September 2015 GPinfo Update 


 

Overhaul for Queensland Mining Industry

 

Resources industry red tape is up for an overhaul as the Palasczuk Government asks industry and stakeholders how to improve current tenure and permit systems.  Minister for State Development and Minister for Natural Resources and Mines, Dr Anthony Lynham, today released a policy paper …

 

Industry Summary

 

Armour Energy has executed agreements to acquire petroleum resources, tenures, production and transportation infrastructure assets on the Roma Shelf from Origin Energy for $10m cash plus $3m in deferred consideration …

 

Permit Updates and Changes

 

In the Clarence/Moreton Basin, PEL 457 was cancelled on 02/09/2015 at the request of the title holder as a result of the NSW Petroleum Titles Buyback Scheme.  The area now reverts to vacant acreage …

 

 

 

Resources industry red tape is up for an overhaul as the Palasczuk Government asks industry and stakeholders how to improve current tenure and permit systems.  Minister for State Development and Minister for Natural Resources and Mines, Dr Anthony Lynham, today released a policy paper outlining proposals for modernising Queensland’s complex system of resource permits, authorities, leases and licences.   The Innovative Resources Tenures Framework is the latest stage in a reform project that started under Labor six years ago and will culminate in legislation coming to Parliament in the second half of 2016. Key changes proposed include –

 

1.   Five new uniform authorities – for information, exploration, development, production and infrastructure.

2.   All exploration authorities to have set terms, with no renewal.

3.   Incentives for early and strong exploration performance balanced with handing back land halfway through the term of the authority.

4.   More flexibility to give explorers incentive, for example, to amend their work on the ground according to the results they are achieving.

Submissions on the policy paper will close on 16/10/2015.  For more information visit the Queensland Department of Natural Resources and Mines website and search for tenure reform.   (Source: The Hon. Anthony Lynham announcement, 04/09/2015).

 

 

 

Company News

 

Armour Energy has executed agreements to acquire petroleum resources, tenures, production and transportation infrastructure assets on the Roma Shelf from Origin Energy for $10m cash plus $3m in deferred consideration. The assets to be acquired include –

 

1.   Origin’s interests in 19 production licences, four ATPs and four petroleum pipeline licences.  Certain JV interests being acquired are subject to pre-emptive rights.  In relation to JVs with Santos, those pre-emptive rights have been waived. 

2.   Gas, LPG and condensate processing and gas compression facilities at Kincora.

3.   A number of in-field gas compression and stand-alone oil gathering/processing facilities as well as inter-field pipelines.

4.   A dedicated pipeline from the Kincora Gas Plant to Wallumbilla connecting to the Roma to Brisbane Pipeline.

5.   A gas storage facility with a capacity of 7.5 PJ.

Interests to be acquired (with waived pre-emptive rights) are as follows:

 

Licence                                               Interest %

PL 14                                                     100.00%

PL 53                                                     100.00%

PL 70                                                     100.00%

PL 511                                                   100.00%

PL 227                                                   100.00%

PPL 3 (pipeline licence)                          100.00%

PPL 20 (pipeline licence)                         100.00%

PPL 63 (pipeline licence)                         100.00%

Newstead Gas Storage                           100.00%

PL 28                                                      46.25%

PL 69                                                      46.25%

PL 89                                                      46.25%

PL 320                                                     46.25%

PL 11W                                                   46.25%

PL 12W                                                   46.25%

PL 11 Snake Creek Exclusion                  25.00%

PL 21                                                      87.50%

PL 22                                                      87.50%

PL 27                                                      87.50%

PL 71 (production)                                   90.00%

PL 264                                                     90.00%

 

Interests to be acquired (with un-waived pre-emptive rights) are as follows:

 

Licence                                               Interest %

ATP 1190                                                 50.64%

PL 30                                                      75.00%

PL 512                                                     69.00%

PPL 22 (pipeline licence)                          69.00%

PL 71 (exploration)                                   72.00%

ATP 647 (Block 2656)                               50.00%

ATP 754                                                  50.00%

ATP 1190 (Bainbilla)                               24.748%

 

(Source:  Armour Energy announcement, 02/09/2015).

 

AWE LtdAAWE Ltd reported initial 2P reserves and upgraded 2C contingent resource estimates for its onshore Perth basin Waitsia gas field in the light of the Waitsia 1 and Waitsia 2 well results. Data gathered from Waitsia 2 has significantly increased the company’s previous estimate of 2C resources to 306 bcf and enabled it to book initial 2P reserves for the field at 178 bcf. Total recoverable gas on a P50 basis has risen 67% to 484 bcf from 290 bcf. AWE added that gross reserves for Waitsia and nearby discoveries at Senecio, Irwin, and Synaphea are now estimated to be 721 bcf of gas. AWE is now moving forward with development plans for a low-cost, early-stage gas production from Waitsia timed to come on stream by mid-2016. (Source: AWE announcement, 21/08/2015).

 

Apache Corp Apache Corpis taking Woodside Petroleum to court over an alleged unpaid $US64 million cash call associated with the sale of Apache’s interest in the Wheatstone LNG Project in Western Australia. Apache has filed a Supreme Court writ alleging Woodside has not held to its part of the sale agreement. Apache announced the $2.82 billion sale of its Wheatstone share last December along with its interest in the Kitimat LNG project in Canada and the associated Liard basin gas fields in a separate transaction. Apache now claims that Woodside refused to refund a number of cash calls in March that it paid during the transfer of ownership period. Apache believes these calls should have been repaid under the sale and purchase agreement. (Source: Oil & Gas Journal, 27/08/2015).

 

Metgasco will pursue the New South Wales government in court after attempts at negotiating a compensation package for the 2014 suspension of its Rosella well drilling campaign failed. Metgasco has been locked in negotiations with the government since May following Energy Minister Anthony Roberts’ decision not to appeal a Supreme Court’s ruling which determined the government’s suspension order was unlawful. However negotiations have stalled despite no agreeable settlement being reached. Metgasco said it has now paused formal discussions with the government over the future of Metgasco’s three Northern Rivers licence areas and is initiating court action for damages over the matter. The company has moved to prepare a judicial review to have PEL 426 renewed and for the award of a production licence for PPLA 9. It will also conclude contractual agreements for a seismic acquisition program to the east of Lismore and for the drilling of the Rosella conventional-tight gas prospect. (Source: Metgasco announcement, 01/09/2015).

 

The European Commission has unconditionally approved the planned $70 billion merger of Royal Dutch Shell plc and BG Group plc. Including clearance in Brazil, two of the five preconditions to the combination have now been satisfied. In June, the US Federal Trade Commission granted early termination for the US antitrust waiting. “The transaction is on track for completion in early 2016,” said Ben van Beurden, Shell chief executive officer. (Source: Oil & Gas Journal, 03/09/2015).

 

Woodside Petroleum has made a nonbinding indicative proposal to acquire all of the shares in Oil Search for a consideration of one Woodside share for every four Oil Search shares. The proposal is conditional on completion by Woodside of due diligence on Oil Search, the granting of a mutually acceptable confidentiality agreement, and an agreed period of exclusivity plus secure support from Oil Search’s main stakeholders. The proposal would also be conditional on the parties entering into a binding implementation agreement. The board of Oil Search has unanimously decided to reject Woodside’s proposal. (Source: Oil Search announcement, 08/09/2015, 14/09/2015).

 

WestSide Corporation has announced an off-market takeover bid to acquire all the ordinary shares in Armour Energy for $0.12 cash per share. Conditions of the offer include; that the farm-out proposal by Armour to transfer 75% of key acreage in the Northern Territory to American Energy Partners does not proceed and WestSide achieving at least 50.1% acceptances. The offer will close 15/10/2015 unless extended. Armour entered into a binding agreement with American Energy Partners on 11/09/2015, triggering a defeating condition of Westside’s unsolicited takeover offer for Armour. The Board of Armour unanimously recommends the American Energy transaction to shareholders and has advised that shareholders reject Westside’s offer.  (Source: WestSide Corporation announcement, 31/08/2015, Armour Energy announcement, 09/09/2015, 11/09/2015).

 

Armour Energy has signed definitive binding agreements with an Australian affiliate of American Energy Partners for a US$130 million farm-out of Armour’s McArthur Basin oil and gas tenements. Under the agreement, AEP will spend US$130 million on Phase One over a maximum of 5 years for 75% working interest in the tenements. The agreement now also includes EP(A) 177 and EP(A) 178, previously not included in the non-binding letter of intent announced 20/08/2015. The agreement is subject to Armour shareholder approval, FIRB approval and other regulatory approvals. (Source: Armour Energy announcement, 11/09/2015).

 

Empire Energy Group, through subsidiary Imperial Oil & Gas, has entered a non-binding letter of intent with American Energy Partners to farm-in for up to 80% of Imperial Petroleum's McArthur Basin tenements. American Energy Partners will assume operatorship on the signing of the definitive documents and the working interest in the tenements will be earned on completion of Phase One. Imperial has the option to reassume operatorship if AEP does not earn at least a 50% working interest in the tenements over Phase One. The LOI is subject to the completion of definitive documents over the next 120 days. (Source: Empire Energy announcement, 21/08/2015).

 


 

Developments

 

AGL has shipped the first gas from the $310 million Newcastle Gas Storage Facility at Tomago in New South Wales, just two months after the facility was opened. The company sent 17 tonnes of gas from the nation’s newest and largest gas storage facility this week. The company expects 2-3 LNG deliveries a week from Newcastle, supporting gas supply security for peak usage periods or supply disruptions. The processing plant that converts pipeline natural gas to LNG is capable of processing up to 66,500t of LNG per year and storing 30,000t throughout the year. (Source: Energy News Premium, 12/08/2015).

 

Santos has introduced the first gas into its Gladstone LNG Plant in order to progress the plant testing and commissioning process ahead of first gas next month. The gas is in Train 1 on Curtis Island, Queensland, and is considered a major milestone in the start-up process. Since January, Santos has progressively started production at all its major processing facilities in its gas fields, commissioned the 420 km pipeline and all of the LNG facility power generation and other utilities, unloaded the refrigerants that will chill the gas and tested all six refrigeration compressors. Over the coming weeks Santos will start up Train 1’s front end pre-treatment units before chilling down the refrigeration units to make the LNG. (Source: Energy News Bulletin, 18/08/2015).

 

The Woodside Petroleum-led Browse FLNG Project has reached a major milestone after receiving federal environmental approval. The environmental approval covers the installation, operations and decommissioning phases for the development of the Torosa, Brecknock and Calliance fields using FLNG technology. The approval will remain valid until 2070 and comes with 26 conditions, with one of the conditions stating that work on the development must begin within the next five years, with other conditions mostly aimed at protecting Scott Reef and whale migration pathways. The project still requires approval from the Western Australian government. (Source: Energy News Premium, 18/08/2015).

 

Work is complete on the final connection for Australia Pacific LNG to plug into Powerlink Queensland’s new transmission network in the North West Surat Basin. The new high voltage electricity infrastructure is now powering three APLNG gas processing facilities between Roma and Wandoan, delivering coal seam gas into the 530 km pipeline to its LNG facility on Curtis Island. The announcement coincides with Treasurer Curtis Pitt's tour of APLNG's facility on Curtis Island with APLNG chief executive Page Maxson. (Source: Energy News Bulletin, 26/08/2015).

 

Origin Energy has successfully tied in the Yolla 5 development well to export facilities on the Yolla platform in Victoria’s Bass Strait. AWE, a joint venture partner in the BassGas Project, said production from the well had started, marking a significant milestone for the BassGas project. Origin is monitoring well performance to achieve optimal co-mingling with production from the existing Yolla 4 well and the Yolla 6 well, which was brought online in July. The early combined production rate from the BassGas facilities has now increased to approximately 64 TJ/day following the addition of the Yolla 5 and Yolla 6 wells. (Source: AWE announcement, 08/09/2015).

 

INPEX Corp said it has delayed the production start for the Ichthys LNG Project to third quarter 2017 from year end 2016. It has also raised production capacity 6% to 8.9 million tonnes/year from the initially planned 8.4 million tpy. The delay comes after a detailed review of the development schedule for the project off Western Australia. Overall development was about 74% complete in June, the company said. The company said it expects a shortened time frame between the start of production and the point where stable production is reached. All the LNG initially planned to be produced has been sold, with about 70% going to Japan. (Source: Oil & Gas Journal, 11/09/2015).

 


 

Discoveries

 

Buru Energy has intersected a gross 23 metre column of oil at the top of the Ungani Dolomite formation with its Praslin 1 wildcat drilled in permit EP 391 in the onshore Canning basin of Western Australia. Well logs indicate the oil-bearing interval is similar to that of the productive zone at the nearby Ungani oil field. However reservoir characteristics still have to be confirmed with a production test program at a later date. The well will be plugged back to the base of the interpreted oil column and a completion string run into the hole. (Source: Buru Energy announcement, 28/08/2015).

 

Falcon Oil & Gas has found gas at the Kalala S1 well after the well was drilled to total depth of 2619 metres in the Beetaloo Basin. Falcon found the presence of a thick Middle Velkerri source rock sequence in the Beetaloo Basin permit EP 98, falling in a highly prospective gas mature depth window; with a gross interval of over 500m of shale gas with net pay exceeding 150 metres. As planned, the well will be cased and suspended while further technical evaluation is undertaken. (Source: Falcon Oil & Gas announcement, 01/09/2015).  Note: details not yet available in GPinfo – location pending.

 

Finder Exploration’s first onshore data-gathering well, Theia 1, appears to have validated the company’s model of a prognosed sweet spot in the rich Goldwyer shale in Western Australia’s the Canning Basin. Theia 1 was drilled to a total depth of 1645 m and recovered 778 m of continuous core and recorded wireline logs over the same interval. Theia 1 was a test of the Middle Ordovician Goldwyer III liquids rich resource play and early assessment of the well results appear to validate the company’s geological model and de-risk the play. The well appeared to intersect a gross 120 m of the shale with two zones (60 m in total) with high wet gas mud readings, increased resistivity, fluorescence with associated hydrocarbon odour and a visible gas haze escaping from the cores at surface. Wellsite gas desorption data was positive, and were indications of the expected over-pressure. Further, the bottom hole temperatures suggest a geothermal gradient for the shales within the oil window. The company will now confirm the total organic content and thermal maturity of the 6.5 tonnes of core recovered, with the aim of calculating the potential resource capacity of the shales. (Source: Finder Exploration announcement, 31/08/2015, Energy News Premium, 01/09/2015).
 

 

Permit Changes                                                                

 

New South Wales

 

In the Clarence/Moreton Basin, PEL 457 was cancelled on 02/09/2015 at the request of the title holder as a result of the NSW Petroleum Titles Buyback Scheme.  The area now reverts to vacant acreage.

 

In the Surat Basin, a renewal application for PEL 475 was withdrawn by the title holder on 12/08/2015 and the area now reverts to vacant acreage.

 

Geothermal

 

In the Gunnedah Basin, the renewal of EL 7507 was withdrawn at the request of the title holder and this area now reverts to vacant acreage.

 


 

Northern Territory

 

In the Vulcan Sub Basin, a change to the AC/P 32 work program has been approved –

 

Years 1-3: well planning & approvals, 1 well, geotechnical & engineering studies $26.7m

 

Also in the Vulcan Sub Basin, AC/P 34 was relinquished 14/08/2015.

 

In the Browse Basin, AC/P 37 was relinquished 20/08/2015.

 

In the Vulcan Sub Basin, Far Cape Energy Pte Ltd has an option to earn 5% in AC/P 50 and AC/P 51.

 

In the Browse Basin, Murphy Australia Oil P/L has transferred its interest in AC/P 59 to Murphy Australia AC/P 59 Oil P/L.

 

In the Amadeus Basin, EP 115 has been renewed to 14/04/2020.

 

In the Georgina Basin, EP 127 is being renewed.

 

In the Daly, Wiso and Georgina Basins, Energy & Minerals Group has acquired an 18% stake in EP 167, EP 168 and EP 169 from Pangaea Resources.

 

In the McArthur Basin, Armour Energy has signed definitive binding agreements with American Energy Partners under which AEP will spend $US130 million on work programs over a maximum of 5 years in exchange for a 75% working interest in Armour Energy’s McArthur Basin permits EP 171, EP 174, EP 176, EP 190, EP 191, EP 192, EP(A) 172, EP(A) 173, EP(A) 177, EP(A) 178, EP(A) 179, EP(A) 193, EP(A) 194, EP(A) 195 and EP(A) 196.

 

Also in the McArthur Basin, Empire Energy Group, through subsidiary Imperial Oil & Gas, has entered a non-binding letter of intent with American Energy Partners to farm-in for up to 80% of Imperial Petroleum’s McArthur Basin tenements EP 184, EP 187, EP(A) 180, EP(A) 181, EP(A) 182, EP(A) 183 and EP(A) 188. The LOI is subject to the completion of definitive documents over the next 120 days.

 

On the Victoria River, Energy & Minerals Group has acquired an 18% stake in EP 198 and EP 305 from Pangaea Resources.

 

In the Amadeus Basin, the acquisition by Central Petroleum of a 50% interest in the Mereenie Oil and Gas field OL 4 and OL 5 has been completed. Central has assumed operatorship of the field from Santos.

 


 

Queensland

 

Offshore, in the Carpentaria Basin, Q/23P has been renewed to 17/08/2020 over a reduced area of 7,584 sq km.  Work program is as follows –

 

Years 1-3: 400 km 2D seismic reprocessing technical studies, 150 sq km 3D seismic, technical studies, G&G & engineering studies $3.18m
Year 4: 1 well, technical studies $30.25m
Year 5: 5000 sq km 3D seismic, 3000k 2D seismic, technical studies $16.25m

 

Onshore, the DNRM has made a decision in relation to a number of unsuccessful applications where the original preferred tenderer withdrew their application.  The following areas have now been refused and made non-current -

 

ATP 949, 950, 951, 952, 953, 954, 955, 957 (preferred tenderer application ATP 956 withdrawn)
ATP 958, 960, 961, 962, 964 (preferred tenderer application ATP 959 withdrawn)
ATP 1047 (preferred tenderer application ATP 1048 withdrawn)
ATP 1049 (preferred tenderer application ATP 1050 withdrawn)
ATP 1051, 1052, 1054, 1055 (preferred tenderer application ATP 1055 withdrawn)
ATP 1125, 1126, 1128 (preferred tenderer application ATP 1127 withdrawn)
ATP 1129, 1131, 1132, 1133 (preferred tenderer application ATP 1130 withdrawn)
ATP 1134, 1135, 1136, 1138 (preferred tenderer application ATP 1137 withdrawn)
ATP 1139, 1140, 1142, 1143 (preferred tenderer application ATP 1141 withdrawn)
ATP 1144, 1145, 1146, 1147, 1149 (preferred tenderer application ATP 1148 withdrawn)
ATP 1151, 1152, 1153, 1154, 1155, 1156, 1157, 1158 (preferred tenderer application ATP 1150 withdrawn)

In the Eromanga Basin, Drillsearch Energy has started a divestment process of its Tintaburra interests in ATP 299 (and associated production licences).   

 

In the Bowen Basin, ATP 526 is being renewed as ATP 2012 over a reduced area of 703 sq km.

 

In the Galilee Basin, Galilee Energy has completed the acquisition of the remaining 50% of ATP 529 from AGL Energy.

 

In the Eromanga Basin, ATP 670 was granted to Tri-Star Petroleum Co on 14/08/2015 over a reduced area of 2,804 sq km. The licence will expire on 31/08/2019.

 

In the Eromanga Basin, ATP 736, ATP 737 and ATP 738 have had their expiry dates extended to 28/02/2021.

 

In the Eromanga Basin, ATP 739 has had its expiry dates extended to 30/01/2019. 

 

In the Galilee Basin, ATP 743 has undergone a partial relinquishment and now covers a reduced area of 3,199 sq km.

 

In the Eromanga Basin, Drillsearch Energy is seeking to divest its interest in ATP 783.

 

Also in the Eromanga Basin, Bridgeport has executed a terms sheet with a third party for the farm-out of its interest in ATP 794. Final terms should be executed in the fourth quarter of 2015.

 

In the Georgina and Eromanga Basins, ATP 909, ATP 911 and ATP 912 have had their expiry dates extended to 10/03/2015.

 

In the Cooper Basin, Bengal Energy (Australia) P/L acquired 21.428% of ATP 934 from SCGAU P/L and AGL acquired 8.571%.  Interests in the licence are:  Bengal Energy (Australia) P/L 71.429% and AGL Cooper Basin P/L 28.571%.

 

In the Eromanga Basin, Beach Energy has signed a binding agreement to acquire 40% of ATP 1056 from AGL Cooper Basin for $1.15m.  Completion is subject to Queensland Government approvals, appointment of Beach as operator, and joint venture consents and waivers.

 

In the Surat Basin, potential commercial area applications PCA 15 and PCA 16 have been withdrawn.

 

In the Surat Basin, Drillsearch Energy is seeking to divest its asset in PL 18 (excluding Yellowbank/Thomby fields).

 

In the Surat and Bowen Basins, production licences PL 299 and PL 397 have been granted.  The licences were granted over the Cameron field on 25/06/2015 and will expire on 25/06/2045. PL 397 was granted over a reduced area of 12.4 sq km.  As a result, ATP 852 has undergone a partial relinquishment and now covers a reduced area of 90 sq km.

 

In the Surat Basin, Drillsearch Energy is seeking to divest its asset in PL 315.

 

In the Surat Basin, production licence PL 403 was granted on 08/08/2015 to a consortium led by Australia Pacific LNG P/L.  The licence will expire on 07/08/2045. As a result, ATP 606 has undergone a partial relinquishment and now covers a reduced area of 863 sq km.

 

In the Surat Basin, production licence PL 1011 was granted over the Condabri South field on 02/08/2015. The licence will expire on 01/08/2045. As a result of this grant, underlying exploration licence ATP 1178 has ended.

 

Geothermal

 

In the Eromanga Basin, GL 1 is in the process of being renewed.

 

In the Carpentaria Basin, Local Government Infrastructure Services P/L has applied for EPG 2011.

 


 

South Australia

 

In the Ceduna Basin, the Year 2 work programs for EPP 44 and EPP 45 have been extended by 24 months from 22/10/2015 to 21/10/2017. The licenses have had their expiry dates extended to 21/10/2021.

 

In the Arckaringa Basin, the PEL 117, PEL 121 and PEL 122 work programs have been suspended from 13/08/2015 to 12/08/2016. The licenses have had their expiry dates extended to 03/04/2018.

 

In the Arckaringa Basin, the PEL 118 and PEL 119 work programs have been suspended from 31/07/2015 to 30/07/2016. The licenses have had their expiry dates extended to 01/01/2020.

 

In the St Vincent Basin, the PEL 120 work program has been suspended from 12/08/2015 to 11/08/2016. The licence has had its expiry date extended to 03/10/2017.

 

In the Arckaringa Basin, PEL 123 has been renewed to 01/10/2020. 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 Otway Basin, PEL 494 and PEL 495 have been consolidated as PEL 494. PEL 494 now covers an increased area of 2,559 sq km.

 

In the Eromanga Basin, the PEL 515 work program has been suspended from 26/09/2015 to 26/03/2016. The licence has had its expiry date extended to 06/05/2019.

 

In the Eromanga Basin, the PEL 568 and PEL 569 work programs have been suspended from 31/07/2015 to 30/07/2016. The licenses have had their expiry dates extended to 16/12/2018.

 

In the Adelaide Fold Belt, PEL 606 was relinquished on 13/08/2015.

 

In the Cooper Basin, Bridgeport has executed a terms sheet with a third party for the farm-out of PEL 630 and PELA 641. Final terms should be executed Q4 2015.

 

In the Murray Basin, application PELA 531 has been withdrawn. The area reverts to vacant acreage.

 

In the Cooper Basin, Beach Energy Ltd 40% and Great Artesian Oil & Gas P/L 60% have applied for PPLA 261 over the Pennington field. 

 

In the Cooper Basin, Beach Energy Ltd 40% and Great Artesian Oil & Gas P/L 60% have applied for PPLA 262 over the Balgowan field. 

 

In the Cooper Basin, Santos QNT P/L 60% and Drillsearch (513) P/L 40% have applied for 16 retention leases - PRLA 191 to PRLA 206.

 

Sequestration

 

In the Otway Basin, GSRL 27 is being renewed.

 


 

Tasmania

 

Offshore, retention leases have been granted over Trefoil, Rockhopper, Bass and White Ibis (see below).  T/18P now covers a reduced area of 330 sq km.

 

T/RL 2 was granted over the Trefoil Location on 06/08/2015.  The licence will expire on 05/08/2020.  Work program is as follows –

 

Years 1-5: subsurface reservoir modelling, feasibility study, facilities development feasibility study, economic analysis, commercial assessment for access to Yolla facility, technical assessment of Trefoil location $1.6m

 

T/RL 3 was granted over the Rockhopper Location on 06/08/2015.  The licence will expire on 05/08/2020.  Work program is as follows –

 

Years 1-5: subsurface reservoir modelling, sub: surface development feasibility study, facilities development feasibility study, economic analysis, commercial assessment for access to Yolla facility, geotechnical assessment of Rockhopper location $0.95m

 

T/RL 4 was granted over the White Ibis Location on 06/08/2015.  The licence will expire on 05/08/2020.  Work program is as follows –

 

Years 1-5: subsurface reservoir modelling, feasibility study, assess additional data requirements, facilities dev. feasibility study, economic analysis, commercial assessment for access to Yolla facility, geotechnical assessment of White Ibis location $0.75m

 

T/RL 5 was granted over the Bass Location on 06/08/2015.  The licence will expire on 05/08/2020.  Work program is as follows –

 

Years 1-5: subsurface reservoir modelling, feasibility study, assess additional data requirements, facilities development feasibility study, economic analysis, commercial assessment for access to Yolla facility, technical assessment of Bass 3 location $0.75m

 

Onshore, in the Tasmania Basin, SEL 5/2005 expired on 07/09/2015 and now reverts to vacant acreage.

 

Geothermal

 

In the Tasmania Basin, ERA 1025 has been made available for applications.  Applications can be made between 12/10/2015 and 16/10/2015. The Exploration Release Area system offers newly available ground at a nominated date, at least two months after expiry, revocation or surrender of a licence. During that time, the area is unavailable for application. After the end of the moratorium period, applications can be lodged by courier, registered mail or in person for whole or part of the ERA.

 


 

Victoria

 

Offshore, Cooper Energy submitted an application with NOPTA on 14/08/2015 to convert VIC/L 26, VIC/L 27 and VIC/L 28 to retention leases.

 

In the Gippsland Basin, Year 3 of the work program for VIC/P 57 has been suspended for 4 months to 09/01/2016.  The expiry date of the permit has been extended to 09/01/2018.

 

In the Otway Basin, the expiry date for VIC/P 67 has been extended for 12 months to 03/08/2019 and the Year 3 work program has been varied and suspended to 03/08/2016.  Year 3 work program is now as follows –

 

Year 3: interpretation of Rock Physics Study and 200 sq km of simultaneous inversion-$0.3m; 400 sq km of PreSDM processing of the a Bella 3D-$0.05m; 2 exploration wells-$52m; 650 km 2D seismic acquisition and processing-$1m; geotechnical studies-$0.5m. 

 

In the Gippsland Basin, a suspension and extension for VIC/P 68 was lodged with NOPTA on 03/09/2015.

 

In the Otway Basin, a variation for VIC/P 69 was lodged with NOPTA on 20/08/2015.

 

Onshore, in the Otway and Gippsland Basins, a 12 month extension and suspension application has been submitted by Lakes Oil for PEP 163, PEP 166, PEP 167, PEP 169 and PEP 175.

 


 

Western Australia

 

In the Petrel Sub Basin, W 14-1 has been re-released. Bids close 29/10/2015.

 

In the Carnarvon Basin, Location WA-268-P LC was declared over Cloverhill on 04/09/2015.

 

In the Carnarvon Basin, Location WA-268-P LE was declared over Elfin on 04/09/2015.

 

In the Barrow Sub Basin, the year 3 work program for WA-290-P has been extended by 12 months from 22/10/2015 to 21/10/2016. The licence has had its expiry date extended to 21/10/2018.

 

In the Browse Basin, WA-314-P is being renewed.

 

In the Carnarvon Basin, WA-350-P was relinquished on 27/08/2015.

 

In the Carnarvon Basin, the year 3 work program for WA-359-P has been suspended by 12 months from 25/10/2015 to 25/10/2016. Cue has initiated a farm-out process for WA-359-P and WA-409-P.

 

In the Carnarvon Basin, the year 3 work program for WA-362-P has been extended by 6 months from 23/08/2015 to 22/02/2016. The licence has had its expiry date extended to 22/02/2018. A change to the work program has been approved –

 

Year 3: studies, seabed geochemical coring $1.2m

 

In the Carnarvon Basin, the year 3 work program for WA-363-P has been extended by 6 months from 23/08/2015 to 22/02/2016. The licence has had its expiry date extended to 22/02/2018. A change to the work program has been approved –

 

Year 3: studies, seabed geochemical coring $1.2m

 

In the Carnarvon Basin, a change to the WA-386-P work program has been approved –

 

Year 2: licence 3225 sq km 3D seismic $7m

 

In the Carnarvon Basin, a change to the WA-389-P work program has been approved –

 

Years 1-3: geotechnical studies, 1250 sq km 3D PSDM reprocessing, 450 km 2D seismic reprocessing $4.4m

 

In the Carnarvon Basin, a suspension and extension for WA-390-P was lodged with NOPTA on 15/06/2015.

 

In the Browse Basin, WA-410-P has expired. The area has reverted to vacant acreage.

 

In the Bonaparte Basin, a location application for WA-420-P was lodged 08/09/2015.

 

In the Carnarvon Basin, a location application for WA-430-P was lodged 21/08/2015.

 

In the Carnarvon Basin, WA-434-P was relinquished on 14/08/2015.

 

In the Carnarvon Basin, WA-450-P has expired.

 

In the Dampier Basin, Flow Energy Ltd has transferred its interest in WA-458-P to Lightmark Enterprises P/L.

 

In the Barrow Sub Basin, the Supreme Court of Western Australia has ruled that Quadrant Energy can be removed as the operator of WA-45-L for material breaches of the Spar field joint operating agreement. The court found that Apache over-stepped its role as operator of the undeveloped Spar field by taking material steps to develop the field without approval from Santos.

 

In the Carnarvon Basin, the year 4 work program for WA-461-P has been extended by 9 months from 08/11/2015 to 07/08/2016. The licence has had its expiry date extended to 07/08/2018. A change to the work program has been approved

 

Year 4: studies, 540 sq km 3D seismic reprocessing $1m

 

In the Rowley Sub Basin, WA-462-P is being relinquished.

 

In the Carnarvon Basin, the year 4 work program for WA-463-P has been extended by 9 months from 08/11/2015 to 07/08/2016. The licence has had its expiry date extended to 07/08/2018. A change to the work program has been approved –

 

Year 4: geotechnical studies, 460 sq km 3D seismic reprocessing $0.9m

 

In the Barrow Sub Basin, a change to the WA-486-P work program has been approved –

 

Years 1-3: 505 sq km 3D seismic, rock physics/QI and 3D seismic inversion studies, geotechnical studies $10.8m

 

In the Dampier Basin, a change to the WA-503-P work program has been approved –

 

Years 1-3: 80 sq km 3D seismic, G&G studies $1.55

 

In the Great Australian Bight, W 14-19 has been granted as WA-517-P to Santos Offshore P/L 50% (operator) and JX Nippon Oil & Gas Exploration (Australia) P/L 50% on 10/08/2015. The licence will expire on 09/08/2021. Work program is as follows –

 

Year 1: 2000 km 2D seismic reprocessing, G&G, seismic stratigraphic analysis $1.3m
Year 2: seepage study, G&G $1.2m
Year 3: G&G, 3D seismic planning $0.6m
Year 4: 2000 sq km 3D seismic $46m
Year 5: G&G, well planning $1.1m
Year 6: 1 well $57m

 

In the Carnarvon Basin, the Olympus Location WA-450-P L has been granted as WA-59-R to Quadrant Northwest P/L 75% and Finder No 4 P/L 25% on 13/08/2015. The licence will expire 12/08/2020.

 

In the Carnarvon Basin, the Yellowglen Location WA-268-P LY has been granted as WA-60-R to Chevron Australia P/L 17.75%, Chevron (TAPL) P/L 32.25%, Mobil Australia Resources Company P/L 25% and Shell Australia P/L 25% on 31/08/2015. The licence will expire 30/08/2020.

 

In the Perth Basin, Empire Oil & Gas is farming-out a 60% interest and operatorship in EP 416 and EP 480 to Pilot Energy. Pilot Energy will pay Empire a total of $450,000 in two instalments, subject to various government approvals being obtained prior to 31/03/2016.

 

In the Perth Basin, a change to the EP 447 work program has been approved –

 

Year 2: 130 km 2D seismic $1.98m

 

The following areas have been announced for the Onshore Petroleum Acreage Release, September 2015, closing 28/04/2016 –

 

  L 14-2 (re-released)

Canning Basin

 

  L 15-2

Carnarvon Basin

 

  L 15-3

Carnarvon Basin

 

  L 15-4

  T 15-1

Carnarvon Basin

Carnarvon Basin

 

 

L 14-3, L 14-4, L 14-5 and L 14-6 were not re-released. The areas revert to vacant acreage.

 

In the Carnarvon Basin, Tap has withdrawn from its agreement with Rusa Resources to farm-in to STP-EPA-110 and STP-EPA-111. Tap has no further obligation or liability under the agreement or in respect of the SPA’s.

 


 

New Zealand

 

The following areas have been proposed for the 2016 Block Offer to be released in March 2016. The areas are yet to be finalised -

 

16GSC-R1

Great South Basin

Offshore

16NRN-R1

Northland Basin

Offshore

16PEC-R1

Pegasus Basin

Offshore

16TAR-R1

Taranaki Basin

Offshore

16TAR-R2

Taranaki Basin

Onshore

 

In the Taranaki Basin, TGS-NOPEC Geophysical Company ASA has applied for a prospecting permit APP 60055 over 310,960 sq km.

 

In the West Coast Basin, a change to the PEP 38526 work program has been approved –

 

84 months: drill and core 2 wells to at least 250 TVD, drill one to a deeper target, minimum 4km 2D seismic reprocessing, geochemical analysis
96 months: 17 km 2D seismic
108 months: 23 km 2D seismic and integrate the data

 

In the Taranaki Basin, a change to the PEP 53374 work program has been approved –

 

30 months: complete a permit wide seismic interpretation and analyst report
39 months: 200 sq km 3D seismic
48 months: process, interpret and report on any seismic data acquired
60 months: 1 well

 

In the East Coast Basin, PEP 53806 was revoked by the Minister on 04/08/2015.

 

In the Great South Basin, a change to the PEP 54863 work program has been approved –

 

32 months: reprocess the Carina 2D seismic and submit preliminary report
43 months: submit final report on interpretation of Carina 2D seismic
49 months: submit permit prospectivity report
55 months: 1500 sq km 3D seismic
60 months: 1 well

 

In the Taranaki Basin, Mosman Oil & Gas has executed a conditional sale and purchase agreement to acquire the Rimu Production Station and PMP 38151 and PMP 38155 from Origin Energy for NZ$10 million. Mosman has also entered into a participation agreement with WRDLS Pty Ltd to acquire at least 30% of the project. Mosman's intention is to own at least 40% and no more than 70% of the Project and is actively considering further offers from potential JV partners. The SPA remains subject to a number of matters including financing and government approvals.

 


 

Papua New Guinea

 

In the Papuan Basin, PPL 239 was due to expire on 18/05/2015.  The licence will be replaced with application APPL 535.

 

PPL 267 has had its expiry date extended to 14/08/2017.

 

PPL 268 has been relinquished.

 

PPL 294 has had an extension granted.

 

PPL 299 was not renewed.

 

PPL 326 is in the process of being renewed over a reduced area of 8,384 sq km.  The proposed extension work program is as follows –

 

Years 1-3: 1 exploration well, G&G technical studies, G&G mapping and review, prospects and leads inventory
Years 4-5: 1 exploration well

 

PPL 337 is in the process of being renewed.  Heritage are withdrawing from the licence. Completion of the drilling program entitled Heritage to increase its interest from 10% to 70%.  Kina currently holds a 90% interest, and Heritage's existing 10% will be transferred back to Kina subject to government approval.

 

PPL 338 is in the process of being renewed.

 

PPL 339 is in the process of being renewed over a reduced area.

 

PPL 340 is in the process of being renewed.

 

Esso PNG Wren Ltd acquired 50% of PPL 402 from Oil Search (PNG) Ltd.

 

Heritage's option to acquire a further 20% of PPL 437 from Kina has lapsed.  Interests are Kina Petroleum Ltd 57.5% and Heritage Oil Ltd 42.5%.

 

PPL 515 has been awarded over previous area PPL 311.  Grant and expiry dates are yet to be verified.

 

PPL 516 has been awarded over previous area PPL 318. Grant and expiry dates are yet to be verified.

 

A five year extension was granted to PRL 8, PRL 9 and PRL 10 on 14/08/2015.   The licences will expire on 13/08/2020.

 

 

                                                                                                                                   

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