October 2011

Monthly Update
The October 2011 data update is now available ...

Work Commitments
Several users have recently asked how to work out which year of a permit's work program is which, and in particular, how to identify the current year ...

Industry Summary
ConocoPhillips has committed to its $US109.5 million farm-in to New Standard Energy’s Goldwyer Project in the Canning Basin ...

Permit Updates and Changes
In the Gunnedah Basin, a new agreement provides for the transfer of an additional 40% in PEL 1 and PEL 12 to Santos for a cash consideration of $15m ...
 

Monthly Update


Work Commitments

Several users have recently asked how to work out which year of a permit's work program is which, and in particular, how to identify the current year.

This is straightforward in the situation where a permit has not undergone any suspensions or extensions. For example, if a permit is granted on 31/01/2011 for a 6 year term expiring on 30/01/2017, year 1 runs from 31/01/2011 to 30/01/2012, year 2 from 31/01/2012 to 30/01/2013 etc.

However, if a permit has been suspended and its expiry date has been extended, you will need to take the extension into account when deciphering the work program.  In this circumstance it is safe to work backwards from the current expiry date up to the current date.  However, you should exercise caution from the current date back to the grant date.

EP 368 is a good example.

  -  Original expiry date 10/05/2009.
  -  Renewed in September 2009 for a 5 year term expiring 09/09/2014.
  -  Expiry date further extended in July 2011 to 09/06/2015 following a 9 month suspension.
 

Work Program Original Dates Revised Dates
Year 1 - gravity survey $0.5m 10/09/2009 - 09/09/2010 10/09/2009 - 09/09/2010
Year 2 - 50k 3D seismic $2m 10/09/2010 - 09/09/2011 ** 10/09/2010 - 09/06/2012 **
Year 3 - seismic interpretation $0.2m 10/09/2011 - 09/09/2012 10/06/2012 - 09/06/2013
Year 4 - 1 exploration well $7m 10/09/2012 - 09/09/2013 10/06/2013 - 09/06/2014
Year 5 - geotechnical studies $0.1m 10/09/2013 - 09/09/2014 10/06/2014 - 09/06/2015


** In the revised work program calendar, year 2 includes the 9 month suspension.

Permit suspensions and extensions are noted in the monthly GPinfo newsletter.  You might find it useful to archive these documents to use as a future reference resource.

Please note that work program information is generally not available for onshore Victoria, Queensland, Tasmania and New South Wales.

If you need help in deciphering work program information, please contact us and we will assist you. 

Understanding this situation is further complicated by the many and varied permit grant and renewal terms adopted by the various jurisdictions around Australia.  Below is a summary of the grant and renewal terms as we understand them to be.  Please contact us if you are aware of any discrepancies in this list.

Where different terms apply to different resource types we have noted them separately.  Where there is no distinction in terms, the terms noted apply to all resource types.

As a general rule, when the length of time between the grant and expiry dates of a permit varies from the standard term as shown below, you should be cautious in your interpretation of any work program.


New South Wales - Onshore

Exploration (Petroleum)
- up to 6 year initial term, renewals of up to 6 years with 25% relinquishment
Exploration (Geothermal)
- up to 5 year initial term, renewals of up to 5 years with 50% relinquishment
Production PPL – up to 21 year initial term, renewals allowed
Assessment PAL - up to 6 year initial term, renewals allowed
Special Prospecting Permit - up to 1 year initial term, renewals allowed - possible but not common

New South Wales - Offshore

Exploration - 6 year initial term, renewals of 5 years with 50% relinquishment


Northern Territory - Onshore

Exploration – 5 year initial term, up to 2 renewals of 5 years each with 50% relinquishment
Production – 25 year initial term, renewals of 25 years
Retention - 5 year initial term, renewals of 5 year terms if resource remains sub-commercial

Northern Territory - Offshore

Exploration – 6 year initial term, renewals of 5 years with 50% relinquishment
Production indefinite term i.e. life of the resource
Retention - 5 year initial term, renewals of 5 year terms if resource remains sub-commercial


Queensland - Onshore

Exploration (Petroleum) - up to 12 year initial term, renewals allowed, 33% relinquishment every 4 years
Production (Petroleum) - up to 30 year initial term, renewals allowed
Potential Commercial Area - up to 15 years in total, no renewals allowed but extensions may be applied for

Exploration (Geothermal) - up to 5 year initial term, renewals allowed up to 15 years
Production (Geothermal) - up to 30 year term
Sequestration
- up to 12 year term

Queensland - Offshore

Exploration (Petroleum) - 6 year initial term, renewals of 5 years with 50% relinquishment


South Australia - Onshore

Exploration – 5 year initial term, up to 2 renewals of 5 years each with 50% or 33.3% relinquishment
Production indefinite term i.e. life of the resource
Retention (Petroleum) – 5 year initial term, renewals of 5 years
Retention (Geothermal) – 5 year initial term, renewable with maximum aggregate of 15 years

South Australia - Offshore

Exploration – 6 year initial term, renewals of 5 years with 50% relinquishment
Production – 21 year initial term, renewals allowed
Retention – 5 year initial term, renewable with maximum aggregate of 15 years


Tasmania - Onshore

EL
- variable, renewals usually 12 months, no relinquishment requirement
SEL - variable, renewals allowed, total term not more than 10 years, no relinquishment requirement

Tasmania - Offshore

Exploration - 6 year initial term, 2 renewals of 5 years each with 50% relinquishment
Production indefinite term i.e. life of the resource
Retention - 5 year initial term, renewals of 5 year terms if resource remains sub-commercial


Victoria - Onshore

Exploration - 5 year initial term, 1 renewal of 5 years with 50% relinquishment
Production indefinite term i.e. life of the resource
Retention - up to 15 year term, no renewals

Victoria - Offshore

Exploration – 6 year initial term, renewals of 5 years with 50% relinquishment
Production indefinite term i.e. life of the resource
Retention - 5 year initial term, 2 renewals of 5 years
Location - 2 year initial term, 2 year extension


Western Australia - Onshore

Exploration – 6 year initial term, up to 2 renewals of 5 years with 50% relinquishment
Production 21 year initial term, renewals allowed
Retention – 5 year initial term, renewals of 5 years
Drilling Reservation – 1 to 3 year term, plus extension terms not exceeding 1 year each
Special Prospecting Authority
6 month term for field work plus option on further 6 months

Western Australia - Offshore

Exploration – 6 year initial term, up to 2 renewals of 5 years with 50% relinquishment
Production – for the duration of production plus 5 years
Retention – 5 year initial term, renewals of 5 years


New Zealand - Onshore and Offshore

Exploration – up to 5 year initial term, renewals of 5 years with 50% relinquishment
Production - up to 40 year initial term
Prospecting - up to 1 year


Industry Summary

Company News

ConocoPhillips has committed to its $US109.5 million farm-in to New Standard Energy’s Goldwyer Project in the Canning Basin. ConocoPhillips (Canning Basin) P/L will earn up to 75% in the project by funding four phases of exploration. Conoco will also make an upfront payment of AUD$1 million to New Standard and will also be required to fund 100% of costs to complete detailed core lab analysis and undertake formation evaluation tests of the wells as part of the first phase. The permits subject to the farm-in include EP 443, EP 450, EP 451, EP 456 and application areas 1/09-0, 2/09-0 and 5/09-0. (Source: Energy News Premium 03/10/2011, New Standard Energy announcement 30/09/2011).

Magellan Petroleum (NT) P/L have entered into a Sales Agreement with Santos Ltd and Santos QNT P/L for the transfer of Santos' interest in the Palm Valley field and in the Dingo field of 48% and  66% respectively to Magellan. Magellan will transfer their 35% interest in the Mereenie field to the Santos entities. Upon completion of the Asset Swap, Magellan will own 100% of the Palm Valley and Dingo fields and Santos will own 100% of Mereenie.  Magellan will also receive a cash consideration of A$25 million, with up to an additional A$17.5 million based upon production volume at the Mereenie field over the next 20 years. The two companies have entered into a long term Gas Supply and Purchase Agreement under which Magellan will supply Santos with 26.56 petajoules of gas over a 17 year term for the Palm Valley field. The gas contract is subject to the completion of the Asset Swap. (Source: Magellan Petroleum announcement 15/09/2011).

Beach Energy Ltd has signed a formal agreement with Territory Oil and Gas P/L to earn up to 90% interest in onshore areas EP 126 and EP(A) 138, as well as up to 55% interest in offshore areas EP(A) 135 and NTC/P 10. For the onshore areas, Beach may earn up to 90% by funding a three phase work program. Beach will earn 25% for each of the phases with the option to earn a further 5% interest on each phase by funding beyond the capped amount. For the offshore areas, Beach will earn 50% by funding a seismic survey, with the option to earn an additional 5% by funding beyond the capped amount. The agreement also allows Beach to take up to a 15% interest in Territory Oil and Gas should the company become publicly listed. (Source: Beach Energy announcement 12/10/2011).

Arrow Energy Holdings P/L has entered into a Scheme Implementation Agreement with Bow Energy Ltd under which Arrow has agreed to acquire all of the shares in Bow. Bow advises that, following further discussions with Arrow, Arrow has agreed to increase its offer price from $1.48 to $1.52 per share. The offer values Bow at A$535 million. Bow shareholders are expected to be given the opportunity to vote on the offer at a meeting in December. The takeover is expected to be completed in January 2012. (Source: Bow Energy announcement 26/09/2011, Energy News Premium 26/09/2011).

FAR Ltd is pleased to announce its merger with Flow Energy Ltd by way of a conditional off-market takeover bid by FAR for all of the issued shares in Flow Energy. Flow shareholders will receive 42.66 shares in FAR for each of their Flow shares. FAR currently holds 75.5% interest in Flow. (Source: FAR Ltd announcement 21/09/2011, 12/10/2011).

Acer Energy Ltd has executed a conditional Sale and Purchase Agreement with Sundance Energy Australia Ltd to acquire Sundance’s 23.33% interest in PEL 100, located in the Cooper Basin South Australia. Under the agreement Acer will pay Sundance an initial $500,000, with another $500,000 payable in Acer shares upon completion of certain future production milestones. (Source: Acer Energy announcement 10/10/2011).

Empire Oil & Gas, together with its joint venture partners ERM Gas P/L and Wharf Resources plc have entered into a Gas Supply Agreement with Alcoa of Australia Ltd for supply of gas from the Gingin West and Red Gully gas fields located in the Perth Basin Western Australia. The joint venture has agreed to sell a total of 15,000 terajoules of gas from the fields to Alcoa from November 2012. The agreement includes a staged $25 million prepayment to the joint venture secured by providing Alcoa a fixed charge over the project assets. (Source: ERM announcement 04/10/2011, Empire announcement 04/10/2011)
.

Development News

Chevron has today made its final investment decision for the $A29 billion Wheatstone LNG project at Ashburton North, Western Australia. Chevron welcomed environmental approval from Environment Minister Tony Burke for the project last Friday, paving the way for future expansion opportunities. The Wheatstone Project consists of two LNG processing trains with a combined capacity of 8.9 million tons per annum, a domestic gas plant and associated offshore infrastructure including the processing platform, subsea equipment, drilling and an export trunkline. First gas is planned for 2016. (Source: Chevron announcement 26/09/2011, Energy News Premium 26/09/2011).

WorleyParsons has won a $235 million construction management services contract for Chevron’s Wheatstone LNG project located in Ashburton North Western Australia. Construction driven project teams will be located in Perth, Houston, onsite in Ashburton North and in selected fabrication yards throughout Asia. Work on the contract will begin immediately. (Source: WorleyParsons announcement 06/10/2011, Energy News Premium 07/10/2011).

Decmil Group is the second company to win a contract for the recently approved Wheatstone LNG project. Decmil has won a $70 million contract to design, supply and install the camp for the project. Work on the contact should being in December with a completion date expected August 2012. (Source: Energy News Premium 11/10/2011).

In other Wheatstone news, Chevron has signed a sale and purchase agreement with Kyushu Electric Power. Kyushu will purchase up to 700,000 tonnes of LNG per annum for up to 20 years and will also acquire 1.83% of Chevron’s equity share in the Wheatstone field licenses and a 1.46% interest in the Wheatstone natural gas processing facilities to be developed onshore near Onslow. (Source: Chevron announcement 16/09/2011, Energy News Premium 19/09/2011).

Apache Corporation has committed to the $483 million development of the Balnaves oil field in WA-49-L, Carnarvon Basin offshore Western Australia. Balnaves is expected to produce 30,000 barrels of oil per day at its peak with first production scheduled to start in 2014. The development will also include a water injection well to maintain reservoir pressure while gas will be reinjected into another reservoir for later production as part of the Wheatstone LNG project. Apache Julimar P/L will hold 65% interest in WA-49-L with Kufpec Australia (Julimar) P/L holding the remaining 35%. (Source: Energy News Premium 03/10/2011).

Perth based software company Saleem Technologies has secured a contract from Leighton Contractors to track and manage works on the Gorgon project. Saleem will provide its Track’em software which tracks construction materials and assets using GPS, Barcode and RFID technology to deliver construction projects on time and budget. Leighton Contractors will use Track’em for its work on earthworks, in-situ and precast concrete and underground services including drainage, piping and electrical and instrumentation cabling being installed within the Gorgon LNG plant site. (Source: Energy News Premium 14/09/2011).

Clough and Downer EDI have won a $600 million contract to build a pipeline and compression facilities for the Santos GLNG project. The project involves the construction of more than 400 kilometres of gas and water transmission pipelines, two compression facilities and an 800 person camp, as well as the expansion of the existing Fairview compression facilities. Construction work is due to start in September 2011. (Source: Energy News Premium 15/09/2011).

Tox Free Solutions have been awarded a five year $25 million contact at the Australia Pacific LNG project in Gladstone, Queensland. The company will be responsible for waste management services during plant construction activities on Curtis Island. (Source: Energy News Premium 22/09/2011).

GE Energy has secured contracts for both Shell’s Prelude Floating LNG and QGC’s Queensland Curtis LNG projects. GE Energy has entered into an agreement with Technip to supply two steam turbine-driven compressors for the Shell Prelude Floating Liquefied Natural Gas project. Furthermore, GE’s Power & Water business will supply an integrated solution of onsite power generation and water filtration equipment to GE Betz and Laing O’Rourke Construction, which are building a water treatment plant for QGC at its Kenya coal seam gas field near Chinchilla, Queensland. (Source: Energy News Premium 21/09/2011).

Production has commenced from Woodside operated Okha floating production storage and offloading vessel located 135 km north-west of Karratha, Western Australia. Okha is expected to produce around 30,000 barrels of oil per day when it reaches steady state operations towards the end of October 2011. (Source: Woodside announcement 26/09/2011).

Senex Energy Ltd has today confirmed that production has resumed at the Growler oil field in PRL 15 in the Cooper Basin, South Australia. Senex Managing Director Ian Davies has advised that first oil deliveries from the site will begin in coming days, targeting a record production of over 700,000 barrels. Now that access has been regained to the field Senex plans to drill five development wells in PRL 15 and six wells in the adjacent licence PEL 104. (Source: Senex Energy announcement: 29/09/2011, Energy News Premium 30/09/2011).

Eni Australia has started production from its Kitan oil field in the Joint Petroleum Development Area permit JPDA 06-105 in the Timor Sea. Production from the field is expected to peak at 40,000 barrels of oil per day and have a lifespan of around 7 years. The field was first discovered in 2008 and holds an estimate 30-40 million barrels of oil. (Source: Energy News Premium 11/10/2011, Oil & Gas Journal 10/10/2011).

Discoveries

Beach Energy’s Butlers 4, the last well in a 15-well drilling campaign in PEL 92 in the Cooper basin, has been a success. Butlers 4 has been drilled to a total depth of 1,393m and wireline logs confirmed it had intersected a 7.5m oil column in excellent quality Namur sandstone reservoir. It is expected the Butlers 4 well will be online prior to the end of 2011. (Source: Beach Energy announcement 21/09/2011, Energy News Premium 20/09/2011).

WestSide Corporation’s Meridian SeamGas production well Pretty Plains 2 in PL 94 Queensland has flowed at a rate of up to 680,000 cubic feet per day, making it one of the gas field’s top producers. WestSide is aiming for total production of 6-7 terajoules per day from the seven wells, with a total Meridian SeamGas production of 25TJ/d by the end of 2012. Meridian SeamGas now has sufficient proved plus probable reserves to supply domestic markets with 60TJ/d for 20 years under contract. WestSide is currently pursuing Gas Sales Agreements with domestic users and export LNG projects. (Source: Westside Corporation announcement 28/09/2011, Energy News Premium 29/09/2011).

Beach Energy and Drillsearch Energy have more to celebrate after their Bauer 3 and Bauer 4 development wells in the Cooper Basin South Australia have intersected pay zones higher than pre-drill estimates. Bauer 4 has intersected 17 metres of gross oil pay in the McKinlay/Namur gross column with 14m of clean net pay from the Namur sandstones, while the Bauer 3 development well has intersected 10 metres of gross oil pay in the McKinlay/Namur gross column and 3.5m of clean pay in the Namur Sandstones. The Bauer oil discovery currently has an estimated gross mean oil reserve of 3.5 million barrels of oil. (Source: Drillsearch Energy announcement 30/09/2011 & 10/10/2011, Energy News Premium 30/09/2011).

While drilling the Arck 1 well, Linc Energy Ltd has discovered a significant oil shale deposit that could lead to a 200 billion tonne oil resource. The oil shale deposit occurs at about 854 metres and covers roughly 1,150 sq km within the Stuart Range formation located in PEL 122 and is projected to extend into PEL 121 in the Arckaringa Basin, South Australia. The discovery reinforces the prospectivity for shale oil in the Arckaringa Basin. (Source: Energy News Premium 27/09/2011, Linc Energy announcement 27/09/2011).

Transerv Energy is pleased to advise the latest results from the Warro 4 onshore gas well in the Perth Basin, Western Australia. Gas has flowed to surface at rates of up to 650,000 cubic feet per day from the lower target zone and also flowing frac liquids at a rate of between 600-1000 barrels per day from zone four. Importantly, the lower zone has demonstrated for the past week that it is capable of flowing gas naturally without the need for nitrogen lift. A full flow testing program would be needed to best understand the performance of the Warro field. (Source: Transerv announcement 27/09/2011, Energy News Premium 28/09/2011).
 


Permit Updates and Changes

New South Wales

In the Gunnedah Basin, a new agreement provides for the transfer of an additional 40% in PEL 1 and PEL 12 to Santos for a cash consideration of $15m.  This brings participating interests (ACM 35% and Santos 65%) to the same level that would have been achieved at completion of the pilot farmin work program of the original agreement.  PEL 12 is in the process of being renewed.

Also in the Gunnedah Basin, PEL 462 and PEL 464 are in the process of being renewed.

In the Sydney Basin, PEL 463 is in the process of being renewed
.


Northern Territory

In the Bonaparte Basin, areas AC 11-1 and AC 11-2 closed on 13/10/2011 and are currently under consideration.

In the Timor Basin, Karoon Gas Australia Ltd has completed the geological and geophysical evaluation of AC/P 8. The joint venture has been unable to identify a prospect that offers a drilling target and have therefore applied to surrender the permit.

In the Georgina Basin, EP 104 expired 03/10/2011 and is not being renewed.

In the Amadeus Basin, EP 107 has undergone a partial relinquishment and now covers a reduced area of 6,957 sq km.

In the Georgina Basin, EP 127 has undergone a partial relinquishment and now covers a reduced area of 14,093 sq km.

In the Amadeus Basin, EP 82 and EP 82 M have undergone a partial relinquishment and now cover reduced areas of 7,806 sq km and 4,626 sq km respectively.

In the Amadeus Basin,
EP(A) 137 has undergone a partial relinquishment and now covers a reduced area of 5,141 sq km.

In the Wiso Basin,
EP(A) 198 has undergone a partial relinquishment and now covers a reduced area of 15,577 sq km.

In the Money Shoal Basin,
EP(A) 224 has undergone a partial relinquishment and now covers a reduced area of 4,628 sq km.

The following are new applications by Paltar Petroleum Ltd -

Application

Basin

Area (sq km)

EP(A) 239

Arafura

11,486

EP(A) 241

McArthur

1,398

EP(A) 242

McArthur

1,008

EP(A) 243

McArthur

331

EP(A) 244

McArthur

6,231

EP(A) 245

McArthur

2,214

EP(A) 246

McArthur

177

EP(A) 247

Arafura

726

EP(A) 248

McArthur

266

EP(A) 249

Money Shoal

337

EP(A) 250

Money Shoal

1,907

EP(A) 251

Arafura

59

EP(A) 252

Georgina

2,283

EP(A) 253

Amadeus

1,065

NTC/P 12

McArthur

6,936

NTC/P 13

Money Shoal

3,012

In the Bonaparte Basin, NT/P 62 and NT/P 65 are being relinquished.


Queensland

In the Eromanga Basin, Beach Energy will pre-empt the sale of Inland Oil’s 20% in ATP 269 to Bridgeport and IOR’s 5% sale to Bridgeport of PL 184.

In the Bowen Basin, Comet Ridge has reached agreement to sell 5% of ATP 337P FO Block  to Stanwell for A$7 million.  The deal is subject to JV approvals and government and regulatory approvals.  Stanwell has an option to acquire, from Comet Ridge, either an additional 15% (Option A) or 35% (Option B) in exchange for funding up to A$8m of Comet's expenditure commitments.  To exercise this option, Stanwell will be required to pay Comet consideration based on the ATP 337P Mahalo certified reserves as at 31/12/2013.  Option A - Stanwell will pay A$0.80 per GJ multiplied by 15% of the 2P reserves.  Option B - Stanwell will pay A$0.80 per GJ multiplied by 15% of the 2P reserves and A$1.15 per GJ multiplied by 20% of the 2P reserves.

In the Eromanga Basin, ATP 560P was renewed to 30/11/2013.

In the Georgina Basin, grant of ATP 909P, ATP 911P and ATP 912P  is expected in the next couple of months following the signing of agreements with Traditional Owners and Land Councils.

In the Surat Basin, the Santos-led consortium has applied for the following potential commercial areas: PCA 108 (231 sq km), PCA 109 (231 sq km), PCA 110 (77 sq km) and PCA 111 (155 sq km).

In the Cooper Basin, the correct expiry date for PL 24 is 31/12/2028.

In the Surat Basin, PL 53 is in the process of being renewed.

In the Surat Basin, PL 273 was granted on 08/09/2014.  The licence will expire on 07/09/2041.

Also in the Surat Basin, PL 276 was granted on 03/10/2011.  The licence will expire on 02/10/2041.

Santos has applied for four new production licences:  PL 477 (184 sq km),  PL 478 (65 sq km), PL 479 (123 sq km) and PL 480 (153 sq km).

Sequestration

In the Bowen Basin, EPQ 1 and EPQ 2 have been relinquished
.


South Australia

In the St Vincent Basin, PEL 120 is in the process of being renewed.

In the Otway Basin, Geothermal Resources Ltd has the option to acquire a 10% interest in PEL 186 at any time up until 27/04/2016 at a cost equivalent to 50% of total exploration expenditure incurred in the tenement from November 2010 until the time the option is exercised.

In the Eromanga Basin, PEL 444 has had its expiry date extended to 11/07/2014. The licence will be in suspension from 11/01/2012 to 10/07/2012.

In the Cooper Basin, PEL 570 was granted to Ambassador Exploration P/L on 05/09/2011. The licence will expire on 05/09/2017.

In the Arrowie Basin, PELA 528 and PELA 567 have undergone partial relinquishments and now cover reduced areas of 644 sq km and 1,588 sq km respectively.

In the Eromanga Basin, PELA 575 has undergone a partial relinquishment and now covers a reduced area of 3,643 sq km.

In the Cooper Basin, PPL 61 is in the process of being renewed.


Tasmania

Offshore in the Otway Basin, gazettal T 11-1 closed on 13/10/2011 and is currently under consideration.

In the Gippsland Basin, a six month suspension has been granted to the Year 4 work program for T/46P.  Year 4 has been extended from 05/09/2011 to 05/03/2012. The licence will expire on 05/03/2014.

Onshore Tasmania, SEL 15/2010 is in the process of being relinquished
.



Victoria


Offshore, Otway Basin gazettals V 11-1 and V 11-2 and Gippsland Basin gazettals V 11-3 to V 11-6 closed on 13/10/2011 and are currently under consideration.

Also in the Gippsland Basin, a 6 month suspension has been granted to the Year 4 programs for VIC/P 63 and VIC/P 64.  Year 4 has been extended from 28/09/2011 to 28/03/2012.  The licences will expire on 28/03/2014.

Onshore in the Gippsland Basin, Jarden Corp Aust holds 42.5% of PRL 2 Trifon Block, with Petro Tech holding 57.5%.  Jarden Corp originally earned 50% by completing the "initial" work program.  Further work was undertaken and Jarden's interest was decreased to 42.5% in consideration for Petro Tech funding all this further work.

Sequestration

Offshore, sequestration gazettals GIPP-01, 02 and 03 closed on 30/09/2011 and are currently under consideration.



Western Australia


In the Perth Basin, DR 11 is pending suspension. Suspension was lodged on 27/07/2011.

In the Canning Basin, Oil Basins Ltd has advised they are seeking farm-in interest for the Backreef area of EP 129 and L 6.

In the Canning Basin, EP 371, EP 428, EP 431 and EP 436 are pending suspension. Suspensions were lodged on 19/08/2011.

Also in the Canning Basin, EP 417 has had its expiry date extended to 31/12/2015.

In the Perth Basin, Westralian Gas & Power has relinquished its joint venture interest in EP 445 with Red Mountain Energy P/L.

In the Canning Basin, EP 449 has had its expiry date extended to 22/12/2016.

In the Canning Basin, EP 450 has had its expiry date extended to 31/12/2015. The varied work program is as follows –

Year 1: seismic reprocessing $0.125m
Year 2: 1,500k gravity $0.4m
Year 3: 1 well $7m
Year 4: geological & geoscientific studies $1m
Year 5: reservoir testing $2m
Year 6: 1 well $7m

In the Canning Basin, EP 451 and EP 456 have had their expiry dates extended to 31/12/2015. The varied work program for both permits is as follows –

Year 1
: seismic reprocessing $0.125m
Year 2: 1,500k gravity $0.4m
Year 3: 1 well $7m
Year 4: geological & geoscientific studies $1m
Year 5: geotechnical studies $0.1m
Year 6: 1 well $7m

In the Canning Basin, EP 463 has had its expiry date extended to 10/01/2016.

In the Canning and Savory Basins, re-released areas L 10-1, L 10-4 and L 10-5 closed 06/10/2011 and are currently under consideration.

In the Canning Basin, Buru Energy Ltd has been announced as the preferred applicant for L 10-7 and L 10-8.

In the Canning and Carnarvon Basins, areas L 11-1, L 11-2, L 11-3 and
L 11-4 closed 06/10/2011 and are currently under consideration.

In the Carnarvon Basin, R 3 has been renewed to 10/10/2016. The work program is as follows –

Year 1: engineering studies, economic studies $0.2m
Year 2: engineering studies, economic studies $0.2m
Year 3: engineering studies, economic studies $0.2m
Year 4: engineering studies, economic studies $0.2m
Year 5: engineering studies, economic studies $0.2m

In the Barrow Basin, TP/8 is pending suspension. Suspension was lodged on 03/08/2011.

In the Canning Basin, TP/24 has had its expiry date extended to 10/01/2016.

In the Carnarvon and Beagle Basins, re-released areas W 10-21, W 10-22 and W 10-7 closed 13/10/2011 and are currently under consideration.

In the Browse and Carnarvon Basins, areas W 11-1, W 11-10, W 11-11, W 11-12, W 11-13, W 11-14 and W 11-15 closed on 13/10/2011 and are currently under consideration.

In the Bonaparte Basin, WA-18-P now covers a reduced area of 168 sq km following the grant of retention licence WA-40-R.

In the Carnarvon Basin, WA-205-P and WA-209-P are in the process of being renewed.

In the Browse Basin, WA-315-P has had its expiry date extended to 11/08/2013.

In the Perth Basin, Roc Oil (WA) P/L has agreed to acquire an additional 5% interest in WA-31-L from CIECO Energy Australia. The acquisition is subject to joint venture and government approvals. On completion of the acquisition Roc’s interest will increase to 42.5%.

In the Carnarvon Basin, WA-359-P is pending suspension. Suspension was lodged on 06/10/2011.

In the Carnarvon Basin, WA-356-P now covers a reduced area of 565 sq km following the grant of production licence WA-49-L.

In the Carnarvon Basin, Petrobras International Braspetro BV intends to withdraw from WA-360-P with effect from the end of the current permit year. Once the withdrawal process is complete, Petrobras’s 50% participating interest will be allocated to the remaining participants on a pro-rata basis.

In the Carnarvon Basin, WA-364-P has been renewed to 15/09/2016 over a reduced area.
The licence now covers 3,800 sq km. Work program is as follows –

Year 1: geotechnical studies $0.2m
Year 2: geotechnical studies, 750k 3D seismic $4.7m
Year 3: geotechnical studies $0.25m
Year 4: geotechnical studies $0.25m
Year 5: geotechnical studies, 1 well $30.25m

In the Carnarvon Basin, WA-365-P has been renewed to 15/09/2016 over a reduced area.
The licence
now covers 3,563 sq km. Work program is as follows –

Year 1: 750k 3D seismic, geophysical studies $4.75m
Year 2: geophysical studies $0.25m
Year 3: 1 well, geophysical studies $30.25m
Year 4: geophysical studies $0.2m
Year 5: geophysical studies $0.2m

In the Browse Basin, WA-378-P is pending surrender. Surrender was lodged on 12/09/2011.

In the Bonaparte Basin, WA-40-R was granted to GDF SUEZ Bonaparte P/L 60%, Santos Ltd 29% and Bonaparte Gas & Oil P/L 11% on the 16/09/2011. The licence will expire on 15/09/2016. Work program is as follows –

Year 1
: marketing & technical studies $0.05m
Year 2: engineering & commercial studies $0.1m
Year 3: marketing studies $0.05m
Year 4: engineering & commercial studies $0.1m
Year 5: marketing studies $0.05m

In the Carnarvon Basin, WA-49-L was granted to Apache Julimar P/L 65% and KUFPEC
Australia (Julimar) P/L 35% on 26/09/2011. The licence has been granted for an indefinite term.


Geothermal Permits

In the Perth Basin, GEP 7 and GEP 8 have had their expiry dates extended to 31/12/2015.

In the Yilgarn Block Basin, GEP 10 and GEP 11 are being surrendered. Surrender was lodged on 09/09/2011
.


New Zealand

In the Canterbury Basin, APP 52592 has been withdrawn due to the grant of PEP 52605.

In the Taranaki Basin, an application for a second 5 year term for PEP 38451 has been submitted. It is currently under consideration.

In the Taranaki Basin, PEP 38524 was surrendered on 30/09/2011.

In the Northland Basin, PEP 38619
has been renewed to 30/04/2016 over a reduced area. The licence now covers 4,471 sq km.

In the Taranaki Basin, New Zealand Energy Corp’s interest in PEP 51151 is held by subsidiary Taranaki Ventures II Ltd.

In the Canterbury Basin, PEP 52605 was granted to L&M Energy Ltd on 20/09/2011. The licence will expire on 19/09/2016. Work program is as follows –

6 months: studies, 1k 2D seismic reprocessing
12 months: studies, 1 well
24 months: studies, 20k 2D seismic, 1 well
36 months: studies, 1 well
60 months: 3 to 5 well pilot production

In the Taranaki Basin, Extension of Land application PMP 38156 EX has been withdrawn
.


Papua New Guinea

In the Papuan Basin, PPL 374 was granted to Gini Energy Ltd 100% on 18/03/2011.  The licence will expire on 17/03/2017.  Work program is as follows -

Years 1-2: data review, G&G studies, plan field work
Years 3-4: 1000k 2D seismic, data review, 1 exploration well
Year 5: data review, 1000k 2D seismic, 1 exploration well

In the Papuan Basin, PPL 375 was granted to Gini Energy Ltd 100% on 18/03/2011.  The licence will expire on 17/03/2017.  Work program is as follows -

Years 1-2: data review, G&G studies, plan field work
Years 3-4: 1000k 2D seismic, data review, 1 exploration well
Year 5: data review, 1000k 2D seismic, 1 exploration well

In the Papuan Basin, PPL 378 was granted Gini Energy Ltd 100% on 31/08/2011.  The licence will expire on 30/08/2017. Overlapping applications APPL 349, APPL 350, APPL 392 and APPL 393 will be refused as a consequence. Work program for PPL 378 is as follows -

Years 1-2: data review, G&G studies, plan field work
Years 3-4: 50k 2D seismic, data review, 1 exploration well
Year 5: data review, 50k 2D seismic, 1 exploration well

Also in the Papuan Basin, Iaraguma Ltd has applied for APPL 389 over 11,979 sq km and APPL 390 over 14,868 sq km.


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© 2011 Pitney Bowes Business Insight