Shell and PetroChina have successfully completed their $3.4 billion acquisition of Arrow Energy ...
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Shell and PetroChina have successfully completed their $3.4 billion acquisition of Arrow Energy, a deal that Queensland Premier Anna Bligh said represented the entry of big players into the state. “This deal brings together Shell’s knowledge in LNG and PetroChina’s access to the Chinese energy market and is a major boost for the coal seam gas and LNG industry in Queensland,” she said. The premier added the deal could see CS CSG, the joint venture company held equally by Shell and PetroChina, accelerate the delivery of the proposed Curtis Island facility which could process up to 16 million tonnes of LNG per year. All Arrow shares have been transferred to CS CSG and CS CSG has been entered in the Arrow register as the sole shareholder of Arrow. Arrow Energy was removed from the official list of ASX on 25/08/2010. (Source: PetroleumNews, 20/08/2010, Arrow Energy ASX Announcements, 23/08/2010, 24/08/2010).
Drillsearch Energy has announced that Circumpacific Energy Corporation has entered an agreement to be purchased by a private oil and gas company Western Petroleum Commodities Inc for approximately A$10.2 million. The acquisition would be equivalent to 18 cents per share, which is a 100 per cent premium over its 12 month average trading price. If the agreement is approved, Drillsearch says it will buy Circumpacific’s joint venture interest in eight exploration tenements in Australia. It is expected that the Plan of Arrangement will be completed within the next 45-60 days. (Source: Drillsearch ASX Announcement, 27/08/2010).
Drillsearch Energy and Innamincka Petroleum have decided to join forces to bring together their Cooper Basin asset portfolios and create the basin’s leading mid-tier oil and gas company. The two Cooper Basin-focused explorers and producers unanimously agreed to merge by way of scheme of arrangement. Under the scheme, Innamincka shareholders will receive 2.5 Drillsearch shares for each Innamincka share they own. The merged group would have a leading position in oil and gas production across the Cooper with 2P (proven and probable) reserves of 4.2 million barrels of oil equivalent. The merged company will be headquartered in Sydney and Innamincka’s Brisbane office will be maintained to increase the group’s access to technical personnel and resources in Queensland. As part of the scheme, Drillsearch must appoint at least one director (as nominated by Innamincka and agreed by Drillsearch) to its board on or before the implementation date of December 31. The scheme is subject to a number of conditions including Innamincka shareholder and court approval. (Source: PetroleumNews, 08/09/2010, Drillsearch Energy ASX Announcement, 08/09/2010).
French major Total has bought a 20% stake in the Gladstone liquefied natural gas project from Santos and Petronas, representing the company’s first major investment in an LNG project using unconventional gas. In a statement, Santos said it has sold a 15% share to Total for $650 million, while Malaysia’s Petronas has entered into an agreement to sell a 5% interest to Total. On completion of the sale transactions, Santos will have a 45% stake in GLNG, Petronas 35% and Total 20%. Santos has also signed binding LNG offtake contracts with Total and Petronas for 5 million tonnes per annum, representing $100 billion and underpinning the development of a two-train project. (Source: PetroleumNews, 09/09/2010).
GE Oil & Gas has secured contracts to supply equipment and long-term service to the $US15 billion ($A16.8 billion) PNG LNG project. Under the supply contract, GE will provide gas turbines and centrifugal compressors for two liquefied natural gas trains at the Hides gas conditioning plant, while the service contract covers the maintenance of 13 turbo compressor trains. Gas for the PNG LNG project will be treated at the Hides gas conditioning plant before it is transported by pipeline to the proposed 6.6 million tonne per annum LNG plant, located about 20 kilometres northwest of Port Moresby. First production from the two train PNG LNG project is expected in 2014. The value of the contracts was not disclosed. (Source: PetroleumNews, 24/08/2010).
The 50-50 engineering joint venture of Clough Australia, Perth, and BAM International, the Netherlands, has been awarded a letter of intent to proceed with the design and construction of the LNG and condensate offloading jetty proposed for ExxonMobil group’s PNG LNG project in Papua New Guinea. The subcontract has been awarded by the Chiyoda JGC joint venture and is valued at A$287 million. The award comes after a 9 month tender process. Clough-BAM will construct the jetty adjacent to the planned LNG manufacturing plant, which is to be about 20 km northwest of the nation’s capital Port Moresby. There will be a 500-strong workforce employed for the jetty construction which is described as a 2.4 km-long trestle and substation design plus a loading platform and a single berth. Engineering, procurement, and planning for the project has already begun under a separate $10 million advanced work order made in early August. (Source: Oil & Gas Journal, 31/08/2010).
Australia is set to surpass Qatar and emerge as the largest exporter of liquefied natural gas, according to FACTS Global Energy Group chief executive officer Fereidun Fesharaki. Fesharaki, who will be addressing the SEAAOC 2010 conference in Darwin later this month, said he believed Australia would become the largest exporter of LNG in the world once a suite of planned LNG and CSG-LNG projects came onstream. He said a combination of existing projects and new projects such as Gorgon and Pluto along with a number of coal seam gas projects would push Australia to the top spot. Next year, Australia’s export of LNG is set to increase with the start-up of Woodside’s Pluto LNG project. Exports are expected to continue to grow from 2014 when Chevron starts delivering Gorgon LNG and a number of CSG-LNG projects in Queensland follow suit. (Source: PetroleumNews, 02/09/2010).
Mermaid Marine has secured a three-year, $80 million contact from Chevron for the transportation of fuel from mainland Australia to Barrow Island in support of the Gorgon liquefied natural gas project. Under the contract, Mermaid will provide a towing tug, a landing craft and a barge modified to transport fuel from the second quarter of the 2010-11 financial year. (Source: PetroleumNews, 14/09/2010).
Woodside announced on 17/08/2010 that the Larsen Deep 1 well in permit WA-404-P has intersected approximately 50 m gross gas over several zones within the Triassic target. The well is planned to drill to a total depth of 5,030 m. Following drilling, wireline logging will be conducted to obtain pressure and gas samples. (Source: Woodside ASX Announcement, 17/08/2010).
In WA-205-P, Chevron made its most significant gas discovery in Australia with the Acme 1 well encountering about 273 m of net gas pay. “In terms of net gas pay, Acme 1 is one of our most significant natural gas discoveries in Australia,” Chevron vice-chairman George Kirkland said. Acme 1 was drilled with the giant Ensco 7500 semi-submersible rig to a depth of 4,715 m and is the ninth discovery announced by the oil major in the last 12 months. (Source: PetroleumNews 17/08/2010).
Stuart Petroleum has produced 2300 barrels of oil per day during testing of the Worrior 7 well in the Cooper Basin. The oil was flowed from the primary target McKinlay member of the Namur sandstone over a five-hour period prior to the well being shut-in as a producer. Additional unexpected oil pay intersected in the Birkhead formation will also be tested after an initial production run from the McKinlay. Stuart is operator and holds a 70% stake in PPL 207 while Cooper Energy has 30%. Worrior 7 was drilled to convert around 400,000 barrels of 2P (proven and probable) undeveloped reserves which has not been tapped by the existing well pattern. Meanwhile, the company will plug and abandon the Kerinna 2 exploration well after it failed to encounter any commercial hydrocarbons. (Source: PetroleumNews, 07/09/2010).
Central Petroleum has struck oil at its Johnstone West 1 wildcat exploration well in the Pedirka Basin, Northern Territory. Oil shows were encountered over a 22 m interval from 1,387-1,409 m, while gas shows of up to 300 parts per million of methane and heavier ethane, propane, butane and pentane were also intersected. Central Petroleum will continue drilling to determine the reservoir quality as oil shows are located in the secondary target location while the well is located about 80 kilometres away from the nearest control well. (Source: PetroleumNews, 07/09/2010).
New South Wales
In the Surat Basin, PEL 437 was renewed to 06/05/2013.
In the Sydney Basin, Ormil Operations P/L is acquiring all of the ordinary shares in Sydney Basin CBM P/L and is farming in for 20% in PEL 442, PEL 444 and PEL 454. Ormil Operations will also have the option to earn an additional 30% by providing $7 million in funding for JV work by 30/06/2014.
In the Darling Basin, Red Sky Energy has relinquished PEL 447, PEL 448 and PEL 449.
Planet Gas has entered into an agreement to farm-in to PEL 468, PEL 469 and PEL 470. The company, through its wholly owned subsidiary Planet Gas & CBM P/L, will earn up to 50% in each permit, via an agreed work program, and immediately assumes the Operatorship of the permits. The estimated minimum expenditure for the technical works over the 3 year life of the farm-ins is $15.88 million. Each area will be a subject of a 3-phase farm-in process.
In the Eromanga Basin, EL 7191 expired on 21/08/2010.
In the Vulcan Basin, AC/P 34 has undergone partial relinquishment and now covers a reduced area of 1,259 sq km.
In the Beetaloo Basin, EP 98 has had its expiry date extended to 31/12/2011.
In the Amadeus Basin, Trident Energy Ltd has agreed to terminate its participating interest in EP(A) 111 as part of the deal with Central Petroleum. Central Petroleum’s subsidiary, Frontier Oil & Gas P/L, is now 100% holder of this licence application.
In the Arunta Basin, application EP(A) 170 by Uramet Minerals Ltd was refused.
In the McArthur Basin, EP(A) 190 application area has been amended; the licence now covers 12,821 sq km.
The following are new petroleum exploration licence applications in NT -
Applicant Area (sq km)
In the Eromanga Basin, Mosaic Oil will earn 40% in the permit ATP 1056P by funding 50% of the cost of 3D seismic survey and 50% of drilling 10 exploration wells.
Also in the Eromanga Basin, Tangiers Petroleum and Pancontinental Oil & Gas have decided to withdraw from ATP 587P joint venture and surrender the licence.
In the Cooper Basin, Drillsearch is selling 2% in the Naccowlah Block licences to Bounty Oil & Gas.
In the Surat Basin, ATP 593P has undergone partial relinquishment and now covers a reduced area of 386 sq km.
In the Eromanga Basin, ATP 752P B (Barta Block) and ATP 752P W (Wompi Block) have both undergone partial relinquishment and now cover a reduced area of 1,457 sq km and of 873 sq km respectively.
In the Surat Basin, Adelaide Energy’s sale of its 20% interest in ATP 849P has failed to get the final approval for the transaction and will not proceed as expected. In June the company announced it would sell its interest in the permit to an undisclosed party for $1.6 million. However in a statement on Tuesday, 14/09/2010, Adelaide Energy said it was advised by a counter party to the agreement, a Queensland Government-owned corporation, that final approval for the transaction was not obtained.
In the Eromanga Basin, PL 38 was renewed until 16/06/2029.
In the Surat Basin, PL 40 was renewed until 10/09/2029.
The following are new Production Licence applications in QLD -
Participants Area (sq km)
In the Bowen Basin, PL 395 and PL 396 were withdrawn and replaced by PL 420 and PL 421 over the same area.
The following petroleum exploration licences have had their expiry dates extended -
Licence Basin Expiry Date
In the Cooper Basin, Drillsearch Energy has purchased Traditional Oil Exploration's interest (subsidiary of Bandanna Energy) in PRLA 26 (Udacha Wet gas discovery), PEL 106 P, PEL 106 R, PEL 106 S (Paprika, Smegsy and Rossco West gas discoveries.
In the Eromanga Basin, application PELA 464 by TC Development Corporation P/L was rejected.
PELA 561 is a new application by Kush Corporation 80%, Bluehawk Capital P/L 10% and G. Kushnir 10% in the Eromanga Basin over 9,500 sq km.
PELA 562 is a new application by Deep Energy Ltd in the Arrowie Basin over 2,486 sq km.
The following geothermal permits have had their expiry dates extended–
Licence Basin Expiry Date
The following geothermal permits held by Inferus Resources P/L were relinquished on 02/08/2010 -
There are 3 new Geothermal Licence applications in the Gawler Craton Basin by Roxby Geothermal P/L -
Application Area (sq km)
Offshore in the Gippsland Basin, the following permits were relinquished: VIC/P 49, VIC/P 53 and VIC/P 65.
In the Perth Basin, Empire Oil & Gas on behalf of the EP 389 JV lodged an Application for a Location for a Production Licence over 2 graticular blocks covering the Gingin West 1 discovery. Once the Application for a Location is granted, an Application for Production Licence will be made.
In the Barrow Basin, Apache will take a 75% interest in WA-450-P under the farm-in agreement with Finder Exploration. Once the farm-in is completed, Apache will be operator with a 75% interest while Finder will retain 25%.
In the Carnarvon Basin, Santos is selling 55% in Spar development WA-4-R to Apache for an initial payment of US$31 million with the potential for additional payments of up to US$85 million depending on the level of certified reserves following the drilling of the Spar 2 appraisal well later this year. The deal is subject to regulatory approvals and is expected to close in second half of 2010. Santos will hold 45% and Apache will hold 55% and will be the operator for both the Halyard and Spar fields.
In the Perth Basin, EP 432 has undergone partial relinquishment and now covers a reduced area of 1,259 sq km.
The following permits have had their expiry dates extended -
Licence Basin Expiry Date
In the Exmouth Basin, WA-269-P is being renewed.
Also in the Exmouth Basin, WA-370-P was cancelled on 20/08/2010.
In the Carnarvon Basin, WA-400-P was relinquished on 24/08/2010.
In the Northeast WA Basin, 2010 onshore gazettals L 10-4
and L 10-5 did not receive any bids and were cancelled.
In the Taranaki Basin, APP 52950 is a new application by Solid Energy New Zealand Ltd over 3,138 sq km.
Offshore in the Taranaki Basin, APP 52962 is a new application over 8,011 sq km by Listed Ventures Ltd 50% and RPT Resources Ltd 50%.
In the East Coast Basin, APP 56976 is a new application by East Coast Energy Ventures Ltd over 4,314 sq km.
Offshore in the Taranaki Basin, PEP 38482 was relinquished on 08/09/2010.
Onshore in the Taranaki Basin, interest transfer for PEP 51149 has been approved by Crown Minerals and the participants in the permit are now Todd Exploration Ltd 40% (operator), Mighty River Power Gas Investments Ltd 30%, Cue Taranaki P/L 20% and Mosaic Oil NZ Ltd 10%.
Offshore in the Westland Basin, PEP 50439 was relinquished on 13/08/2010. Following the technical assessment, Widespread Energy decided that the permit is too high a risk to commit to further work program obligations.
Onshore in the Westland Basin, Macdonald Investments withdrew from PMP 50100. Chartwell NZ P/L now holds 100% of the permit.
In the Waikato Basin, APP 52043 was granted as PEP 52043 to Solid Energy New Zealand Ltd 100%. The licence will expire on 22/08/2015. The work program is as follows -
technical studies, commit or surrender
Papua New Guinea
Onshore in the Papuan Basin, Talisman is paying New Guinea Energy $US1.2 million to increase its stake in PPL 268 from 15% to 50%.
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