Page 14 - OGA-Sept-2015
P. 14
THIS MONTH
OIL & GAS AUSTRALIA
Alcoa gas sales to boost Empire earnings
SALES from the second tranche of Empire sales under Tranche 1 of the sales agreement group now aiming to explore marketing of
Oil & Gas’s gas sales agreement with Alcoa – only from sales of condensate – as Alcoa the additional available gas.
of Australia will triple the company’s cash had pre-paid Empire to assist with the
revenues in 2015-2016, after deliveries funding of the Red Gully gas and condensate Empire chief executive Ken Aitken said
started in late July. facility. the start of Tranche 2 marked a pivotal
point in the company’s growth.
With Tranche 2 deliveries underway, cash The company is currently supplying 8
received from gas sales in 2015-2016 would terajoules of gas per day to Alcoa, equating “This will have a major impact on our
be about $23 million, $14 million more than to 80 per cent of the Red Gully Processing financial position,” he said.
in 2014-2015. facility’s capacity of 10 terajoules per day.
“Our exploration program is also
Empire had expected to start deliveries The start of gas deliveries under Tranche continuing, with preparations for drilling
under Tranche 2 of the deal in September, 2 comes after Empire announced an increase the Red Gully North 1 well later this year
but brought on the deliveries earlier after in gas and condensate reserves at Red Gully and the evaluation of results of the recently-
Alcoa’s gas needs were higher than the which it said gave it enough to cover all completed airborne geophysical survey over
forecast nominations in the March and June of Tranche 2 and the potential to generate our tenements.”
quarters. additional cashflow from further sales.
“This gives investors exposure to growing
Empire did not receive any cash from gas The increased reserves also have the cashflow and the potential for exploration
potential to extend the life of the Red Gully upside,” Mr Aitken said. l
project by about two years, it said, with the
Cairn to drill Senegal
Beach offloads Egyptian assets exploration well
“This sale, as well as Beach’s recent exit from
BEACH Energy will sell its stake in Romania, continues to build on the company’s CAIRN Energy will drill an exploration well
an Egyptian oil project to UK-based strategy of focusing on Australia and nearby, targeting the Bellatrix prospect offshore
Rockhopper Exploration in a deal worth where its core expertise can be leveraged to Senegal, Australian partner FAR announced.
US$22 million as the company sharpens its drive sustainable, value accretive growth,”
focus onto its Australian assets. Beach said. The new well will be the first drilled after
the discoveries in the FAN 1 and SNE 1 wells,
Rockhopper will acquire a 22% stake in the Beach acquired the stake in the Abu Sennan made in 2014 on the Sangomar Deep and
Abu Sennan Concession in Egypt for US$11.5 concession and a 15% in the Mesaha block in Sangomar Offshore blocks respectively.
million in cash and shares worth US$10.5 2010, for US$33 million.
million – which the company said would be no Aiming to build a resource base within tie-
more than 5 per cent of its total issued capital. The company relinquished its Mesaha stake back range for a potential hub development.
in 2014 after analysis of the Mesaha 1 well,
First commercial production from the drilled in 2011-2012, indicated the area was The three wells in the drilling program will
Abu Sennan concession, located in the Abu non-prospective for hydrocarbons. be drilled using the ConocoPhillips-contracted
Gharadig basin in the Western Desert, was Ocean Rig Athena drillship, FAR said.
achieved during 2012, with about 1.9 million The deal is Rockhopper’s entry into Egypt,
barrels produced to date. with company chief executive Sam Moody In an announcement, FAR said its joint
saying the deal was part of a company strategy venture partners in Senegal will start appraisal
Rockhopper said the concession was to build a full cycle exploration and production drilling in the fourth quarter of 2015.
underexplored, with significant exploration company.
and appraisal upside providing opportunities The three well drilling program, alongside
for near-term production additions. “We expect this portfolio to be net cash flow a 3D seismic survey, were included in a three
positive immediately and upon completion of year evaluation program approved by the
The company will also acquire a 25% interest the transaction expect operating cash flows Government of Senegal in early May this year.
in the El Qa’a Plain concession, located on the from Egypt and our existing Italian assets to
eastern shore of the Gulf of Suez. cover Group overheads going forward,” he said. The three firm wells and final seismic
products in this first phase of the evaluation
Concession operator Dana Petroleum, which “Through the acquisition we have added program are expected to be completed around
like project partner Petroceltic holds a 37.5% 2P plus 2C reserves and resources at a net mid-2016.
stake in the project, plans to acquire 450 square acquisition price of less than $4.50 per barrel
kilometres of 3D seismic data over the block in of oil equivalent (after financial adjustments) FAR managing director Cath Norman said
2015, followed by the drilling of one or more whilst preserving our balance sheet and the company was looking forward to the start
exploration wells in 2016. limiting dilution to shareholders to less than of drilling in October.
5%.” l
Beach said the deal is expected to be “The Bellatrix prospect is one of a number
completed in late 2015 or early 2016, depending of high quality targets the joint venture has
on Egyptian regulatory approvals, due identified in both the Rufisque and Sangomar
diligence, the divestment of non-core assets and licence areas offshore Senegal.”
the permission of its joint venture partners on
the blocks. “Success in Bellatrix will add considerable to
the commercial prospects for the SE field.”
Cairn operates the Sangomar Deep and
Rufisque and Sangomar Offshore blocks
offshore Senegal with a 40 per cent stake.
ConocoPhillips holds a 35% stake in the
permits, while FAR holds 15% and Senegal’s
state-owned Petrosen holds 10%. l
12 ENERGY PUBLICATIONS CELEBRATING 34 YEARS OF PUBLISHING IN AUSTRALIA
OIL & GAS AUSTRALIA
Alcoa gas sales to boost Empire earnings
SALES from the second tranche of Empire sales under Tranche 1 of the sales agreement group now aiming to explore marketing of
Oil & Gas’s gas sales agreement with Alcoa – only from sales of condensate – as Alcoa the additional available gas.
of Australia will triple the company’s cash had pre-paid Empire to assist with the
revenues in 2015-2016, after deliveries funding of the Red Gully gas and condensate Empire chief executive Ken Aitken said
started in late July. facility. the start of Tranche 2 marked a pivotal
point in the company’s growth.
With Tranche 2 deliveries underway, cash The company is currently supplying 8
received from gas sales in 2015-2016 would terajoules of gas per day to Alcoa, equating “This will have a major impact on our
be about $23 million, $14 million more than to 80 per cent of the Red Gully Processing financial position,” he said.
in 2014-2015. facility’s capacity of 10 terajoules per day.
“Our exploration program is also
Empire had expected to start deliveries The start of gas deliveries under Tranche continuing, with preparations for drilling
under Tranche 2 of the deal in September, 2 comes after Empire announced an increase the Red Gully North 1 well later this year
but brought on the deliveries earlier after in gas and condensate reserves at Red Gully and the evaluation of results of the recently-
Alcoa’s gas needs were higher than the which it said gave it enough to cover all completed airborne geophysical survey over
forecast nominations in the March and June of Tranche 2 and the potential to generate our tenements.”
quarters. additional cashflow from further sales.
“This gives investors exposure to growing
Empire did not receive any cash from gas The increased reserves also have the cashflow and the potential for exploration
potential to extend the life of the Red Gully upside,” Mr Aitken said. l
project by about two years, it said, with the
Cairn to drill Senegal
Beach offloads Egyptian assets exploration well
“This sale, as well as Beach’s recent exit from
BEACH Energy will sell its stake in Romania, continues to build on the company’s CAIRN Energy will drill an exploration well
an Egyptian oil project to UK-based strategy of focusing on Australia and nearby, targeting the Bellatrix prospect offshore
Rockhopper Exploration in a deal worth where its core expertise can be leveraged to Senegal, Australian partner FAR announced.
US$22 million as the company sharpens its drive sustainable, value accretive growth,”
focus onto its Australian assets. Beach said. The new well will be the first drilled after
the discoveries in the FAN 1 and SNE 1 wells,
Rockhopper will acquire a 22% stake in the Beach acquired the stake in the Abu Sennan made in 2014 on the Sangomar Deep and
Abu Sennan Concession in Egypt for US$11.5 concession and a 15% in the Mesaha block in Sangomar Offshore blocks respectively.
million in cash and shares worth US$10.5 2010, for US$33 million.
million – which the company said would be no Aiming to build a resource base within tie-
more than 5 per cent of its total issued capital. The company relinquished its Mesaha stake back range for a potential hub development.
in 2014 after analysis of the Mesaha 1 well,
First commercial production from the drilled in 2011-2012, indicated the area was The three wells in the drilling program will
Abu Sennan concession, located in the Abu non-prospective for hydrocarbons. be drilled using the ConocoPhillips-contracted
Gharadig basin in the Western Desert, was Ocean Rig Athena drillship, FAR said.
achieved during 2012, with about 1.9 million The deal is Rockhopper’s entry into Egypt,
barrels produced to date. with company chief executive Sam Moody In an announcement, FAR said its joint
saying the deal was part of a company strategy venture partners in Senegal will start appraisal
Rockhopper said the concession was to build a full cycle exploration and production drilling in the fourth quarter of 2015.
underexplored, with significant exploration company.
and appraisal upside providing opportunities The three well drilling program, alongside
for near-term production additions. “We expect this portfolio to be net cash flow a 3D seismic survey, were included in a three
positive immediately and upon completion of year evaluation program approved by the
The company will also acquire a 25% interest the transaction expect operating cash flows Government of Senegal in early May this year.
in the El Qa’a Plain concession, located on the from Egypt and our existing Italian assets to
eastern shore of the Gulf of Suez. cover Group overheads going forward,” he said. The three firm wells and final seismic
products in this first phase of the evaluation
Concession operator Dana Petroleum, which “Through the acquisition we have added program are expected to be completed around
like project partner Petroceltic holds a 37.5% 2P plus 2C reserves and resources at a net mid-2016.
stake in the project, plans to acquire 450 square acquisition price of less than $4.50 per barrel
kilometres of 3D seismic data over the block in of oil equivalent (after financial adjustments) FAR managing director Cath Norman said
2015, followed by the drilling of one or more whilst preserving our balance sheet and the company was looking forward to the start
exploration wells in 2016. limiting dilution to shareholders to less than of drilling in October.
5%.” l
Beach said the deal is expected to be “The Bellatrix prospect is one of a number
completed in late 2015 or early 2016, depending of high quality targets the joint venture has
on Egyptian regulatory approvals, due identified in both the Rufisque and Sangomar
diligence, the divestment of non-core assets and licence areas offshore Senegal.”
the permission of its joint venture partners on
the blocks. “Success in Bellatrix will add considerable to
the commercial prospects for the SE field.”
Cairn operates the Sangomar Deep and
Rufisque and Sangomar Offshore blocks
offshore Senegal with a 40 per cent stake.
ConocoPhillips holds a 35% stake in the
permits, while FAR holds 15% and Senegal’s
state-owned Petrosen holds 10%. l
12 ENERGY PUBLICATIONS CELEBRATING 34 YEARS OF PUBLISHING IN AUSTRALIA
