GPinfo Update October 2017

  

 

Data Update

 

The October 2017 data update is now available …

 

This month’s update includes 2 new seismic data layers supplied to us by Spectrum Geo

 

Industry Summary

 

Australia and Timor Leste have drawn up a draft treaty to set out maritime borders that will bring an end to a bitter dispute over oil and gas fields. It "delimits the maritime boundary between them in the Timor

 

Armour Energy has announced that commercial sales of gas from the Kincora gas project have commenced, which CEO Roger Cressey called a major milestone towards becoming a significant oil …

 

Permit Updates and Changes

 

Natural Resources and Mines Minister, Dr Anthony Lynham today released the Annual Exploration Program for 2017-2018, including thousands of square kilometres for gas. The 2017-2018 program …

 

Special Prospecting Authority SPA 21 AO has been granted to Finder Onshore No 1 P/L 100% on 20/09/2017. The acreage option expires on 19/09/2018 …


 

The October 2017 update for GPinfo is now available.

 

New Seismic Data Layer

 

The October update includes 2 new seismic data layers supplied to us by Spectrum Geo. Layers Spectrum Geo 2D and Spectrum Geo 3D are in the OVERLAYS group which is a subgroup of SEISMIC in the Map Manager.

 

The 3D layer includes outlines for the newly reprocessed Olympus 3D (~20,000 sq km) in the Carnarvon Basin and Heywood 3D in the Browse Basin (over AC17-7 and W17-3). Click here  for more information.

 

 

Industry Summary                                       

 

Company News

 

Australia and Timor Leste have drawn up a draft treaty to set out maritime borders that will bring an end to a bitter dispute over oil and gas fields. It "delimits the maritime boundary between them in the Timor Sea and addresses the legal status of the Greater Sunrise gas field", the Permanent Court of Arbitration said in a statement. Without giving any details, the court hailed the draft treaty as a "pathway to the development of the resource, and the sharing of the resulting revenue." For a decade, the two countries have been unable to agree over the previous Certain Maritime Arrangements in the Timor Sea (CMATS), which carved up future revenue from oil and gas reserves in the area. The governments in Timor Leste and Australia will now have to approve the treaty, with the two countries set to meet again before the end of November in Singapore aiming to set a date for a signing ceremony some time in 2018. (Source: SBS News, 15/10/2017).

 

Origin Energy Ltd has entered an agreement to sell its conventional upstream oil and gas business, Lattice Energy Ltd, to Beach Energy Ltd for $1,585 million. As part of the sale, Origin has secured access to a significant portion of Lattice Energy’s future east coast gas production under long-term gas supply agreements to support its domestic gas business. The transaction will have an effective date of 01/07/2017. Completion is subject to satisfaction of customary conditions, including approvals from the New Zealand Minister of Energy and Resources and the New Zealand Overseas Investment Office. (Source: Origin Energy announcement, 28/09/2017, Beach Energy announcement, 28/09/2017).

 

Strike Energy Ltd is pleased to announce the execution of a new gas sales agreement with Orica International Pte Ltd for the supply of up to 64 PJ of gas from Strike’s Southern Cooper Basin Gas Project. As part of the renegotiation of the gas sales agreement, the existing loan agreement with Orica has been varied to extend the date for repayment of the $2.5 million loan made by Orica from 15/07/2018 to 31/12/2021. This will accrue interest on the loan from 15/07/2017 and give Orica the right to convert the loan into Strike ordinary shares in whole or in part any time after 01/09/2018 until the maturity date. (Source: Strike Energy announcement, 22/09/2017).

 

Central Petroleum has announced a Mereenie joint marketing agreement to facilitate the upgrading of the Mereenie reserves so they coordinate with the commissioning of the Jemena pipeline to the east coast gas network. The joint marketing terms have been agreed to by the Mereenie joint venture participants and Macquarie Mereenie, and once in place, budget approvals will be sought to commercialise more of the Mereenie reserves. This will include the appraisal of the Stairway as a production zone, with the well due in January. The deal also provides the certainty of being able to pursue sales for additional gas produced by allowing both parties to approve the capital investment required for any appraisal and development to expand production. The agreement is subject to approval from the Australian Competition and Consumer Commission and a public submission for interim approval is planned shortly. (Source: Central Petroleum announcement, 25/09/2017, Energy News, 26/09/2017).

 

Empire Oil & Gas NL announces that it has entered voluntary administration after Mineral Resources demanded repayment of its $15.1 million loan for the Red Gully project. Mineral Resources issued a subsidiary of Empire with a notice of default and demand on 13/09/2017 for immediate repayment of the $15.1 million plus any accrued interest, which has not been forthcoming. Empire asked the ASX for an extension of voluntary suspension saying it would come up with a solution on 17/10/2017, but that proved too long a deadline for all involved. (Source: Empire Oil & Gas NL announcement, 28/09/2017 & 27/09/2017).

 

O.G. Oil and Gas Ltd has agreed to increase the price it will offer to shareholders of New Zealand Oil & Gas Ltd under its partial takeover offer for up to 67.55% of NZOG shares it does not already hold. The increased offer price is NZ$0.78 per share, up from NZ$0.77. The independent directors of NZOG have unanimously recommended that shareholders accept the offer. The offer closes 09/11/2017, unless extended. The revised offer price represents a significant premium to the price of NZ$0.72 per share offered by Zeta Energy Pte Ltd. (Source: New Zealand Oil & Gas announcement, 09/10/2017, 11/10/2017).

 


 

Developments

 

Armour Energy has announced that commercial sales of gas from the Kincora gas project have commenced, which CEO Roger Cressey called a major milestone towards becoming a significant oil and gas producer in the Roma region. As recently advised, recommissioned of the dry gas circuit at the Kincora gas plant was an important first step towards the commencement of gas sales. With the Kincora to Wallumbilla pipeline and the new end of line facility at Wallumbilla now operational, it has been possible to deliver gas to market. From next week gas sales are targeted at 5 TJ/day, being sold under the Company’s gas sales agreement with Australia Pacific LNG. Armour hopes to increase gas production, up to 20 TJ/day, in the next 12 to 18 months after expansion of wells and workovers and stimulation of existing wells. (Source: Armour Energy announcement, 29/09/2017).

 

Chevron and its joint venture partners have reached a significant milestone with Wheatstone LNG commencing production from its onshore facility near Onslow, Western Australia. The first LNG cargo is expected in the coming weeks and first LNG production from Wheatstone Train 2 is expected to be completed in six to eight months. At full capacity, the Wheatstone Project's two train LNG facility will supply 8.9 mtpa of LNG for export to customers in Asia from the Chevron-operated Wheatstone and Iago fields. (Source: Woodside Petroleum announcement, 09/10/2017, Chevron Corporation announcement, 08/10/2017).

 

Transborders Energy’s plans to use emerging but proven small-scale floating LNG technology to develop a stranded Australian gas field by mid-2020s has been fast-tracked to achieving first gas by 2020. The business model developed with TechnipFMC, Add Energy and Modec promises to cut up to five years of development time for a potential new FLNG opportunity. Last month, Transborders announced its plans to sanction by 2021 a plan to use emerging but proven technologies to develop stranded gas. However, it has now been learned that the first field to be targeted will be offshore Australia, with the field to be confirmed early next year and production of gas expected to start in 2020. This represents an even faster schedule than originally planned, after which time the model will be available globally. (Source: Energy News Premium, 12/10/2017).

 


 

Discoveries

 

Norwest Energy NL, the operator of TP/15, is pleased to confirm an oil discovery at Xanadu 1. Wireline logs over a 330m section confirmed reservoir quality sand intervals throughout the Irwin River coal measures, with porosities from 15-16%, with three of them - A, B and C - at the top recording log-derived hydrocarbon saturations between 41-66%, with 4.6m pay in Sand A. Fluorescence was observed in rock cuttings while drilling, and those log-derived hydrocarbon saturations persist for 120m in sands below those upper zones. Further analysis of Xanadu 1 oil samples due later this week is expected to substantiate an analogue of Cliff Head. Plans are underway for an up-dip side-track appraisal well from the casing shoe, with an eye to becoming a commercial producer. (Source: Energy News Premium, 25/09/2017, Norwest Energy NL announcement, 25/09/2017).



 Permit Changes                                                                

 

Northern Territory

 

Beetaloo Platform

Origin Energy's interest in EP117, EP76 and EP98 is held by subsidiary Origin Energy B2 P/L.

Bonaparte Basin

A suspension, extension and variation for AC/P21 was lodged on 29/09/2017.

 

AC/RL10 is being renewed.

 

A suspension and extension for NT/P82 was lodged on 14/09/2017.

Queensland

 

 

Natural Resources and Mines Minister, Dr Anthony Lynham today released the Annual Exploration Program for 2017-2018, including thousands of square kilometres for gas. The 2017-2018 program includes almost 18,000 sq km of land for petroleum and gas exploration in the Surat, Bowen, Eromanga and Adavale Basins. 

The release schedule for petroleum and gas in the 2017-2018 financial year is as follows:

Call for Tender

October - December 2017

Tender Close

January - March 2018

Tender Outcome

April – June 2018

 

 

Area

Location

PLR201718-2-1

Quilpie (excluding Town)

PLR201718-2-2

80km east of Quilpie

PLR201718-2-3

15km west of Charleville

PLR201718-2-4

10km south of Surat

PLR201718-2-5

19km eat of Surat

PLR201718-2-6

28km south-east of Surat

PLR201718-2-7

35km south of Surat

PLR201718-2-8

30km west of Tara

PLR201718-2-9

18km west of Tara

PLR201718-2-10

38km south-west of Tara

 

Adavale Basin

PL 65 was renewed to 15/12/2029.

Bowen Basin

ATP 684 was renewed to 31/07/2022.

 

ATP 745 is in the process of being renewed.

 

ATP 1177 is in the process of being renewed.

 

PL 450 and PL 451 were granted to Santos QNT P/L 50% and Australia Pacific LNG P/L 50% on 19/09/2017. The licences will expire on 18/09/2032. Following the grant of the production licences, ATP 337 has been relinquished.

 

PL 203 has been replaced by PL 268. PL 268 was granted on 28/09/2017. The licence will expire on 27/09/2047.

Cooper Basin

ATP 940 is in the process of being renewed.

 

PL 97 has been replaced by PL 508. PL 508 was granted on 28/09/2017. The licence will expire on 27/09/2032.

Eromanga Basin

ATP 2025 and ATP 2026 are in the process of being renewed.

 

Victoria Oil Exploration (1977) P/L 60% and Bridgeport Energy (QLD) P/L 40% have applied for PCA 186 and PCA 195, each over 155 sq km. The licences overlap ATP 2025.

 

Victoria Oil Exploration (1977) P/L 60% and Bridgeport Energy (QLD) P/L 40% have applied for several PCAs over ATP 2026:  PCA 187 (233 sq km), PCA 188 (233 sq km), PCA 189 (233 sq km), PCA 190 (233 sq km), PCA 191 (156 sq km), PCA 192 (234 sq km), PCA 193 (233 sq km) and PCA 194 (233 sq km).

Galilee Basin

Geothermal licence GL 2 is under application by LGE Operating Company P/L 100%.

Surat Bowen Basin

Application for potential commercial area PCA 7 is in the process of being withdrawn.

 

Stuart Petroleum Cooper Basin Gas P/L 100% has applied for potential commercial areas PCA 184 and PCA 185 over 154 sq km and 77 sq km respectively.

 

Production licences PL 281 and PL 282 were granted over the Glenray and Treville/Ben Bow fields respectively on 15/09/2017. The licences will expire on 14/09/2038. As a result of the grant, ATP 631 now covers a reduced area of 460 sq km.

Surat Basin

ATP 632 has been renewed to 31/03/2029.  Interests in ATP 632 and PCA 160 are QGC P/L 90% and SGA (Queensland) P/L 10%.

 

PL 69 is in the process of being renewed.

 

Production licence PL 405 was granted over the Muggleton field on 25/09/2017. The licence will expire on 24/09/2047.  As a result, ATP 606 now covers a reduced area of 419 sq km.

South Australia

 

Arckaringa Basin

The work program conditions for PEL 117 have been extended by 3 months from 13/08/2017 to 12/11/2017.  The licence has had its expiry date extended to 04/07/2019.

Cooper Basin

Geothermal application GELA 656 has been varied and now covers a reduced area of 2177 sq km.

 

Metgasco Ltd and Dunns Earthmoving P/L have entered agreements by which, depending on the outcome of drilling and testing, will farm-in for 20% and 15% respectively of the Frey 1 Area within PEL 93. If Metgasco and Dunns Earthmoving elect to proceed with the acquisition of the farmin interest, the joint venture parties will take steps to complete the registration of a PRL over the Frey 1 Area and Metgasco will be registered as the holder of a 20% interest in that PRL and Dunns will be registered holder of 15%. The agreement is conditional on the usual regulatory approvals being granted.

 

PPL 81 has been renewed to 31/10/2038.

 

PRL 29 and PRL 30 are being renewed.

 

Victoria Oil Exploration (1977) P/L 57% and Acer Energy 43% have applied for PRLA 238 – PRLA 244.

Great Australian Bight

Chevron is withdrawing from the Great Australian Bight exploration program EPP44 and EPP45.

Otway Basin

OT2017-A closed on 29/09/2017 and is under consideration.

Victoria

 

Gippsland Basin

PEP166 has had its expiry date extended to 02/10/2018.

 

PRL3 has had its expiry date extended to 26/02/2019.

 

VIC/P57 is in the process of being renewed.

 

Bass Oil has been seeking to farmout or sell VIC/P68 without sufficient interest. It is likely the licence will be surrendered on 03/05/2018.

Otway Basin

PEP163 has had its expiry date extended to 18/10/2018.

 

PEP167 has had its expiry date extended to 01/03/2020.

 

PEP169 has had its expiry date extended to 24/10/2018.

 

PEP175 has had its expiry date extended to 17/04/2020.

 

PRL2 has had its expiry date extended to 26/02/2020.

Western Australia

 

Bonaparte Basin

A suspension and extension for WA-454-P was lodged on 15/09/2017.

Browse Basin

A suspension, extension and variation for WA-343-P was lodged on 19/09/2017.

 

WA-408-P has expired. The area reverts to vacant acreage.

 

WA-79-R has been granted to Santos Browse P/L 30%, Chevron Australia (WA-274-P) P/L 50% and INPEX Browse E&P P/L 20% on 21/09/2017. The licence will expire on 20/09/2022. Work program is as follows –

Years 1-5 - progress engagement with registered title holders of WA-315-P and WA-398-P, progress engagement with infrastructure owners, incorporation of latest seismic dataset into resource assessment, studies to reduce drilling non-productive time and cost, review of development cost reduction $0.25m

 

WA-80-R has been granted to Santos Offshore P/L 47.831%, Chevron Australia (WA-281-P) P/L 24.83%, INPEX Browse E&P P/L 20% and Beach Energy Ltd 7.339% on 21/09/2017. The licence will expire on 20/09/2022. Work program is as follows - 

Years 1-5 - progress engagement with registered title holders of WA-315-P and WA-398-P, progress engagement with infrastructure owners, incorporation of latest seismic dataset into resource assessment, studies to reduce drilling non-productive time and cost, review of development cost reduction $0.1m

 

WA-81-R has been granted to Santos Browse P/L 30%, Chevron Australia (WA-274-P) P/L 50% and INPEX Browse E&P P/L 20% on 21/09/2017. The licence will expire on 20/09/2022. Work program is as follows –

Years 1-5 - progress engagement with registered title holders of WA-315-P and WA-398-P, progress engagement with infrastructure owners, incorporation of latest seismic dataset into resource assessment, studies to reduce drilling non-productive time and cost, review of development cost reduction $0.25m

Canning Basin

The year 2 work program conditions for EP 104 have been suspended for 12 months from 29/07/2017 to 29/07/2018. The licence has had its expiry date extended to 29/07/2021.

 

The year 2 work program conditions for EP 487 have been suspended for 12 months from 13/12/2017 to 13/12/2018. The licence has had its expiry date extended to 13/12/2022. The work program has been varied -

Year 2 - 1 well, 60 km 2D seismic, studies $12.5m

 

Special Prospecting Authority SPA 21 AO has been granted to Finder Onshore No 1 P/L 100% on 20/09/2017. The acreage option expires on 19/09/2018.

Carnarvon Basin

The year 5 work program conditions for WA-205-P have been suspended by 12 months from 21/06/2017 to 20/06/2018. The licence has had its expiry date extended to 20/06/2018.

 

The Winchester location application has been lodged over WA-323-P on 26/09/2017.

 

BP's option to acquire 42.5% equity in WA-359-P has been extended until 11/12/2017.

 

The year 4 work program conditions for WA-389-P have been suspended by 24 months from 09/10/2017 to 08/10/2019. The licence has had its expiry date extended to 08/10/2020. The work program has been varied -

Year 4 – G&G studies $0.65m

 

WA-41-R has been renewed to 19/09/2022. Work program is as follows –

Years 1-5 - subsurface static modelling, subsurface dynamic modelling and economics, development concept evaluation, update field development plan, consider FEED study $0.5m

 

WA-480-P was relinquished on 22/09/2017. The area reverts to vacant acreage.

 

The years 1-3 work program conditions for WA-518-P have been suspended by 12 months 18/09/2018 to 17/09/2019. The licence has had its expiry date extended to 17/09/2022. The work program has been varied -

Years 1-3 - purchase 885 sq km 3D seismic, 885 sq km 3D PSDM reprocessing, 885 sq km 3D pre-stack elastic inversion, well planning, G&G studies, 1 well $62.2m

 

The year 2 work program conditions for WA-520-P have been suspended by 12 months from 21/09/2017 to 20/09/2018. The licence has had its expiry date extended to 20/09/2022.

 

WA-528-P has been granted to Chevron Australia New Ventures P/L (operator) 50% and Woodside Energy Ltd 50% on 28/09/2017. The licence will expire on 27/09/2023. Work program is as follows -

Years 1-3 - 600 sq km 3D seismic reprocessing, G&G studies, 2000 sq km 3D seismic acquisition $14.25m
Year 4 - well design, G&G studies $1.75m
Year 5 - 1 well, G&G studies $50.35m
Year 6 - G&G studies $0.7m

 

WA-529-P has been granted to Chevron Australia New Ventures P/L (operator) 50% and Woodside Energy Ltd 50% on 28/09/2017. The licence will expire on 27/09/2023. Work program is as follows –

Years 1-3 - 972 sq km 3D Broadband PSDM reprocessing, G&G studies, 1687sq km 3D seismic reprocessing, 1900 sq km 3D seismic acquisition $14.575m
Year 4 - well design, G&G studies $1.75m
Year 5 - 1 well, G&G studies-$50.35; Y6-G&G studies $0.7m

 

WA-530-P has been granted to Chevron Australia New Ventures P/L (operator) 50% and Woodside Energy Ltd 50% on 28/09/2017. The licence will expire on 27/09/2023. Work program is as follows –

Years 1-3 - 3600 sq km 3D Broadband PSDM reprocessing, G&G studies, 1100 sq km 3D Broadband PreSDM reprocessing, 900 sq km 3D seismic acquisition $10.29m
Year 4 - well design, G&G studies $1.75m
Year 5 - 1 well, evaluation and integration of results $50.35m
Year 6 - G&G studies $0.7m

 

WA-531-P has been to Quadrant Northwest P/L (operator) 55% and Santos Offshore P/L 45% on 28/09/2017. The licence will expire on 27/09/2023. Work program is as follows –

Years 1-3 - 122 sq km 3D seismic reprocessing, 921 sq km 3D seismic reprocessing, geological review, integrate 3D datasets and seismic interpretation, rock physics, QI and 3D seismic inversion studies $1.45m
Year 4 - portfolio compilation including volumetric and risk assessment of leads and prospects $0.4m
Year 5 - portfolio ranking including G&G review of key risks, development concept engineering studies $0.4m
Year 6 - 1well $30m

 

WA-82-R has been granted to Chevron Australia (WA-392-P) P/L 50%, Mobil Australia Resources Company P/L 25% and Shell Australia P/L 25% on 27/09/2017. The licence will expire on 26/09/2022. Work program is as follows - 

Year 1 - PMDC 3D seismic reprocessing and technical studies $0.07m
Year 2 - seismic interpretation, subsurface and technical studies $0.07m
Year 3 - subsurface, engineering and technical studies $0.06m
Year 4 - subsurface, engineering and technical studies $0.06m
Year 5 - gas market/cost review $0.04m

Dampier Basin

A variation for WA-452-P was lodged on 05/10/2017.

Perth Basin

The year 3 work program conditions for EP 430 have been suspended for 12 months from 06/08/2017 to 06/08/2018. The licence has had its expiry date extended to 06/08/2020. The work program has been varied -

Year 3 - 1 well, geological studies $2.55m

 

A suspension and extension for EP 437 was lodged on 28/09/2017.

 

A suspension and extension for EP 469 was lodged on 15/09/2017.

Rowley Sub Basin

WA-505-P is being relinquished.

New Zealand

 

Northland Basin

Todd Petroleum Mining Company Ltd has transferred its 100% interest in PEP 38602 and PEP 60094 to Todd Exploration Management Services Ltd.

Taranaki Basin

Todd Exploration Ltd has transferred its 100% interest in PEP 53374 to Todd Exploration Management Services Ltd.

 

The area of PEP 54877 has been reduced due to the grant of production licence PMP 60291.

 

PEP 60089 was relinquished on 03/10/2017.

 

Greymouth Petroleum Acquisition Company Ltd has transferred its 100% interest in PMP 38146, PMP 38159 and its 33.333% interest in PMP 38157 to Greymouth Petroleum Central Ltd.

 

PMP 60291 has been granted to Cheal Petroleum Ltd 70% and East West Petroleum (NZ) Ltd 30% on 15/09/2017. The licence will expire on 14/09/2037.

Papua New Guinea

 

Papuan Basin

Kumul Petroleum (Kroton) Ltd has acquired Diamond Gas Niugini's 10% interest in PDL 10.

 

                                                                                                                                  

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