May 2011

APPEA 2011
Angela Willett, Cynthia Thomas and Dan Haigh attended the APPEA Conference last month in Perth.  Thanks to all those who took the time to drop by our booth to say hello ...

Industry Summary
Australia Pacific LNG P/L and China Petroleum & Chemical Corporation (Sinopec) today signed a Sale and Purchase Agreement for the supply of 4.3 million tonnes per annum of LNG for 20 years ...

Permit Updates and Changes
Minister for Mineral Resources Development, Tom Koutsantonis, today announced the successful bidders for three new Petroleum Exploration Licences within the Cooper Basin in the State’s northeast ...
 

APPEA 2011

Angela Willett, Cynthia Thomas and Dan Haigh attended the APPEA Conference last month in Perth.  Thanks to all those who took the time to drop by our booth to say hello.

As has become a tradition in recent years, we again ran the GPinfo Brainteaser competition.  Contestants have to answer 10 multiple choice questions on the Australasian oil and gas industry. The winner of the first prize, a Kindle 3G Wireless Reading Device, was Catherine Clissold-Jones from Inpex. Second prize of a BlueAnt Handsfree Voice Controlled Car Speakerphone went to Richard Kempton from the CSIRO while Matthew Silverman from Sweetpea Petroleum scored third prize of a HDTV USB Receiver.


Industry Summary

Company News

Australia Pacific LNG P/L and China Petroleum & Chemical Corporation (Sinopec) today signed a Sale and Purchase Agreement for the supply of 4.3 million tonnes per annum of LNG for 20 years from Australia Pacific LNG’s world-class coal seam gas resources and proposed LNG facility on Curtis Island, Gladstone in Queensland.   Australia Pacific LNG and Sinopec International Petroleum Exploration & Production Corp (SIPC, a subsidiary 100% owned by Sinopec Group) also signed a Subscription Agreement for SIPC to subscribe for a 15% interest in Australia Pacific LNG thereby reducing ConocoPhillips’ and Origin Energy’s ownership interest to 42.5% respectively.  The agreements are subject to approvals by the Chinese Government and in Australia, the Foreign Investment Review Board and are conditional on Australia Pacific LNG reaching a final investment decision.  (Source:  Australia Pacific LNG, ConocoPhillips, Origin, Sinopec Announcement, 21/04/2011).

Senex Energy Ltd has today lodged with the ASIC in the form required by s.661B(1)(a) of the Corporations Act confirming that it will compulsorily acquire all remaining shares in Stuart Petroleum Limited.  By the time Senex’s offer closed at 5pm on Tuesday, 12/04/2011, Senex had received acceptances for more than 92% of Stuart shares and was entitled to compulsorily acquire all remaining Stuart shares for the same consideration.  (Source:  Senex Energy announcement, 13/04/2011).

Chubu Electric has signed a 21-year sales and purchase agreement with BG Group for liquefied natural gas from its global portfolio, including BG’s Queensland Curtis LNG project.  The Japanese utility will purchase up to 122 cargoes starting in 2014.  (Source:  EnergyNewsPremium, 09/05/2011).

Chevron has signed a sales and purchase agreement with Japan’s Nippon Oil for the supply of 300,000 tonnes of liquefied natural gas per annum from the Gorgon LNG project.  The binding agreement covers a contract period of 15 years, with Chevron Australia Managing Director Roy Krzywosinski saying the agreement was another step towards commercialising equity natural gas in Australia and further demonstrated the company’s ability to meet long-term demand growth in Asia Pacific.  Krzywosinski added construction of Gorgon was progressing well with first gas expected in 2014.  (Source:  EnergyNewsPremium, 11/05/2011).

Westside Corp is on the way to achieving a reserve upgrade for the Meridian SeamGas project by the middle of this year following an independent reserve update of the Bowen Basin fields.  Independent certifiers Netherland, Sewell & Associates estimated the fields had total proved, probable and possible reserves of 433 petajoules.  That is a 30% increase on the proved, probable and possible reserves originally attributed to the Meridian SeamGas JV when it assumed operatorship last July.  Proved and probable reserves were up 20% based on WestSide’s calculations to 244 PJ.  (Source:  EnergyNewsPremium, 19/04/2011).

Development News

Nexus Energy has appointed Fluor Australia to carry out the required engineering works to progress the company’s Crux liquids project off Western Australia to a final investment decision by the end of 2011.  Under the agreement, Nexus will have the right to review Fluor’s initial works by the end of June.  If the work is to Nexus’ standards, and should FID be sanctioned, it is intended that Fluor would assist Nexus in completing the project.  (Source:  EnergyNewsPremium, 11/05/2011).

Nexus Energy is pushing ahead with plans to make a final investment decision for its Crux liquids project off Western Australia by the end of 2011, appointing McDermott to carry out an engineering and strategy review of the project.  The agreement with McDermott is on the same terms as the agreement with Fluor.  Nexus will have the right to review McDermott’s initial works by the end of June, and if the work is satisfactory and FID is made, McDermott will assist Nexus in completing the project.  (
Source:  EnergyNewsPremium, 16/05/2011).

The traditional owners of James Price Point have reached a consent agreement with Woodside Petroleum and the Western Australian Government for the development of a liquefied natural gas hub.  Under the agreement, foreshadowed by Western Australian Premier Colin Barnett in mid-April, the Goolarabooloo Jabbir Jabbir native title claim group have agreed to relinquish the native title interests in the 3,500 hectares of land and water required for the LNG precinct, located 60km north of Broome.  In return, the GJJ people will receive more than A$1.5 billion in benefits over the life of Woodside’s Browse LNG project – and possibly more, if other LNG proponents take up land in the precinct.  (
Source:  EnergyNewsPremium, 09/05/2011).

Woodside Petroleum is moving ahead with the Browse liquefied natural gas project, awarding Wood Group Kenny an engineering contract to support the development in Western Australia’s Kimberley region.  Wood Group Kenny will provide subsea and pipelines front-end engineering design work for the project.  FEED work on Browse started in February and is expected to continue over the next 12-15 months at the new Browse project office in Perth.  (
Source:  EnergyNewsPremium, 15/04/2011).

Transfield Worley Services, the joint venture between WorleyParsons and Transfield Services, has won a $65m contract to work on Woodside’s North Rankin B platform in the North West Shelf.  The contract covers the provision of hook-up and commissioning services, including labour and materials for the hook-up and assistance with pre-commissioning and commissioning of relevant systems for the integrated float-over deck. The work covers both the onshore planning phase, including potential visits to the topsides fabrication yard in South Korea, and the offshore implementation data.  (
Source:  EnergyNewsPremium, 19/04/2011).

Technip has secured an engineering, procurement and construction management services contract for BHP Billiton’s $US1.5 billion Macedon gas field development in the Exmouth sub-basin, Western Australia.  The reimbursable contract covers the onshore facilities consisting of a gas plant and pipeline works.  (
Source:  PetroleumNews, 05/05/2011).

Clough Limited’s dedicated coal seam gas division, Clough Seam Gas, has been awarded an EPC contract by Arrow Energy for the installation of a compressor package at Arrow’s Moranbah Gas Processing Facility, located in the Bowen Basin, approximately 400k south of Townsville and 170k west of Mackay in Queensland.  The scope of the work includes detailed engineering, procurement, preparatory civil works, pipeline and compressor installation (including electrical, instrumentation and control equipment) and pre-commissioning and commissioning support.  (
Source:  OilVoice, 12/04/2011).

Flex LNG has secured agreements with InterOil, Pacific LNG, LNGL and Samsun Heavy for a floating liquefied natural gas project which would liquefy natural gas from onshore Papua New Guinea.  Targeting a 2014 start of operations date, Flex said the agreements are a result of a strong collaboration over the past 12 months between all parties to work together to develop what is likely to become the first ever floating facility to produce LNG.  The FLNG vessel is expected to be moored alongside a jetty, which will be shared with LNGL’s land-based LNG facilities and have a nominal production capacity of close to 2 million tonnes of LNG per annum and to process an estimated 2.25 TCF of gas over a 25-year period.  (
Source:  EnergyNewsPremium, 12/04/2011).

Perth-based Lowrie Constructions has won its second contract for the PNG LNG project, taking the total order for the project up to $10m.  The company has been contracted to install a terminus for the gas and liquids subsea pipeline which runs to Port Moresby from Kopi further to the west in Papua New Guinea, which is the sea terminus for the gas and oil flows originating in the country’s highlands.  Construction is expected to start within three weeks and take 12-14 weeks to complete prior to export.  (
Source:  EnergyNewsPremium, 27/04/2011).

Discoveries

Woodside Petroleum’s oil discovery at Laverda North in WA-36-R in the Exmouth sub-basin, could lead to a new stand-alone development that could be production as early as 2015.  Last week, Woodside announced it discovered more oil at Laverda North with the Laverda North 2 appraisal well intersecting a gross interval of 18m of new oil-bearing sands.  The well also intersected, as expected, a gross interval of about 10m of oil bearing sands in the Laverda oil field, which was discovery by Woodside 11 years ago.  The discovery at Laverda North 2 has led Woodside to believe the Greater Laverda area could potentially hold more than 100 mmbbls of recoverable oil, according to preliminary evaluation.  (Source:  EnergyNewsPremium, 11/05/2011).
 


Permit Updates and Changes

CO 2010 Areas in Cooper Basin Offered

Minister for Mineral Resources Development, Tom Koutsantonis, today announced the successful bidders for three new Petroleum Exploration Licences within the Cooper Basin in the State’s northeast.  A total of 11 bids were received from six national and international explorers for the three blocks which are prospective for oil and gas.

CO 2010-A was offered as PELA 568 to Sapex Ltd.  Guaranteed work program was for 2 exploration wells, 500k 2D seismic ($7.4m expenditure) and a non-guaranteed work program of 1 exploration well ($2.2m expenditure).

CO 2010-B was offered as PELA 569 to Sapex Ltd.  Guaranteed work program was for 2 exploration wells, 500k 2D seismic ($7.4m expenditure) and a non-guaranteed work program of 1 exploration well ($2.2m expenditure).

CO 2010-C was offered as PELA 570 to Ambassador Exploration P/L.  Guaranteed work program was for 8 exploration wells, 200k 3D seismic and 300k 2D seismic ($33.5m expenditure).


New South Wales

In the Clarence/Moreton Basin, PSPA 37 expired on 27/04/2011.  Clarence Moreton Resources have applied for PELA 135 over 240 sq km.

Geothermal Permits

In the Clarence/Moreton Basin, EL 7146 was cancelled at the request of the licensee.

In the Sydney Basin, EL 7510, EL 7512 and EL 7513 were cancelled at the request of the licensee.


Northern Territory

In the Beetaloo Basin, Falcon Oil & Gas Australia Ltd has signed a participation agreement with Hess Corporation. Hess will gain a 62.5% working interest in approximately 25,200 sq km within EP 76, EP 98 and EP 117 by making a payment to Falcon Australia, acquiring warrants in Falcon Oil & Gas Ltd, conducting a seismic program and drilling five wells. Hess has the right to withdraw from the project following the seismic evaluation and following the drilling phase, in doing so, the entire interest would transfer back to Falcon Australia. Falcon Australia will retain 100% ownership of a 400 sq km block within EP 98. The agreement is subject to regulatory approvals.

In the Daly Basin EP(A) 219 and EP(A) 220 are new applications by Arafura Oil P/L 100%.

In the Arunta and Georgina Basins, EP(A) 221 and EP(A) 222 are new applications by Wiso Oil P/L 100%.

In the Money Shoal Basin EP(A) 223 and EP(A) 224 are new applications by MBS Oil P/L 100%.

In the Eromanga and Arunta Basins, EP(A) 225 and EP(A) 226 are new applications by AOG (SA) P/L 100%.

EP(A) 228 is a new application by AOG (WA) P/L 100% in the Arunta Basin.


Queensland

Exoma has completed a placement following the closing of CNOOC $50m farmin whereby CNOOC will fund the drilling program for the next two years to earn a 50% interest in ATP 991P, ATP 996P, ATP 999P, ATP 1005P and ATP 1008P.

In the Surat Basin, ATP 608P and ATP 608P Rookwood have undergone partial relinquishments and now cover reduced areas of 694 sq km and 376 sq km respectively
.

In the Maryborough Basin, ATP 613P has undergone a partial relinquishment and now covers a reduced area of 388 sq km.

In the Eromanga Basin, ATP 677P has undergone a partial relinquishment and  now covers a reduced area of 2,205 sq km.

In the Bowen Basin, ATP 688P has undergone a partial relinquishment and now covers a reduced area of 4,249 sq km.

Also in the Bowen Basin, Mitsui E&P Australia will exercise its options to acquire 49% of Westside's interests in ATP 688P and ATP 769P.  The farmin arrangements remain conditional on Westside's existing joint venturer waiving its pre-emptive rights over those areas.

In the Bowen Basin, ATP 821P has been cancelled due to the failure of the licensee to lodge a work program by the due date.

In the Surat/Bowen Basin, ATP 840P has undergone a partial relinquishment and now covers a reduced area of 456 sq km.

In the Surat Basin, ATP 847P has been relinquished following the grant of overlapping licences ATP 972P and ATP 973P  The licences were granted on 28/04/2011 and will expire on 30/04/2019.

In the Surat/Bowen Basin, ATP 852P is in the process of being renewed.

In the Adavale Basin, Sentry Petroleum has reached agreement with all necessary land owners for the company's upcoming drilling program in ATP 862P and ATP 864P.

In the Surat/Bowen Basin, ATP 965P was granted on 17/03/2011.  The licence will expire on 31/03/2023.  Overlapping applications, ATP 966P, ATP 968P, ATP 969P, ATP 970P and ATP 971P were refused
.

In the Adavale Basin, Resolve Geo P/L has withdrawn its application for ATP 1092P.

In the Surat Basin, PL 5 is in the process of being renewed as PL 315.

The following are new production licence applications
-

Licence        Basin                 Area

PL 458         
Surat                   67.6
PL 462          Surat/Bowen          3.1
PL 463          Surat/Bowen       117.5
PL 464          Surat/Bowen          3.1
PL 465          Surat/Bowen          3.1
PL 466          Surat                   91.7
PL 467          Surat/Bowen          3.1
PL 468          Surat/Bowen          9.3
PL 469          Surat                 147.7


Sequestration

In the Bowen Basin, EPQ 3 has been relinquished and now reverts to vacant acreage.


South Australia

Holloman Energy Corp has accepted the terms of a farm-out agreement with an unnamed party for exploration permits PEL 112 and PEL 444. The undisclosed party may earn 44% interest in both permits by funding $US17 - $US19 million in exploration and development costs. The current interest holders will contribute a portion of their working interest towards the 44% share to be earned by the third party. The transaction is subject to various approvals.

In the Otway Basin, the expiry date for exploration permit PEL 186 has been extended to 27/04/2012.

Geothermal Resource's interest in exploration permit PEL 187 is held by wholly owned subsidiary Neo Oil P/L.  Geothermal Resources acquired Neo Oil in Dec 2008.

In the Officer Basin, the expiry dates for PEL 499 and PEL 500 have been extended to 12/04/2015.

Geothermal Permits

In the Cooper Basin, GEL 211 has had its expiry date extended to 31/11/2011.

In the Stuart Shelf Basin,
GEL 501 was surrendered on 21/04/2011.

In the Gawler Craton Basin, application GELA 563 is over a reduced area and now covers 2,972 sq km.



Victoria


In the Gippsland Basin, VIC/P 45 is in the process of being renewed.



Western Australia


In the Barrow Basin, EP 307 has been renewed to 30/03/2016. Work program is now as follows -

Year 1: geotechnical studies $1,000
Year 2: geotechnical studies $1,000
Year 3: geotechnical studies $1,000
Year 4: geotechnical studies $1,000
Year 5: geotechnical studies $1,000

In the Perth Basin, EP 321 has had its expiry date extended to 05/04/2012.

In the Carnarvon Basin, EP 325 has had its expiry date extended to 28/03/2013.

In the Bonaparte Basin, EP 386 has been renewed over a reduced area and now covers 2,570 sq km. The licence expires on 31/03/2016. Work program is now as follows -

Year 1: 50k 2D seismic reprocessing, production test $0.7m
Year 2: 1 exploration well $2m
Year 3: engineering studies, geophysical studies $0.15m
Year 4: 50k 2D seismic $0.5m
Year 5: engineering studies, geotechnical studies $0.15m


In the Perth Basin, the expiry date for permit EP 407 was extended to 13/04/2012.

Also in the Perth Basin, exploration permit EP 408 has had its expiry date extended to 28/07/2012.

Norwest Energy NL has entered an agreement with John Geary to acquire 0.142% interest in EP 413 taking Norwest’s interest from 27.803% to 27.945%. The acquisition is subject to approval and registration from the Western Australian Department of Mines and Energy.

In the Perth Basin, the expiry date for exploration permit EP 430 has been extended to 19/09/2011. Work program is now as follows -

Year 1: G&G studies $0.1m
Year 2: geotechnical studies $0.1m
Year 3: 2D seismic reprocessing & interpretation $0.15m
Year 4: 2D seismic $0.1m
Year 5: geotechnical studies $0.1m
Year 6: 50k 2D seismic $0.5m


In the Carnarvon Basin, EP 435 has been renewed to 08/03/2016. Work program as follows -

Year 1: 100k 2D seismic reprocessing $0.1m
Year 2: seismic interpretation $0.05m
Year 3: geochemical studies $0.1m
Year 4: 1 exploration well $1.7m
Year 5: technical studies $0.05m


In the Perth Basin, EP 432 and EP 440 are pending suspension.

In the Canning Basin EP 442 no longer exists; it has been split into 2 new permits, EP 477 and EP 478. Both permits have been granted to Buru Energy (Acacia P/L) 90%, Buru Energy Ltd 10% and will expire on 31/12/2014. Mitsubishi Corp. will earn an initial 40% in the permits by funding 80% of the cost of the 2010 exploration program up to a maximum of A$22.4 million and may earn up to an additional 10% interest by funding 80% of the cost of 2011 exploration program.

EP 477 work program is now as follows -

Year 1: 1 exploration well $3m
Year 2: geotechnical studies $0.05m
Year 3: G&G studies $0.75m
Year 4: 1 exploration well $3m


EP 478 work program is now as follows -

Year 1: G&G studies $0.1m
Year 2: 1 exploration well $3m
Year 3: G&G studies $0.75m
Year 4: G&G studies $0.75m


In the Perth Basin, Special Prospecting Authority STP-SPA-0013 was granted as SPA 9/10-1 AO to Westranch Holdings 100% on 04/04/2011. Licence will expire 03/10/2011.  Acreage option expires 03/04/2012.

Tap Oil Ltd is selling its interests in TL/2, TP/7 and WA-8-L to Hardie Energy Group for $2 million. The completion of the sale is subject to joint venture and government approvals.

In the Perth Basin, exploration permit TP/15 is pending suspension.

In the Carnarvon Basin, retention licenses WA-14-R and WA-15-R are being renewed.

Location applications 3SL/09-0 over Corvus and 4SL/09-0 over Tusk are pending. Once the applications for Corvus and Tusk have been approved, Apache Northwest P/L intends to relinquish the remainder of the WA-246-P exploration permit.

In the Bonaparte Basin, WA-279-P is pending surrender.

In the Barrow Basin, WA-290-P is pending suspension.

The Santos Offshore P/L farm-in agreement into permits WA-323-P and WA-330-P has been approved. Under the terms of agreement, Santos will earn 75% in both permits by conducting a new 3D survey across both permits, drilling one well in the first three years of the renewed term of WA-323-P and reimbursing Octanex for prior seismic and associated expenditure in both permits. Interests for both permits are Santos Offshore P/L 75%, Octanex NL 25% and will expire 05/04/2016.

Work program for WA-323-P is now as follows -

Year 1: 240k 3D seismic survey $3m
Year 2: geotechnical studies $0.5m
Year 3: 1 exploration well $25m
Year 4: geotechnical studies $0.75m
Year 5: geotechnical studies $0.5m


Work program for WA-330-P is now as follows -

Year 1: 200k 3D seismic survey $2.5m
Year 2: geotechnical studies $0.5m
Year 3: geotechnical studies $0.5m
Year 4: 1 exploration well $25m
Year 5: geotechnical studies $0.5m


In the Browse Basin, WA-333-P has been surrendered.

In the Carnarvon Basin, exploration permits WA-335-P and WA-356-P are pending suspension.

In the Carnarvon Basin, WA-348-P was renewed over a reduced area and now covers 2,767 sq km. Expiry date is 15/03/2016. Work program is as follows -

Year 1: geotechnical studies $0.78m
Year 2: 750k 2D seismic $3m
Year 3: geotechnical studies $0.8m
Year 4: 1 exploration well $45m
Year 5: geotechnical studies $0.8m


In the Carnarvon Basin, Tap Oil Ltd is selling 25% interest in WA-351-P to Japan Australia LNG (MIMI) P/L for a cash consideration of US$30,154,000. In addition, Japan Australia LNG will pay Tap’s 20% share of the next exploration well in the permit. The acquisition is subject to joint venture and government approvals.

Also in the Carnarvon Basin, location application 6SL/10-1 is pending over permit WA-355-P.

In the Barrow Basin, WA-358-P is pending suspension.

The 3D seismic survey in WA-359-P and WA-409-P has been completed, earning Apache 40% equity in both permits and reducing Cue’s and Moby’s interest to 30%. Apache is now the operator of the permits.

Retention licence WA-35-R is pending renewal in the Carnarvon Basin.

In the Carnarvon Basin, the expiry dates for  WA-362-P and WA-363-P have been extended to 21/12/2011.

Corowa Location application 1SL/08-9 is pending over permit WA-264-P. A letter was issued to the DMP on 22/02/2011 outlining issues for consideration prior to making final decision of refusal.  Awaiting a response.

Exploration permits WA-366-P and WA-367-P are pending renewal in the Carnarvon Basin.

Geothermal Permits

In the Perth Basin, geothermal application STG-EPA-0008 was granted as GEP 42 to GT Power P/L 100% on 04/03/2011. Licence will expire on 03/03/2017. Work program as follows -

Year 1: geotechnical studies $0.04m
Year 2: 3k geothermal survey, 1 geothermal exploration well $0.18m
Year 3: geothermal studies $0.6m
Year 4: 1 geothermal exploration well $0.6m
Year 5: geotechnical studies $0.06m
Year 6: 1 exploration well $1m


In the Northeast WA Basin, GEP 43 was granted to Kagara Ltd 100%. Licence will expire 05/05/2017. Work program as follows -

Year 1: geotechnical studies $0.04m
Year 2: geotechnical studies, 1 geothermal exploration well $1.1m
Year 3: geotechnical studies $0.02m
Year 4: 2 geothermal exploration wells $2.2m
Year 5: geotechnical studies $0.02m
Year 6: 2 production wells $5m


Geothermal applications STG-EPA-0001, STG-EPA-0002, STG-EPA-0003, STG-EPA-0004, STG-EPA-0005 and STG-EPA-0007 were not granted.


New Zealand

ZedEx Ltd has sold its 50% interest in APP 52785 and APP 52962, receiving $250,000.00 CDN and 2,000,000 common shares in Commonwealth Oil and Gas Ltd. Commonwealth Oil & Gas Ltd is now the sole applicant for these permits.

In the Taranaki Basin, APP 53537 is a new application by OMV NZ Ltd 65% (operator), Octanex NZ Ltd 35%.

In the West Coast Basin, APP 53570 is a new application by Greywolf Goldmining NL 100%.

In the Southland Basin, APP 53572 is a new application by Solid Energy New Zealand Ltd 100%.

In the Solander Basin, APP 53599 is a new application by ZeaEx Ltd 100%.

In the Westland Basin, L&M Energy Ltd will acquire 10% from Mighty River Power Ltd in PEP 38226. This will increase L&M Energy's interest to 100% and the company will hold no further obligations to the joint venture. Acquisition is pending Ministerial approval.

In the Taranaki Basin, AWE New Zealand P/L is withdrawing from PEP 38451 before drilling an exploration well in the permit scheduled for early 2012.

In the Westland Basin, an extension of land has been granted in PEP 38512.  Permit now covers an extended area of 51 sq km.

In the Westland Basin, PEP 38521 and PEP 50558 are being relinquished.

In the Waikato Basin, PEP 50348 is being relinquished.

In the Northland Basin, an application has been submitted for a second exploration term in PEP 38619. This is currently under consideration by the NZP&M.

In the Taranaki Basin, AWE New Zealand P/L has withdrawn as operator in permit PEP 51558. Current operator is Todd Exploration Ltd.

The farmout agreement between OMV New Zealand Ltd and Octanex NZ Ltd has been finalised. OMV New Zealand Ltd has acquired 65% interest in PEP 51906 and is the operator of the permit while Octanex retains 35%. OMV will reimburse the exploration costs incurred by Octanex to date up to a maximum of NZ$1 million. OMV will also pay 100% of the costs for new 3D and 2D seismic program. OMV must commit to the drilling of a well on or before 19/11/2012 or re-assign all of its 65% interest back to Octanex.


Papua New Guinea

In the Papuan Basin, PRL 14 was granted to Oil Search (PNG) on 22/11/2010.  The licence will expire on 21/11/2015. PPL 190 now covers a reduced area of 513 sq km.

Also in the Papuan Basin, the PRL 5 legal proceedings were settled on 31/03/2011 and a new 5 year licence, PRL 21 was granted.  Horizon Oil was granted a 70% interest in PRL 21, with Dabajodi International Energy Ltd holding 20% and Elevala Energy 10%. Horizon Oil will assign half of its interest (35%) to Talisman Niugini P/L.

In the Papuan Basin, applications to extend PPL 266 and PPL 267 were lodged with the Department of Petroleum and Energy on the 22/02/2011.

Talisman and NGR have agreed that drilling of the first well will not be a joint operation.  NGE has until 30/04/2011 to decide whether they will drill the first well in PPL 268 as an exclusive operation. If NGE goes ahead with drilling the well, operatorship of the well will be delegated to NGE.

Talisman Niugini has elected to drill the Siphon 1 well as operator in PPL 269.  The well is expected to spud after the completion of the Stanley 4 well.

PRL 1 was granted on 22/11/2010.  Licence will expire on 21/11/2015.


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