September 2013

Monthly Update
The September 2013 data update is now available ...

Industry Summary
New Standard Energy has increased its stake in Elixir Petroleum following successful equity raising. New Standard purchased shares at a total cost of $1 million, taking New Standard’s interest in Elixir from 13.7% to 28.2% ...

Permit Updates and Changes
In the Darling Basin, renewal applications for PEL 422, PEL 424 and PEL 471 were withdrawn on 14/08/2013 and these licences have now expired ...

 


Monthly Update

The September 2013 GPinfo update is now available.

 


Industry Summary

Company News

New Standard Energy
has increased its stake in Elixir Petroleum following successful equity raising. New Standard purchased shares at a total cost of $1 million, taking New Standard’s interest in Elixir from 13.7% to 28.2%. The shares were issued at a price of 1.2c per share. (Source: New Standard Energy announcement, 13/08/2013).

Ochre Group Holdings has entered into an implementation deed to acquire Emerald Oil and Gas NL to create a diversified natural resources development and holding company. Under the scheme, Ochre will offer Emerald shareholders one share for every 2.75 shares in Emerald. Following completion, Emerald will be a wholly-owned subsidiary of Ochre and will cease to be a listed entity. (Source: Ochre Group Holdings announcement, 02/08/2013).

Drillsearch Energy is pleased to announce a significant increase of 157% in the Company’s 2P reserves to 28.5 mmboe and a 41% increase in its 2C contingent resources to 14.8 mmboe. The assessment by RISC and DeGoyler and MacNaughton lifted reserve numbers in the company’s Western Flank, Western Cooper Wet Gas and Eastern Cooper oil permits. (Source: Drillsearch Energy announcement, 15/08/2013).

Senex Energy and the South Australian Government have agreed for a 15 year petroleum retention licence scheme across all of the company’s operated oil permits in the Cooper-Eromanga Basin. The deal covers about 10,000sq km of oil exploration permits and allows Senex to convert its petroleum exploration licences to petroleum retention licences with special conditions. Furthermore, the company’s western flank acreage will not be caught by the relinquishment rules in SA, which require one third to one half of the original area to be surrendered after five years. The 15 year scheme applies for an initial five year term and can be renewed for two further five year periods.  The agreement comes with a term of $200 million in exploration and appraisal expenditure as part of the 15 year exploration program. (Source: Senex Energy announcement, 19/08/2013, Energy News Premium, 22/08/2013).

MEO Australia has completed its initial assessment of prospects and leads in AC/P 50 and AC/P 51 and has identified the Ramble On prospect, incorporating proven reservoir, seal and source intervals as a new structural play for the basin. MEO estimates Ramble On could contain mean prospective resources of 56 mmstb oil. MEO has commenced a partial sale process ahead of 2014/2015 drilling. (Source: MEO Australia announcement, 19/08/2013).

Beach Energy has booked significant contingent resources at ATP 855P, with the areas around Halifax 1 showing 318 bcf to 1.15 tcf of gas. The joint venture engaged an unnamed resource evaluation company to undertake a report on the Contingent Resources around the Halifax 1 well and came up with the 2C figure of 629 bcf. The consultants used core, log and flow test data to come up with the numbers. (Source: Icon Energy announcement, 26/08/2013).

Loyal Strategic Investment will make a proportional takeover offer for 75% of each Coalbank shareholder’s ordinary shares in Coalbank at an offer price of 1 cent per share. The Coalbank board supports the bid and unanimously recommends the offer to its shareholders, in the absence of a superior proposal. The offer is expected to close in October 2013. (Source: Coalbank announcement, 27/08/2013).

Developments

Esso Highlands Ltd, operator of the PNG LNG project, has advised that the project is more than 90% complete and is on schedule for first LNG delivery during the second half of 2014. The commissioning phase of the project has recently commenced in preparation for the first LNG production in 2014. As forecast last year, the projects estimated cost remains unchanged at $US19. (Source: ExxonMobil announcement, 02/09/2013).

The Cornea joint venture has completed its determination of the contingent resources within the oil and gas accumulations of the Cornea field located within WA-342-P. On the oil side, it said the best estimate on a P50 basis held the potential for 411.7 mmbbls in place and a contingent 28.8 mmbbls. For gas, it said that it could be sitting on a best estimate on a P50 basis of 118 bcf of gas in place and a contingent 67.1 bcf. The determination of the contingent resources forms part of the work necessary to complete the application for a retention lease over the Cornea field, Focus field and Sparkle oil fields, collectively known as the greater Cornea field. (Source: Moby Oil & Gas announcement, 19/08/2013).

Woodside has announced that the Browse joint venture participants have selected the use of FLNG technology as the development concept to commercialise the three Browse gas fields. The joint venture partners have agreed to progress the basis of design (BOD) work on a concept using Shell’s FLNG technology. The BOD will determine the major design parameters for the front engineering and design (FEED) phase of the project. Work on the design will start immediately in order to hit a FEED target of 2014. (Source: Woodside announcement, 02/09/2013).

The Chief Justice of Western Australia has labelled the decision to give environmental approval to a gas hub at James Price Point near Broome as “invalid” because of conflicts of interest among the Environmental Protection Agency board members.
The Wilderness Society had argued conflicts of interest in the Environmental Protection Authority assessment process, four members of that board were forced to step aside from the decision-making portion and resulted in just one EPA board member - chairman Paul Vogel - making the final decision. In a decision handed down this morning, the chief justice found that the four members of the EPA who had stood aside had enough of an influence to call into question the ultimate decision. The EPA said it would consider the ruling. The state government is seeking advice from the State Solicitor's office. (Source: Energy News Premium, 19/08/2013).

BHP has commenced gas production sales at the Macedon project in Western Australia. BHP also told investors that sales from the 200 million cubic feet per day project had started in August. The Macedon project production wells supply a wet gas pipeline to the onshore gas treatment plant in Ashburton North, 17km southwest of Onslow. (Source: Energy News Premium, 21/08/2013).

The Queensland Government has granted environmental approval for Arrow’s $15 billion LNG project on Curtis Island. The project will be the fourth LNG development on Curtis Island, the plant will be capable of producing 18 million tonnes of LNG per year. The project will include construction of a gas pipeline from Bruce Highway to Curtis Island, a liquefaction facility, construction of marine facilities, construction of jetties and potential localised dredging. The project must now get Federal Government approval to consider potential impacts to the Great Barrier Reef and other matters of national significant within the statutory 30 days. The decision is currently due on 23/10/2013. (Source: Energy News Premium, 11/09/2013).

Discoveries

Senex Energy has delivered a significant oil discovery with the Burruna 2 exploration well in the southern Cooper-Eromanga Basin permit PEL 115. Wireline logs have confirmed a net pay interval in the mid Namur Formation of 5.3 metres with 750 bopd flowing to surface. The well will be cased as suspended as a future oil producer. (Source: Senex Energy announcement, 23/08/2013).

Multiple gas charged reservoirs have been intersected and an 87m gross interval with high net pay was intersected during drilling of the Proteus 1/ST2 well in the Browse Basin. The ConocoPhillips-operated well has shown the presence of movable hydrocarbons in good quality Jurassic reservoir units, supported by logging, formation pressure gradients and gas samples. Wireline logging of the well is nearing completion and the joint venture will be undertaking a production test over the coming weeks. (Source: Karoon Gas Australia announcement, 30/08/2013).

Bounty Oil and Gas is pleased to announce that the Irtalie East 4 development well has been successfully cased as a potential oil producer. The well encountered good oil shows and between 6 and 8.5 metres of net oil pay in the primary target, the Basal Birkhead and Hutton Formations. (Source: Bounty Oil & Gas announcement, 02/09/2013).

Beach Energy has had success at Chiton 2 in PEL 91. The well was drilled to appraise the field structure, 270 metres north west of the location where Chiton 1 produces oil from the Namur sandstone reservoir. Chiton 2 intersected a 5.5 metre gross oil column and has been cased and suspended as a future Namur oil producer. (Source: Beach Energy announcement, 04/09/2013)
.


Permit Updates and Changes

New South Wales

In the Darling Basin, renewal applications for PEL 422, PEL 424 and PEL 471 were withdrawn on 14/08/2013 and these licences have now expired.

The following applications were withdrawn at the request of Acer Energy Ltd on 14/08/2013 - PELA 139, PELA 140, PELA 141, PELA 142 and PELA 143.


Northern Territory

In the Vulcan Basin, MEO has commenced a partial sale process of AC/P 51 ahead of 2014/15 drilling.

In the Browse Basin, Finder Exploration has entered into a farm-out agreement which provides for Shell Development (Australia) P/L to earn 50% and operatorship in AC/P 52. Shell will earn its interest through cash payments and funding a percentage of drilling costs of the Cronus 1 exploratory well up to an agreed cap.

In the Petrel Sub Basin, NT/P 79 was surrendered on 02/09/2013.

In the Petrel Sub Basin, the year 2 work program for NT/P 81 program is now - 1 well, 250 sq km 3D seismic $15m.

In the Money Shoal Basin, an application has been lodged with NOPTA to surrender NT/P 83
.

In the Georgina Basin, Statoil was transferred 80% of PetroFrontier's interest in EP 103, EP 104, EP 127, EP 128, EP(A) 213 and EP(A) 252 as part of the amended farm-in agreement. On 01/09/2013 Statoil assumed operatorship.

In the Pedirka Basin, EP 107 is in the process of being renewed.

In the Amadeus Basin, EP 118 was surrendered on 20/08/2013.

In the Ngalia Basin, EP 164 and EP 166 were granted to Tamboran Resources P/L on 23/08/2013. The licenses will expire on 22/08/2013.

In the McArthur Basin, EP 184 was granted to Imperial Oil & Gas P/L on 21/08/2013. The licence will expire on 20/08/2018.

In the Georgina Basin, application EP(A) 229 was withdrawn with effect from 19/08/2013
.


Queensland

In the Eromanga Basin, ATP 267P was renewed to 30/11/2015.  Work program is as follows -

Years 1-4: G&G studies, 50 km 2D seismic, 1 well (to 1158m)
(30/11/2011 to 30/11/2015)

In the Surat Basin, ATP 470P was renewed to 28/02/2015.  Work program is as follows -

Years 1-4: seismic reprocessing, 60 km 2D seismic, technical studies, 1 well (to 2300-2800m)
(01/03/2011 to 28/2/2015)

Also in the Surat Basin, ATP 471P was renewed to 28/02/2015.  Work program is as follows -

Year 1: 250 km seismic reprocessing, interpret seismic data
Year 2: 1 well (to 2200m)
Year 3: 50 km seismic
Year 4: 1 well (to 2200m)
(01/03/211 to 28/2/2015)

In the Galilee Basin, ATP 743P has undergone a partial relinquishment and now covers a reduced area of 4,320 sq km.

In the Eromanga Basin, Santos and Bengal have exercised their pre-emptive rights on the sale of Senex’s interest in ATP 752P Barta, ATP 752P Wompi and PL 303 and now hold the following interests -

ATP 752P Barta & PL 303  - Santos QNT P/L 54.643%, Bengal Energy (Australia) 30.357%
ATP 752P Wompi -  Santos QNT P/L 44.423%, Bengal Energy (Australia) 38.077%

In the Surat Basin, ATP 754P has undergone a partial relinquishment and now covers 833 sq km.

In the Eromanga Basin, application ATP 766P was withdrawn on 23/08/2013.

In the Surat Basin, ATP 805P has undergone a partial relinquishment and now covers a reduced area of 229 sq km.

In the Cooper Basin, ATP 809P has been relinquished and now reverts to vacant acreage.

In the Surat Basin, ATP 849P has been relinquished and now reverts to vacant acreage.

In the Surat/Bowen Basin, ATP 852P was renewed to 30/04/2019.  Work program is as follows -

Years 1-4: 20 CSG wells (330m to 700m)
(01/05/2011 to 30/04/2015)

In the Eromanga and Cooper Basins, Drillsearch’s interests in ATP 917P, ATP 920P, ATP 924P and ATP 932P are held by Drillsearch Energy 50% and Circumpacific Energy (Australia) 50%.

In the Eromanga Basin, ATP 1005P has undergone a partial relinquishment and now covers a reduced area of 4,364 sq km.

In the Galilee Basin, ATP 1008P has undergone a partial relinquishment and now covers a reduced area of 3,077 sq km.

Also in the Galilee Basin, ATP 1070P was granted to Seymour Energy P/L 100% on 30/08/2013.  The licence will expire on 31/08/2017.  Overlapping application ATP 1071P was refused. Work program is as follows -

Year 1: 100 km 2D seismic reprocessing, reprocess 5400 km airborne geophysical survey
Year 2: 100 km 2D seismic, seismic interpretation, 2 CSG wells (to 1500m)
Year 3: 5 partly cored CSG wells (to 1500m)
Year 4: 10 CSG appraisal wells (to 1500m)
(30/08/2013 to 30/08/2017)

In the Surat Basin, work program for ATP 972P is as follows -

Year 1: technical studies
Year 2: technical studies, 1 well
Year 3: technical studies, 1 well, 1 monitoring well
Year 4: technical studies
(2704/2011 to 30/04/2015)

In the Galilee Basin, the following licences have undergone partial relinquishments and now cover reduced areas:   ATP 984P (3,442 sq km), ATP 991P (3,904 sq km) and ATP 996P (3,261 sq km).

In the Eromanga Basin, ATP 999P has undergone a partial relinquishment and now covers a reduced area of 4,106 sq km.

In the Surat Basin, ATP 1074P was granted to Seymour Energy P/L 100% on 30/08/2013.  The licence will expire on 31/08/2017.  Overlapping application ATP 1073P was refused.  Work program is as follows -

Year 1: reprocess 70 km 2D seismic, reprocess 2900 sq km airborne geophysical survey
Year 2: 150 km 2D seismic, 3 CSG wells (to 1000m)
Year 3: 8 partly cored CSG wells (to 1000m)
Year 4: 3x5-spot CSG appraisal wells (15 wells to 1000m)
(30/08/2013 to 31/08/2017)

A number of new applications have been made for Potential Commercial Areas -

PCA 135, PCA 136 and PCA 138 by AGL Energy 99%, CH4 Gas P/L 0.7% and Arrow CSG (ATP 364) 0.3%
PCA 137 by Oil Investments 50% and Starzap 50%

In the Surat Basin, PL 64 expired on 19/08/2013.

Geothermal

In the Galilee Basin, EPG 11 and EPG 13 expired on 31/08/2013 and now revert to vacant acreage.

In the Eromanga Basin, EPG 37 expired on 31/08/2013 and now reverts to vacant acreage
.


South Australia

In the Ceduna Basin, Statoil’s interest in EPP 37, EPP 38, EPP 39 and EPP 40 is held by Statoil Australia Theta BV.

In the Cooper Basin, Acer Energy acquired 20% from Mid Continent Equipment (Australia) P/L under the PEL 101 farm-in agreement dated 06/05/2013. The farm-in was completed in July 2013.

In the Cooper Basin, Tellus Resources will transfer a 50% interest in PEL 105 to Senex Energy for a total of $3.5 million in two tranches to partially fund the drilling of Pirie 1. After rig release of Pirie 1 the permit will be operated by Senex. Senex has the option for a further 20% interest should it fund another well on or before 30/06/2014.

In the Cooper Basin, the year 5 work program for PEL 114 has been extended by 8 months from 05/07/2013 to 05/03/2014. The licence has had its expiry date extended to 21/07/2014.

In the Cooper Basin, Orca shareholder approval was received on 07/08/2013 for the acquisition by Senex of a 20% interest in PEL 115. The transaction remains subject to regulatory and third party approvals and is expected to complete in the 2013-14 year.

In the Cooper Basin, the sale of Strategic Energy Resources 5% interest in PEL 182 to Senex was completed.

In the Cooper Basin, due to the original Planet Gas ASX announcement being incorrect the interests in PEL 514 N and PEL 514 S have been corrected. As of 16/07/2013 interests in PEL 514 N and PEL 514 S should be Stuart Petroleum Cooper Basin Oil P/L 80% and Planet Cooper Basin P/L 20%. Planet Cooper Basin P/L has a 2% ORR on both blocks.

In the Adelaide Fold, PEL 606 was granted to SAPEX Ltd on 29/08/2013. The licence will expire on 28/08/2018. Work program is as follows -

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

In the Otway Basin, PEL 629 was granted to Ouro Preto Resources P/L on 02/09/2013. The licence will expire on 01/09/2018. Work program is as follows -

Year 1: 1000 km seismic reprocessing
Year 2: 250 sq km 3D seismic, 2000 km seismic reprocessing, 500 sq km gravity gradiometry survey
Year 3: 1 well
Year 4: 3 wells
Year 5: 3 wells

In the Cooper Basin, Beach has withdrawn from PEL 90 C as of 01/02/2013.

Geothermal

In the Eromanga Basin, the year 5 work programs for GEL 191, GEL 192 and GEL 193 have been extended by 6 months from 01/06/2013 to 31/12/2013. The licenses have had their expiry dates extended to 03/05/2014.

In the Cooper Basin, Origin has withdrawn from both the Innamincka Deeps and Shallows joint ventures. Geodynamics now holds 100% in GEL 211, GRL 3, GRL 4, GRL 5, GRL 6, GRL 7, GRL 8, GRL 9, GRL 10, GRL 11, GRL 12, GRL 20, GRL 21, GRL 22, GRL 23 and GRL 24.

In the Cooper Basin, GEL 352 expired on 24/08/2013.

Sequestration

In the Officer Basin, the year 1 work program for GSEL 576, GSEL 577, GSEL 578, GSEL 579, GSEL 580, GSEL 581, GSEL 582 and GSEL 583 have been extended by 12 months from 22/08/2013 to 21/08/2014. The licenses have had their expiry dates extended to 28/07/2019.


Tasmania

Offshore in the Gippsland Basin, an application to surrender T/46P was lodged with NOPTA on 12/08/2013.

Onshore Tasmania, EL 14/2009 has been refused by the DIER and is now deemed to be non-current.

Geothermal

Onshore Tasmania, SEL 9/2009 was relinquished on 15/08/2013.


Victoria

Offshore in the Gippsland Basin, gazettal area V 11-6 which closed on 08/11/2012 has not been granted and now reverts to vacant acreage.

In the Gippsland Basin, VIC/P 54 has had its Year 4 and Year 5 work programs varied -

Year 4: G&G studies $0.4m
Year 5: 1 exploration well, G&G studies $20m

Also in the Gippsland Basin, an application to surrender VIC/P 63 was lodged with NOPTA on 12/08/2013.

In the Otway Basin, AWE (through subsidiary Peedamullah Petroleum P/L) will acquire 60% of VIC/P 67 from WHL Energy by paying 75% of the cost of an 811 sq km 3D seismic survey over La Bella and surrounding exploration targets (up to a cap of US$9 million). Following the review of the seismic data, AWE can surrender its interest or commit to drilling two exploration wells at either 50% or 60% working interest.  AWE will assume operatorship if they elect to enter the drilling phase.  The transfer of interest is subject to normal regulatory approvals.

Onshore in the Otway Basin, PEP 150 was granted on 26/08/2013.  The licence will expire on 25/08/2018.  Work program is as follows -

Year 1: 50 km 2D seismic, PSDM studies
Year 2: 1 well
Year 3: G&G studies
Year 4: 50 km 2D seismic
Year 5: 1 well

Also in the Otway Basin, Bridgeport (Eromanga) P/L now operates PEP 151 following the resignation of Somerton Energy (Cooper Energy) as operator.

In the Otway Basin, PEP 171 was granted on 26/08/2013.  The licence will expire on 25/08/2018.

In the Gippsland Basin, Beach Energy and Somerton Energy have withdrawn from PRL 2 and interests have been re-assigned to Petro Tech (Lakes).  Potential farminee Armour Energy has a period of 6 months to match any other farm-in proposal from a third party or to match the previous agreement with Beach and Somerton
.


Western Australia

In the Canning Basin, gazettal L 12-16 is under application as STP-EPA-94 by Goshawk Oil & Gas P/L.

In the Carnarvon Basin, WA-214-P was renewed over a reduced area of 322 sq km. The licence will expire on 03/09/2018. Work program is as follows -

Year 1: 1 well $10m
Year 2: rock physics, 3D inversion & QI Study $0.25m
Year 3: geotechnical studies $0.25m
Year 4: geotechnical studies $0.15m
Year 5: geotechnical studies $0.15m

In the Browse Basin, the expiry date for the Argus location WA-274-P LA has been extended to 24/10/2015.

In the Browse Basin, ConocoPhillips (Browse Basin) P/L has completed the farm-out agreement with PetroChina and transferred 20% interest in WA-315-P and WA-398-P to PetroChina.

In the Browse Basin, the year 5 work program for WA-344-P is now - geotechnical & engineering studies - $0.15m.

In the Carnarvon Basin, the expiry date for the Achilles/Satyr Location WA-374-P LA has been extended to 03/11/2015.

In the Carnarvon Basin, the year 6 work program for WA-390-P has been extended by 12 months from 05/08/2013 to 05/08/2014. The licence has had its expiry date extended to 05/08/2014.

In the Bonaparte Basin, the year 6 work program for WA-402-P has been extended by 6 months from 11/07/2013 to 11/01/2014. The licence has had its expiry date extended to 11/01/2014.

In the Canning Basin, WA-415-P, WA-416-P and WA-417-P were surrendered on 16/08/2013.

In the Carnarvon Basin, the year 5 and 6 work programs for WA-434-P are now -

Year 5 - geotechnical studies $0.57m
Year 6 - 1 exploration well $22.86m

In the Perth Basin, Murphy Australia Oil P/L has transferred their interest in WA-481-P to Murphy Australia WA-481-P Oil P/L and KUFPEC Australia P/L has transferred their interest to KUFPEC (Perth) P/L.

In the Carnarvon Basin, Apache Northwest has transferred their interest in WA-35-L to Apache PVG P/L.

In the Carnarvon Basin, WA-36-R has been renewed to 14/08/2018. Work program is as follows -

Year 1: studies, analysis of Macedon oil reservoirs $16.8m
Year 2: geotechnical & geophysical studies, FEED $0.5m
Year 3: FEED, gas sales agreement, field development plan $0.5m
Year 4: apply for production licence, FID $0.2m
Year 5: development wells, studies $0.1m

In the Carnarvon Basin, Black Fire Minerals has sold its 10% interest and Australian Oil Company has sold its 17% interest in EP 435 and L 16 to Rough Range Oil.

In the Carnarvon Basin, Green Rock Energy has pulled out of a deal with Palatine Energy to acquire a 50% interest in SPA 9 AO. Palatine will now receive 30 million Green Rock shares in return for being allowed to pull out of its work program commitment.

In the Canning Basin, SPA 2 AO is under application as STP-EPA-109.

Geothermal

In the Scadden Embayment, GEP 37 and GEP 38 are being relinquished.


New Zealand

In the West Coast Basin, PEP 38517 expired 12/08/2013.

In the Taranaki Basin, PEP 38614 expired 17/08/2013.

In the Taranaki Basin, PEP 51152 and PEP 51154 are being renewed.

In the Taranaki Basin, Kea has elected not to renew PEP 51155. The licence will expire on 22/09/2013.

In the Taranaki Basin, New Zealand Energy Corp and Origin Energy have agreed to extend meeting the financing condition precedent for the NZEC acquisition of PML 38138, PML 38140 and PML 38141 from 14/08/2013 to 30/09/2013 and the government approval condition from 13/09/2013 to 14/10/2013. In consideration for the extension, NZEC will increase the non-refundable deposit to be applied to the purchase price from CDN$5  million to CDN$6 million
.


Papua New Guinea

LNG Energy Ltd has acquired Enterprise Energy Resources Ltd.  Enterprise Energy’s 50% subsidiary EERL (BVI) Holdings Ltd holds 31.5% of Telemu No 18 Ltd, with the remaining 68.5% of Telemu being held directly by LNG Energy Ltd.  Following this transaction, LNG Energy Ltd holds net interests of 16.85% in PPL 319 and 84.25% in PPL 320, PPL 321 and PPL 322.
 


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