November 2012

Monthly Update
The November 2012 data update is now available ...

New Zealand Proposed Block Offer 2013
The proposed areas for Block Offer 2013 to be released in April 2013 are currently under consideration. The areas offered in 2013 will be in two forms ...

Industry Summary
Drillsearch through its wholly owned subsidiary Drillsearch (Central) P/L announced a cash offer to acquire Acer Energy for 25.5 cents per share ...

Permit Updates and Changes
In the Sydney Basin, PEL 442 has been re-instated and is in the process of being renewed ...

 


Monthly Update

The November 2012 GPinfo update is now available.
 


New Zealand Proposed Block Offer 2013

The proposed areas for Block Offer 2013 to be released in April 2013 are currently under consideration. The areas offered in 2013 will be in two forms -

1. Defined Onshore Blocks.
2. Offshore Release Areas in which the size and shape of the proposed permit area is determined by the bidder.

Further information on Block Offer 2013 is available
here.




Proposed 2013 Offshore Block Offer. Limit of proposed areas shown in bold, with currently vacant acreage shown in pink.  Applications accepted up to 2.5k km2 in the Taranaki Basin and 10k km2 in the other basins.
 


Industry Summary

Company News

Drillsearch through its wholly owned subsidiary Drillsearch (Central) P/L announced a cash offer to acquire Acer Energy for 25.5 cents per share.  On 25/10/2012, Drillsearch increased its offer to Acer shareholders from 25.5c to 28.5c per Acer share, subject to Drillsearch obtaining a relevant interest in Acer of 40% or more. The offer is now fully unconditional and is scheduled to close on 19 November 2012.  Acer Energy's board has recommended that shareholders accept Drillsearch's offer. (Source: Drillsearch announcement, 04/10/2012, 25/10/2012 and 31/10/2012).

Total has signed an agreement with Central Petroleum to earn up to 68% in EP(A) 132, ATP 909P, ATP 911P and ATP 912P in three stages.  Total will be required to fund 80% of costs over 4 years and has committed the first US$48 million of expenditure for Stage 1 (with Central funding US$12 million). Total can elect to participate in Stages 2 & 3 by funding 80% of the joint venture's commitment of US$130 million. Central will operate the farm-out areas for the first 4 years, and after completion of Stage 3, Total will assume operatorship for 90% of the area, with Central retaining operatorship of the remaining 10% of the area. (Source: Central Petroleum announcement, 06/11/2012).

Buru Energy Ltd and Mitsubishi Corp have executed an agreement with the Western Australian State Government to develop onshore oil and gas fields in the Canning Basin. The state agreement extends the joint ventures tenure on permits EP 371, EP 391, EP 428, EP 431 and EP 436 by 25 years, and gives the joint venture a 25 year extension option. This will facilitate the development of a domestic gas project and pipeline and potentially a liquefied natural gas development, once sufficient gas reserves are identified. It also provides a mechanism to relieve the permits from their existing relinquishment obligations until 31 January 2024, preserving the core areas of the Laurel Formation gas play and the Ungani oil trend. (Source: Buru Energy announcement, 07/11/2012).

Acer Energy has received independent expert verification of a major oil and gas resource upgrade at its Flax oil and wet gas field in the Cooper Basin. Acer announced that RISC had audited and supported the 280% increase in the in-place oil and gas resource to 88.5 million barrels of oil equivalent. It said the associated in-solution wet gas 2C resource had been independently verified at 190.8 petajoules. Acer said the upgrade was the result of a 12 month technical review
and arose mainly from mapping of the recently acquired 3D seismic survey which delineated the Flax field as a much broader structure. Resources from the upper and mid Patchawarra formation reservoirs have been included for the first time. (Source: Acer Energy announcement, 22/10/2012).

L&M Energy Ltd has received formal notice from New Dawn Energy Ltd of its intention to make a full takeover offer for all the ordinary shares and options of L&M Energy. New Dawn is offering to pay AUD$0.06 per share valuing L&M at around $46 million. The deal is conditional on New Dawn achieving a 90% take up from shareholders. (Source: L&M Energy announcement, 23/10/2012).

TAG Oil has submitted a non-binding indicative expression of interest (EOI) stating an interest to potentially acquire the assets of Greymouth Petroleum, or a majority of Greymouth shares. The EOI is subject to many conditions such as satisfactory due diligence, board approval, funding consisting of debt and equity on terms acceptable to TAG and the negotiation of a definitive agreement. No formal due diligence has been conducted and no definitive agreement has been entered into. (Source:  TAG Oil announcement, 31/10/2012).

Fortescue Metals Group Ltd is to become a major shareholder in Oil Basins Ltd. FMG will be issued 120 million shares at 3.5c each at a cost of $4.2 million, giving FMG an 18% stake in Oil Basins. In addition, FMG will be offered a priority 25% farm-in right to 5/07-8-EP, where Oil Basins has application rights to 50% and is the designated shale gas and coal seam gas operator. To farm-in, FMG will pay $1.75 million after the granting of the permit as part of a $10 million free carry on a two-for-one basis. (Source: Oil Basins announcement, 15/11/2012).

Horizon Oil, joint venture partner in New Zealand’s offshore Maari and Manaia fields located in PMP 38160, has advised the fields could contain a potential resource of 84.4 million barrels of oil. Independent consultant RISC has told them the Maari Moki, Maari M2A and Manaia Mangahewa reservoirs could host this amount. Horizon has also said that an upgrade could be a possibility as the reserves estimate did not include potential from the Maari Mangahewa, Manaia Moki, and Manaia "F sand" reservoirs. (Source: Horizon Oil announcement, 18/10/2012).

Developments

Construction of Shell’s Prelude Floating LNG Facility is officially underway, with the cutting of first steel for the substructure at Samsung Heavy Industries’ Geoje shipyard in South Korea. When completed, the Prelude FLNG facility will be 488 metres long and 74 metres wide, making it the largest offshore floating facility ever built.  When fully equipped and with its cargo tanks full, it will weigh more than 600,000 tonnes.  There will be over 3,000 kilometres of electrical and instrumentation cables on the FLNG facility. It will be located in the Browse Basin and will process gas from Shell’s Prelude and Concerto fields. (Source: Shell announcement, 18/10/2012).

BG Group has signed a heads of agreement to sell interest in the Queensland Curtis LNG Project to China National Offshore Oil Corp for $1.93 billion. Under the agreement, BG will supply CNOOC with 5 million tonnes per annum of LNG for 20 years beginning in 2015. CNOOC will increase its equity in the first QCLNG train from 10% to 50% and will also increase its stake in some of BG Group’s Surat Basin tenements from 5% to 25% and will acquire 25% of some of BG’s Bowen Basin tenements. CNOOC will have an option to buy a 25% stake in a potential third train at QCLNG. (Source: Energy News Premium, 01/11/2012).

The Red Gully Facility located in the Perth Basin, Western Australia has moved a step closer to domestic gas supply. On 11 October 2012, the Consent to Construct was granted by the Department of Mines and Petroleum to allow all construction activity, including the Export Pipeline to the Dampier to Bunbury Natural Gas Pipeline (DBNGP) and the Facility, to begin. Thistle Fabrication Pty Ltd will now begin building the 3.2km Export Pipeline route to the DBNGP. (Source: Empire Oil & Gas announcement, 16/10/2012).

Leighton Contractors has won a second major works contract from Ichthys LNG Project lead contractor JKC. The contract is valued at $126 million and is for engineering, procurement and construction of the operations complex area at the Blaydin point LNG plant site, Darwin. Completion is targeted for May 2015. (Source: Energy News Bulletin, 24/10/2012).

Murphy Pipe and Civil has won a $100 million contract for work on the Queensland Curtis LNG Project. Murphy will install more than 90km of steel pipelines to transport coal seam gas and water between processing facilities in the Surat Basin. The gas pipelines will link three field compression stations to a central processing plant as the accompanying water pipelines connect ponds to a treatment plant south of Chinchilla. (Source: Energy News Bulletin, 31/10/2012).

The Bonaparte Floating LNG Project in the Timor Sea, proposed by GDF Suez and Santos, has received environmental approval from the federal government. The 2 million tonne per year project will be fed gas from 22 production wells in the Petrel, Tern and Frigate gas fields. The project is now on track for the front end engineering and design process to begin in mid 2013, with a final investment decision in late 2014. The project would then be brought on stream in 2018. Development drilling is scheduled to begin in 2016 and take 2 years to complete. Overall life of the project will be 25-30 years. (Source: Energy News Premium, 26/10/2012).

Transfield Services has won the upstream maintenance and operations contract for the Queensland Curtis LNG Project, in a deal worth at least $200 million. The contract is for five years with a two year extension option and covers processing plants, compression stations, pipelines and about 2000 producing wells. (Source: Energy News Bulletin, 08/11/2012).

Esso Highlands Limited, a subsidiary of Exxon Mobil Corporation and operator of the PNG LNG Project, has announced that the project capacity has increased by 5% to 6.9 million tonnes per year remains on track to achieve first LNG sales and is now 70% complete. Esso has also advised that the estimated final capital cost has increased from US%15.7 billion to US$19 billion with foreign exchange being the largest contributor to the increase, at US$1.4 billion. (Source: Oil Search announcement, 12/11/2012).

Wartsila Moss has won a contract with Daewoo Shipbuilding & Marine Engineering Co to supply inert gas generator units for the floating production, storage and offloading unit for the INPEX-operated Ichthys LNG Project in the Browse Basin. The inert gas generator units allow safe storage and transfer of condensate from the FPSO. The FPSO is due for delivery in April 2016. (Source: Energy News Bulletin, 18/10/2012).

Discoveries

Santos’ Moomba 191 shale gas well in the Cooper Basin has achieved Australia’s first commercial production of gas from a shale well. Moomba 191 was connected to the Moomba infrastructure and has been flowing gas at a stabilised rate of 2.7 million cubic feet per day from the Roseneath, Epilson and Murteree shale targets. Santos said further drilling is planned for the area, including an ongoing vertical well appraisal program and Santos’ first horizontal shale well planned for early 2013. (Source: Santos announcement, 19/10/2012).

Testing of Karoon Gas Australia Ltd’s Boreas 1 exploration well in the Browse Basin has commenced. Natural gas flowed at a stabilised rate of 30.2 million cubic feet per day through a 40/64" choke, with a wellhead pressure of 3300 psi. The zone tested is a 70 metre perforated interval of the Plover formation at 4,904-4,974 metres below the rotary table. The test will continue for 5 days, including shut-in periods, and will also involve downhole sampling of the reservoir fluids and production logging. (Source: Karoon Gas Australia announcement, 17/10/2012).

Chevron Corporation has made another natural gas discovery offshore in the Greater Gorgon Area, in the Carnarvon Basin with its Satyr 4 exploration well. Satyr 4 was drilled approximately 120 kilometres northwest of Barrow Island. The well reached a total depth of 4,579 metres and confirmed a net gas column of around 67 metres. (Source: Chevron announcement, 25/10/2012).

Comet Ridge has completed its first production well, Gunn 2 in the Galilee Basin. Gunn 2 was drilled in ATP 744P and intersected a total net coal thickness of 16.2 metres in the Permian Betts Creek Beds with five potential reservoir coals contained in this interval. Wireline conveyed testing tools were used to flow test four separate coal intervals, all four coal intervals demonstrated good to excellent productivity. The plan for Gunn 2 is to be completed for production and then to conduct an Extended Production Test. (Source: Comet Ridge announcement, 23/10/2012).

Beach Energy and Drillsearch are pleased to announce the Bauer North 1 well is a new oil discovery. The well encountered approximately 3 metres of net oil pay over a 7 metre gross interval in high quality McKinlay/Namur sandstones. Following completion, the Bauer North 1 well will be tied into the Bauer Central Production Facility. Drillsearch believes the results of Bauer North 1 will have a positive and significant impact on the overall Reserves of the Bauer Oil Field and the PEL 91 permit area. (Source: Drillsearch announcement, 06/11/2012).

Beach and Drillsearch Energy have had success at the Bauer 9 appraisal well in the Cooper Basin, South Australia. The Bauer 9 well has confirmed the extension of the Bauer Oil Field further north, intersecting a total of 10.7 metres of net oil pay with 3.7 metres of net oil pay in the McKinlay Formation and a further 7 metres in the Namur Sandstones. The well has been cased and suspended as a future oil producer. (Source: Drillsearch Energy announcement, 19/11/2012).

The Snatcher oil field in the Cooper Basin has been extended to the northwest with Senex’s Snatcher 9 appraisal well. Wire line logs confirmed the presence of a more than 13 metre gross oil column in the Birkhead formation with interpreted net oil pay of 11.2 metres. The well has been cased and suspended as a future producer. (Source: Senex Energy announcement, 12/11/2012).

Comet Ridge has had success with their second well in the Galilee Basin drilling campaign with Schmitt 1 intersecting about 22 metres of coal. Gas desorption results would take a number of weeks to be processed but early indications were that the coals in Schmitt 1 were similar to previous wells. The well was cased and suspended as a future producer. (Source: Comet Ridge announcement, 12/11/2012)
.
 


Permit Updates and Changes

New South Wales

In the Sydney Basin, PEL 442 has been re-instated and is in the process of being renewed.

Renewals have been offered on the following licences:  PEL 444, PEL 456, PEL 458, PEL 459, PEL 460, PEL 463, PEL 464 and PEL 476.

In the Clarence/Moreton Basin, PELA 129 has been withdrawn at the request of the holder.

In the Murray Basin, PELA 132 has been withdrawn at the request of the holder.


Northern Territory

On the Ashmore Platform, re-released area AC 11-1 closed 08/11/2012 and is under consideration.

In the Vulcan Sub-basin, the year 4 and 5 work programs for AC/P 32 have been varied and are now -

Year 4: 100 km seismic reprocessing $0.1m
Year 5: geotechnical studies $0.15m

On the Ashmore Platform, AC/P 42 was surrendered on 31/10/2012.

In the Pedirka Basin, EP 93 is in the process of being renewed.

In the Georgina Basin, Total is farming into EP(A) 132 for up to 68% over three stages.

In the McArthur Basin, EP(A) 239 has undergone a partial relinquishment and now covers 6,425 sq km.

In the McArthur Basin, the area of  EP(A) 245 has been extended and now covers 2,240 sq km.

In the Georgina Basin, EP(A) 301  is a new application by Oates, T.

In the Money Shoal Basin, re-released areas NT 11-2 and NT 12-3 closed 08/11/2012 and are under consideration.

In the Bonaparte Basin, the year 5 work program for NT/P 61 has changed from - 1 well ($22m) to Geoscientific studies ($0.1m).

In the Bonaparte Basin, NT/RL 5 was granted on 16/10/2012 to ConocoPhillips Australia Exploration P/L 37.5%, SK E&S Australia P/L 37.5% and Santos Offshore P/L 25%. The licence will expire 15/10/2017. Work program is as follows –

Year 1: marketing and technical studies $0.2m
Year 2: marketing and technical studies $0.2m
Year 3: marketing and technical studies $0.2m
Year 4: marketing and technical studies $0.2m
Year 5: marketing and technical studies $0.2m

In the Petrel Sub Basin, RL 1 is in the process of being renewed.


Queensland

Tenders have opened for the first round of land available for petroleum and gas exploration through Queensland’s new competitive cash bidding process.  Area 1 is approximately 75 sq km in size and located 8 km west of Miles on the Warrego Highway.  Area 2 is approximately 75 sq km in size and is situated about 8 km southeast of Condamine and is east of the Leichardt Highway.  Expressions of interest for the competitive cash-bidding tenders close at 2.30pm on 14 February 2013.  For more information about the process and to download the tender documentation, click here.

In the Bowen Basin, ATP 526P is in the process of being renewed over a reduced area of 781 sq km.

In the Galilee Basin, ATP 529P is in the process of being renewed.

In the Eromanga Basin, the work program of ATP 582P (01/08/2012 to 31/07/2016) is as follows -

Year 1: 100 km 2D seismic, G&G review
Year 2: 2 wells, G&G review
Year 3: 100 km 2D seismic, G&G review
Year 4: 2 wells, G&G review

Petrochina, through a subsidiary, acquired 100% of Molopo (Queensland) LLC and Lowell Petroleum NL from Molopo Energy Ltd.  Petrochina, through its subsidiaries, now holds interests in ATP 564P, PL 210, PL 94, ATP 602P and PL 447.

In the Eromanga Basin, Tangiers is assessing long-term plans for the ATP 587P which include potential relinquishment.

In the Surat Basin, ATP 676P has been renewed to 30/09/2016 over a reduced area of 1,080 sq km. ATP 676P Kogan North covers 264 sq km.

In the Surat Basin, ATP 689P is in the process of being renewed over a reduced area of 682 sq km.

In the Bowen Basin, ATP 758P is in the process of being renewed over a reduced area of 2,366 sq km.

Also in the Bowen Basin, ATP 759P is in the process of being renewed over a reduced area of 2,066 sq km.

CNOOC’s acquisition of an additional 10% from Exoma in ATP 991P, ATP 996P, ATP 999P, ATP 1005P and ATP 1008P has had indicative approval from the Queensland Government.  The agreement remains conditional on consent from the Chinese Government authorities by 31/12/2012.

In the Carpentaria Basin, Armour Energy has finalised Native Title negotiations with regard to ATP 1087P and are in the process of executing Native Title Agreements.

In the Bowen Basin, PL 485 has had its application area varied and now covers 37 sq km.


South Australia

In the Cooper Basin, Strategic Energy Resources has sold its remaining 5% interest in PEL 182 to Senex Energy for $5 million. A 6 month suspension period has also been granted to the PEL 182 work program. The licence is in suspension from 23/11/2012 to 22/05/2013. The licence will expire 22/05/2015.

In the Eromanga Basin, PEL 512 was granted to Discovery Energy SA Ltd on 26/10/2012. The licence will expire 25/10/2017. Work program is as follows -

Year 1: G&G studies
Year 2: 250 km 2D seismic
Year 3: 400 sq km 3D seismic, 2 wells
Year 4: 5 wells
Year 5: 5 wells

In the Cooper Basin, PEL 513 was granted to Drillsearch (513) P/L on 11/10/2012. The licence will expire 10/10/2017. Work program is as follows -

Year 1: 100 km seismic reprocessing
Year 2: 200 sq km 3D seismic, 500 km seismic reprocessing, 3 wells
Year 3: 100 sq km 3D seismic, 3 wells
Year 4: 300 sq km 3D seismic, 5 wells
Year 5: 6 wells

In the Eromanga Basin, PEL 515 was granted to Strike Energy Ltd 100% on 05/11/2012. The licence will expire 04/11/2017. Work program is as follows -

Year 1: 150 km seismic reprocessing
Year 2: G&G studies
Year 3: 2 wells
Year 4: G&G studies
Year 5: 2 wells

In the Eromanga Basin, PEL 575 was granted to Strike Energy Ltd 100% on 05/11/2012. The licence will expire 04/11/2017. Work program is as follows -

Year 1: reprocess gravity & aeromagnetic data, reprocess existing seismic data
Year 2: G&G data review
Year 3: 25 km 2D seismic
Year 4: 1 well
Year 5: G&G data review

In the Eromanga Basin, PEL 71 was granted to Strike Energy Ltd 75% and Pontia Pty Ltd 25% on 05/11/2012. The licence will expire 04/11/2017. Work program is as follows -

Year 1: 50 km seismic reprocessing
Year 2: 50 km 2D seismic, G&G studies
Year 3: 1 well
Year 4: 50 km seismic, G&G studies
Year 5: 1 well

In the Cooper Basin, PEL 94, PEL 95 and PPL 66 are in the process of being renewed.

In the Cooper Basin, PRL 29 and PRL 30 were granted to Santos Ltd on 11/10/2012. The licenses will expire 10/10/2017.

In the Cooper Basin, PRLA 31 is a retention licence application by Santos Ltd.

In the Otway Basin, S 12-4 closed 08/11/2012 and is under consideration.

Geothermal

In the Cooper Basin, 12 month suspension periods have been granted to the work programs for GEL 378, GEL 382 and GEL 386. The licences are in suspension from 08/10/2012 to 07/10/2013 and will expire 28/10/2015.

In the Otway Basin, GELA 611 is a new application by Panax Geothermal Ltd.


Tasmania

In the Sorrell Basin, the work program for T/32P has been varied.  New work program is as follows -

Year 1: G&G studies, 3D seismic planning $0.4m
Year 2: 350 sq km 3D seismic $11m
Year 3: G&G studies $0.6m
Year 4: G&G studies $0.6m
Year 5: 1 exploration well $80m

In the Bass Basin, T/47P is in the process of being cancelled.


Victoria

Offshore, bids for gazettal areas V 11-3, V 11-4, V 11-6, V 12-1 and V 12-2 closed on 08/11/2012 and are currently under consideration.

Onshore, bids for VIC/O 12-1 and VIC/O 12-2 closed on 08/11/2012 are also under consideration.

In the Otway Basin, VIC/P 44 was renewed to 07/11/2017 over a reduced area of 603 sq km.   Work program is as follows -

Year 1: 400 sq km 3D seismic reprocessing, G&G studies $0.75m
Year 2: seismic inversion studies, G&G studies $0.75m
Year 3: G&G studies, engineering studies $0.5m
Year 4: G&G studies, engineering studies, well planning $1m
Year 5: 1 exploration well, G&G studies $25m

In the Gippsland Basin, the acquisition by Hibiscus Petroleum of a 50.1% interest in VIC/P 57 has been approved by the FIRB and by NOPTA.  In addition, a location was declared over West Seahorse on 05/11/0212.

Also in the Gippsland Basin, VIC/P 66 has had its year 3 work program suspended for 12 months to 01/12/2013.  The licence will now expire on 01/12/2015.

Also in the Gippsland Basin, VIC/RL 1(V) is in the process of being renewed.

In the Gippsland Basin, PEP 170 has had its expiry date extended to 13/10/2016.

In the Otway Basin, PEP 174 was granted to Mecrus Resources on 17/10/2012.  The licence will expire on 16/10/2017.


Western Australia

In the Canning Basin, upon grant of application 5/07-8 EP, Fortescue Metals Group has the option to farm-in for 25% from Oil Basins.

In the Perth Basin, a 6 month suspension period has been granted to the year 3 work program for DR 11. Year 3 has been extended from 04/07/2012 to 04/01/2013. The licence will expire 04/01/2013.

In the Carnarvon Basin, Strike Energy’s interests in EP 110, EP 325 and EP 424 have been transferred to Strike’s wholly owned subsidiary Strike Energy Western Australia P/L.

In the Carnarvon Basin, on 31 July 2012, Cottesloe Oil & Gas entered into a Sale and Purchase Agreement with Bow Energy in respect of EP 325 and WA-261-P. Under the agreement, Bow transferred an 11.1% interest in EP 435 and 12.293% in WA-261-P to Cottesloe for $27,500 and $227,500 respectively. All relevant parties have consented to this transfer, however it is subject to ministerial approval.

In the Perth Basin, Alcoa of Australia has elected to take its stake in the Warro field, EP 321 and EP 407, to 43%, earned by drilling Warro 4 and acquiring 3D seismic over the field. It will formally take the stake once the JV has been granted a retention lease over the field. Alcoa can still earn a 65% stake in the project once it has spent $100 million on field development.

In the Canning Basin, a 12 month suspension period has been granted to the year 5 work program for EP 371. Year 5 has been extended from 01/02/2012 to 31/01/2013. The licence will expire 31/01/2014.

In the Canning Basin, 12 month suspension periods have been granted to the year 6 work programs for EP 428, EP 431 and EP 436. Year 6 has been extended from 01/02/2013 to 31/01/2014. The licenses will expire 31/01/2014.

In the Canning Basin, a 6 month suspension period has been granted to the year 6 work program for EP 429. Year 6 has been extended from 05/09/2012 to 05/03/2013. The licence will expire 05/03/2013.

In the Canning Basin, interests in EP 438 post Cyrene 1 drilling are as follows - Buru 37.5%, Diamond Resources (Canning) P/L 37.5%, Gulliver Productions (operator) 20% and Indigo Oil 5%.

In the Perth Basin, Empire Oil & Gas has reached agreement with Perth Resources Limited to farm into EP 454. Perth Resources will earn 20% interest in the Yarragadee Shallow rights by contributing 40% of the cost of drilling Charger 1. Perth Resources has an option to earn 20% in the Deep rights by contributing 40% of the cost of acquiring the Garibaldi 3D seismic survey.

In the Officer Basin, a 12 month suspension period has been granted to the year 2 work program for EP 468. Year 2 has been extended from 08/09/2012 to 07/09/2013. The licence will expire 07/09/2017.

In the Carnarvon Basin,
bids for gazettal area L10-11 have been refused.

In the Carnarvon Basin, no bids were received for gazettal area L 12-1. The area is proposed for re-release in May 2013.

Gazettal areas L 12-2, L 12-3, L 12-4, L 12-5, L 12-6 and L 12-7 closed 01/11/2012 and are currently under consideration.

In the Perth Basin, Origin Energy has executed a Sale and Purchase Agreement with Jingemia Oil Company Pty Ltd for the sale of its 49.19% interest in the L 14 joint venture. The agreement is currently pending satisfaction of sale conditions.

In the Carnarvon Basin, BHP Billiton Petroleum (Australia) P/L has transferred its interest in production licence L 9 to DBP Services Co Nominees P/L.

In the Canning Basin, SPA 3 AO and SPA 4 AO were granted to Hess Australia Exploration (New Ventures) P/L on 26/10/2012. The acreage will expire 25/10/2013.

In the Merlinleigh Basin, SPA 5 AO and SPA 6 AO were granted to Rusa Resources (Australia) P/L on 02/11/2012. The acreage will expire 01/11/2013.

In the Perth Basin, STP-RLA-0002 and STP-RLA-0003 are retention licence applications over the Warro field by Latent Petroleum P/L 57% and Alcoa of Australia Ltd 43%.

In the Carnarvon Basin, gazettal areas W 11-16, W 11-17, W 11-7, W 12-12, W 12-13, W 12-14 and W 12-8 closed 08/11/2012 and are currently under consideration.

In the Browse Basin, gazettal areas W 11-3, W 12-3, W 12-4 and W 12-5 closed 08/11/2012 and are also currently under consideration.

In the Rowley Sub-basin, gazettal area W 11-6 closed 08/11/2012 and is currently under consideration.

In the Petrel Sub-basin, gazettal areas W 12-1 and W 12-2 closed 08/11/2012 and are currently under consideration.

In the Barrow Sub-basin, gazettal area W 12-9 closed 08/11/2012 and is currently under consideration.

In the Carnarvon Basin, a 12 month suspension period has been granted to the Year 3 work program for WA-155-P. The licence is in suspension from 26/02/2013 to 25/02/2014. The licence will expire 25/02/2016. A change to the Year 3 work program was also granted and it is now - 128 sq km 3D seismic, 1 well $15.85m.

In the Carnarvon Basin and Barrow Sub-basin, Tap Oil Ltd has entered into an agreement with Apache Corporation to exchange a 13.555% interest in WA-320-P for a corresponding 13.555% interest in WA-155-P(2). Apache will operate both permits. The transaction is subject to FIRB and other approvals.

In the Carnarvon Basin, a 12 month suspension period has been granted to the Year 5 work program for WA-255-P. Year 5 has been extended from 15/11/2012 to 15/11/2013. The licence will expire 15/11/2013.

In the Carnarvon Basin, Apache Energy has sold its interest in WA-261-P to Hydra Energy (WA) P/L. Strike Energy’s interests in WA-261-P are in the process of being transferred to wholly owned subsidiary Strike Energy Western Australia P/L. Furthermore, a 12 month suspension period has been granted to the Year 5 work program for WA-261-P. The licence is in suspension from 18/09/2012 to 17/09/2013. The licence will expire 17/09/2012.

In the Carnarvon Basin, Woodside has farmed out 16.67% equity in WA-269-P to Japan Australia LNG (MIMI) P/L. The farm out is subject to government and regulatory approval.

In the Barrow Sub-basin, WA-290-P was renewed over a reduced area to 21/10/2017 and now covers 321 sq km. Work program is as follows -

Year 1: geotechnical studies $0.25m
Year 2: geotechnical studies $0.25m
Year 3: 251 sq km 3D seismic reprocessing, geotechnical studies $0.75m
Year 4: 1 well $40m
Year 5: geotechnical studies $0.25m

In the Browse Basin, WA-343-P was renewed over a reduced area to 03/10/2017 and now covers 535 sq km. Work program is as follows -

Year 1: geotechnical studies $0.3m
Year 2: geotechnical studies $0.3m
Year 3: 1 well $25m
Year 4: geotechnical studies $0.3m
Year 5
: geotechnical studies $0.3m

In the Carnarvon Basin, Cue Exploration has renewed WA-359-P as the sole title holder
. The permit was renewed over a reduced area to 25/10/2017 and now covers 650 sq km. Work program is as follows -

Year 1: rock physics & 3D inversion study, geotechnical studies $0.3m
Year 2: geotechnical studies $0.2m
Year 3: 1 well $30m
Year 4: geotechnical studies $0.15m
Year 5: geotechnical studies $0.15m

In the Carnarvon Basin, WA-388-P Expired 27/08/2012. The operator has advised that the permit is not being renewed.

In the Canning Basin, WA-419-P was cancelled on 31/10/2012.

In the Bonaparte Basin, National Oil Corporation has transferred 5% interest in WA-422-P to Nations Natural Gas.

In the Carnarvon Basin, the Year 4 and 5 work programs for WA-427-P have been swapped.

In the Canning Basin, Carnarvon Petroleum and Finder Exploration have executed farmin agreements with Apache Northwest P/L and JX Nippon Oil & Gas Exploration (Australia) P/L in relation to permits WA-435-P and WA-437-P. Apache will acquire 40% interest in the permits and become operator. JX Nippon will acquire 20%. The farmin will collectively cover the cost of drilling the Phoenix South prospect and the Roc Prospect (contingent on results of the Phoenix South well).

In the Carnarvon Basin, Strike Energy’s interests in WA-460-P are in the process of being transferred to wholly owned subsidiary Strike Energy Western Australia P/L.

In the Dampier Sub-basin, Sun, FAR and Senex have entered into an agreement to divest their respective interests in WA-47-R to Hydra Energy (WA) P/L. The agreement is subject to Joint Venture and Regulatory approval.


Geothermal

In the Perth Basin, Green Rock Energy Ltd has transferred its interests in GEP 23, GEP 24, GEP 25, GEP 26, GEP 27, GEP 28 and GEP 41 to wholly owned subsidiary Mid West Geothermal Power P/L.


Joint Petroleum Development Area

The JPDA 06-103 joint venture has requested an extension to JPDA 03-103 as no rigs are available to drill the commitment well.


New Zealand

In the Canterbury Basin, PEP 38262 was surrendered on 15/10/2012.

In the Canterbury Basin, an extension of land was granted to exploration permit PEP 38264 on 15/10/2012 and it now covers 17,458 sq km.

In the Taranaki Basin, NZOG will not proceed with a conditional agreement to acquire a 6.667% interest in PEP 38451. The acquisition was subject to pre-emption by existing partners, which they have exercised. Interests are now Anadarko 54%, Hyundai Hysco 36%, Global Resources 5% and Randall C Thompson 5%.

In the West Coast Basin, an extension of duration application for PEP 38526 is currently being evaluated.

In the Taranaki Basin, New Zealand Oil & Gas has farmed out a 25% interest in PEP 52181 to Beach Energy. Beach will earn its 25% by funding the first US$3 million of NZOG’s share of the well costs as well as its share of future joint venture costs.

In the East Coast Basin, PEP 53806 was granted to Marauder Resources East Coast (NZ) Limited on 01/11/2012. The licence will expire 31/10/2017. Work program is as follows -

12 months: 223 km 2D seismic reprocessing, studies
24 months: 50 km 2D seismic
36 months: 1 well
48 months: 100 km 2D seismic
60 months: 1 well


Papua New Guinea

In the Papuan Basin, APPL 385 has been offered to Oil Search.

Also in the Papuan Basin, PPL 266 and PPL 267 have been renewed to 14/08/2016 over 4,184 sq km and 3,325 sq km respectively.

In the Papuan Basin, a renewal has been offered on PPL 277.

In the Papuan Basin, the northern parts of PPL 285 and PPL 288 were granted as PPL 426.  The southern parts of PPL 285 and PPL 288 were relinquished in July 2012. PPL 426 was granted on 19/10/2012 to Sasol Petroleum PNG Ltd over 6,742 sq km.  The licence will expire on 18/10/2018.

In the Papuan Basin, PPL 435 was granted to Kina Petroleum 50% and Wondecla Ltd (a subsidiary of Cott Oil & Gas) 50% on 25/07/2012 over 5,597 sq km.  The licence will expire on  24/07/2018.   Work program is as follows -

Years 1-2: aerogravity/aeromagnetic & seismic reprocessing US$0.5m
Years 3-4: submit proposals for minimum expenditure of US$3m including seismic
Years 4-5: submit proposals for minimum expenditure of US$20

Also in the Papuan Basin, to Kina Petroleum 50% and Wondecla Ltd (a subsidiary of Cott Oil & Gas) 50% have applied for APPL 436 over 13,452 sq km.  Proposed work program is as follows -

Years 1-2: aerogravity/aeromagnetic & seismic reprocessing US$2.2m
Years 3-4: seismic US$3m
Years 5-6: 1 well US$20m


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