Japanís Mitsubishi Corp has formed a strategic partnership with Buru Energy Ltd to jointly explore and develop the Canning ...
For quite some time there have been a number of permits where particular interests have been farmed out so that the permits effectively have two separate sets of owners. The split in interests is based on one of the following -
-- deep vs
Approximately 60 permits are affected.
Until now only the primary set of owners has been available in GPinfo. Any secondary set of owners that emerged as a consequence of farm out arrangements was not available. Consequently any queries you created based on these permits did not return any results for the secondary owners.
To remedy this situation, this month in GPinfo we have added additional permit polygons to represent the secondary owners of these 60-odd permits. Not only will your queries now return results for the secondary owners, the related permit is visible as a hyperlink when you display any of these permits in the details window.
For example take NSW permit
PEL 6. Conventional interests are operated by Orion Petroleum with 97.5%
whereas coal seam gas interests are operated by Eastern Star Gas with 75%.
Only the conventional interests have been visible in GPinfo. Now a
second entry has been added, called PEL 6 C which reveals the coal seam
Navigate between the two versions of the permit by clicking on the hyperlinked field called Linked Permit.
Similarly, you can now produce reports showing both sets of interests. The example below shows the gas interests in WA-10-R and also the oil interests WA-10-R O in Egret.
The August data update will include several changes to the GPinfo data.
Permit Type is currently a combined field that represents the status of the permit as well as its type. For example, a granted Production Licence that is undergoing a renewal will be flagged in GPinfo with a Type of 'Renewing' rather than 'Production Licence' for the period of time that the renewal is in progress.
From next month the Type field will contain the permit type only. Valid entries are Exploration Permit, Production Licence, Retention Lease and Gazettal. An additional field called Status will be added to the Permits database to reflect the changing nature of the permit as it matures through its life cycle. Valid entries are Available, Under Application, Renewing, Relinquishing, Suspended or Granted.
A similar situation exists with Well Type. Well Type is a combination of type and resource, with all coal seam gas wells entered as simply CSG and no way of distinguishing Development wells from Appraisal wells or Exploration wells.
Next month an additional field will be added to the Wells database to identify the Resource separately from the Type. Valid entries in the Resource field are Conventional or Coal Seam Gas (and soon Geothermal). Type can be any of Appraisal, Development, Exploration, Stratigraphic and Service.
Many permits in GPinfo have multiple discrete geographic areas. These areas are not separate permits but parts of permits. In GPinfo until now, each of these areas has had a separate entry in the GPinfo database. The effect of this has been that queries based on multi-part permits return a count of the number of areas found, not the number of permits. Also, reports and exports result in spurious duplicate entries.
Next month, multi-part permits will be combined into a single polygon with a single entry in the database so that issues over confusing permit counts and duplicated list entries will no longer occur.
information on these developments will be available in the August
edition of the GPinfo newsletter.
Japanís Mitsubishi Corp has formed a strategic partnership with Buru Energy Ltd to jointly explore and develop the Canning Basin in the Kimberley region of northwest Western Australia. Mitsubishi is farming into Buruís exploration permits in the region by promising to spend as much as $102.4 million on Buruís forward exploration costs. The company will spend as much as $62.4 million on conventional exploration and $A40 million on unconventional programs, including shale gas prospects. Mitsubishi may also carry as much as $50 million of Buruís development costs for major oil and gas production infrastructure. As part of the deal Mitsubishi has the right to earn a 40% interest in Buruís permits by funding 80% of the 2010 program up to a maximum of $22.4 million and an additional 10% interest by funding next yearís exploration program. If Mitsubishi elects not to continue into the 2011 program then it will forfeit any interests earned during the 2010 program. Mitsubishi also has the right to earn 50% interest in Buruís production permits (L 6, L 8 and EP 129) in exchange for an additional cash payment at a price to be determined by an independent expert based on proved and probable reserves. Buru will remain operator in all permits, but Mitsubishi will lead any LNG commercialization plans. The 2010 exploration program will include two wildcat wells, a re-entry and re-fracing of a gas discovery (Yulleroo) and an appraisal of the Pictor oil and gas discovery. (Source: Buru Energy ASX Announcement 15/06/2010, Oil & Gas Journal, 17/06/2010).
On 21/06/2010 ARC Energy Ltd has made an increased offer to acquire all of Adelphi Energy shares at $0.42 per share. The offer is final and closed on 16 July 2010. At the close of the offer, ARC Energy Ltd held 94.837% of Adelphi Shares. ARC will proceed to compulsory acquisition of the remaining Adelphi shares. Within 5 business days of announcement of the compulsory acquisition by ARC Energy Ltd, Adelphi shares will be suspended from quotation and will no longer be tradeable on ASX. Adelphi will subsequently be removed from the official list of ASX (AWE ASX Announcements, 21/06/2010, 16/07/2010).
Australian oil and gas producer Mosaic Oil is selling its wholly owned Papua New Guinea subsidiary, Mosaic Oil Niugini to an undisclosed company for $US11 million in cash. The primary asset held by the subsidiary is a 28.57% interest in PRL 8, which contains the Kimu gas discovery. In addition to the initial cash payment, Mosaic will receive a contingent cash payment of either US10c per gigajoule for any proven plus probable (2P) reserve increases prior to 31 December 2012, or a firm, fixed amount of $2.7 million in cash at any time before the appraisal well is drilled. Under the terms of the sale contract the buyer will, at no cost to Mosaic, drill an appraisal well and undertake corresponding reserves certification work to determine the contingent reserves payment before 31 December 2012. The sale is subject to pre-emption by Mosaicís PRL 8 joint venture partners. Cue Energy Resources also announced that it had agreed to sell its 10.72% interest in PRL 8, held by its 100% owned subsidiary, Omati Oil P/L, for $US5.14 million in cash, which just leaves majority stakeholder and operator Oil Search as the sole party able to pre-empt both deals. Mosaic expects the sale to be completed by late July or early August. The buyer, a major international oil and gas company, wishes to remain undisclosed until the pre-emption process has been completed, however petroleumnews.net believes the buyer to be Canadian oil major Talisman Energy, which has been acquiring stakes in various projects in PNG. (Source: PetroleumNews, 25/06/2010).
Petroleum Exploration Australia has agreed to pay $4.25 million to Central Petroleum after the two companies agreed to settle a dispute over the validity of outstanding cash calls. Under the settlement, Petroleum Exploration Australia has agreed to withdraw from the joint ventures in the Pedirka, Amadeus and Georgina basins and will return its participating interests to participating Central Petroleum subsidiaries. (Source: CTP ASX Announcement, 25/06/2010).
Liquefied Natural Gas Ltd says the expiry of the Heads of Agreement (HoA) for the sale of the Fishermanís Landing LNG project to Arrow Energy removes uncertainty for other potential gas suppliers. In February, Arrow entered into a HoA to purchase the Fishermanís Landing LNG plant in Gladstone from LNG Ltd for around $168 million. Following the HoA, Shell and Petrochina made a joint takeover bid for Arrow Energy casting doubt over the LNG Ltd deal, and in March LNG Ltd and Arrow extended their agreement to June 30. The agreement expired on 30 June 2010. In a statement released on 1 July 2010, LNG Ltd said it had decided there was no value to shareholders in pursing an extension to the HoA as there had been no progress under the agreement since the Shell and Petrochina bid was announced. (Source: PetroleumNews, 01/07/2010).
Shellís Prelude floating liquefied natural gas project off Western Australia has taken a significant step forward after the company struck its first supply deal for the project. On 7 July 2010, the super-major announced it had signed a binding sale and purchase agreement for the long-term supply of LNG to Japanís Osaka Gas. Under the deal, Shell will supply 800,000 tonnes of LNG per annum sourced from its global portfolio for 25 years, starting April 2012. A Shell spokesperson said the deal would include gas from Prelude and the Gorgon project once they come on stream, adding that it was the first time Prelude had been part of a Shell supply deal. Shell did not disclose the value of the deal. (Source: PetroleumNews, 08/07/2010).
Mosaic Oil is recommending shareholders accept AGL Energyís $130 million takeover bid, saying the offer adequately reflects the fundamental value of the companyís oil and gas portfolio. AGL made a bid for Mosaic earlier this month to access Mosaicís gas storage capabilities at the depleted Silver Springs gas fields in the Surat Basin so it can create a gas storage business to support QGCís Queensland Curtis liquefied natural gas plant. Under the proposed acquisition, Mosaic shareholders would receive 15c cash per share or 1.01 AGL share for every 100 fully paid Mosaic shares. Mosaicís directors intend to vote in favour of the scheme, in the absence of a superior proposal, at a shareholding meeting scheduled for October. AGL already has a voting power of 12.8% in Mosaic. (Source: PetroleumNews, 15/07/2010).
Shell and PetroChinaís takeover bid for Arrow Energy is close to completion after Arrow shareholders overwhelmingly voted to approve the $3.5 billion takeover. The shareholders voted in favour of the demerger and acquisition schemes at a court-ordered meeting on Wednesday 14 July 2010. Implementation of the demerger and acquisition schemes is now subject to approval from the Federal Court of Australia, which will hear the demerger matter on 16 July 2010 and the share acquisition matter on 29 July 2010. Once approved, CS CSG Australia, a 50:50 joint venture company owned by Shell and PetroChina, will acquire all the issued share capital of Arrow Energy for $4.70 cash per share. The JV company will own Arrowís Queensland coal seam gas assets and domestic power business. (Source: PetroleumNews, 15/07/2010).
The Queensland state government has given conditional approval to BG Groupís 8.5 million tonne per annum Queensland Curtis liquefied natural gas project on Curtis Island near Gladstone. Coordinator-General Colin Jensen had completed his review of the projectís environmental impact statement and approved it with what Premier Anna Bligh said were strict conditions. These include community and social benefits such as the provision of affordable housing for Gladstone and the Western Downs. Federal government environmental approval is expected around mid-2011. QCLNG is targeted to start producing from 2014 and is underpinned by global LNG supply agreements for up to 8.3MMtpa, consisting of a 20-year 3.6MMtpa agreement with CNOOC, a 2-year 1.7MMtpa supply agreement to Chile and a 20-year agreement to supply up to 3MMtpa to Singapore. (Source: PetroleumNews, 25/06/2010).
LNG Ltd has met all major marine and Gladstone Port conditions for its Fishermanís Landing LNG project after the company received approval for the stage one shipping channel dredging. The scope of the stage one dredging includes widening the Targinie Channel and widening and deepening the Fishermanís Landing Wharf 5 berth pocket and turning basin to accommodate LNG vessels with capacity up to 152,000 cubic metres. (Source: PetroleumNews, 30/06/2010).
Nexus Energy expects to resume production from its Longtom gas field in the Gippsland Basin, offshore Victoria, by late September after $2.1 million was signed off for the installation of mercury removal equipment. In April, Nexus was forced to suspend production from Longtom after low levels of mercury were detected in samples from the Longtom 4. Tests on samples from Longtom 3 also detected mercury. In a statement on Thursday, Nexus said it has signed an authority for expenditure of $2.1 million with Santos for mercury removal equipment on Santosís Patricia Baleen plant, where gas from Longtom is piped to. Nexus added that further works to remove mercury from the condensate and additional works for the gas is still under consideration and may involve additional expenditure of up to $3.9 million. Longtom is located in VIC/L29 and is expected to produce for more than 10 years. Nexus has a gas sales agreement with Santos for the purchase of up to 350 petajoules over the life of the field. (Source: PetroleumNews, 02/07/2010).
Chevron Corp. reported a deepwater gas discovery in the Carnarvon basin off Western Australia. The company said that Clio 3 discovery well in WA-205-P, which was drilled with Ensco 7500 semi-submersible rig, penetrated 79 m of net gas pay and is the third consecutive discovery on the Clio structure. Clio 3 is situated in 971 m of water and was drilled to a depth of 4309 m. Last August, the Clio 2 well discovered 115 m of net gas pay while the Clio 1 well, drilled in 2006, intersected 190 m of net gas pay. Chevron is operator and holds a 66.66% interest in WA-205-P while Shell Development Australia holds the remaining interest. (Source: PetroleumNews, 07/07/2010).
Chevron has continued its good run in Western Australiaís Carnarvon Basin with another discovery that will support the companyís long-term liquefied natural gas growth plans in the Asia Pacific region. The company said the Sappho 1 exploration well in WA-392-P 140 kilometres northwest of Onslow encountered around 75 m of net gas pay. (Source: PetroleumNews, 15/07/2010).
Beach Energy has flowed gas at an initial rate of 10.5 million cubic feet of gas per day from its Canunda 1 wet gas discovery in PEL 106 B in the Cooper-Eromanga Basin. The company said the unexpectedly high condensate to gas ratio of 180 barrels per million cubic feet of gas had forced it to choke back the flow rate to 1-3MMcfd due to limits on liquid storage and available trucking. Partner Drillsearch Energy said while the well has produced over 2500bbl of condensate over the 10-day testing period, Beach had not provided any estimates on condensate reserves and advised that testing and analysis would continue over the next few weeks. (Source: PetroleumNews, 08/07/2010).
Interoil has established stabilised condensate to gas ratios of about 20.4 barrels per million cubic feet of gas from its Antelope 2 horizontal well in Papua New Guinea, after running two separate drill stem tests. The company said it now plans to drill a sidetrack from the current Antelope 2 horizontal wellbore and drill a second horizontal section 10-15 m deeper in the reservoir to evaluate the reservoir quality and further test the condensate ratio. (Source: PetroleumNews, 09/07/2010).
Santos has had a positive start to its 2010 Naccowlah Block drilling campaign in Queensland, with the first well to be suspended as a future oil producer. Partner Drillsearch said the Watson West 1 exploration well encountered about 2-2.5 m of oil pay in the basal intervals of the Basal Birkhead Formation within a gross oil column of 8 m. The well will be suspended as a future producer from the Basal Birkhead Formation with initial post-drill estimates indicating oil in place of 300,000-400,000 barrels. Watson West 1 is located west of the existing Watson and Watson South oil fields in the Naccowlah Block and was drilled with the Ensign Rig 18. Santos plans to drill five wells in the 2010 Naccowlah Block campaign. (Source: PetroleumNews, 14/07/2010).
Greenhouse Gas Storage Gazettals
The following GHG Storage Gazettals that were released in Queensland (please see information layer Greenhouse Gas Storage Gazettals in GPinfo) are now under application:
2010 Gazettal Application Basin Applicant
QLR2010-1-3 EPQ 15 Adavale Propelled Energy Systems P/L
QLR2010-1-5 EPQ 4 Galilee Zerogen P/L
QLR2010-1-8 EPQ 5 Surat Zerogen P/L
QLR2010-1-9 EPQ 6, EPQ 7 Surat Zerogen P/L, CTSCO P/L (multiple applications)
QLR2010-1-10 EPQ 8 Surat CTSCO P/L
QLR2010-1-11 EPQ 8, EPQ 10 Surat Zerogen P/L, CTSCO P/L (multiple applications)
QLR2010-1-12 EPQ 11, EPQ 12 Surat Zerogen P/L, CTSCO P/L (multiple applications)QLR2010-1-13 EPQ 13, EPQ 14 Surat Zerogen P/L, Carbon Energy (Operations) P/L (multiple applications)
New South Wales
In the Darling Basin, PEL 422 and PEL 424 have been renewed and will now expire on 01/02/2013.
In the Sydney Basin, Asset Energy will increase its interest in PEP 11 from 25% to 85% by drilling the first well. Bounty Oil & Gas will thereby decrease their interest from 75% to 15%.
In the Murray Basin, geothermal exploration permits EL 7204 and EL 7368 were cancelled at the request of the holder, Granite Power Ltd.
In the Vulcan Basin, AC/P 34 is being renewed.
The following permits have had their expiry
EP(A) 189 is a new application in the McArthur Basin over 4,353 sq km by Tamboran Resources P/L.
In the Surat Basin, ATPs 1058P and 1061P were withdrawn by Cydonia Resources P/L. ATPs 1057P and 1060P by Mosaic Oil QLD P/L are now preferred tenderers.
In the Eromanga Basin, ATP 1062P was withdrawn by Cydonia Resources. ATP 1063P by Santos QNT P/L is a preferred tenderer.
In the Bowen Basin, ATP 666P has undergone partial relinquishment and now covers a reduced area of 4,252 sq km.
In the Galilee Basin, ATP 667P has undergone partial relinquishment and now covers a reduced area of 5,705 sq km.
In the Drummond and Bowen Basins, expiry date for KOGAS farm-in option into ATP 813P and ATP 814P was extended by 8 months to 28/02/2011.
In the Surat Basin, Adelaide Energy is selling its 20% interest in ATP 849P, held trough its wholly-owned subsidiaries, Deka Resources and Well Traced, for $1.6M. Once the deal is completed, the identity if the purchaser will be disclosed.
In the Bowen Basin, PL 395 and PL 396 are new
applications for Production Licences over 81 sq km and 130 sq km
respectively. The participants in both PL applications are:
In the Bowen Basin, Westside finalised $26.8m acquisition of 51% and now operates PL 94. Dawson CSG field has been renamed Meridian SeamGas field.
In the Eromanga Basin, EPG 41, EPG 44 and EPG 47 were granted to Earth Solar Power P/L 100%. The licences will expire on 30/06/2014. Unsuccessful applications EPG 40, EPG 42, EPG 43, EPG 45 and EPG 46 over the same areas are cancelled.
In the Lachlan Fold, EPG 62, EPG 65, EPG 70, EPG 73 and EPG 75 were granted to Geogen Victoria P/L, 100%. The licences will expire on 30/06/2015. Unsuccessful applications EPG 63, EPG 66, EPG 71, EPG 74 and EPG 76 by Geothermal One P/L over the same areas are cancelled.
The following permits have been granted -
In the Cooper Basin, PEL 106 has had its expiry date extended to 08/03/2014.
In the Eromanga Basin, PEL 110 has had its expiry date extended to 10/05/2014.PELA 560 is a new application in the Eromanga Basin by Kush Corporation P/L over 7,386 sq km.
In the Cooper Basin, PPL 54 was renewed for an indefinite term over the life of the field.
The following geothermal permits were granted Ė
In the St Vincent Basin, GEL 226, GEL 260, GEL 261 and GEL 262 are now consolidated under GEL 226 with a total area of 1,718 sq km. GEL 260, GEL 261 and GEL 262 have been revoked.
In the Pirie-Torrens Basin, GEL 230,GEL 231,GEL 232, GEL 233, GEL 234 and GEL 235 are now consolidated under GEL 230 with a total area of 2,952 sq km. GEL 231, GEL 232, GEL 233, GEL 234 and GEL 235 have been revoked.
In the Murray Basin, GEL 353 has been relinquished.
Also in the St Vincent Basin, GEL 425, GEL 481, GEL 482 and GEL 483 are now consolidated under GEL 425 with a total area of 1,985 sq km. GEL 481, GEL 482 and GEL 483 have been revoked.
Also in the Pirie-Torrens Basin, GEL 407, GEL 408, GEL 409 and GEL 410 are now consolidated under GEL 407 with a total area of 1,944 sq km. GEL 408, GEL 409 and GEL 410 have been revoked.
The following gazettals are under application -
Application Basin Applicant
Also in the Browse Basin, WA-344-P has been renewed to 07/07/2015 over a reduced area of 418 sq km. The new work program is as follows -
geotechnical studies - $0.3m
In the Carnarvon Basin, WA-351-P has been renewed to
27/06/2015 over a reduced area of 1,930 sq km. The new work
program is as follows -
In the Perth Basin, Key Petroleum reached an agreement in principle with CalEnergy Resources to participate in its 2-well drilling campaign in EP 437. Subject to executing formal agreements, Key Petroleum will earn a 45% interest in EP 437 by agreeing to pay 60% of drilling costs (capped at $2.25m), thereafter Key's contribution will decrease to 45%. Drilling is expected to commence end Q3/Q4.
In the Barrow Basin, the farm-out of interest in Exploration Permit WA-290-P from OMV and Tap to Apache has been finalised. OMV farmed out 20% interest and Tap farmed out 10% interest in the permit to Apache. Apache Northwest P/L became operator of the permit from 30/06/2010.
Also in the Barrow Basin, Santos withdrew from the permit WA-358-P and OMV now holds 100% and is operator. The work program for Year 6 has been amended as follows: Year 6 - 400k 3D seismic reprocessing - $0.3m.
In the Carnarvon Basin, MEO's 100% subsidiary North West Shelf Exploration P/L will acquire Gascorp's 15% interest in WA-361-P for $1m. Following approval of the sale, participants in WA-361-P will be NWSE 50%, Cue Energy Resources 15% and Mineralogy 35%.
Also in the Carnarvon Basin, Carnarvon Petroleum and Rialto Energy announced revised farm out agreement for WA-399-P to Apache Energy Ltd and Jacka Resources Ltd on the following terms: Apache will undertake, at its sole cost, a 3D seismic survey, which will fulfill years 2 and 3 of the work program, for which Apache will acquire a 60% interest in the permit plus operatorship. Following completion of the respective FI obligations, the interests in the permit will be Apache 60% (operator), Jacka Resources 15%, Carnarvon Petroleum 13% and Rialto Energy 12%.
In the Barrow Basin, W 09-11 gazettal was granted as WA-450-P to Finder No 4 P/L, 100% on 18/06/2010. The licence will expire on 17/06/2016. Work program is as follows -
purchase 80k 3D seismic - $3.24m
The following 2009 offshore gazettals in the Browse and Exmouth Basins have not received any bids and revert to vacant acreage: W 09-3, W 09-6, W 09-7 and W 09-8.
Green Rock and UWA have signed an agreement that contains key terms for UWA geothermal project. The agreement also enables Green Rock to acquire UWA's 50% interest in GEP 1 in the Perth Basin, and offer it to other parties to invest in the UWA Project. Although UWA will be passing on its interest in GEP 1, it will be remaining on the permit title.
APP 52785 is a new application by Listed Ventures Ltd 50 % and RPT Resources Ltd 50% in the Canterbury Basin over 543 sq km.
APP 52819 is a new application in the Westland Basin by L&M Coal Seam Gas Ltd over 821 sq km.
In the Taranaki Basin, an extension was granted to PMP 38160 on 01/07/2010. The licence now covers 80 sq km. PEP 38413 was relinquished upon grant of the extension to PMP 38160.
Also in the Taranaki Basin, Carnarvon Petroleum NZ Ltd is farming in for 10% of PEP 38524 by contributing towards the cost of Tuatara 1 exploration well. The farm-in agreement is subject to NZ Government approvals. After the farm-in, the interests will be AWE NZ Ltd (operator) 65%, Roc Oil (Tasman) 15%, Kea Oil & Gas 10% and Carnarvon Petroleum NZ 10%.
In the Northland Basin, PEP 38602 has had its expiry date extended to 31/07/2010.
In the Taranaki Basin, interests in permit PEP 51558 have changed as follows - AWE New Zealand P/L 30% (operator), Mitsui E&P Australia P/L 30%, Mighty River Power Gas Investments Ltd 20% and Todd Exploration Ltd 20%.
Papua New Guinea
In the Papuan Basin, Mosaic Oil and Cue Energyís wholly-owned
subsidiary Omati Oil P/L is selling its interest in PRL 8.
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