Dart Energy has launched a friendly all-share takeover of fellow coal seam gas player Apollo Gas valued at about $145 million ...
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Dart Energy has launched a friendly all-share takeover of fellow coal seam gas player Apollo Gas valued at about $145 million that could see it sell gas into New South Wales. Under the deal, Dart is offering three of its shares for every four Apollo shares, or about 79c per Apollo share based on the last trading price prior to the announcement. Dart, which already holds 21% of Apollo, added that Apollo’s directors – other than Stephen Bizzell who is also a director of Dart – and major shareholders holding about 54% of Apollo’s shares have already said they would accept the offer in the absence of a superior proposal. (Source: PetroleumNews, 29/09/2010).
Bow Energy and Liquefied Natural Gas Ltd have terminated talks on potential commercial arrangements which were believed to include a potential gas supply deal. LNG Ltd said that based on recent developments in the coal seam gas industry in Queensland and its work on gas supply and strategic partner options, its directors had decided the potential transactions with Bow would not recognise the full value of its Fisherman’s Landing coal seam gas-to-liquefied natural gas project. The company added it was in talks with several parties on gas supply and strategic investment opportunities. Meanwhile, Bow said the discussions were inconclusive and that it would continue to pursue its strategy of progressing multiple channels to monetise its coal seam gas resources. (Source: PetroleumNews, 22/09/2010).
Metgasco has teamed up with Liquefied Natural Gas Ltd and Flex LNG to evaluate the feasibility of a number of export LNG options, including the supply of gas to Fisherman’s Landing at Gladstone and a floating LNG development in New South Wales. The company, which holds prospective coal seam gas and conventional acreage in the Clarence Moreton Basin in NSW, will evaluate the commercial, environmental and technical feasibility of supplying gas for LNG Ltd’s CSG-to-LNG project and a FLNG development. Under the memorandum of understanding with LNG Ltd, the two companies will evaluate the viability of gas supply, transportation, liquefaction and sale of LNG from Metgasco’s 100%-owned CSG reserves and conventional gas resources in the Clarence Moreton to LNG’s Gladstone LNG project at Fisherman’s Landing. (Source: PetroleumNews, 27/09/2010).
The Federal Court of Australia has given the stamp of approval for AGL Energy to proceed with its $130 million acquisition of Mosaic Oil via a scheme of arrangement. The approval follows overwhelming support from Mosaic shareholders who voted in favour of the scheme at a meeting on 07/10/2010. AGL made a bid for Mosaic in July to access the company’s gas storage capabilities at the depleted Silver Springs gas fields in the Surat Basin so it can create a gas storage business to support QGC’s Queensland Curtis liquefied natural gas plant. Under the acquisition, to be implemented via a scheme of arrangement, Mosaic shareholders will receive 15c cash per share or 1.01 AGL share for every 100 fully paid Mosaic shares. Mosaic shares were suspended from quotation on the Australian Securities Exchange on 11/10/2010. (Source: PetroleumNews, 12/10/2010).
Comet Ridge is expanding its coal seam gas portfolio in the Gunnedah Basin with a binding heads of agreement to acquire Greenpower Energy’s 20% stake in PEL 428 for an undisclosed number of shares. Under the binding Heads of Agreement, Comet Ridge will acquire Greenpower’s wholly-owned subsidiary, Davidson Prospecting P/L, whose sole asset is 20% interest in PEL 428 for conventional and CSG rights. The transaction is expected to be completed by December 2010. (Source: PetroleumNews, 14/10/2010).
Eastern Star Gas has signed an agreement with Japan-based Marubeni Corporation to speed up the commercialisation of its liquefied natural gas project at Newcastle. The agreement puts into place a series of prospective arrangements that have a number of objectives, including Marubeni, together with prospective LNG buyers taking an equity stake in the LNGN project with Marubeni having a lead role in offtaking and marketing LNG from the project. Other objectives of the agreement include ESG making available an equity interest in the Narrabri coal seam gas project to LNG buyers including Marubeni and APA Group together with Marubeni assuming responsibility for construction, ownership and operation of a pipeline to deliver CSG from Narrabri to Newcastle. (Source: PetroleumNews, 15/10/2010).
TSMarine has been awarded the $A22 million Halyard field development offshore installation contract from Apache Energy. Under the contract, TSMarine will transport and install 16 kilometres of flexible flowline and 28km of control umbilical connecting the Halyard 1 well to Apache’s operations hub on Varanus Island via the East Spar subsea infrastructure. Control will come from the John Brookes wellhead platform. The offshore works are scheduled to start in February 2011 and are expected to take 45 days. (Source: PetroleumNews, 23/09/2010).
Leighton Holdings continues to dominate the major civil works contracts at the Gorgon LNG project, with its subsidiary Leighton Contractors winning a second big contract at the Barrow Island site. Leighton Contractors will deliver a civil and underground works package worth more than $800 million. The scope of the latest contract includes earthworks, in situ and precast concrete, drainage, piping and cabling. (Source: PetroleumNews, 24/09/2010).
BHP Billiton is moving ahead with development of its $US1.5 billion ($A1.58 billion) Macedon gas field in the Exmouth Sub-basin, Western Australia. The field is 60 miles west of Onslow in production license WA-42-L. The project involves four offshore production wells supplying a wet gas pipeline to an onshore gas treatment plant to be built at Ashburton North, 17km southwest of Onslow. This will be connected to the Dampier to Bunbury Natural Gas Pipeline for sale into Western Australia’s domestic gas market. First gas is targeted for 2013 at rates of 200 million cubic feet per day. Macedon has estimated recoverable reserves of between 400-750 billion cubic feet of gas. BHP has already put up tenders for offshore engineering services, flexible flow line, offshore installation, subsea trees as well as other items for the initial four-well project. (Source: PetroleumNews, Oil & Gas Journal, 24/09/2010).
Australia’s Energy World Corporation has signed an agreement with InterOil to fund and build a 2 million tonne per annum liquefied natural gas plant in Papua New Guinea. Under the binding heads of agreement with InterOil and its Liquid Niugini Gas joint venture with Pacific LNG Operations, EWC will in turn be entitled to 14.5% of the proceeds from the sale of LNG from the plant, less agreed deductions and subject to adjustments based on timing and execution. The mid-sized LNG plant is expected to cost about $US910 million ($A941 million) with start-up scheduled for late-2013. Infrastructure required for the project includes a jetty and breakwater for the LNG loading facility and an 80-kilometre pipeline from the Elk and Antelope fields, which will feed the plant. (Source: PetroleumNews, 29/09/2010).
Baker Hughes subsidiary BJ Services has secured a multi-million dollar contract to provide casing and tubing running services for Woodside’s Pluto liquefied natural gas development. Work under the three-year contract began in May on various wells in the offshore Carnarvon Basin. The contract is being supported from Baker Hughes’ offices in Perth and Singapore with the company using a comprehensive suite of casing and tubular handling equipment to carry out the contract. The company has also fitted the Ocean America semi-submersible with BJ Services’ Derrickman system to help carry out the work. The Derrickman system includes a remotely operated mechanical arm that makes it possible to manoeuvre tubular and drill pipe into a vertical position without a crew member acting as a traditional stabber. (Source: PetroleumNews, 14/10/2010).
McDermott has secured more work for Chevron’s Gorgon project with the award of a contract for the fabrication of subsea structures and spools valued at more than $US50 million ($A50.85 million). The company secured the contract from Vetco Gray Australia which involves the construction of 12,000 tonnes of subsea structures and spools at McDermott’s fabrication facility in Batam, Indonesia. Work is scheduled to start later this year and will be completed in the last quarter of 2012. The contract from Vetco Gray is the second contract McDermott has won for the Gorgon project. (Source: PetroleumNews, 12/10/2010).
Cooper Energy has mapped 12 prospects and leads containing 52 million barrels of prospective resources across its onshore Otway Basin permit PEL 495 in South Australia. It also has identified the drill-ready Sawpit Updip Prospect as the key to opening up the Sawpit Formation play fairway, which is expected to cost $A3-5 million to drill and test. Cooper Energy owns 100% and is the operator of PEL 495, but will seek a joint venture participant to join it in the exploration of existing seismic in the basin. Additional seismic data for the northern extent of the permit area is still being acquired and the international oil and gas company expects more leads to be identified based on this exploration. (Source: PetroleumNews, 21/09/2010).
New Zealand-focused Canadian junior TAG Oil has struck oil with its shallow Sidewinder 1 well, the company’s first true exploration effort in onshore Taranaki for several years. Sidewinder 1 in TAG's 100%-controlled Broadside exploration lease PEP 38748 reached a target depth of 1,601m on Tuesday morning, and logging indicated the well had encountered a 22 metre interval (gross) of oil-bearing sandstones across 50 metres of sandstones and shales. Electric logs indicated excellent reservoir qualities, with average porosities of 22.5% and oil saturations of 60%. TAG proceeded to complete the Sidewinder 1 well for production. (Source: PetroleumNews 30/09/2010). (Details of Sidewinder 1 are not yet available. They will be included in the next update).
Bow Energy has completed six of the initial nine coreholes in the CSG exploration program in the Norwich Park block (ATP 1031P). The core holes had intersected total coals of 52-77 metres with gas content ranging from 10-22 cubic metres per tonne to 18-26 cubic metres per tonne. Bow plans to carry out a permeability testing program this quarter aimed at converting the 2C resource into proved, probable and possible (3P) and proved and probable (2P) reserves. (Source: PetroleumNews, 08/10/2010).
Cue Energy announced on 12/10/2010 that the Manaia 1 well began producing at an initial rate of about 4,000 barrels per day. The Manaia 1 appraisal well, which is tied into the Maari production facilities, is New Zealand’s longest drilled deviated well yet. The well penetrated a gross 1524 metre long section of the target Eocene-aged Mangahewa formation and has essentially doubled the recoverable reserves at Maari-Manaia field to about 100 million barrels. The Manaia field is located in PMP 38160 which also contains the Maari field. Production from Manaia complements the production from the original five Maari development wells. (Source: PetroleumNews, Cue Energy ASX Announcement, 12/10/2010).
New South Wales
In the Gunnedah Basin, PALA 5 was withdrawn on 23/09/2010 and PSPA 33 expired on 15/10/2010.
Also in the Gunnedah Basin, PEL 465 and PEL 466 were cancelled at the request of holder, Norwest Hydrocarbons P/L.
In the Sydney Basin, Australian Coalbed Methane has sold its interest in PEL 454 to Apex Energy. Apex Energy will hold 80% and Sydney Basin CBM 20% in the licence.
In the Wiso Basin, EP(A) 198 is a new exploration permit application over 16,197 sq km by Pangaea Resources P/L 100%.
In the Bonaparte Basin, MEO Australia is seeking a farm-in partner to help with the appraisal of the Heron gas discovery in NT/P 68. MEO is looking to farm-out up to 50%.
In the McArthur Basin, GEP 28310 is a new geothermal permit application by Geodynamics Ltd 100%.
In the Eromanga Basin, Mosaic received an initial 20% in the ATP 1056P Taipan Block after receiving approval for the transfer from the QLD Government. Mosaic Oil has issued 45 million shares to the Taipan partners - Discovery Geo Corporation, Tamark and CG Operating. The transfer of the remaining 20% will be made once further conditions of the farm-in are met.
In the Surat Basin, Mosaic Oil has declined the offer of ATP 1057P and ATP 1060P.
In the Bowen Basin, application for production licence PL 296 was withdrawn.
The following 2010 onshore gazettals closed on 27/09/2010 and have received multiple competing applications –
Gazettal Basin Application
Gazettal areas LR 2010-1-1 and LR 2010-2-5 in the Carpentaria and Eromanga Basins did not receive any bids and revert to vacant acreage.
The following are new Production Licence applications in the Bowen Basin by Bow Norwich Park CSG P/L –
Application Area, sq km
In the Surat Basin, ATP 648P was renewed to 31/10/2020 and ATP 663P was renewed to 30/09/2018.
In the Bowen Basin, ATP 685P was renewed to 30/04/2020.
In the Cooper Basin, ATP 855P was granted on 05/10/2010. Licence will expire on 31/10/2022. The participants in the licence are: Icon Energy Ltd 55% (operator), Beach Energy Ltd 25%, Well Traced P/L 10% and Deka Resources P/L 10%.
In the Carpentaria Basin, EPG 32, EPG 34 and EPG 36 were granted to Terra Estus Resources P/L 100%. The licences will expire on 26/09/2015. Unsuccessful applications EPG 31, EPG 33 and EPG 35 over the same areas are cancelled.
The following petroleum exploration licences have had their expiry dates extended -
Licence Basin Expiry Date
In the Eromanga Basin, the original PELA 560 was revised by the applicants in September 2010 to cover a different area. Shortly thereafter, the applicants re-applied for the area previously held by PELA 560 as a new PELA which is now designated as PELA 566.
In the Otway Basin, GELs 170, 171, 172, 173 and GEL184 licence areas were consolidated under GEL 170 with a total area of 2,498 sq km. GELs 171, 172, 173 and 184 were revoked.
In the Arrowie Basin, GEL 206 has undergone partial relinquishment and now covers a reduced area of 329 sq km.
Onshore Tasmania, SEL 5/2005 is being renewed.
In the Gippsland Basin, gazettal area VIC/G 10-5 is under application as PEP 170 by Icon Energy Ltd.
Also in the Gippsland Basin, licences VIC/L 5, VIC/L 6, VIC/L 7, VIC/L 8 and VIC/RL 1 are being renewed.
Somerton Energy will acquire up to 5% from Lakes Oil NL in PRL 2, by funding 33.3% of fracturing and testing of the Wombat 2 and Boundary Creek 2 wells, at an estimated cost of up to $3.33m. Somerton has an option to earn a further 11.7% by contributing a further $13.33 m to further appraisal and development of the Wombat gas field.
In the Lachlan Fold Basin, GEP 5 has had its expiry date extended to 13/11/2012.
In the Barrow Basin, EP 358 is being renewed.
In the Carnarvon Basin, EP 359 is being renewed.
In the Canning Basin, EP 417 was renewed with the reduction in area until 16/09/2015. The licence now covers 3,153 sq km.
Norwest Energy has signed the farm-out deal with Indian upstream company Bharat PetroResources. Bharat will provide $15 million in exploration and drilling funds to earn a 50% interest in EP 413 and TP/15 in the Perth Basin. Norwest will also receive a $500,000 reimbursement for its past costs.
In the Carnarvon Basin, application for production licence over Rough Range Block 1/04-5 L was granted as L 16. The licence will expire on 23/09/2031. The area of exploration permit EP 435 was reduced due to the grant of production licence and now covers 238 sq km.
Also in the Carnarvon Basin, final regulatory approval for Petrobras farm-in to WA-360-P has been received and Petrobras was registered on the permit title. The interests in the licence are changed to the following: Petrobras International Braspetro BV - 50%; North West Shelf Exploration P/L - 25%; Cue Energy Resources Ltd - 15%; Rankin Trend P/L - 10%. North West Shelf will remain the operator until the completion of the first well after which Petrobras has the option to assume operatorship.
In the Canning Basin, EP 457 and EP 458 have had their expiry date extended to 23/10/2014.
In the Carnarvon Basin, expiry date of WA-335-P was extended to 16/06/2011.
In the Bangemall Basin, 2010 onshore gazettal areas L 10-2 and L 10-3 are under application as STP-EPA-0012 and STP-EPA-0013.
In the Exmouth Basin, WA-268-P was renewed with the reduction in area until 04/10/2015. The licence now covers 3,323 sq km. The new work program is as follows -
G&G studies, 200k 3D seismic interpretation - $0.665m
The following 2009 and 2010 gazettal areas are under application -
In the Canterbury Basin, applications APP 52605 and APP 52589 were reduced in area and now cover 3,592 sq km and 4,710 sq km respectively. These changes were mutually agreed upon between the applicants, and removed the competitive nature of the original overlap portion of these applications.
In the Westland Basin, PEP 38520 was relinquished on 23/09/2010. In its place, new application PEP 50279 over 4,779 sq km is pending.
In the Northland Basin, PEP 38602 was renewed until 31/07/2015.
Offshore, in the Taranaki Basin, application APP 52333 was granted as PEP 52333 to Kea Oil & Gas Ltd, 100%. The licence will expire on 12/10/2015. Work program is as follows -
400k 2D seismic reprocessing, technical studies
Also in the Taranaki Basin, onshore, application for extension
of area to PMP 38148 was granted on 24/09/2010. PML
38091 and PMP 38152 were relinquished upon the grant
of land extension. PMP 38148 has had its expiry date
extended until 22/12/2036.
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