November 2014

Monthly Update

The November 2014 data update is now available ...

Deviated Wells

We have added two new layers to the WELLS group this month to allow you to display the Bottom-Hole Location for wells as an alternative to (or as well as) Surface Location ...

Industry Summary

Metgasco’s case to have its Rosella drilling suspension lifted was heard by the NSW Supreme Court on 20/10/2014 and 21/10/2014. Metgasco hopes for a prompt decision from the Supreme Court ...

Permit Updates and Changes

In the Gunnedah and Sydney Basins, PEL 468, PEL 469 and PEL 470 were cancelled on 13/10/2014 ...

 


Monthly Update

The November 2014 GPinfo update is now available.


Important note for users of Windows XP

The December 2014 update will include a new version of the GPinfo program that incorporates an upgrade to the licensing software.

The new version will not run under Windows XP

If you are still using Windows XP, please let us know immediately.
Click here to send an email.

 


Deviated Wells

We have added two new layers to the WELLS group this month to allow you to display the Bottom-Hole Location (BHL) for wells as an alternative to (or as well as) Surface Location (SL).


 

  • SL and BHL fields in the wells record are now populated for all wells. 
     

  • As the majority of wells are vertical, in most cases the two locations are the same.
     

  • The Wells layer continues to display the well symbol at SL for all wells.
     

  • New layer Wells (Symbol at BH) displays the well symbol at BHL for all wells.
    This is an alternative representation of the Wells layer.
     

  • New layer Deviation (SL to BHL) shows a straight line connecting SL and BHL.
    Line attributes - length of line and azimuth.
     


Industry Summary

Company News

Metgasco’s case to have its Rosella drilling suspension lifted was heard by the NSW Supreme Court on 20/10/2014 and 21/10/2014. Metgasco hopes for a prompt decision from the Supreme Court. However, the company has no control on the timing, nor any indication of when the decision will be made. (Source: Metgasco announcement, 22/10/2014).

Drillsearch Energy has completed its compulsory acquisition of the remaining shares in Ambassador Oil & Gas, making it a wholly owned subsidiary. Ambassador Oil & Gas was removed from the official list of ASX as of close of trading on 29/10/2014. (Source: Drillsearch announcement, 27/10/2014).

Nexus Energy administrators McGrathNicol have received back an application filed with the Supreme Court of New South Wales on 17/10/2014 as part of a condition precedent for a Deed Of Company Arrangement. The DOCA would enable the transfer of all issued shares in Nexus to Seven Group Holdings Energy. The court has set out the dates of 27/11/2014 and 28/11/2014 to hear the application. The administrators are now seeking a final hearing with shareholders to assist in their understanding of the DOCA and to decide on whether to take action on it. (Source: McGrathNicol announcement, 31/10/2014).

Neon Energy and MEO Australia have announced plans for an all-scrip merger of the companies that would leave each party with 50% of the merged group. Under the scheme of arrangement, MEO shareholders will exchange each of their shares for 0.7369 Neon shares. Both boards have unanimously recommended the merger to their respective shareholders, with Neon recommending it as a better alternative to the partial takeover bid received by Evoworld in September. The merger implies a value for Neon’s shares of 3.8c, while Evoworld’s bid for 30% of shares in the company that it does not already own implies a value of 3.5c. A vote against Evoworld’s offer is a condition precedent of the merger, alongside a minimum 75% approval of the merger by MEO shareholders at a January meeting, and an independent review determining that the merger is in its best interest. Neon Energy’s shareholders voted against the proportional takeover from Evoworld at a meeting held on 12/11/2014, resulting in the takeover offer by Evoworld being deemed as withdrawn. (Source: MEO announcement, 05/11/2014, Neon Energy announcement, 13/11/2014).

Norwest Energy has executed an agreement with Finder Exploration to acquire its wholly owned subsidiary, Finder No 5 P/L, which holds SPA 16 AO. Norwest will issue 2 million shares to Finder in payment, and will conduct all negotiations over the conversion of the licence to an exploration permit, at which point it will pay Finder $538,000 in back costs and grant it an overriding royalty equal to 25% of the government royalty in any petroleum production. Finder No 5 P/L will be renamed Norwest Perth Basin P/L. (Source: Norwest Energy announcement, 03/11/2014).

Central Petroleum has continued its push to prove the importance of a Northern Territory to east coast pipeline, signing a non-binding heads of agreement to supply up to 15 PJ of gas from its conventional tenements to east coast manufacturer Incitec Pivot. The agreement follows the backing of the proposed pipeline by the Council of Australian Governments last month. Central and Incitec Pivot agreed a starting field price for gas which provides a commercial underpinning for the development of the natural gas project, with numbers remaining confidential. More weight was given to the pipeline proposal last week with New South Wales premier Mike Baird and NT chief minister Adam Giles signing a memorandum of understanding to work together on the development of the pipeline. (Source: Central Petroleum announcement, 11/11/2014, Energy News Premium, 11/11/2014).

Developments

Expro has secured a $US50 million contract to supply a high-rate well testing package and ancillary services for the Inpex-operated Ichthys LNG Project in the Northern Territory. Expro will provide testing, large bore subsea landing string, well intervention, fluid analysis and surface sampling services for a significant scope of development work with an initial phase encompassing more than 20 high-rate gas production wells. Work on the project will start late this year, for completion by 2017/2018. (Source: Energy News Bulletin, 16/10/2014).

BG Group has confirmed that the Queensland Curtis LNG Project is on track for a December start-up. BG said there was limited remaining contingency in the schedule but it expected the first LNG cargo to leave Curtis Island in December 2014. Average flow rates from the project’s CSG fields in the state were in line with BG’s expectations, with 2300 CSG wells drilled by the end of September and 1300 available for either production or the removal of water. (Source: Energy News Premium, 29/10/2014).

The Origin Energy-led Australia Pacific LNG Project is well on its way to completion with the upstream component at 85% complete at the end of September.  The downstream segment was sitting at 82% completion at the same time. “Pleasingly, the project is on track for first LNG in mid-2015 with full production expected from both trains by the end of FY2016,” Origin CEO LNG David Baldwin said. All modules for Train 1 of the project are now set, while three modules were shipped for Train 2 during the September quarter. All modules are expected to be delivered and set for Train 2 by the end of 2014. (Source: Energy News Premium, 30/10/2014).

The Woodside-led Browse floating LNG Joint Venture is considering the development of an LNG regasification plant for Western Australia’s south western energy needs. The plan is based on shipping LNG cargoes to WA’s south for conversion back into gas for the domestic market. “It is believed the partners are carrying out the study to prepare themselves for negotiations with the state government over how to address the Browse project’s domestic gas requirements,” The Australian newspaper reported. The regasification plant would help the joint venture meet the mandated target of 15% of LNG output to be available to local users. The newspaper said any FLNG shipped into WA from Browse may need to be priced at a similar level to LNG shipped to Asia, which sells at substantially higher levels than prevailing WA gas prices, which are already higher than those on the eastern seaboard.
(Source: Energy News Premium, 10/11/2014).

The Santos-led Gladstone LNG Project in Queensland has introduced natural gas from its Surat-Bowen basin coal seam gas fields into the 420 km pipeline linking them to the LNG Plant on Curtis Island for the first time. This signals the start of commissioning of the line leading to the first shipment of LNG from Gladstone Harbor in 2015. The line will now be progressively filled with gas, section by section. First gas should arrive at the LNG plant late this year. Furthermore, the first of three gas processing hubs for the GLNG project has been completed. Commissioning of the other two hubs is progressing on schedule. When completed the three hubs will process a total of 555 TJ/day of gas. Santos GLNG has also installed the final module on its two LNG processing trains which are key components of its gas liquefaction plant on Curtis Island near Gladstone. (Source: Oil & Gas Journal, 14/10/2014, 04/11/2014, Energy News premium, 07/11/2014).

Discoveries

Beach Energy’s Bauer 15 development well has potentially increased reserves for the Bauer field, intersecting 5.1 metres of net oil pay within the Namur sandstone. Bauer 15 was the second well in a six well development campaign at Bauer, with pre-drilling modelling predicting a 5.3 metre net column in the Namur Sandstone. The well intersected the top of the Namur reservoir 2.2 metres high to prognosis, and is likely to increase the estimated ultimate discovery of oil in the field. Bauer 15 has been cased and suspended as a future Namur oil producer. The first well in the drilling campaign, Bauer 14, has also been cased and suspended as a future oil producer. (Source: Beach Energy announcement, 11/11/2014).

Real Energy has encountered gas pays at its Queenscliff 1 exploration well located in Queensland Cooper-Eromanga Basin permit ATP 927P. The well encountered 32.5 metres of net sandstone gas pay in the Toolachee and 34.8 metres of net sandstone gas pay in the Patchawarra. A further 10 metres of pay was also intersected in the Nappamerri formation. Queenscliff 1 was drilled about 668 metres down-dip of first proof of concept well, Tamarama 1, which encountered 87 metres of net gas pay over the Toolachee and Patchawarra zones. Results received to date from Tamarama 1 and Queenscliff 1 are potentially exciting, which appears to confirm the hypothesis on the presence of the Basin Centred Gas in this area. Tamarama 1 and Queenscliff 1 have been cased and suspended for production testing in the first half of 2015 in order to provide some more accurate numbers on reserves in the acreage. (Source: Real Energy announcement, 05/11/2014).
 


Permit Updates and Changes

New South Wales

In the Gunnedah and Sydney Basins, PEL 468, PEL 469 and PEL 470 were cancelled on 13/10/2014.


Northern Territory

In the Browse Basin, the AC/P 36 year 3, 4 & 5 work programs are now
-

Year 3: G&G studies, 957 km licensing of Caswell MC3D seismic $8.76m
Year 4: G&G studies $0.1m
Year 5: 1 well, G&G studies $60.1m

In the Vulcan Basin,
AC/P 4 was relinquished on 29/10/2014.

In the Vulcan Basin, AC/RL 4 and AC/RL 5 are being renewed.

In the Bonaparte Basin, Eni Australia has elected not to drill an additional well on the Heron structure and will therefore withdraw from the Heron Area of NT/P 68. As a consequence, MEO will regain 100% participating interest in the Heron Area. Eni has also elected not to increase its participating interest in the Blackwood Area and has advised that it intends to retain a 50% participating interest.

In the Bonaparte Basin, NT 13-1 was granted as NT/P 85 to Santos Offshore P/L (operator) 50% and Origin Energy Resources Ltd 50% on 09/10/2014. The licence will expire 08/10/2020. Work program is as follows –

Year 1: geotechnical studies, 3D seismic acquisition planning $0.5m
Year 2: 1600 sq km 3D seismic $27m
Year 3: G&G studies $0.8m
Year 4: G&G studies $0.5m
Year 5: 1 well $35m
Year 6: G&G studies $0.5m

In the Georgina Basin, expenditures in excess of US$50 million have been incurred under the Amended Farmin Agreement, thus fully satisfying all of Statoil's Phase 2A commitments for EP 103, EP 104, EP 127, EP 128, EP (A) 213 and EP (A) 252. PetroFrontier advises that Statoil is not expected to perform additional exploration expenditures beyond the approved 2014 Work Program and Budget and PetroFrontier anticipates receiving a notice from Statoil in due course that it will not be proceeding to Phase 2B in accordance with the Amended Farmin Agreement. Furthermore, Statoil has advised Baraka Energy & Resources that based on the results Statoil has decided to withdraw from further activity on EP 127 and EP 128. Baraka advised, at this stage, it is unclear whether Statoil will continue as operator of the permits, or whether PetroFrontier will once again become operator. Baraka’s final working interest is yet to be resolved as a result of dilution as previously announced.


Queensland

In the Eromanga Basin, ATP 259 will be renewed as ATP 1189.

Also in the Eromanga Basin, the remaining 50% of ATP 594, previously held by Triple J Resources, has been transferred to Icon following the de-registration of Triple J.

In the Bowen Basin, ATP 745 has had its expiry date extended to 31/10/2017.

Also in the Bowen Basin, the application for ATP 756 has been withdrawn by the applicant.

In the Surat/Bowen Basin, ATP 767 has had its expiry date extended to 30/06/2018.  Work program is as follows -

Year 1: G&G
Year 2: 1 well
Year 3: G&G
Year 4: 1 well
(01/07/2012 to 30/06/2016 extended to 30/06/2018)

Also in the Surat/Bowen Basin, ATP 889 has had its expiry date extended to 14/06/2018.  Work program is as follows -

Year 1: 9 wells, G&G
Year 2: 32 pilot wells to 725m, G&G, 180 km 2D seismic, 155 km seismic reproc
Year 3: 60 pilot wells, 2 wells (950m to 1000m), G&G, 155 km seismic reproc
Year 4: 125 pilot wells, 1 well (2700m), G&G
(15/06/2012 to 14/06/2016 extended to 14/06/2018)

In the Georgina Basin,  ATP 914 was granted on 31/10/2014 to Hedges Gas P/L 100%.  The licence will expire on 31/10/2018.  Work program is as follows -

Year 1: G&G
Year 2: G&G
Year 3: 60 km 2D seismic, G&G
Year 4: 1 well to 1800m
(01/11/2014 to 31/10/2016 extended to 31/10/2018)

In the Galilee and Eromanga Basin, Exoma Energy Ltd/Longreach Number 2 P/L has withdrawn from ATP 991, ATP 996, ATP 999 and ATP 1005 effective 01/01/2015.   Exoma will continue as operator until 04/03/2015 unless CNOOC elects to take over operatorship.

In the Eromanga Basin, ATP 1056 has undergone a partial relinquishment and now covers a reduced area of 2,695 sq km.

In the Adavale Basin, ATP 1069 has had its expiry date extended to 31/01/2019.

In the Galilee Basin, ATP 1070 has had its expiry date extended to 31/08/2019.

In the Surat Basin, ATP 1074 has had its expiry date extended to 31/08/2019.

Also in the Surat Basin, ATP 1186 was granted to Goshawk E&P P/L on 17/10/2014.  The licence will expire on 31/10/2018.  Triangle Energy (Global) has reached agreement to acquire 75% from Goshawk E&P P/L over two stages.  Triangle will acquire 50% in return for repayment of past costs of $73,830 and the issue of 120,000,000 Triangle shares to Goshawk Energy.  Triangle will earn the remaining 25% upon completion of the four year work program which includes 105 km of 2D seismic and drilling two exploration wells.

In the Surat Basin, ATP 1187 has had its expiry date extended to 24/03/2020.

In the Bowen Basin, PCA 144 was granted on 17/10/2014 over a reduced area of 210 sq km.  The licence will expire on 16/10/2014.

In the Eromanga Basin, PL 39 was renewed to 13/08/2029.

In the Bowen Basin, PL 41, PL 42, PL 54, PL 67 and PL 74 were extended to 31/10/2014.  A renewal application was lodged on 30/10/2014.

In the Cooper Basin, PL 76 and PL 78 were renewed to 23/11/2022.

In the Bowen Basin, PL 415 and PL 416 were granted on 09/10/2014.  The licences will expire on 08/10/2044.   As a result of the grant of these production licences, ATP 592 now covers a reduced area of 1,432 sq km.

Also in the Bowen Basin, PL 421 was granted on 13/10/2014.  The licence will expire on 12/10/2044.  As a result of the grant of PL 421, the remainder of ATP 653 has now been converted to a production licence and the exploration permit relinquished.

In the Surat/Bowen Basin, PL 1008 is a production licence application by BG International (Aus) Ltd Partnership 73.75%, CNOOC Coal Seam Gas Company P/L 25% and Tokyo Gas QCLNG P/L 1.25%. Once granted, overlapping application PL 397 will be reduced and application PL 501 will be withdrawn.

Geothermal

Local Government Infrastructure Services P/L 100% has applied for a number of licences:

 Licence

 Basin

Area (sq km)

 EPG 101

 Eromanga

96

 EPG 102

 Surat

45

 EPG 103

 Eromanga

161

 EPG 104

 Galilee

54

 EPG 105

 Eromanga

19

 EPG 106

 Surat

228

 EPG 107

 Galilee

709

 EPG 108

 Adavale

313

 EPG 109

 Adavale

49

 EPG 110

 Mt Isa Block

161

 EPG 111

 Mt Isa Block

644




South Australia

In the Eromanga Basin, PEL 515 has been suspended by 6 months from 25/09/2014 to 25/03/2015. The licence has had its expiry date extended to 05/05/2018.

In the Cooper Basin, New Standard Energy has divested part of its interest in PEL 570 to Santos Ltd. New Standard retains 17.5% interest in the permit in return for a cash consideration of $7.5 million. In addition, Santos will fund 75% of New Standard’s remaining expenditure commitments under its existing $42.5 million of earn-in obligations. The transaction was completed in October 2014. Santos now holds 35% and operatorship has been transferred to Santos.

In the Eromanga Basin, PEL 575 has been suspended by 6 months from 25/09/2014 to 25/03/2015. The licence has had its expiry date extended to 05/05/2018.

In the Eromanga Basin, PEL 71 has been suspended by 6 months from 25/09/2014 to 25/03/2015. The licence has had its expiry date extended to 05/05/2018.

In the Cooper Basin, PPL 258 has been granted to Victoria Oil Exploration (1977) P/L 40%, Impress (Cooper Basin) P/L 25%, Permian Oil P/L 20% and Springfield Oil & Gas P/L 15% on 10/10/2014 for an indefinite term/life of field.

In the Cooper Basin, Senex was to drill a well by 30/09/2014 in either PRL 108, PRL 109 or PRL 110 as part of a farm-in agreement announced previously. The parties have agreed that the expenditure be used in extra 3D seismic (approximately 50 sq km) and 3D seismic reprocessing; with the potential to complete and production test the Pirie 1 well. The seismic will commence late 2014/early 2015. Following completion of the agreed work, Tellus will have an interest of 30% and Senex 70%.

In the Otway Basin, Rawson Resources has signed a memorandum of understanding with an unnamed ASX listed company, giving it exclusivity to consider farming into the Killanoola oil field in PRL 13. The agreement will allow the company to conduct technical studies during the exclusivity period.

In the Cooper Basin, PRL 136 to PRL 150 were granted to Victoria Oil Exploration (1977) P/L 40%, Impress (Cooper Basin) P/L 25%, Permian Oil P/L 20% and Springfield Oil & Gas P/L 15% on 27/10/2014. The licenses will expire on 26/10/2019.

Geothermal

In the Arrowie Basin, in July 2014, Petratherm advised the Company had been unable to secure the additional $5 million in equity required to draw down on the $13 million ERP Grant for permits GEL 156 and GEL 254. Accordingly, ARENA advised that no further time extensions will be made to source these funds and the ERP grant will be terminated with no funds having been paid to Petratherm. As a consequence, the Renewable Energy Development Program grant conditions could not be met.

Sequestration

In the Cooper Basin, GSEL 645 was granted to Beach Energy Ltd (operator) 15%, Great Artesian Oil & Gas P/L 45%, Drillsearch Gas P/L 30% and Rawson Resources Ltd 10% on 15/10/2014. The licence will expire on 14/10/2019. Work program is as follows –

Year 1: G&G studies
Year 2: G&G studies
Year 3: G&G studies
Year 4: G&G studies
Year 5: G&G studies

In the Cooper Basin, GSEL 646 was granted to Beach Energy Ltd (operator) 50%, Great Artesian Oil & Gas P/L 50% on 08/10/2014. The licence will expire on 07/10/2019. Work program is as follows –

Year 1: G&G studies
Year 2: G&G studies
Year 3: G&G studies
Year 4: G&G studies
Year 5: G&G studies


Tasmania

Offshore in the Bass Basin, AWE has completed the sale of 11.25% of T/L 1 and 9.75% of T/18P to Prize Petroleum.  Total consideration is $85 million in three tranches: a deposit of $16 million received in 2013/2014; a payment of $64 million received on completion of the sale; and a further $5 million deferred payment payable on meeting two conditions: $2.5 million on completion of BassGas Mid Life Enhancement project (drilling of 2 development wells and installation of gas compression) and $2.5 million if the MLE project costs do not exceed an agreed threshold.

Geothermal

SEL 26/2005 was relinquished on 06/11/201 and now reverts to vacant acreage.


Victoria

In the Gippsland Basin, V 12-3 was not granted and now reverts to vacant acreage.

Offshore in the Otway Basin, production licence VIC/L 1 (V) was granted over previous retention licence VIC/RL 2 (V) on 09/10/2014.  The licence has been granted for an indefinite term/life of field.

In the Gippsland Basin, Carnarvon Hibiscus has completed the payment of US$14.05 million to 3D Oil for its 49.9% interest in VIC/L 31.  This is in addition to US$1.95 million already paid, a total payment of US$16 million.

Also in the Gippsland Basin, V 13-1 (V) and V 13-2 (V) were granted as VIC/P 43 (V)  and VIC/P 44 (V) respectively.  The licences were granted to Petro Tech P/L 100% on 13/10/2014 and will expire on 12/10/2020.

In the Gippsland Basin, an application was made on 15/10/2014 to NOPTA to vary the Year 5 work program for VIC/P 47. In addition, Enegex NL, Seaquest Petroleum P/L and Moby Oil & Gas Ltd have withdrawn from the permit.  Following the withdrawls, Oil Basins Ltd and Shelf Oil P/L will each hold 50% and Oil Basins Ltd will take over as operator.

In the Otway Basin, WHL Energy has granted AWE an extension to the date to exercise their farmin option in relation to VIC/P 67.

In the Gippsland Basin, V 13-2 was granted as VIC/P 70 to Liberty Petroleum Corp 100% on 05/11/2014.  The licence will expire on 04/11/2020.  Work program is as follows -

Year 1: 2D/3D seismic interpretation, petroleum systems study $0.4m
Year 2: petroleum systems study, prospects & leads, gas market & Capex studies, well planning $0.9m
Year 3: 2 wells $80m
Year 4: post well studies, G&G $0.8m
Year 5: 1 well $50m
Year 6: post well studies $0.1m

In Victoria, a number of licences exist under the Minerals Act which have been issued for the sole purpose of exploration for CSG. We have included these licences in GPinfo this month. 

 Licence

Grant Date

Expiry Date

  Applicant / Licensee

 EL 274

 

 

  ECI International P/L 100%

 EL 5275

 

 

  ECI International P/L 100%

 EL 5276

07/07/2010

06/07/2015

  ECI International P/L 100%

 EL 5320

07/04/2011

06/04/2016

  ECI International P/L 100%

 EL 5321

07/04/2011

06/04/2016

  ECI International P/L 100%

 EL 5322

 

 

  ECI International P/L 100%

 


Western Australia

In the Browse Basin, W 14-14 and W 14-3 have been re-released. Bids close 02/04/2015.

In the Carnarvon Basin, a retention lease application has been lodged over the Gungurru/Cherring location WA-202-P L.

In the Barrow Basin, the year 3 work program for WA-320-P has been extended by 24 months from 21/10/2014 to 20/10/2016. The licence has had its expiry date extended to 20/10/2017. Also the year 3 work program is now –

Year 3: 1 well, 310 sq km 3D seismic $70.4m

In the Carnarvon Basin, the year 5 work program for WA-346-P has been extended by 9 months from 15/10/2014 to 14/07/2015. The licence has had its expiry date extended to 14/07/2015.

In the Carnarvon Basin, the year 5 work program for WA-351-P is now –

Year 5: G&G studies, 260 sq km 3D seismic reprocessing $3m

In the Carnarvon Basin, the year 6 work program for WA-409-P has been extended by 3 months from 30/01/2015 to 29/04/2015. The licence has had its expiry date extended to 29/04/2015. Furthermore, Enegex has advised they are withdrawing from the permit.

In the Browse Basin,
WA-414-P expired on 29/10/2014.

In the Bonaparte Basin, WA-421-P is being renewed.

In the Browse Basin, the WA-425-P year 6 work program is now –

Year 6: geotechnical studies $0.4m

In the Carnarvon Basin, a retention lease application has been lodged over the Olympus Location WA-450-P L.

In the Dampier Basin, the year 3 work program for WA-452-P has been extended by 12 months from 30/11/2014 to 29/11/2015. The licence has had its expiry date extended to 29/11/2018.

In the Carnarvon Basin, WA-460-P is being relinquished.

In the Rowley Sub Basin, under a farm-in agreement, Shell agrees to assign a 9.9% interest and Woodside an 11.1% interest in WA-462-P and WA-466-P to BP. As a result of the farm-in, interests are: Woodside Energy Ltd 43.9%, Shell Development (Australia) P/L 35.1% and BP Developments Australia P/L 21%. Furthermore, the year 4 & 5 work programs for WA-462-P are now –

Year 4: geotechnical studies $0.5m
Year 5: 2000 sq km 3D seismic reprocessing, geotechnical studies $1.9m

In the Carnarvon Basin, the year 3 work program for WA-472-P has been extended by 12 months from 04/05/2015 to 03/05/2016. The licence has had its expiry date extended to 03/05/2019.

In the Browse Basin, the year 2 work program for WA-477-P has been extended by 12 months from 13/10/2014 to 12/10/2015.The licence has had its expiry date extended to 12/10/2019. The year 2 work program is now –

Year 2: 1000 sq km 3D PSDM, 200 km survey reprocessing, 190 km 2D seismic, 600 sq km 2D PreSDM reprocessing $3.787m

In the Carnarvon Basin, the year 3 work program for WA-490-P is now –

Year 3: ocean bottom survey, 180 km 2D seismic, G&G studies $3.5m

In the Carnarvon Basin, the year 1 work program for WA-497-P is now –

Year 1: 250 km 2D seismic reprocessing, G&G studies, 626 sq km 3D seismic reprocessing $0.8m

In the Rowley Sub Basin, W 12-7 was granted as WA-505-P to Apache Northwest P/L 100% on 09/10/2014. The licence will expire 08/10/2020. Work program is as follows –

Year 1: 393 sq km 3D seismic, geotechnical studies $8m
Year 2: process 393 sq km 3D seismic to PSDM, geotechnical studies $0.7m
Year 3: geotechnical studies $0.5m
Year 4: geotechnical studies $0.2m
Year 5: 1 well $20m
Year 6: geotechnical studies $0.2m

In the Carnarvon Basin, W 13-6 was granted as WA-506-P on 24/10/2014 to Statoil Australia Theta BV. The licence will expire 23/10/2020. Work program is as follows –

Year 1: 2000 km 2D seismic, 10000 km multi-beam swath bathymetry, 50 piston core samples, studies $8m
Year 2: 3500 sq km 3D seismic $40m
Year 3: 3D seismic interpretation $2m
Year 4: 1 well $91m
Year 5: 2500 sq km 3D seismic $32m
Year 6: 1 well $93m

In the Carnarvon Basin, WA-1-R is being renewed.

In the Petrel Sub Basin, WA-27-R has been renewed to 11/11/2019. Work program is as follows –

Year 1: subsurface, facilities & commercial studies $0.1m
Year 2: subsurface, facilities & commercial studies $0.1m
Year 3: subsurface, facilities & commercial studies $0.1m
Year 4: subsea studies $0.1m
Year 5: preparation of preliminary field development plan $0.1m

In the Barrow Basin, the year 3 work program for WA-290-P is now –

Year 3: 170 sq km 3D seismic $5.5m

In the Barrow Basin, WA-33-R is being renewed.

In the Canning Basin, marketing of the Backreef Area farm-out opportunity EP 129 BR and L 6 BR continued during the September quarter. A number of new confidentiality and non-circumvention agreements have been executed with third parties during and subsequent to the September quarter.

In the Carnarvon Basin, UIL advised that they do not intend to exercise their right to drill a well in EP 359 to earn an initial 50% interest from the JV parties. The farm-out has been terminated.

In the Perth Basin, under a revised agreement, ERM will sell its interests in EP 389, EP 416, EP 426, EP 432, EP 440, EP 454, EP 467 and EP 480 to Empire for $15.1 million, down from the $16.34 million price in the original agreement. ERM has also agreed to amend the terms of the credit facility it has provided to Empire. The revised terms give Empire an extra six months to repay the loan in the event the transaction is not approved by its shareholders, taking the repayment date to 30/06/2015.

In the Perth Basin, EP 389 now covers a reduced area of 1,394 sq km due to the grant of production licences L 18 and L 19.

In the Canning Basin, EP 391 is being renewed.

In the Carnarvon Basin, the year 5 work program for EP 424 has been extended by 6 months from 13/07/2014 to 13/01/2015.The licence has had its expiry date extended to 13/01/2016.

In the Canning Basin, an application to suspend the EP 448 work program and extend the licence date has been lodged with the DMP and a decision is pending.

In the Canning Basin, suspension of the condition requiring the completion of the years 3, 4 and 5 work program has been applied to EP 451 for 12 months from 31/12/2014 to 31/12/2015. The licence has had its expiry date extended to 31/12/2016.

In the Perth Basin, the EP 454 Joint Venture has decided to assess the Garibaldi prospect and as such the Charger farmout whereby Empire would have increased its interests in the shallows by funding the drilling of the Charger 1 well is likely to be terminated. Empire and ERM Gas will each maintain a 50% interest in both the Shallows and Deeps of the tenement.

In the Canning Basin, Rey Resources’ interest in EP 457 and EP 458 is held by subsidiary Rey Oil & Gas P/L.

In the Carnarvon Basin, EP 470 was relinquished on 07/10/2014.

In the Canning Basin, EP 474 is being relinquished.

In the Perth Basin, EP 479 is being relinquished.

In the Perth Basin, EP 492 has been granted to Westranch Holdings P/L 100% on 31/10/2014. The licence will expire on 30/10/2020. Work program is as follows –

Year 1: geotechnical studies $0.15m
Year 2: 150 km 2D seismic $0.52m
Year 3: geophysical studies $0.2m
Year 4: 1 well $4m
Year 5: geotechnical studies $0.12m
Year 6: 70 km 2D seismic $0.32m

In the Canning and Perth Basins, L 14-1, L 14-2 and re-released areas L 12-12, L 12-13 and L 12-14 closed 23/10/2014 and are under consideration.

In the Perth Basin, L 18 and L 19 have been granted to Empire Oil Company (WA) Ltd 76.39% and ERM Gas P/L 23.61% on 22/10/2014 for an indefinite term/life of field.

In the Carnarvon Basin, marketing of the Cyrano Oil Project farm-out opportunity in permit R 3 continued during the September quarter. A number of new confidentiality and non-circumvention agreements have been executed with third parties during and subsequent to the September quarter.

In the Perth Basin, an exploration application has been lodged over SPA 16 AO.

In the Canning Basin, an exploration application has been lodged over SPA 17 AO.

In the Canning Basin, STP-SPA-26 was granted as SPA 18 AO to UIL Energy Ltd on 1/11/2014. The acreage expires 31/10/2015.

Also in the Canning Basin, STP-SPA-40 was granted as SPA 19 AO to UIL Energy Ltd on 1/11/2014. The acreage expires 31/10/2015.

In the Canning Basin, negotiations with Traditional Owners on Native Title agreements for STP-EPA-106 and STP-EPA-107 are continuing. Upon finalisation, the regulatory process of conversion to a formal exploration permit will commence.

In the Carnarvon Basin, L 12-1, L 13-1 and T 13-1 are under application as STP-EPA-121, STP-EPA-122 and TTP-EPA-5 respectively by Goshawk Energy P/L.

In the Kimberley Basin, applications STP-EPA-128, STP-EPA-129 and STP-EPA-130 now cover reduced areas of 8,133 sq km, 6,981 sq km and 8,164 sq km respectively.

In the Perth Basin, Green Rock Energy has executed an agreement with Eneabba Gas Ltd to sell 100% of the Ocean Hill Block application STP-EPA-90. The agreement is subject to completion of due diligence, Eneabba obtaining all necessary consents and approvals including shareholder approval. The agreement will terminate on 30/04/2015 if completion has not occurred by then.

In the Ashburton Basin, application STP-SPA-57 has been withdrawn.

In the Perth Basin, Norwest intends to farm-out TP/15 by seeking a “carry” through the exploration drilling phase, while retaining a meaningful interest in the permit.

In the Barrow Basin, the TP/7 years 3 and 5 work program are now –

Year 3: geotechnical studies $0.25m
Year 5: geotechnical studies $0.25m


Joint Petroleum Development Area

JPDA 06-103
has had its expiry date extended to 15/01/2015.


New Zealand

In the Taranaki Basin, PEP 51153 has undergone a partial relinquishment and now covers 85 sq km.

In the Taranaki Basin, PEP 52181 has been renewed to 18/05/2022. Work program is as follows –

12 months: 145 sq km 3D seismic reprocessing
24 months: studies
72 months: 1 well
84 months: studies
120 months: studies, 1 well
144 months: 1 well, studies

In the Canterbury Basin, PEP 52589 is being renewed.

In the Taranaki Basin, an extension of land application is pending over PEP 55768.

In the New Caledonia Basin, prospecting permit PPP 56377 has been granted to TGS-NOPEC Geophysical Company ASA on 21/10/2014. The licence will expire on 20/06/2015. Work program is  - 8 months - 1600 km 2D seismic
.


Papua New Guinea

Cott Oil & Gas/Wondecla Ltd has withdrawn from PPL 437.  Kina will be assigned 7.5% and Heritage 12.5%.  Kina's 7.5% will be carried by Heritage through completion of acquisition and processing of data acquired in the recent Gosur program, and will thereafter be a paying interest.

On 23/12/2013, Cott reached agreement with International Exploration Services, whereby if Cott commercialised any part of its interest in PRL 38, IES would be entitled to receive value up to a maximum of US$1 million per percentage point less any costs from the sale of up to 25 percentage points of the licence.  Following the recent sale of Kina shares and Cott’s withdrawal from PPL 437, the company has elected to pay IES A$1.66 million in return for reducing IES’s commercialisation rights to 23.3 percentage points of the licence
.


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