Lidia Novosel, Cynthia Thomas and Rob Healy will be attending the APPEA Conference in Brisbane from 16 to 19 May ...

 

The following 31 areas are being offered in the 2010 Federal Offshore Acreage Release ...

 

MEO Australia’s long-running attempt to find a partner for WA-360-P has been achieved with Brazilian state oil company Petrobras signing up to earn a 50% stake in the permit by funding the cost of drilling the Artemis 1 well ...

 

In the Sydney Basin, PELA 131 is a new application by Central Coast Green Energy P/L over 639 sq km ...


APPEA 2010

Lidia Novosel, Cynthia Thomas and Rob Healy will be attending the APPEA Conference in Brisbane from 16 to 19 May.  We will have a stand in the registration area as usual and will be releasing the 2010 editions of the Petroleum Permits of Australasia Map and Book.  If you are attending the conference please drop by to say hello.

If you need urgent GPinfo support during the week of the conference, please contact Rob Healy who will be monitoring and responding to email - rob.healy@encom.com.au.


2010 Acreage Releases

Federal Offshore Acreage Release

The following 31 areas are available in the 2010 Offshore Acreage Release:

Licence                        Basin                           Closing Date

AC 10-1
                       
 Vulcan                          11/11/2010
AC 10-2                       
 Vulcan                          11/11/2010
NT 10-1
                         Petrel Sub                     11/11/2010
S10-1   
                        Duntroon                       11/11/2010
S10-2
                            Duntroon                       11/11/2010
W 10-1 
                        Petrel Sub                     11/11/2010
W 10-2
                          Petrel Sub                     11/11/2010
W 10-3                         
Rowley Sub                   12/05/2011
W 10-4                         
Rowley Sub                   12/05/2011
W 10-5                         
Rowley Sub                   12/05/2011
W 10-6                         
Rowley Sub                   12/05/2011
W 10-7                         
Beagle                          12/05/2011
W 10-8                         
Beagle                          12/05/2011
W 10-9                         
Beagle                          12/05/2011
W 10-10                       
Dampier                        11/11/2010
W 10-11                       
Dampier                        11/11/2010
W 10-12                       
Dampier                        11/11/2010
W 10-13                       
Dampier                        11/11/2010
W 10-14                       
Dampier                        11/11/2010
W 10-15                       
Barrow                          11/11/2010
W 10-16                       
Barrow                          11/11/2010
W 10-17                       
Barrow                          11/11/2010
W 10-18                       
Barrow                          11/11/2010
W 10-19
                        Barrow                          11/11/2010
W 10-20
                        Exmouth                       11/11/2010
W 10-21
                        Exmouth                       11/11/2010
W 10-22
                        Exmouth                       11/11/2010
W 10-23
                        Exmouth                       12/05/2011
W 10-24
                        Exmouth                       12/05/2011
W 10-25
                        Exmouth                       12/05/2011

W 10-26
                        Perth                            12/05/2011

Queensland Onshore Release

Licence                       Basin                           Closing Date

LR 2010-1-1
                 
Adavale                         27/09/2010
LR 2010-1-2                 
Adavale                         27/09/2010
LR 2010-1-3                 
Eromanga                     27/09/2010
LR 2010-1-4                 
Surat                            27/09/2010
LR 2010-1-5                 
Bowen                          27/09/2010
LR 2010-1-6                 
Bowen                          27/09/2010
LR 2010-2-1                 
Carpentaria                    27/09/2010
LR 2010-2-2
                  Carpentaria                    27/09/2010
LR 2010-2-3                 
Adavale                         27/09/2010
LR 2010-2-4                 
Surat                            27/09/2010
LR 2010-2-5                 
Eromanga                     27/09/2010
LR 2010-2-6                 
Surat                            27/09/2010
LR 2010-2-7                 
Bowen                          27/09/2010

South Australian Onshore Release

Licence                        Basin                           Closing Date

CO 2010-A  
                 
Eromanga                     10/03/2011
CO 2010-B                   
Eromanga                     10/03/2011
CO 2010-C                   
Cooper                          10/03/2011

Victorian Onshore Release

Licence                        Basin                           Closing Date


V 10-1 V
                      
Otway                            18/11/2010
VIC/G 10-1                   
Gippsland                      18/11/2010
VIC/G 10-2                   
Gippsland                      18/11/2010
VIC/G 10-3
                   Gippsland                      18/11/2010
VIC/G 10-4
                    Gippsland                      18/11/2010
VIC/G 10-5                   
Gippsland                      15/07/2010
VIC/O 10-1                   
Otway                           18/11/2010
VIC/O 10-2                   
Otway                           18/11/2010

 

Western Australian Onshore Release

Licence                        Basin                           Closing Date

T 10-1
                          
Perth                             04/11/2010
L 10-1                           Canning
                         04/11/2010
L 10-2                           Bangemall
                     19/08/2010
L 10-3                           Bangemall
                     19/08/2010
L 10-4                           Northeast WA
                19/08/2010
L 10-5                           Northeast WA
                19/08/2010


Industry Summary

Company News

MEO Australia’s long-running attempt to find a partner for WA-360-P has been achieved with Brazilian state oil company Petrobras signing up to earn a 50% stake in the permit by funding the cost of drilling the Artemis 1 well. Petrobras will also pay MEO a cash bonus of $US31.5 million ($A34.8 million) and reimburse the company’s share of past costs of around $US7.5 million. WA-360-P farm-in represents Petrobras’ initial entry into Australia and is subject to Australian regulatory and government approvals, including Foreign Investment Review Board approval. (Source: www.petroleumnews.net, 14/04/2010).

The Australian Competition & Consumer Commission (ACCC) has as expected passed Shell and PetroChina’s proposed $3.4 billion bid for Arrow Energy, saying the deal was unlikely to lessen competition in the domestic market. Shell and PetroChina still have to clear the Foreign Investment Review Board, which is widely expected to take a close look at the deal and could well require additional conditions, though others believed the transparent pricing of LNG meant strong concerns about the deal were unlikely. Arrow’s board has already voted in favour of the bid, which values the company at $4.70 per share, while the company’s largest shareholder New Hope Corporation, which holds 16.7% of Arrow, has already said it would accept the Shell and PetroChina bid. (Source: www.petroleumnews.net, 15/04/2010).

Essential Petroleum Resources Limited's name change to Somerton Energy Limited was approved by shareholders at the Annual General Meeting held on 22/04/2010. Somerton Energy Ltd commenced trading on ASX with new code SNE on 05/05/2010. (Source: ASX Announcements, 30/04/2010, 05/05/2010).

Development News

Santos says it could defer a decision on whether to proceed with its Gladstone liquefied natural gas project by up to six months, though this should not affect the anticipated 2014 start date. Speaking after the company’s annual general meeting, chief executive David Knox said the final investment decision on the future of its LNG plant would be pushed back. “I will make that decision in light of all the risks we face,” The Australian quoted Knox as saying. Despite Santos pushing back its decision, Knox said there was no revision to the anticipated 2014 start-up date. The GLNG project consists of a one-train 3.6 million tonne per annum LNG plant. Santos owns 60% of GLNG and has a binding agreement with Petronas, which holds a 40% stake in the project, for 2MMtpa. The company is also in discussions with several Asian buyers for the remaining 1.6MMtpa and an announcement on these talks is expected soon. (Source: www.petroleumnews.net, 07/05/2010).

Shell is progressing its Prelude Floating Liquefied Natural Gas development (FLNG) off Western Australia, issuing a $A1.27 billion order to Korea’s Samsung Heavy Industries to build an FLNG facility. Samsung revealed the order last month, saying the contract order price would be fixed in early April. The FLNG vessel will be jointly designed by Samsung and Technip, under the Technip-Samsung consortium signed with Shell last July to work on the design, construction and installation of multiple FLNG facilities over a period of up to 15 years. The vessel is expected to be built in Samsung’s Geoje Shipyard starting in 2012 with delivery expected in 2016. The Prelude FLNG development will be capable of producing 3.5 million tonnes of LNG per annum and handling liquefied petroleum gas and condensate, taking total liquid production up to, and in excess of, 5MMtpa. A final investment decision on the project is targeted by early 2011. Commissioning of the development is expected in 2015 before first gas in 2016. (Source: www.petroleumnews.net, 16/04/2010).

InterOil Corp. has signed an agreement with Japan’s Mitsui & Co for the joint funding and operation of preliminary works for a proposed condensate stripping facility to be constructed at InterOil’s Elk-Antelope fields in Papua New Guinea’s Gulf province. The agreement involves all work required to move the project through front-end engineering and design to a final investment decision. Under the deal, Mitsui will carry InterOil for its 50% of the costs. The plant will be capable of processing 400 MMcfd of gas to yield about 9,000 b/d of condensate. The plan is to reinject the dry gas back into the reservoir for reproduction once the proposed Liquid Niugini Gas LNG facility has been built. Antelope field flowed at record levels last year when the No. 2 well recorded rates of 705 MMcfd of gas plus 11,200 b/d of associated condensate. (Source: Oil & Gas Journal www.ogj.com, 19/04/2010).

Chevron Australia has let a $180 million contract to China Offshore Oil Engineering Corp. Ltd. (COOEC) for the fabrication of process modules for the Gorgon-Jansz LNG project on Barrow Island. COOEC will build and supply more than 157 process modules for the 3-train LNG plant and domestic gas facilities on the island. Work on the modules will begin in China during January 2011 and be completed by October 2012. The company hopes this contract will lay the foundation for further work in the Australian market. The Gorgon-Jansz facilities will produce 15 million tonnes/year of LNG and 300 TJ/day of gas. First LNG is scheduled for 2014 and first domestic gas by end 2015. (Source: Oil & Gas Journal www.ogj.com, 27/04/2010).

ENI’s Kitan oil field in the Joint Petroleum Development Area, Timor Sea, is set for first production in the second half of 2011 after Timor Leste’s regulatory authority, ANP, approved the development. Italian major Eni started the development of the Kitan oil field in JPDA 06-105 between Timor Leste and the Australian coast after receiving Timor Leste government approval. The Kitan field will be developed through three subsea wells connected to the Glas Dowr floating, production, storage and offloading vessel. First production from the block, which could hold 30-40 million barrels of oil, is expected to start in the second half of next year. (Source: www.petroleumnews.net, 2704/2010).

Liquefied Natural Gas Ltd has signed a lease agreement with Gladstone Ports Corporation for the site of its planned 3 million tonne per annum LNG plant at Fisherman’s Landing. The 30-year lease is conditional on the company securing a gas supply for its plant by July 1, 2011, a process that LNG Ltd said it had been actively progressing and was close to finalising. Once this condition is met, LNG Ltd will have a further three months to satisfy other outstanding conditions such as the approvals to construct the plant, which was already well advanced. (Source: www.petroleumnews.net, 10/05/2010).

Discoveries

Buru Energy is aiming to restore oil production from the 1984 West Kora 1 oil well in Western Australia’s Canning Basin after it was granted a production licence over the discovery. The L15 licence was awarded by the WA Department of Mines and Petroleum and runs for 21 years from April 1. The licence contains the West Kora-1 oil discovery which was drilled in 1984 and had flowed oil before the water cut increased to unproductive levels. In June 1992 operator Anzoil perforated a new interval from 1693-1696m and ran a through tubing bridge plug. However, this failed to isolate water production in the well, which was believed to originate from the original lower of three Esso perforated intervals. Further testing in 1992, and over the period December 1997 to January 1998 demonstrated the need for a workover program to isolate the water production. Buru along with its JV partners will decide on an appropriate workover program for the well. (Source: www.petroleumnews.net, 23/04/2010).

ESSO Australia and partner BHP Billiton have discovered oil and gas at the South East Remora 1 exploration wildcat well in Bass Strait. South East Remora 1, which was drilled in the offshore Gippsland Basin, found oil and gas in the Latrobe and Golden Beach groups. An Esso Australia spokesperson told PetroleumNews.net the company would carry out formation evaluation and fluid and pressure analysis to evaluate the discovery. The evaluation is expected to take several months. The spokesperson also said the JV was considering drilling other wells in the area. South East Remora-1 was drilled in water depths of 57m with the Ocean Patriot semi-submersible rig to a depth of 3602m. The well is close to the existing Marlin A platform. Esso Australia, a subsidiary of ExxonMobil, holds a 50% interest and is operator of the JV. BHP holds the remaining 50%. (Source: www.petroleumnews.net, 23/04/2010).

Beach Energy and Drillsearch Energy are flowing 18 million cubic feet of gas per day from their Brownlow wet gas discovery in the PEL 106B Beach Farmin Block, Western Cooper Basin. The well, which is undergoing an extended production test, also flowed 120 barrels of associated condensate per day. Beach had drilled the Brownlow-1 exploration well as part of its farm-in work obligations to earn a 50% interest in the block. The well confirmed gas pay in a 7m thick sand in the Permian mid-Patchawarra Formation though pressure data indicated a total gas column of up to 30m. Drillsearch said the EPT was aimed at confirming the overall potential gas resources within the find, the quality of the reservoir sands as well as the long-term flow and deliverability of the discovery.  Condensate production from the test will be recovered and sold via the Moomba oil terminal facilities. (Source: www.petroleumnews.net, 05/05/2010).
 

 

Permit Updates and Changes

New South Wales

In the Sydney Basin, PELA 131 is a new application by Central Coast Green Energy P/L over 639 sq km.

The following applications have been granted:

Licence           Application       Basin                           Permit Holder                                      Expiry Date

PEL 481           PELA 124          Gunnedah                     Surat Resources P/L                              08/04/2012

PEL 482           PELA 125          Gunnedah                     Surat Resources P/L                              08/04/2012

PSPA 37          PSPAPP 50       Clarence-Moreton          Clarence Moreton Resources P/L            27/04/2011

PSPA 37 Licence was granted over a reduced area.

Geothermal Permits

The following Geothermal Permits have been granted:

Licence            Gazettal           Basin               Permit Holder                          Expiry Date

EL 7505            G8TA_C            Gunnedah          Macquarie Energy P/L               07/04/2013
EL 7506            G8TA_D            Gunnedah          Macquarie Energy P/L               07/04/2013

EL 7507            G8TA_G            Gunnedah          Centennial Coal Co Ltd              07/04/2013

EL 7508            G8TA_H            Gunnedah         Centennial Coal Co Ltd               07/04/2013

EL 7509            G8TA_I             Sydney             Granite Power Ltd                      07/04/2013

EL 7510            G8TA_O            Sydney             Gradient Energy Ltd                   07/04/2013

EL 7511            G8TA_P            Sydney             Centennial Coal Co Ltd               07/04/2013

EL 7512            G8TA_R            Sydney             Gradient Energy Ltd                   07/04/2013

EL 7513            G8TA_S            Sydney             Gradient Energy Ltd                   07/04/2013

In the Murray Basin, EL 7366 was cancelled at the holder's request (Granite Power Ltd).


 

Northern Territory

There are 12 new applications in the Georgina and McArthur basins:

Application                  Basin                Applicant                    Area (sq km)

EP(A) 177                     Georgina           Armour Energy P/L          15,939

EP(A) 178                     Georgina           Armour Energy P/L          15,689

EP(A) 179                     Georgina           Armour Energy P/L          16,108

EP(A) 180                     McArthur           Imperial Oil & Gas P/L     14,976

EP(A) 181                     McArthur           Imperial Oil & Gas P/L     14,506

EP(A) 182                     McArthur           Imperial Oil & Gas P/L     12,571

EP(A) 183                     McArthur           Imperial Oil & Gas P/L         862

EP(A) 184                     McArthur           Imperial Oil & Gas P/L     11,243

EP(A) 185                     McArthur           Imperial Oil & Gas P/L       8,065   overlaps EP(A) 176

EP(A) 186                     McArthur           Imperial Oil & Gas P/L      3,473    overlaps EP(A) 171

EP(A) 187                     McArthur           Imperial Oil & Gas P/L      3,686    overlaps EP(A) 158

EP(A) 188                     McArthur           Imperial Oil & Gas P/L      1,460    overlaps EP(A) 158

In the Bonaparte Basin, NT/P 68 was renewed and will now expire on 22/02/2015.

Also in the Bonaparte Basin, Samsung Oil & Gas Australia P/L has purchased 30% of Murphy Australia Oil P/L interest in NT/P 80. The interests in NT/P 80 are now Murphy Australia P/L (operator) 40%, Diamond Resources Australia 30% and Samsung Oil & Gas Australia P/L 30%.

Geothermal Permits

Applications GEP 27837, GEP 27838 and GEP 27839 were withdrawn by Gradient Energy Ltd.


 

Queensland

Several permits have been partially relinquished and now cover the following areas:

Licence                       Basin                        Area (sq km)


ATP 564P
                     Bowen                             932
ATP 641P
                     Surat                            3,197
ATP 772P
                     Eromanga                     5,122              
ATP 787P
                     Bowen                          3,139
ATP 799P
                     Drummond                    3,188
ATP 801P
                     Eromanga                     2,995
ATP 804P
                     Bowen                             392


In the Surat Bowen Basin, Red Sky through its 100% subsidiary Cydonia Resources P/L, has earned 50% in the CGS rights of
ATP 840P by completing Romona 1 well in March  2010.  Cydonia has the option to earn an additional 50% by committing to another well and 100 km of seismic.


The area of
PL 185 in the Surat Basin was reduced to 236 sq km.

PL 392
and PL 393 are the new production licence applications in the Surat Basin by QGC P/L.

PL 394
is a new application for production licence in the Bowen Basin by Xstrata Coal Queensland P/L.

In the Surat Basin,
PL 46 is in the process of being renewed.


In the Eromanga basin,
ATP 618P was relinquished on grant of ATP 720.

Geothermal Permits

EPG 29 was granted on 13/04/2010 to Gradient Energy. The licence will expire on 30/04/2015. Applications EPG 24, 25, 26, 27, 28 and 30 over the same area are cancelled.


 

South Australia
 

Holloman Energy is reviewing offers from potential joint venture partners to farm-in to PEL 112 and PEL 444.

PELA 558 is a new application in the Murray Basin by Liberty Resources Ltd over 3,865 sq km.

In the Otway Basin, Adelaide Energy is acquiring interest from Beach Energy and Origin in PRL 13.

Geothermal Permits

GELA 557 is a new application by Green Rock Energy Ltd in the Arrowie Basin over 294 sq km.

Also in the Arrowie Basin, GEL 128 was renewed until 02/02/2015 with the reduction in area and now covers over 1,459 sq km.

In the Eromanga Basin, Geothermal Permit application GELA 287 has been withdrawn.


Tasmania

Offshore, in the Sorrell Basin, both T/36P and T/48P were surrendered on 21/04/2010.

Geothermal Permits

Onshore Tasmania, SEL 15/2010 is a new geothermal permit application by KUTh Exploration P/L over 193 sq km.


Victoria

In the Murray Basin, PEP 165 was surrendered and will revert to vacant acreage.

Onshore in the Gippsland Basin, Latrobe Fuels Ltd is farming in for up to 50% in the Gormandale block PEP 166 G within PEP 166. Latrobe is required to drill, at its own cost, up to 2 wells.  Drilling of the first well should commence by 31/12/2010.

Also in the Gippsland Basin, Beach Energy can earn up to 50% in PRL 2 (incl. Trifon Block) in two phases. Phase 1 - Beach can earn up to initial 15% by funding 100% of the cost of frac, post-frac testing and flow testing of Wombat 4 and Boundary Creek 2 wells, up to $10m. Phase 2 - Beach can earn up to a further 35% by funding additional appraisal and development activities, up to $40m. Beach will be operator of both phases of the program.

Offshore in the Gippsland Basin, VIC/P 55 was relinquished and VIC/RL 3 is being renewed.


Western Australia

In the Perth Basin, EP 320 is being renewed.

In the Bonaparte Basin, EP 386 is being renewed.

In the Browse Basin, WA-344-P is being renewed.

The following petroleum licences have had their expiry dates extended -

Licence       Basin                   New Expiry Date

EP 321         Perth                       05/04/2011
EP 407         Perth                       13/04/2011
EP 357         Barrow                     12/01/2015
WA-17-R      Carnarvon                 28/01/2015
WA-18-P      Bonaparte                31/08/2010
WA-320-P    Barrow                     13/10/2010
TL/2             Barrow                     14/04/2031
TR/4            Carnarvon                  28/03/2015

The following Exploration Permits have been granted -

Licence      Application       Basin            Permit Holder                                    Expiry Date

EP 469        25/07-8 EP         Perth            Warrego Energy Limited                        15/04/2016
EP 470        12/08-9 EP         Carnarvon      Energetica Resources P/L                     22/04/2016
WA-443-P    W 08-13            Canning        Carnarvon Petroleum Ltd                        31/03/2016
WA-442-P    W 09-Special    Bonaparte     DVM International Ltd, Ansbachall P/L    13/04/2016

Offshore in the Carnarvon Basin, application for retention licence 2/08-9 R was granted as R 5 over EP 409. Retention licence R 5 will expire on 27/04/2015. EP 409 was surrendered on grant of R 5.

Also in the Carnarvon Basin, Retention Licence WA-38-R was granted over part of WA-209-P. WA-38-R covers 161 sq km and will expire on 27/04/2015. Area of WA-209-P was reduced by 2 blocks and now covers 404 sq km.

Onshore in the Canning Basin, EP 428 has undergone partial relinquishment and now covers a reduced area of 6,476 sq km. Permit term was extended until 01/12/2010.

In the Canning Basin, application for Production Licence 1/98-9 L has been granted as Production Licence L 15 over 164 sq km. The licence will expire on 31/03/2031.

SPA 4/09-0 AO was granted to David Powter T/A field Analysis and Sampling Technologies on 14/04/2010.  The SPA will expire on 13/10/2010.  The acreage option will expire on 14/04/2011.

In the Barrow Basin, BHP Billiton has withdrawn from WA-354-P. Apache now holds 100%.

In the Exmouth Basin, Woodside Petroleum is farming in for 65% in WA-389-P.

Exploration permits WA-280-P and WA-291-P were surrendered.

Geothermal Permits

In the Perth Basin, the following Geothermal Permits have been granted -

Licence        Application          Permit Holder                    Expiry Date

GEP 39         14/08-9 GEP         Green Rock Energy Ltd        12/04/2016
GEP 40         15/08-9 GEP         Green Rock Energy Ltd        12/04/2016
GEP 41         16/08-9 GEP         Green Rock Energy Ltd        12/04/2016


New Zealand

There are five new applications on the east coast of South Island -

Application       Basin               Applicant           

APP 52589        Canterbury         Rawson Taranaki Ltd
APP 52592        Canterbury         Solid Energy New Zealand Ltd
APP 52605
        Canterbury         L & M Energy Ltd
APP 52614        Canterbury         L & M Energy Ltd
APP 52676        East Coast        Rawson Taranaki Ltd 50%, Zeanco (NZ) Ltd 50%

Offshore in the Taranaki Basin, exploration permit applications APP 52181 and APP 52200 were reduced in area and now cover 172 sq km 184 sq km respectively.

Crown Minerals approved interest transfer under farm-in agreement in offshore Canterbury Basin permit PEP 38262. Interests in the permit are Origin Energy Resources NZ 50% and Anadarko NZ 50%.

Offshore in the Taranaki Basin, Maari operator OMV NZ Ltd has applied for extension of PMP 38160 production licence area over PEP 38413 that is due to expire on 31/12/2010.

Also in the Taranaki Basin, Crown Minerals approved interest transfer under farm-in agreement in PEP 38451. Interests in permit are Anadarko NZ Taranaki Co (operator) 45%, Hyundai Hysco Co Ltd 30%, AWE New Zealand  P/L 10%, Global Resource Holdings LLC 10% and Randall C Thompson LLC 5%.

Onshore in the Taranaki Basin, Greymouth Gas Taranaki Ltd became 100% holder of PEP 38746 and Mosaic Oil is farming in for 10% interest in PEP 51149.


Papua New Guinea

In the Papuan Basin, PPL 233 was renewed to 10/06/2014.

Also in the Papuan Basin, Production Licence PDL 8 was issued over 4 blocks of PRL 11 and covers 428 sq km. The area of PRL 11 was reduced and now covers 171 sq km.

PDL 9 was issued over 6 blocks of PRL 2 and covers 514 sq km. PRL 2 is being renewed, its area was reduced and now covers 342 sq km.
 


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