October 2012

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

Industry Summary
Central Petroleum Ltd has announced a joint venture with Santos Ltd for further exploration and potential development of up to 13 permit areas in the Amadeus and Pedirka Basins in central Australia ...

Permit Updates and Changes
On the New England Fold Belt, the application area for PSPAPP 56 has been varied and now covers 23,176 sq km ...
 


Monthly Update


Industry Summary

Company News

Central Petroleum Ltd has announced a joint venture with Santos Ltd for further exploration and potential development of up to 13 permit areas in the Amadeus and Pedirka Basins in central Australia. The permits include EP 105, 106, 107, 112, 115, 118, 82, 93, 97 Simpson, Bejah and Pellinor blocks and EP(A) 147. Under the farm-out agreement Santos will fund exploration by investing an initial $30 million, with options to invest a further $60 million in stage two and a further $60 million in stage three. In return Santos will earn rights of up to 70% of the areas and will assume operatorship of the fields. Central will retain 100% interest in the area surrounding the Surprise discovery. Furthermore, after earning obligations have been completed by drilling of exploration wells on each of the Simpson, Bejah and Pellinor blocks interests will be Santos 56%, Central 24% and Rawson 20%. (Source: Central Petroleum announcement, 02/10/2012, Rawson Resources announcement 05/10/2012).

Buru Energy has entered into two transactions to significantly increase its acreage position across the Canning Basin, Western Australia. Buru will acquire an indirect 90% interest in each of EP 457 and EP 458 by acquiring all of the shares in Gujarat NRE Oil Ltd from its parent company for a total consideration of $36 million cash. Furthermore, Buru will acquire 50% interest in 5/07-8 from Backreef Oil P/L on grant of the permit for $3.5 million. Mitsubishi, joint venture partner in Buru’s Canning Basin permits, has the right to earn half of Buru’s interest in the permits for $19.75 million should it elect to do so. (Source: Buru Energy announcement, 26/09/2012).

On 04/10/2012 Buru Energy Ltd is pleased to advise that it has finalised the $36 million acquisition of Gujarat NRE Oil Ltd, which was the 90% owner of EP 457 and EP 458. Rey Resources, the owner of the remaining 10% in the permits, said the deal breached certain representations and warranties under its existing contractual arrangements with Gujarat. Rey said it was seeking a written undertaking that Buru and Gujarat would not proceed with the deal until the matter was resolved to Rey’s satisfaction. Buru is considering its response to this correspondence. (Source: Buru Energy announcement, 04/10/2012, Rey Resources announcement, 04/10/2012).

Drillsearch Energy Ltd has announced an offer to acquire all of the ordinary shares in Acer Energy Ltd for 25.5c per share by way of an off-market takeover offer, valuing Acer at approximately $118 million. Republic Investment Management has sold 19.9% of its Acer holding to Drillsearch and will accept Drillsearch’s offer for its remaining 18.82% in the absence of a higher offer. The offer is unconditional. (Source: Drillsearch Energy announcement, 04/10/2012).

Woodside has announced the US$2 billion sale of a portion of the company’s equity in the proposed Browse LNG Development to Japan Australia LNG (MIMI Browse) P/L is now complete. MIMI will take a 16% interest in the East Browse joint venture and 8% in the West Browse joint venture. This will give MIMI an estimated 14.7% interest in the Browse development on an assumed unitised basis. (Source: Woodside announcement, 18/09/2012).

Western Desert Resources Ltd has received a conditional offer from the Meijin Energy Group of China to acquire all the listed shares of WDR for $1.08 cash per share, up to $435 million on a fully diluted basis. The Western Desert board will appoint an independent expert to assess the bid with a completion date of 31/03/2013 however the parties are aiming to have it wrapped up by 24/12/2012. The deal is subject to Foreign Investment Board approval as well as approval from Chinese regulators. (Source: Western Desert Resources announcement, 18/09/2012).

Strike Energy Ltd is pleased to announce a 136% upgrade of its resource estimate for the Southern Flank of the Cooper Basin to 14.3 trillion cubic feet of gas and 54 million barrels of liquids within the Permian coals and shales across PEL 94, 95 and 96. This significant upgrade to Strike’s initial estimate follows the recent results of the Davenport 1 and Marsden 1 wells on PEL 94 and PEL 95 respectively. (Source: Strike Energy announcement, 19/09/2012).

Molopo Energy has advised that PetroChina Australia, the purchaser of Molopo’s Queensland assets, has requested a three week extension in order to confirm that the Chinese National Development and Reform Commission approves of the transaction. As a result, Molopo has agreed to the extension and the condition must therefore be satisfied on or before 23/10/2012 with the settlement of the transaction to take place by 07/11/2012. (Source: Molopo Energy announcement, 01/10/2012).

Petromanas Energy Inc has entered an agreement to acquire 100% of the issued and outstanding shares of Gallic Energy Ltd in exchange for common shares of Petromanas, by way of a statutory plan of arrangement. The transaction is expected to close in the fourth quarter of 2012 provided all required Gallic security holder, court and regulatory approvals are obtained. (Source: Petromanas Energy Inc announcement, 02/10/2012).

Developments

Technip has won a $262 million contract for offshore work on the Ichthys LNG project located in the Browse Basin, Western Australia. Technip will commission the floating, production, storage and offloading unit and the central processing facility for the project. Work will start immediately and will continue until first gas from Ichthys, due for the end of 2016. (Source: Energy News Premium, 19/09/2012).

Thiess has been awarded a $134 million contract by Saipem Australia P/L to construct a tunnel for the Santos GLNG Project in Gladstone. Thiess will construct a 4.3 kilometre tunnel under a section of water known as The Narrows to connect the mainland near Gladstone to the Santos GLNG plant on Curtis Island. The tunnel will serve as the conduit for the Santos GLNG gas transmission line. Mobilisation is expected to commence onsite in September preparing for tunnelling activities to commence later in the year. (Source: Thiess announcement, 18/09/2012).

Thistle Fabrication P/L has won the pipeline construction contract for Empire Oil & Gas’ Red Gully gas and condensate processing plant in the onshore Perth Basin. Thistle will weld, x-ray, pressure test and buy a 3 kilometre export pipeline. This pipeline runs from the Red Gully Processing Facility to the tie in point to the Dampier Bunbury Natural Gas pipeline. Empire also announced WA’s Primero Group has won the contract to build a 30 man accommodation at Red Gully. (Source: Empire Oil & Gas announcement, 19/09/2012).

The South East Asian Australia Offshore Conference (SEAAOC) recently held in Darwin has confirmed work is well underway at the Ichthys LNG plant at Blaydin Point, Northern Territory. INPEX has advised land clearing has begun with 173 hectares of land being cleared for the plant area so far. Phase 2 of the civil work is well underway with the aim of finishing up by the end of the year. (Source: Energy News Premium, 24/09/2012).

Chevron is planning a fourth train at the Gorgon LNG project from the Geryon and Chandon fields at Barrow Island. Chevron confirmed that the two fields would provide approximately 11 trillion cubic feet of gas to feed the fourth 5.2mtpa train. The fourth train will bring LNG production at Gorgon from 15.6 million tonnes a year to 20.8 million tonnes and will involve the installation of a fourth LNG tank on the island, with a new pipeline to feed the project. (Source: Energy News Premium, 26/09/2012).

Discoveries

Success continues for Beach Energy and Cooper Energy at Butlers 6 on the Western Flank of the Cooper Basin. Butlers 6 has penetrated a 5 metre oil column in the Namur Sandstone and will be cased and suspended for completion as a Namur oil producer and linked into the Butlers production facilities. (Source: Cooper Energy announcement, 19/09/2012).

Chevron Corporation has struck gas with the Satyr 2 exploration well located in the WA-374-P permit in the Greater Gorgon Area of the Carnarvon Basin. Satyr 2 confirmed approximately 39 meters of net gas pay and was drilled to 3,796 metres. Chevron president, Melody Meyer, said the continued exploration success in the Carnarvon Basin could help expand its LNG projects in Australia. (Source: Chevron announcement, 19/09/2012).
Note: details not yet available in GPinfo – location pending.

Senex Energy has confirmed liquid rich gas at Skipton 1 located in permit PEL 516, Cooper Basin South Australia. The thickness of the Epsilon Formation has exceeded expectations, with 68 metres intersected. Senex recorded elevated gas readings throughout the section and fluorescence in the Patchawarra Formation, indicating the presence of liquid hydrocarbons. Coring is expected to be completed within the fortnight. (Source: Senex Energy announcement, 26/09/2012).

Flow testing at Kea Petroleum’s onshore Taranaki Puka 1 exploration well has confirmed oil and gas quantities large enough for the company to drill commercially. There was a maximum flow rate of 310 barrels of oil per day and 1.8 million cubic feet of gas per day and initial data from downhole pressure gauges observed no confining boundaries.
The testing program is continuing with various choke sizes to determine the optimum production parameters for future field performance. (Source: Energy News Premium, 25/09/2012).

Senex Energy is pleased to report success in the Snatcher oil field, Cooper Basin South Australia. The Snatcher 10 oil appraisal well has been cased and suspended after successfully intersecting an interpreted net pay of more than 10 metres. Snatcher 10 extends the area of proven oil for the Snatcher Field and will result in increased reserves, with the northern limit of the field remaining open.
The Ensign Rig 48 will now move to the southern end of PPL 240 to drill the Snatcher 8 development well. (Source: Senex Energy announcement, 02/10/2012).

Cooper Energy and Beach Energy have made a new oil discovery in the Western Flank of the Cooper Basin with the Windmill 1 exploration well. Windmill 1 intersected a 6 metre net oil column in the
Namur Sandstone and 15 metres of oil shows within the Birkhead Formation. The Birkhead will undergo further evaluation through a wireline pressure survey and possibly a drill stem test. (Source: Beach Energy announcement, 10/10/2012).
 


Permit Updates and Changes

New South Wales

On the New England Fold Belt, the application area for PSPAPP 56 has been varied and now covers 23,176 sq km.

In the Sydney Basin, application PSPAPP 58 by the NSW Aboriginal Land Council has been refused.

On the Lachlan Fold Belt, application PSPAPP 59 by Dart Energy Ltd has been withdrawn by the holder.

 

Northern Territory

In the Vulcan Basin, there is a change to the AC/P 17 work program. Years 4 & 5 have been swapped.


In the Browse Basin, AC/P 37 was renewed to 09/09/2017 over a reduced area and now covers 2,129 sq km. Work program is as follows –

Year 1: 3D seismic reprocessing $1.5m
Year 2: geotechnical studies $0.15m
Year 3: geotechnical studies $0.15m
Year 4: 1 well $30m
Year 5: geotechnical studies $0.15m

In the Amadeus and Pedirka Basins, Santos is farming into EP 105, EP 106, EP 107, EP 112, EP 115, EP 118, EP 125, EP 82, EP 93 and EP(A) 147 for up to 70%. Furthermore, Santos is faming into EP 97 Simpson, Bejah and Pellinor blocks for 56%. Central retains 100% interest in more than 2 million acres in EP 115 around the Surprise discovery.

In the Pedirka Basin, Colson and East Border are new blocks in EP 97 as part of an aggressive farm-out campaign by Rawson, with the intention that one or more of these blocks will be drilled during 2013.

In the McArthur Basin, the area of EP(A) 182 has been extended and now covers 12,571 sq km.

In the Victoria River Basin, the area of EP(A) 198 was reduced due to new application EP(A) 305. EP(A) 198 now covers 15,377 sq km.

In the McArthur Basin, EP(A) 239 was reduced due to new application EP(A) 306. EP(A) 239 now covers 6,664 sq km.

In the Ord Basin, EP(A) 304 and EP(A) 307 are new applications by Oates, T.

In the Victoria River Basin, EP(A) 305 is a new application by Pangaea (NT) P/L.

In the McArthur Basin, EP(A) 306 is a new application by Paltar Petroleum Ltd.

In the Bonaparte Basin, a 4 month suspension period has been granted to the Year 6 work program for NT/P 69. Year 6 has been extended from 10/10/2012 to 09/02/2013. The licence will expire 09/02/2013.


Queensland

Offshore in the Carpentaria Basin, an application has been made to vary the secondary work program for Q/23P.

In the Eromanga Basin, Beach Energy acquired Entek’s 28.15% interest in ATP 269P and PL 484, raising its interest in the licences to 93.21%.

In the Bowen Basin, ATP 337P and ATP 337P Mahalo FO have undergone partial relinquishments and now covered reduced areas of 1,902 sq km and 912 sq km respectively.

In the Eromanga Basin, ATP 582P was renewed to 31/07/2016 over a reduced area of 21,764 sq km.   Work program is as follows -

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

In the Clarence/Moreton Basin, ATP 644P has undergone a partial relinquishment and now covers a reduced area of 379 sq km.

In the Surat Basin, PL 458 and PL 472 have had the application areas varied and now cover 67 sq km and 62 sq km respectively.


South Australia

In the Cooper Basin, the area of PEL 114 has been reduced due to the grant of PRL 28. PEL 114 now covers 462 sq km. Furthermore, a 12 month suspension period has been granted to the work program for PEL 114. The licence is in suspension from 11/09/2012 to 10/09/2013 inclusive. The licence will expire 21/07/2014.

In the Officer Basin, 12 month suspension periods have been granted to the work programs for PEL 147 and PEL 148. The licenses are in suspension from 22/08/2012 to 21/08/2013 inclusive. The licenses will expire 28/07/2018.

In the Cooper Basin, retention licence PRL 28 was granted to Santos Ltd on 10/09/2012. The licence will expire 09/09/2017
.

Geothermal

In the Cooper Basin, GEL 378, GEL 379, GEL 380 and GEL 381 are now consolidated under GEL 378 which now covers 1,569 sq km.

In the Cooper Basin, GEL 382, GEL 383, GEL 384 and GEL 385 are now consolidated under GEL 382 which now covers 1,964 sq km.

In the Cooper Basin, GEL 386, GEL 387, GEL 388 and GEL 389 are now consolidated under GEL 386 which now covers 1,983 sq km.

Sequestration

A number of Gas Storage Exploration Licenses have been added to the data this month.

Permit

Permit Holder

Expiry date

Basin

GSEL 576

Ahava Niarrie Energy P/L

28/07/2017

Officer

GSEL 577

Ahava Niarrie Energy P/L

28/07/2017

Officer

GSEL 578

Ahava Niarrie Energy P/L

28/07/2017

Officer

GSEL 579

Ahava Niarrie Energy P/L

28/07/2017

Officer

GSEL 580

Ahava Oollarinna Energy P/L

28/07/2017

Officer

GSEL 581

Ahava Oollarinna Energy P/L

28/07/2017

Officer

GSEL 582

Ahava Oollarinna Energy P/L

28/07/2017

Officer

GSEL 583

Ahava Oollarinna Energy P/L

28/07/2017

Officer

GSEL 584

Hughes Denman Energy P/L

15/05/2017

Eucla

GSEL 585

Hughes Denman Energy P/L

15/05/2017

Eucla

GSEL 586

Hughes Denman Energy P/L

15/05/2017

Eucla

GSEL 587

Hughes Denman Energy P/L

15/05/2017

Eucla

In addition, Ahava Energy Ltd have applied for 38 areas - GSELA 532-556 and GSELA 588-600.  See GPinfo for details.
 



Victoria

In the Gippsland Basin, FIRB approval has been obtained for the Hibiscus Petroleum acquisition of 50.1% of VIC/P 57 and farm-in to and share placement is expected to be completed in December 2012
.



Western Australia

In the Canning Basin, Buru will acquire a 50% interest in 5/07-8 EP from Backreef Oil P/L for $3.5 million on grant of the permit. Mitsubishi has the right to earn half of Buru’s interest in the permit for $19.75 million should it elect to do so.

In the Carnarvon Basin, Pancontinental is divesting its interest in EP 110.

In the Barrow Basin, EP 358 has been varied to include land areas only and now covers approximately 1 sq km. It comprises a large number of islets in the Montebello Islands. Only those of a significant size are shown in GPinfo (greater than 0.025 sq km).

In the Canning Basin, EP 371, EP 428, EP 429 and EP 436 are pending suspension.

In the Canning Basin, Buru will acquire an indirect 90% interest in each of EP 457 and EP 458 by acquiring all of the shares in Gujarat NRE Oil Ltd from its parent company for a total consideration of $36 million cash. Mitsubishi has the right to earn half of Buru’s interest in the permits for $19.75 million should it elect to do so.

In the Canning Basin, Trident Energy has a farm-in right to earn a 17.5% or a 7.5% interest in EP 478. Upon satisfaction or expiration of this right, Buru must transfer half of its remaining interest in EP 478 to Mitsubishi.

In the Canning Basin, STP-SPA-0043 is a special prospecting authority application.

In the Barrow Basin, Pan Pacific Petroleum is selling its 23.166% interest in TL/2 and 4.157% interest in TP/7 to Hydra Energy (WA) P/L.

In the Barrow Basin, TL/5 and TL/6 are renewed to 18/09/2033.

In the Barrow Basin, TP/8 has undergone a partial relinquishment and now covers 916 sq km.

In the Carnarvon Basin, the area of WA-214-P has been reduced due to the grant of WA-50-R. WA-214-P now covers 403 sq km.

In the Carnarvon Basin, an application was lodged with the Joint Authority for suspension and extension of WA-261-P, currently awaiting decision.

In the Barrow Basin, the area of WA-290-P has been reduced due to the grant of WA-49-R. WA-290-P now covers 321 sq km.

In the Browse Basin, there is a change to the WA-302-P work program. Year 5 & 6 have been swapped.

In the Browse Basin, a 12 month suspension period has been granted to the year 5 work program for WA-314-P. Year 5 has been extended from 11/08/2012 to 11/08/2013. The licence will expire 11/02/2014.

Pan Pacific Petroleum is selling its 10% interest in WA-33-R, WA-45-R and WA-46-R to Hydra Energy (WA) P/L.

In the Canning Basin, there is a change to the work program for WA-436-P from Y4-250k 2D seismic-$0.4m; Y5-geotechnical studies-$0.1m to Y4-geotechnical studies-$0.1m; Y5-34k 2D seismic-$0.15m.

In the Canning Basin, there is a change to the work program for WA-438-P from Y4-250k 2D seismic-$0.4m; Y5-geotechnical studies-$0.1m to Y4-geotechnical studies-$0.1m, Y5-112k 2D seismic-$0.2m.

In the Carnarvon Basin WA-362-P and WA-363-P were renewed to 22/08/2017 over reduced areas and now cover 5,394 sq km and 5,562 sq km respectively. Work program for both permits is as follows -

Year 1: G&G studies $0.5m
Year 2: G&G studies $0.5m
Year 3: sea bed coring, G&G studies $1m
Year 4: 500k 3D seismic $3m
Year 5: 1 well $35m

In the Petrel Sub Basin, MEO Australia Ltd will launch a farm-out process for WA-454-P on 01/11/2012 with the opening of a data room.

In the Dampier Basin, FAR Ltd is selling its 11.25% interest in WA-47-R to Hydra Energy (WA) P/L. Furthermore, Pan Pacific Petroleum is also selling its 5.235% interest to Hydra Energy (WA) P/L. The completion of the sales is subject to Joint Venture, government and regulatory approvals.

Karoon Gas has executed final agreements to acquire 100% interest in WA-482-P from Liberty Petroleum. In consideration for the equity in the permit, Karoon must meet the first two years of work on the permit, as well as budgets and expenditure on the permit. After the two years, Karoon will have the right to back out of the block and associated work program. However, should Karoon choose to continue, it will have to pay cash bonuses and a royalty in the case of production.

In the Barrow Basin, retention licence WA-49-R was granted to Apache Northwest P/L 30.25%, Santos Offshore P/L 24.75%, OMV Australia P/L 20%, JX Nippon Oil & Gas Exploration (Australia) P/L 15% and Tap (Shelfal) P/L 10% on 27/08/2012. The licence will expire 26/08/2017. Work program is as follows -

Year 1: geotechnical, engineering & marketing studies $0.25m
Year 2: 1 well $40m
Year 3: seismic reprocessing, geotechnical, engineering & marketing studies $0.75m
Year 4: geotechnical, engineering & marketing studies $0.25m
Year 5: geotechnical, engineering & marketing studies $0.25m

In the Carnarvon Basin, WA-50-R was granted to Apache Northwest P/L 55% and Santos (BOL) P/L 45% on 31/08/2012. Licence will expire 30/08/2017. Minimum work program is as follows – 3D seismic reprocessing, analysis of Rosella 2/ST1, studies-$0.75m.


New Zealand

The 23 onshore and offshore blocks for the 2012 Block Offer closed on the 15/10/2012 and are under consideration.


In the East Coast Basin, application APP 53787 was formally withdrawn by Tamboran Resource Pty Limited on 08/10/2012.

In the Taranaki Basin, APP 54827 is a Petroleum Prospecting Permit application by Schlumberger Seaco Inc.

In the Canterbury Basin, PEP 38264 EX is an extension of land application by Anadarko New Zealand Company and Origin Energy Resources New Zealand Ltd.

In the East Coast Basin, NZEC has entered into a binding agreement with Westech Energy whereby NZEC will acquire 80% ownership and become operator of PEP 38346. In consideration for the transfer of the 80% interest, NZEC will immediately assume responsibility for the permit and completion of the related work program and will pay Westech US$725,000. The agreement is subject to approval by New Zealand Petroleum & Minerals.

In the Taranaki Basin, NZOG has reached a conditional agreement to acquire 6.667% in PEP 38451. If the transaction is completed, NZOG would acquire 6.111% from Global Resource Holdings LLLP and 0.556% from Randall C Thompson LLC. Each of those would continue to hold a 5% carried interest in the permit. The agreement is subject to conditions.

In the Taranaki Basin, PEP 51152 EX is an extension of land application by Greymouth Petroleum.

In the Taranaki Basin, PEP 51153 EX is an extension of land application by Kea Oil & Gas Ltd.

In the Taranaki Basin, PEP 51155 EX is an extension of land application by Kea Exploration Ltd.

In the Canterbury Basin, PEP 52717 was granted to Beach Petroleum (NZ) P/L on 11/10/2012. The licence will expire 10/10/2017. Work program is as follows -

12 months: 1250k 2D seismic reprocessing
24 months: studies
36 months: 200k 2D seismic
42 months: studies
48 months: 1 well
60 months: studies


Papua New Guinea

In the Papuan Basin, a subsidiary of Total SA has signed a Sale and Purchase agreement with Oil Search to acquire 40% of PPL 234 and PPL 244 and 50% of PRL 10.  In addition, Total SA has the option to acquire 35% of PPL 338 and PPL 339 from Oil Search.   Oil Search holds 100% of PRL 10 after acquiring ML Energy’s 40.45% interest. 


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