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Thursday, 10 August 2017 00:18

Zeta lines up NZOG takeover bid

ASX-listed investment company Zeta Resources is making a partial takeover bid to acquire up to 41.955% of New Zealand Oil & Gas shares that it does not already own.

Its Singapore-based subsidiary Zeta Energy is seeking to control at least 50.01% of voting rights in NZOG and plans to offer NZ$0.72 per share.

Zeta Energy is currently the largest shareholder in NZOG holding approximately 17.5% of voting rights. Associates of Zeta control an additional 3.7%, making a total of about 21.20%.

Zeta said NZOG’s second largest shareholder, Bermuda-based global fund manager ICM, holding approximately 8.3% of voting rights, has also agreed to accept the offer.

Last November, NZOG agreed to sell its 15% interest in the Kupe gas and light oil fields and production station to Genesis Energy for US$119 million.

In February, the firm accepted Tamarind Management’s offer for its 27.5% interest in the Tui area oil fields off Taranaki. Tamarind will pay NZOG $750,000 in exchange for all shares in its Tui holding company. 

Wednesday, 02 August 2017 21:58

Petronas bags third block in Mexico

Malaysian energy giant Petronas has been awarded shallow water Block 6 in the Gulf of Mexico’s Salina basin, the company said 2 August.

Covering an area of about 559sq km in water depths of 30-80m, its wholly owned subsidiary PC Carigali Mexico will operate Block 6 in a 50:50 partnership with Colombian national oil company, Ecopetrol.

Last year, Petronas was awarded deepwater Blocks 4 and 5 in a joint venture partnership following Mexico’s first ever auction of its deepwater exploration areas. PC Carigali will be the operator of Block 4 with 50% stake, alongside Mexican independent Sierra Oil & Gas.

The block covers an area of about 2600sq km in water depths of 800-1600m. The initial exploration period is four years where the duo will concentrate on seismic data acquisition and processing.

PC Carigali is also 23.34% stakeholder in the fifth block which was awarded to a consortium led by Murphy Sur (30%), including UK oil and gas firm Ophir Energy (23.33%) and Sierra Offshore Exploration (23.33%).

Block 5 will be operated by Murphy Sur with an initial exploration period of also four years including a work program commitment of one well. The block is approximately 2600sq km and sits in water depths of 700-1100.

Petronas vice president of exploration, upstream, Emeliana Rice-Oxley said Mexico is largely underexplored and holds substantial material opportunities for the company. “We are very pleased to add Block 6 to our growing exploration portfolio in Mexico and be one of the early movers in this basin. This is aligned with the group’s strategy to explore for material oil in largely underexplored prospective regions,” she added.

To date, Petronas has a total of 5491sq km in gross acreage in the Salina basin. The firm is further expanding its footprint in the region with a new office opening in Mexico City in Q3 2017.

Image: Petronas 

Wednesday, 26 July 2017 20:35

Beach reports FY17 earnings, FY18 budget

Beach Energy recorded FY17 sales revenue of AU$152 million, in-line with the prior period, and achieved 9% more sales volume of 11.8 MMboe, it said.

The Adelaide-based company drilled 58 wells in FY17 at a success rate of 79% and completed an onshore five-well oil development and appraisal campaign at the Callawonga field, located in South Australia’s Cooper basin.

Designed to develop oil reserves in the McKinlay Member, all five wells are expected to come online in Q2 FY18. Four wells intersected oil columns high to prognosis, indicating extensions of field limits with 2P reserve additions expected.

“Record full-year production of 10.6 MMboe, completion of major infrastructure upgrades, successful drilling campaigns and close to $700 million of available liquidity demonstrate a strengthened platform for growth,” CEO Matt Kay said.

“To continue this momentum, Beach has commenced a multi-year capital program which seeks to extract maximum value from our core Cooper basin acreage. By fully appraising the undeveloped reserve and prospective resource potential of the basin, the program provides the foundation for sustained activity and production over coming years,” he added.

In FY18, Cooper plans to produce 10.0 – 10.6 MMboe and is targeting at least 10 MMboe of production in FY19 and FY20. Planned activity in FY18 comprises of completion and connection of more than 20 cased and suspended wells, production optimization projects, facility expansions and development drilling in the Cooper basin.

These activities are expected to offset natural field decline and sustain production levels in FY18. Cooper will drill 78 wells in FY18, including up to 44 exploration and appraisal wells to add reserves and guide development programs for future years. In addition, it plans to process recently acquired 3D seismic to identify exploration targets for FY19 and beyond.

According to Kay, capital expenditure of $220 – 260 million is expected in FY18, with two-thirds of discretionary spend targeting projects with internal rates of return greater than 60%. He said FY18 guidance is underpinned by existing producers and current well stock and does not rely on exploration drilling success.

“With an expanded exploration and appraisal drilling campaign and a full-year rig schedule in FY18, Beach also has [the] confidence to target at least 100% replacement of produced reserves through to year-end FY19,” he added.

Image: Map of Callawwonga oil field / Beach Energy

Tuesday, 25 July 2017 20:56

Senex FY17 revenue dips

Brisbane-based Senex Energy recorded full year FY17 sales revenue of AU$43.6 million, down from $69.3 million in full year FY16, reflecting lower sales volumes and lower realized oil prices.

The firm’s sales revenue was $9.9 million for the June quarter, on 160,000 bbl of oil sold, down marginally from the 170,000 bbl sold in the March quarter.

Total full year oil production was 0.75 MMboe compared to 1.01 MMboe delivered in FY16.

CEO Ian Davies said Senex exits FY17 strongly positioned to take advantage of opportunities in the east coast gas market.

“During the final quarter of the year we commenced a capital investment program on the Western Surat Gas Project with several progress milestones already met,” he said.

“This project represents a near term opportunity to develop a major new revenue stream for Senex, delivering new molecules into the structurally short east coast gas market.”

During the final quarter, Senex commenced the Phase 2 work program on the Western Surat Gas Project onshore Queensland, expected to deliver material gas by mid-2018. It involved drilling the first of 30 wells, located across the Glenora and Eos blocks.

Furthermore, Senex commenced an infrastructure project to bring the Cooper basin’s Vanessa gas field online during FY18, which will connect the field to the Santos-operated Moomba processing plant. Senex is currently in discussions with potential domestic customers for these gas volumes.

The firm also drilled the high impact gas well Silver Star-1 to a target depth of around 5000m during the June quarter, intersecting gas saturated sandstones. Mechanical issues were encountered while running casing through the Patchawarra coal measures, and the joint venture including Origin Energy is evaluating the forward work program.

On 25 July, Senex announced that it made a Birkhead oil discovery on the western flank of the South Australian Cooper basin, with the Marauder-1 well flowing at 655 bo/d on a drill stem test.

Davies said the group continues to see substantial untapped potential on the western flank and this area will be the focus for much of the FY18 exploration, appraisal and development program in the oil business.

During 1H FY17, Senex recorded lower revenue of $22.8 million, primarily driven by low oil prices, and production was 410,000 boe, down 24% as a result of natural field decline and significantly lower capital expenditure over the previous two financial years.

Image: Ian Davies