May 2016 GPinfo Update


Data Update

 

The May 2016 data update is now available …

 

APPEA Conference

 

The 2016 APPEA Conference is being held in Brisbane from 5-8 June. Catherine Speed, Dan Haigh, Alex Zdziarski and Cynthia Thomas will be in attendance. Please drop by booth 231 and introduce yourself …

 

Industry Summary

 

Buru Energy has announced the first contingent reserves for its emerging Laurel Formation basin-centred gas play in the Valhalla area of the Canning Basin, based on last year’s fraccing program and testing

 

The Woodside Petroleum-led North West Shelf project participants have entered the front-end engineering and design phase with Hess Exploration Australia to process gas from the undeveloped Equus gas …

 

Permit Updates and Changes

 

L 14-3, L 14-4, L 14-5 and L 14-6 are proposed for re-release in September 2016. The areas are yet to be finalised …

 

Finder Exploration is selling its interests in permits WA-435-P, WA-436-P, WA-437-P and WA-438-P to Quadrant Energy. JX Nippon has also entered an agreement to divest its permit interests …


 

The May 2016 GPinfo data update is now available.


Software Patch

GPinfo 5.10.4, which was released last month with the April data update, is in some circumstances slower to load the graphical layers into the Map Window than previous versions of the software. If you have experienced this and it is an issue for you, please install the GPinfo 5.10.5 software patch. Contact your GPinfo administrator or GPinfo Support for more information.

 

APPEA Conference                                     

 

The 2016 APPEA Conference is being held in Brisbane from 5-8 June. Catherine Speed, Dan Haigh, Alex Zdziarski and Cynthia Thomas will be in attendance. Please drop by booth 231 and introduce yourself.

 

As usual, the new editions of the Petroleum Permits of Australasia Map and Book will be released at the conference. Both products can be pre-ordered with conference registration, purchased from our booth during the conference or ordered online post-conference.

 

This year for the first time the Permits Book is available digitally, with updates issued quarterly.

 

 

 

Click here if you would like to be notified by email as soon as these products become available.

 

 

Industry Summary                                       

 

Company News

 

Buru Energy has announced the first contingent reserves for its emerging Laurel Formation basin-centred gas play in the Valhalla area of the Canning Basin, based on last year’s fraccing program and testing. The independent assessment of the resources from DeGolyer and MacNaughton indicates there is no question that the Valhalla area contains a nationally significant multi-trillion cubic feet wet gas accumulation within EP 371. The data from the stimulation of the Valhalla North 1 and Asgard 1 wells indicates a gross 2C unrisked contingent recoverable volume of 1.53 tcf of gas and 32 million barrels of condensate and LPG across both the wet gas and dry gas zones in the immediate area around the two wells. DeGolyer and MacNaughton said the unrisked mean recoverable prospective resource in the Valhalla accumulation on EP 371 alone is 13.02 tcf of gas and 232 mmbbl of liquids. At either size, both developments would likely be commercial, assuming export infrastructure could be developed to link the remote wells to markets. (Source: Buru Energy announcement, 18/04/2016).

 

Chevron has signed a domestic gas sales agreement with Alinta Energy for the delivery of natural gas from the Chevron-operated Wheatstone LNG project near Onslow, Western Australia. Under the agreement, Chevron will supply Alinta with 20 PJ per year of its domestic gas for seven years starting in 2020, making Wheatstone a significant new source of energy for Western Australia and a leading domestic gas supplier for many years to come. Wheatstone domestic gas is being marketed separately by the Wheatstone joint venture participants and will be delivered from Onslow via pipeline to an inlet point on the Dampier Bunbury Natural Gas Pipeline. (Source: Energy News Premium, 19/04/2016).

 

New Zealand Oil & Gas has announced a further upgrade in developed reserves in the Kupe gas and light oil field off Taranaki, New Zealand. The upgrade from 5.22 million bbls to 6.02 million bbls is further to a 34.7% increase announced in October 2015. As a result of detailed reservoir simulation uncertainty modelling, NZOG has concluded a further increase in 2P developed reserves of 15.29%. The upgrade includes an extra 3.6 PJ of gas and 16,690 tonnes of LPG compared to 2P developed reserves at 31/12/2015, minus the volumes produced since that time. (Source: New Zealand Oil & Gas announcement, 21/04/2016).

 

Linc Energy has entered into voluntary administration. The Administrators are working with the Company’s management team to fully understand the options available to the Company, which potentially include a restructure of the company at an appropriate time. (Source: Linc Energy announcement, 15/04/2016).

 

The directors of Empire Energy Group provided an update to the market that the proposed farm-out with ARGP P/L, a wholly owned entity of American Energy Partners, did not close on the expected date of 20/04/2016. The company and AEP remain in discussion in terms of satisfying the conditions precedent and how to resolve the commercial and political risk of operating in the Northern Territory following the recent announcement of a potential fracking ban. (Source: Empire Energy announcement, 22/04/2016).

 

Hibiscus Petroleum has announced that the term sheet dated 09/11/2015 in relation to the proposed acquisition of Hydra Energy Holdings P/L is now deemed terminated in view of non-fulfilment of the conditions precedents (which included the parties agreeing and entering into the SPA, and the approval of the shareholders of HEH to proceed with the proposed acquisition) before 30/04/2016.

(Source: Hibiscus Petroleum announcement, 03/05/2016).

 

Comet Ridge Ltd has entered into a non-binding memorandum of understanding (MOU) with APA Group to work towards the transportation of gas from Comet Ridge’s Galilee Basin permits to east coast gas markets. The MOU provides framework of cooperation between the parties to negotiate the commercial terms of a gas transportation agreement under which APA would build, own and operate new gas pipelines and associated gas gathering and production infrastructure connecting Comet Ridge’s Galilee Basin gas projects to APA’s existing Queensland gas pipeline network. (Source: Comet Ridge announcement, 11/05/2016).

 

AWE Ltd has received an unsolicited indicative, conditional and non-binding proposal from Lone Star Japan Acquisitions Ltd on behalf of a Lone Star Fund, to acquire all of the shares in AWE for a cash consideration of A$0.80 per share. The proposal was subject to a number of conditions, including due diligence, legal documentation and internal approval conditions. The AWE board has met to consider the proposal and has decided to reject it. The board concluded that it is opportunistic and does not reflect the fair underlying asset value of the company. (Source: AWE announcement, 11/05/2016).

 


 

Developments

 

The Woodside Petroleum-led North West Shelf project participants have entered the front-end engineering and design (FEED) phase with Hess Exploration Australia to process gas from the undeveloped Equus gas fields that lie within Hess’s WA-390-P permit in the Carnarvon Basin. The FEED work includes examination of the technical aspects as well as a progression of key commercial agreements so that participants can make a proposed final investment decision in 2017. The Equus project will require a $6 billion investment in offshore gas development and will be the first time that the NWS joint venture has processed gas from a third party. The intention is that Hess will deliver gas to the NWS project’s offshore system for sending down the pipeline to the Woodside JV’s LNG processing plant at Karratha on the Burrup Peninsula. (Source: Oil & Gas Journal, 20/04/2016).

 

Royal Dutch Shell has cancelled a $4.6 billion contract with South Korean shipbuilder Samsung Heavy Industries Co Ltd for three floating LNG vessels. The vessels, ordered in June 2015, were earmarked for development of the Browse gas-condensate fields. However, the Browse FLNG project was postponed indefinitely in March this year because of the poor prevailing economic and market environment. The FLNG vessels were to be based on Shell technology that is being pioneered for the nearby $6 billion, 3.6 million tonnes per annum Prelude project. The Prelude FLNG vessel is due for completion later this year. (Source: Oil & Gas Journal, 02/03/2016).

 

Cooper Energy Limited has completed a review of the Manta Deep and Chimaera East prospects in VIC/RL 13, VIC/RL 14 and VIC/RL 15 in the offshore Gippsland Basin and has re-assessed its best estimate net prospective resource in the two prospects to be 97.5 mmboe consisting of 491 PJ gas and 13.1 mmbbl oil and gas liquid. The assessment is based on new interpretation of reprocessed 3D seismic. The prospects are located in the same structures as existing proven gas and oil fields at target levels both shallower and deeper than has been tested by the existing well bores. (Source: Cooper Energy announcement, 04/05/2016).

 

The National Offshore Petroleum Safety and Environmental Management Authority  (NOPSEMA) has sent back Chevron’s start-up and operations environment plan for the Wheatstone gas LNG project off Western Australia saying the plan is not sufficiently robust. NOPSEMA says Chevron has not outlined an appropriate implementation strategy, including monitoring, recording and reporting arrangements, for bringing the offshore facilities on stream. The federal regulator says the proposal was not appropriate for the nature and scale of start-up of the project, which lies 50 km from the Montebello Islands National Park and Barrow Island (a Class A reserve). It added that the proposal did not demonstrate that the environmental risks of the start-up will be reduced to as low as reasonably practicable. Chevron will respond to NOPSEMA’s comments and address the outstanding matters before submitting a revised plan for bringing Wheatstone on stream. (Source: Oil & Gas Journal, 12/05/2016).

 

 Permit Changes                                                                

 

New South Wales

 

Surat Basin

PEL 427 is in the process of being renewed.

Sydney Basin

Finalisation of relinquishment of PEL 285 is dependent on approvals for final plug and abandon of wells and infrastructure.

Northern Territory

 

Amadeus Basin

Re-released work program area AC 15-2 closed 21/04/2016 and is under consideration.

 

The year 4 work program for EP 105 has been extended by 24 months from 27/11/2015 to 27/11/2017.  The licence has had its expiry date extended to 27/11/2018.

 

The year 3 work program for EP 82 has been extended by 24 months from 30/01/2016 to 29/01/2018.  The licence has had its expiry date extended to 29/01/2020.

Bonaparte Basin

The year 5 work program for EP 126 has been extended by 6 months from 15/06/2016 to 14/12/2016.  The licence has had its expiry date extended to 14/12/2016.

 

A suspension and extension for NT/P 82 was lodged on 29/04/2016.

Georgina Basin

The year 2 work program for EP 144 has been extended by 6 months from 21/05/2015 to 20/11/2015.  The licence has had its expiry date extended to 20/11/2018.

 

The year 2 work program for EP 153 has been extended by 6 months from 01/07/2015 to 30/12/2015.  The licence has had its expiry date extended to 30/12/2018.

Pedirka Basin

The year 5 work program for EP 134 has been extended by 24 months from 26/02/2014 to 25/02/2016.  The licence has had its expiry date extended to 25/02/2016.

Timor Basin

Partners Woodside Petroleum Ltd and Talisman Energy Ltd have completed their joint 2015 deal to sell production licence AC/L 5 which contains Laminaria and Corallina to Northern Oil & Gas Australia. The transaction fee has not been disclosed.

Vulcan Sub Basin

MEO's assessment of AC/P 53 has not identified any commercially attractive prospects. MEO expects to surrender AC/P 53 during the current quarter.

Queensland

 

Bowen Basin

The correct expiry date for PL 237 is 21/06/2032.

Eromanga Basin

AGL's sale of its interest in ATP 1056 to Beach was pre-empted.  New licence interests are as follows:  Texas-Tickalara Energy Partners LP 15.277%, Texas-Tickalara Holdings LP 35.652, Carson Energy 12%, Tamark P/L 11.723%, Foresight Australia P/L 10%, Matariki Petroleum Ltd 7.348%, Rockwall Oil LP 5% and Discovery Geo Corp 3%. 

 

Bounty Oil & Gas and Bridgeport Energy have signed a sale and purchase agreement for the transfer of Bridgeport’s 100% interest in PL 2 Alton and 63.5% interest in PL 2C Alton FO to Bounty.

 

Bridgeport Energy and Bounty Oil & Gas have signed a sale and purchase agreement for the transfer of Bounty’s 40% interest in PL 214 to Bridgeport Energy.

Galilee Basin

Year 3 of the work programs for ATP 642 and ATP 662 have been varied to airborne surveys.

 

Comet Ridge has entered into an agreement to acquire QER CSG P/L's interest in ATP 1015 and ATP 1015 Lake Galilee Farmout Block.  The deal is subject to due diligence, approval by the Queensland Minister to transfer and approve a Later Work Program.  This will result in a cash payment to Comet of approximately $250,000.  Applications ATP 1179, ATP 1180 & ATP 1181 (to replace ATP 1015) were withdrawn on 03/12/2015.

South Australia

 

Ceduna Basin

Work program area S 15-1 closed 21/04/2016. The area is under consideration.

Cooper Basin

PEL 94 has been suspended by 12 months from 09/03/2016 to 08/03/2017.  The licence has had its expiry date extended to 04/11/2018.

 

PEL 95 has been suspended by 12 months from 09/03/2016 to 08/03/2017.  The licence has had its expiry date extended to 29/10/2018

Eromanga Basin

PEL 71 has been suspended by 6 months from 26/03/2016 to 25/09/2016.  The licence has had its expiry date extended to 06/11/2019.

 

Greenpower Energy has advised application PELA 146 does not fit the company's present business intentions and has been relinquished.

Gawler Block

Geothermal exploration permits GEL 563, GEL 564 and GEL 565 have been relinquished.

Otway Basin

PEL 186 has been relinquished.

Tasmania

 

Otway Basin

Gazettal work program areas T 15-1, T 15-2 and T 15-3 closed on 21/04/2016.  The areas are under consideration.

 

A suspension and extension application for T/30P was lodged with NOPTA on 26/04/2016.

 

Year 3 of the work program for T/49P has been suspended for 9 months to 21/02/2017.  The licence term has been extended to 21/02/2020.  3D Oil has commenced a farmout process for its interest.

Victoria

 

Gippsland Basin

The correct grant date for PEP 170 is 14/10/2010.  Current expiry date is 13/10/2018.

 

A variation for VIC/P 68 was lodged with NOPTA on 20/04/2016.

 

Gazettal work program area V 15-3 closed on 21/04/2016.  The area is under consideration.

 

Offshore, retention licences VIC/RL 13, VIC/RL 14 and VIC/RL 15 were granted on 19/04/2016.  The licences will expire on 18/04/2021.  Previous production licence VIC/L 26, VIC/L 27 and VIC/L 28 expired and were replaced with the retention leases.   The licenses share a combined work program -  

Years 1-5 - G&G & engineering studies, well planning, concept engineering studies, commercial & marketing, monitoring of industry innovations, facilities sharing initiatives, asset integrity monitoring $10.5m

Otway Basin

Application has been made for a further suspension and extension for PEP 150. Application has been made to extend permit year 1 to 25/08/2016 and the permit term to 25/08/2020.  Correct grant date is 26/08/2013 and current expiry date is 26/08/2019.

 

Application has been made to suspended and extend PEP 168 for 12 months.

 

The correct grant date for PEP 171 is 27/08/2013.  Current expiry date is 26/08/2019.

 

Gazettal work program area V 15-1 closed on 21/04/2016.  The area is under consideration.

Western Australia

 

Barrow Sub Basin

TP/8 has undergone a partial relinquishment and now covers a reduced area of 724 sq km.

 

The year 3 work program for WA-290-P has been extended by 6 months from 22/10/2016 to 21/04/2017. The licence has had its expiry date extended to 21/04/2019.

Browse Basin

Work program areas W 15-3 and W 15-4 closed on 21/04/2016 and are under consideration.

 

A retention lease application has been lodged over the Ichthys/Concerto Location WA-274-P LI.

 

The year 3 work program for WA-281-P has been extended by 6 months from 31/05/2016 to 30/11/2016. The licence has had its expiry date extended to 30/11/2018.

 

WA-447-P and WA-449-P expired on 09/05/2016. The areas revert to vacant acreage.

 

The year 2 work program for WA-471-P has been extended by 12 months from 4/05/2016 to 3/05/2017.  The licence has had its expiry date extended to 3/05/2021.

 

The year 2 work program for WA-485-P has been extended by 12 months from 14/05/2016 to 13/05/2017.  The licence has had its expiry date extended to 13/05/2021.

Canning Basin

The year 6 work program for EP 448 has been extended by 9 months from 15/12/2015 to 15/09/2016.  The licence has had its expiry date extended to 15/09/2016. The licence is also being renewed.

 

Half of EP 457 and EP 458 will be relinquished later this year. Buru Energy is working to propose to the joint venture the least accessible and least prospective blocks for relinquishment next quarter.

 

Re-released area L 14-2 received no bids. The area reverts to vacant acreage.

 

L 14-3, L 14-4, L 14-5 and L 14-6 are proposed for re-release in September 2016. The areas are yet to be finalised.

 

L 16-1 and L 16-2 are also proposed for release in September 2016. The areas are yet to be finalised.

 

Application STP-EPA-45 has been withdrawn. The area reverts to vacant acreage.

 

Special Prospecting Authority Application STP-SPA-62 has been lodged. The applicant is confidential at this time.

Carnarvon Basin

L 15-2, L 15-3, L 15-4 and T 15-1 received no bids. The areas revert to vacant acreage.

 

Work program areas W 15-6, W 15-7, W 15-8 and W 15-14 closed on 21/04/2016 and are under consideration.

 

Sona Petroleum's shareholders have rejected the acquisition of the Stag Oil field W-15-L.

 

The Gorgon joint venture partners are applying for extension of retention leases WA-5-R, WA-19-R, WA-20-R and WA-21-R.

 

WA-268-P has been renewed to 04/05/2021 over a reduced area of 1459 sq km. Work program is as follows –

Years 1-3 - 480 sq km PSDM seismic reprocessing, seismic inversion, G&G studies $1.02m
Year 4 - 400 sq km broadband 3D seismic, G&G studies $2.2m
Year 5 - G&G studies $0.2m

 

The joint venture has agreed not to renew WA-351-P. The permit will expire on 27/06/2016.

 

The Scarborough Extension Location WA-383-P L was revoked on 20/04/2016.

 

The Hijinx and Rimfire location applications have been lodged over WA-390-P.

 

The year 6 work program for WA-444-P has been extended by 4 months from 09/05/2016 to 09/09/2016. The licence has had its expiry date extended to 09/09/2016.

 

The year 4 work program for WA-473-P has been extended by 3 months from 03/05/2016 to 03/08/2016. The expiry date remains 03/05/2018.

 

A change to the WA-484-P work program has been approved -

Year 3 - G&G studies, 1100 sq km 3D PSDM seismic $7.2m
Year 4 - G&G, 2000 sq km PSDM seismic reprocessing $4.8m
Year 5 - G&G studies $1m
Year 6 - 1 well $55m

Officer Basin

L 16-3, L 16-4, L 16-5, L 16-6, L 16-7, L 16-8, L 16-9 and L 16-10 are proposed for release in September 2016. The areas are yet to be finalised.

Perth Basin

Transerv Energy has confirmed it is participating in the sale process for Origin Energy’s Perth Basin assets. Origin’s Perth Basin permits include: EP 320, L 1, L 2, L 11 and L 14. It has lodged a non-binding indicative offer for the assets and there are a number of stages remaining in the sale process, including a further non-binding indicative offer stage.

 

Special Prospecting Authority Application STP-SPA-63 has been lodged. The applicant is confidential at this time.

Roebuck Basin

Finder Exploration is selling its interests in permits WA-435-P, WA-436-P, WA-437-P and WA-438-P to Quadrant Energy. JX Nippon has also entered an agreement to divest its permit interests in WA-435-P and WA-437-P to Quadrant. The transactions are subject to conditions precedent as well as regulatory approval, registrations and joint venture approval. Financial details of the transaction remain confidential, but include a combination of success payments and a royalty to Finder.

Timor Basin

Partners Woodside Petroleum Ltd and Talisman Energy Ltd have completed their joint 2015 deal to sell production licence WA-18-L which contains Laminaria and Corallina to Northern Oil & Gas Australia. The transaction fee has not been disclosed.

New Zealand

 

Great South Basin

PEP 50119 has been renewed to 10/07/2022.

Taranaki Basin

Cue Energy is withdrawing from PEP 51149.

 

A change to the PEP 51151 work program has been approved -

98 months - 1 well
108 months - 50 sq km 3D seismic
114 months - 1 well
120 months - evaluation of permit

 

PML 38138, PML 38140 and PML 38141 are being renewed.

Papua New Guinea

 

North New Guinea Basin

Rawson Resources formally accepted the grant of PPL 549 on 20/04/2016. The licence will expire on 19/04/2022.

Papuan Basin

Santos has on-sold 20% of the Kirkland 50% interest in PPL 269 to Talisman (as per agreement of May 2014). Barracuda holds 30% and Talisman Energy Niugini holds 50%.

 

PPL 326 has been renewed to 29/01/2021 over a reduced area of 8,384 sq km.

 

PPL 338 is in the process of being renewed.

 

PPL 340 is in the process of being renewed.  The licence will undergo a 50% relinquishment.

 

The work program for PPL 486 has been varied.  Y1&2 50 km seismic has been moved to Y3&4, making a total of 100 km seismic in Y3&4.  A variation has been submitted to move the well commitment from Y1&2 to Y3&4.

 

Interests in PRL 4 (subject to Government approval) are as follows:  Talisman Energy Niugini Ltd 44.45%, Horizon Oil (Papua) Ltd 33.33% and Osaka Gas Niugini P/L 22.22%.

 

In December 2015, Oil Search and Total agreed to cancel their farm-out arrangement under which Total had the right to acquire 50% of PRL 10.

 

Cott's disposal of its interest in PRL 28 to Twinza will be completed once all conditions precedent have been satisfied or waived.   It will occur no later than 30/06/2016.

 

                                                                                                                                   

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