, Australia.

Pitney Bowes Australia Pty Ltd is a wholly-owned subsidiary of Pitney Bowes Inc. Pitney Bowes, the Corporate logo, and GPinfo are registered trademarks of Pitney Bowes Inc. or a subsidiary. All other trademarks are the property of their respective owners.

©
2017 Pitney Bowes Australia Pty Ltd. All rights reserved.