October 2015 GPinfo Update 


 

Industry Summary

 

Sinopec has announced plans to start decommissioning the remaining equipment from the Puffin oil field in the Bonaparte basin permit AC/RL 11 by early 2016. It intends to bring in a deepwater construction support vessel …

 

Permit Updates and Changes

 

In the Bonaparte Basin, a location was declared over Blackwood NT/P 68 LB on 11/09/2015 …
 

 

 Industry Summary                                      

 

Company News

 

Sinopec has announced plans to start decommissioning the remaining equipment from the Puffin oil field in the Bonaparte basin permit AC/RL 11 by early 2016. It intends to bring in a deepwater construction support vessel for the decommissioning, with the work expected to take less than a month. Exact timing of the final removal operation will depend on vessel availability and weather conditions in what will be the southern hemisphere cyclone season. (Source: Energy News Premium, 16/09/2015).

 

The Australian Competition and Consumer Commission has delayed its decision on the proposed $90 billion Royal Dutch Shell-BG merger until November, as it has some serious issues with the move and what it means for the domestic gas market. The ACCC said, after preliminary investigations, the proposed takeover of BG by Royal Dutch Shell could damage the interests of east coast and Queensland gas users and force up prices. In its statement of issues released this morning, the ACCC said it was hoping to seek industry views and more information on the competition issues that have arisen. “The ACCC is concerned that, by aligning Shell’s interest in Arrow Energy with BG’s LNG facilities in Queensland, the proposed acquisition may change Shell’s incentives such that it will prioritise supply to BG’s LNG facilities over competing gas users,” ACCC chairman Rod Sims said. “As a result, Shell could choose to direct more - and possibly all - of Arrow's large gas reserves towards meeting BG's contracts to supply LNG export markets. This would remove some or all of Arrow's gas from the domestic market.” The ACCC has announced its final decision will be delayed until 12/11/2015. (Source: Energy News Premium, 17/09/2015).

 

Armour Energy has announced a 66% increase in its prospective gas resources in Northern Australia. The company’s best estimate prospective gas resources in the region have increased from 34 tcf to 57 tcf. The update includes maiden prospective gas resources from the Tawallah group unconventional reservoirs in the McArthur Basin of the Northern Territory, and the Riversleigh Shale located beneath the Lawn Hill Shale in ATP 1087, Queensland. In addition, Armour said a new combined inventory totalling 193 conventional leads and prospects in the NT can target 4.9 tcf of best estimate prospective gas resources. (Source: Armour Energy announcement, 21/09/2015).

 

GE Oil & Gas has signed a long-term subsea service agreement with Chevron Corporation to provide subsea services for the company’s significant gas assets, offshore Western Australia. GE will supply a range of services including project management, inventory storage, preventative maintenance and obsolescence management. Additional services on demand will include engineering analysis, field services, rental tooling, corrective maintenance, wellheads, spare equipment and training. (Source: Energy News Bulletin, 21/09/2015).

 

Metgasco is moving ahead with its exploration plans following recent setbacks, signing a contract with seismic acquisition firm Terrex P/L to acquire about 16km of seismic in its Northern Rivers acreage. Metgasco expects the seismic acquisition in PEL 16 to be undertaken in the second half of November. The seismic program, which has been planned for some time, has the New South Wales Government’s approval via the review of environmental factors process. The aim of the seismic program is to provide more definition of the northern extent of the Greater Mackellar conventional / tight gas exploration prospect. The additional seismic is expected to provide increased confidence of the structure’s closure before testing the prospect with the planned Rosella well. Metgasco also advises negotiations with an unnamed drilling contractor to drill the Rosella well are almost complete. It plans to announce the proposed timing for the Rosella drilling program in the next few weeks. (Source: Metgasco announcement, 29/09/2015).

 

Central Petroleum has entered into expressions of interest negotiations with potential gas purchasers for the proposed North East Gas Interconnector (NEGI) development. If negotiations proved successful and were converted into gas sales agreements, firm gas sales of around 12 PJ per year for ten years would be delivered into the eastern seaboard domestic gas market from 2018. Central’s gas supply negotiations include provision for tariffs to be charged by the Northern Territory gas pipeline interconnect. Central is of the understanding that all four short listed companies vying for the right to develop the pipeline have submitted final bids with the successful tenderer expected to be revealed this month. Central is in discussion with each of the bidders around tariffs available to Central should they win the NEGI bid. (Source: Central Petroleum announcement, 08/10/2015).

 

Armour Energy has confirmed today that it has received an indicative and non-binding offer to improve the consideration payable under the offer from WestSide to 20 cents per share. The board of Armour is in discussion with WestSide and its advisors in respect of the revised offer. Armour emphasised there could be no guarantee that the revised indicative offer would result in a formal variation to WestSide's original price of 12 cents per share. If the new offer of 20 cents a share materialises, it would value Armour at $60.9 million, putting the bid on par with the proposed equity placement with American Energy Partners which also values Armour at 20c a share. (Source: Energy News Premium, 09/10/2015).

 

Senex Energy Ltd and GLNG have entered into a series of major agreements for the development of the Western Surat Gas Project in Queensland.  Key points of the agreement -
 

1.     Senex to receive $42 million in cash, plus a comprehensive suite of subsurface, production and other technical data that will accelerate and de-risk Senex’s project for a successful FID, in exchange for the sale of the 77 sq km Maisey Block with ATP 889 to GLNG.

2.     Senex to supply up to 50 TJ/day of sales gas from its Western Surat Gas Project to GLNG under a binding 20-year gas sales agreement at USD JC oil-linked pricing.

3.     Potential shared use of existing GLNG water treatment and gas processing infrastructure.

4.     Raw gas sales and raw water disposal from Glenora Pilot agreed in principle to enable early gas sales.

5.     Subject to satisfaction of conditions (including approvals).

(Source:  Senex announcement, 24/09/2015).

 

Oil Search today signed a statement of intent with Government-owned PNG Power Limited on the next phases of the Ramu Power Project.  The Ramu project is aimed at connecting up to one million people to a larger and improved electricity grid by 2030, through the provision of modular, low cost power supply.  Implementation agreements are planned to be developed with the PNG Government over the next few months to support the following projects -
 

1.     Biomass Independent Power Producer

2.     Highlands Independent Power Producer

3.     Hides to Tari transmission line

4.     Highlands distribution and connections

5.     Early power to Tari

(Source:  Oil Search announcement, 23/09/2015).

 


 

Developments

 

Woodside Petroleum has awarded Norwegian contractor Aibel the front end engineering and design contract for the Greater Enfield Development off the coast of Western Australia. The Greater Enfield development comprises the subsea tie back of the Ngujima-Yin floating production, storage and offloading vessel, which will undergo modifications to the topsides, hull and turret. Aibel's scope of work includes management, engineering and provision of procurement services for FEED. The contract, of which the value was not disclosed, also holds an option for the project’s execution phase. The FEED contract has been awarded ahead of Woodside making a final investment decision on the project in 2016. (Source: Energy News Bulletin, 17/09/2015).

 

OneSubsea has been awarded a front-end engineering and design (FEED) contract for Woodside Petroleum’s Greater Enfield Area Development, offshore northwest Australia. The FEED study, which will be undertaken by OneSubsea’s local team in Perth, will include the design of the full subsea production system architecture solution, including subsea multiphase boosting for the field that will be tied-back to the existing Ngujima-Yin floating production storage and offloading vessel. (Source: Energy News Bulletin, 24/09/2015).

 

Empire Oil & Gas is pleased to advise that it has awarded the contract to operate and maintain the Red Gully Processing Facility to Upstream Production Solutions (UPS). The two-year contract will continue UPS’s work at the processing facility, where it has been working since the plant was commissioned in 2012. Empire expects to generate cost savings of around $800,000 a year, reflecting the competitive state of the market and reduced contract scope. The contract includes scope for provision of additional operations/maintenance personnel as may be required by plant expansions or new production hubs. The contract has options for two 12-month fixed-term extensions. The value of the contract was not disclosed. (Source: Empire Oil & Gas announcement, 24/09/2015).

 

The Santos operated GLNG Project has started producing first liquefied natural gas (LNG) on Curtis Island, Queensland, on schedule and within budget. LNG is currently being produced from Train 1 ahead of first cargo, which is expected to be shipped to Asian markets in the coming weeks. Train 2 is expected to be ready for start-up by yearend. (Source: Santos announcement, 24/09/2015).

 

The INPEX-operated Ichthys LNG Project, located off Australia, launched its central processing facility (CPF) on 19/09/2015. The CPF, understood to be the world’s largest semi-submersible, was officially launched from the offshore floating dock at the Samsung Heavy Industries shipyard in Geoje, South Korea, where it has been under construction since 2013. INPEX President Director Australia Seiya Ito said the successful launch was one of the project’s most significant achievements. Once completed, the CPF, which the project began constructing in January 2013, will be towed 5600 km to the Ichthys Field in the Browse Basin, offshore Western Australia, where it will be permanently moored for the life of the project—more than 40 years. (Source: INPEX announcement, 24/09/2015).

 

Galilee Energy is pleased to announce the mobilisation of a workover rig and commencement of operations at the 100%-owned ATP 529 Project in the Galilee Basin, Queensland.  The immediate program will focus on a workover of the five existing Glenaras pilot wells.  (Source:  Galilee Energy announcement, 17/09/2015).

 

Galilee Energy is pleased to announce the successful completion of the workover program at its 100%-owned Glenaras Gas Project in the Galilee Basin, Queensland.  The workover program focused on five existing Glenaras pilot wells.  The program involved setting a bridge plug below the R1 seam to isolate the lower seams previously tested in the pilot wells, then perforating the R1 coal seam and installing pumps.  Commissioning of the wells will now commence and production will be used to test the commercial flow potential of the uppermost R1 coal seam.  (Source:  Galilee announcement, 09/10/2015).

 


 

Discoveries

 

Transerv Energy is pleased to report strong results from the latest well at the Warro onshore gas field in WA, with gas pay being encounter over a gross 175m interval. The results from the Warro 5/ST 1 well include approximately 130m of net gas pay in massive stacked sands. Importantly, the well remains in gas at its total depth of 4422m MD, reinforcing the field’s substantial potential of 8-10 tcf in place while suggesting further, deeper resources could be present. The Warro/5ST 1 well will be suspended in preparation for stimulation and testing. (Source: Transerv Energy announcement, 24/09/2015).

 

InterOil says its Triceratops 3 appraisal well in PRL 39 in Papua New Guinea, north of the giant Elk-Antelope complex, has flowed gas at 17.1 mmcfd and condensate at an average of 200.3 bopd.

Stabilised flow rates were obtained over several five-hour intervals and were measured through a 72/64 inch choke with the flow constrained by tubing. The well was drilled to a total depth of 2090m. InterOil CEO Dr Michael Hession said the result was pleasing and underscored the region’s prospectivity. (Source: InterOil announcement, 18/09/2015).

 

AWE has commenced the flow testing program for the Waitsia 1 well to further appraise the conventional Waitsia gas discovery in the onshore Perth Basin, Western Australia. The testing program is designed to determine well deliverability from two conventional reservoir zones and to collect gas samples for compositional analysis. The first zone being flow tested is the deeper High Cliff Sandstone, where a 23.5m interval has been perforated. AWE is already yielding strong results from the program, with the first well flowing gas at an average rate of 24.7 mmscf/d, constrained by tubing size, on a 60/64 inch choke. (Source: AWE announcement, 07/10/2015).
 

 

 Permit Changes                                                                

 

Northern Territory

 

In the Bonaparte Basin, a location was declared over Blackwood NT/P 68 LB on 11/09/2015.

 

In the Petrel Sub Basin, there has been a change to the NT/P 84 work program -
 

Years 1-3: geochemistry, charge modelling and biostratigraphy studies, G&G studies, 1052 km 2D seismic, 1700 km 2D seismic reprocessing, seismic interpretation $5m

 

In the Georgina Basin, EP 103 and EP 104 have expired. The areas revert to vacant acreage.

 

In the Amadeus Basin, as part of arrangements in the purchase of Central's interest in the Mereenie Oil & Gas Field, Central has acquired 100% interest in the area surrounding the Dingo Gas Field, referred to as EP 82 DSA (Dingo Satellite Area).

 

In the Arunta Basin, applications EP(A) 284 and EP(A) 285 have been varied and now cover reduced areas of 11,737 sq km and 9,740 sq km respectively.

 

In the Amadeus Basin, the acquisition by Central of a 50% interest in the Mereenie Oil & Gas Field OL 4 and OL 5 is now complete and Central has assumed operatorship.

 


 

Queensland

 

The 2015 onshore gazettal areas (PLR 2015-1-1 and PLR 2015-2-1 to PLR 2015-2-19) closed on 08/10/2015 and are under consideration.

 

In the Surat Basin, ATP 336 Roma Block will be renewed as ATP 2017.   ATP 336 Waldegrave Block will be relinquished.

 

In the Surat/Bowen Basin, GLNG will acquire the Maisey Block of ATP 889 from Senex for $42 million in cash.  The deal is subject to government approvals and GLNG participant approval.

 

In the Eromanga Basin, ATP 1104 was granted to Chi Oil & Gas P/L 100% on 03/09/2015. The licence will expire on 30/09/2019.  Overlapping unsuccessful applications ATP 1105 and ATP 1106 have been refused.  Work program is as follows -
 

Year 1: G&G studies, complete re-mapping of existing seismic database
Year 2: G&G studies, 50 sq km 3D seismic
Year 3: G&G studies
Year 4: G&G studies, 2 wells (to minimum 1500m)

 

In the Surat/Bowen Basin, ATP 1191 was granted on 25/09/2015.  The licence replaces ATP 337 and will expire on 30/09/2019.   ATP 337 temporarily exists as a licence underlying PL 450, PL 451, PL 457 and PL 1102 and will no longer exist once these production licence applications are granted.

 

In the Bowen Basin, production licence PL 394 has been withdrawn.

 

Also in the Bowen Basin, PL 451 was varied and now covers 112 sq km.

 


 

South Australia

 

In the Arckaringa Basin, PEL 123 has been renewed to 01/10/2020 over a reduced area of 6,439 sq km. Work program is as follows –
 

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

 

In the Arckaringa Basin, PEL 124 has been renewed to 02/10/2020 over a reduced area of 6,579 sq km. Work program is as follows –
 

Year 1: G&G studies
Year 2: G&G studies
Year 3: 125 km seismic
Year 4: G&G studies
Year 5: 1 well

 

In the Officer Basin, PEL 138 has been suspended from 24/08/2015 to 23/08/2016. The licence has had its expiry date extended to 15/04/2020.

 

In the Officer Basin, PEL 147 and PEL 148 have been suspended from 22/08/2015 to 21/08/2016. The licenses have had their expiry dates extended to 28/07/2021.

 

In the Murray Basin, PEL 174 was relinquished with effect from 14/09/2015.

 

In the Cooper Basin, PPL 260 was granted to Beach Energy Ltd 40% and Great Artesian Oil & Gas P/L 60% on 15/09/2015 for an indefinite term/life of field.

 

Sequestration

 

In the Officer Basin, GSEL 576 to GSEL 583 have been suspended from 22/08/2015 to 21/08/2016. The licenses have had their expiry dates extended to 28/07/2021.

 


 

Tasmania

 

In the offshore Bass Basin, T/18P is in the process of being surrendered after an application was lodged with NOPTA on 14/09/2015.

 


 

Victoria

 

Offshore, in the Gippsland Basin, a variation to the Year 4 and Year 5 work program for VIC/P 41 was lodged with NOPTA on 28/09/2015. The JV has requested that the Year 4 and Year 5 work programs be transposed.

 

Also in the Gippsland Basin, a suspension and extension of the Year 5 work program for VIC/P 47 was lodged with NOPTA on 14/09/2015.

 

In the Gippsland Basin, Year 3 of the work program for VIC/P 68 has been suspended for 12 months to 03/11/2016.  The licence term has been extended to 03/05/2019.

 

In the Otway Basin, Years 1-3 of the work program for VIC/P 69 have been varied.  The following work program is required to be completed by 15/04/2017 -
 

Years 1-3: re-evaluate existing well & seismic data, 419 km 2D seismic reprocessing, commence seismic planning, 650 sq km 3D seismic, process & interpret, compile leads $17.9m

 

Onshore, in the Gippsland Basin, coal seam gas licences EL 5320 and EL 5321 were relinquished.

 


 

Western Australia

 

In the Carnarvon Basin, W 14-18 was not offered. The area reverts to vacant acreage.

 

In the Carnarvon Basin, there has been a change to the WA-214-P work program -
 

Years 1-3: 1 well, rock physics, 3D inversion & QI Study, geotechnical studies $10.5m

 

In the Barrow Sub Basin, WA-33-R has been renewed to 20/09/2020. Work program is as follows –
 

Year 1: engineering, geotechnical & marketing studies $0.1m
Year 2: stochastic seismic inversion studies over the Maitland field $0.25m
Year 3: Maitland reserves & development review $0.15m
Year 4: engineering, geotechnical & marketing studies $0.1m
Year 5: engineering, geotechnical & marketing studies $0.1m

 

In the Browse Basin, the WA-343-P year 3 work program has been extended by 24 months from 04/10/2015 to 03/10/2017. The licence has had its expiry date extended to 03/10/2018. A change to work program has also been approved –

 

Year 3: geotechnical studies, 62 sq km seismic testing, 418 sq km seismic reprocessing & inversion, seismic interpretation, 1 well $26.24m

 

In the Carnarvon Basin, WA-366-P was relinquished on 22/09/2015.

 

In the Carnarvon Basin, the WA-418-P year 6 work program has been extended by 15 months from 29/10/2015 to 29/01/2017. The licence has had its expiry date extended to 29/01/2017.

 

In the Carnarvon Basin, the WA-420-P year 6 work program has been extended by 12 months from 13/11/2015 to 12/11/2016. The licence has had its expiry date extended to 12/11/2016.

 

In the Carnarvon Basin, WA-427-P has expired. The area reverts to vacant acreage.

 

In the Carnarvon Basin, locations were declared over Ragnar WA-430-P LR and Toro WA-430-P LT on 1/10/2015.

 

In the Carnarvon Basin, CNOOC has assigned operatorship and a 60% interest in WA-484-P to BHP Billiton Petroleum (Australia) P/L.

 

In the Browse Basin, there has been a change to the WA-513-P work program –
 

Years 1-3: 335 sq km Schild 3D seismic, 165 sq km Caswell 3D seismic, 335 sq km pre-stack depth migration, 335 sq km simultaneous & stochastic inversion, G&G $5.648m

 

In the Carnarvon Basin, W 14-10 was granted as WA-518-P to Hess Australia (Karratha) P/L 100% on 18/09/2015. The licence will expire on 17/09/2021. Work program is as follows –
 

Year 1: 885 sq km 3D seismic purchase & reprocessing, G&G $9.25m
Year 2: 885 sq km 3D Pre-stack Elastic Inversion, well planning, G&G $2m
Year 3: 1 well, G&G $50.5m
Year 4: well data analysis, well planning, G&G $1.5m
Year 5: 1 well, G&G $50.5m
Year 6: well data analysis, G&G $1m

 

In the Carnarvon Basin, W 14-12 was granted as WA-519-P to Hess Australia (Pilbara) P/L 100% on 18/09/2015. The licence will expire on 17/09/2021. Work program is as follows –
 

Year 1: 257 sq km 3D PSDM seismic reprocessing, G&G $2.5m
Year 2: 257 sq km 3D Pre-stack Elastic Inversion, G&G $1.5m
Year 3: G&G $0.5m
Year 4: well planning, G&G $1m
Year 5: 1 well, G&G $31.8m
Year 6: well data analysis, G&G $1m

 

In the Carnarvon Basin, W 14-17 was granted as WA-520-P to Finder No 10 P/L 100% on 21/09/2015. The licence will expire on 20/09/2021. Work program is as follows –
 

Year 1: G&G $0.25m
Year 2: G&G, 1280 sq km 3D seismic $4.75m
Year 3: 1280 sq km 3D seismic processing, G&G $1m
Year 4: G&G, 500 sq km 3D seismic data inversion $0.5m
Year 5: G&G $0.25m
Year 6: 1 well, G&G $30.25m

 

In the Canning Basin, Quadrant Energy Ltd is withdrawing from coastal permits EP 390, EP 438, EP 471 and EP 473 and will pay the Buru Energy and Mitsubishi joint venture a gross sum of $10 million in fulfilment of its farmin obligations. Subsequent to the withdrawal of Quadrant, Buru and Mitsubishi will be the only holders of the permits.

 

In the Canning Basin, EP 453 was cancelled by the DMP on 22/09/2015. The area reverts to vacant acreage.

 

In the Perth Basin, EP 467 was cancelled by the DMP on 08/09/2015. The area reverts to vacant acreage.

 

In the Canning Basin, a work program variation was lodged for EP 487 on 24/09/2015.

 

In the Barrow Sub Basin, EP 61 is being renewed.

 

In the Canning Basin, application STP-EPA-97 has been withdrawn.

 

In the Barrow Sub Basin, the TP/8 year 3 work program has been extended by 12 months from 06/09/2015 to 06/09/2016. The licence has had its expiry date extended to 06/09/2018.

 


 

New Zealand

 

From this month on, we are no longer including New Zealand Petroleum Prospecting Permits in GPinfo. Petroleum Prospecting Permits give the holder the right to conduct reconnaissance and general investigations of an area, with no subsequent rights to an exploration permit. The following permits have been removed from GPinfo - APP 57031, APP 60055, PPP 55377 and PPP 56365. Please send us any comments or questions you have regarding this change by email.  For more information on Petroleum Prospecting Permits visit the New Zealand Petroleum & Minerals website.

 

Applications for the 2015 Block Offer closed 30/09/2015. The following areas are under consideration - 15GSC-R1, 15NRN-R1, 15PEG-R1, 15TAR-R1, 15TAR-R2, 15WEC-R1 and 15WEC-R2.

 

In the Taranaki Basin, there has been a change to the PEP 55769 work program –
 

12 months: AVO inversion attribute mapping on the existing Kaimata 3D survey

18 months: studies

48 months: 2 wells

60 months: studies

96 months: 1 well, studies

108 months: studies

120 months: 1 well

 

In the Great South Basin, there has been a change to the PEP 55792 work program -
 

12 months: 20 sq km 3D seismic, 15 km swath seismic, seismic & sequence stratigraphy study, 3D basin modelling study

36 months: 500 sq km 3D seismic and magnetic data

72 months: studies

84 months: 1 well

180 months: 1 well

 

In the Taranaki Basin, Origin Energy has accepted Mosman’s financial capacity and, as a result, the STEP acquisition is now formally proceeding. In addition, a new participation agreement has been signed and executed with High Peak Royalties Ltd for the acquisition of a 30% interest in PMP 38151 and PMP 38155. The prior participation agreement with WRDLS P/L has been cancelled. Ridge Royalty Corp has the right to acquire a 2% ORR in PMP 38151 and PMP 38155. Government approvals are still required. Completion is anticipated by 31/12/2015.

 

In the Taranaki Basin, PMP 38157 has been renewed to 18/05/2030.

 


 

Papua New Guinea

 

In the Papuan Basin, PPL 339 will be renewed over a reduced area of 4,180 sq km.

 

Heritage Oil has advised that it will not be funding the drilling of an exploration well and will not fulfil its final obligation under the previously agreed farm-in agreement to acquire 80% of PPL 486.  Heritage will retain a 40% interest in the licence and will re-transfer the other 40% to Telemu P/L.  Telemu will assume operatorship.  Furthermore, Heritage will retain a 40% interest in PRL 13 and will re-transfer the other 40% to LNG Energy.  LNG Energy will assume operatorship.

 

 

                                                                                                                                   

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