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  • 18 Sep 2023 9:00 AM | Stephanie Berlin (Administrator)

    Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to announce that drilling operations on the Shenandoah South 1H (“SS1H”) well have been successfully completed with Falcon Oil & Gas Australia Limited’s joint venture partner, Tamboran (B2) Pty Limited.

    The well has been drilled to a total measured depth (“TD”) of 4,300 metres, including a horizontal section over 1,074m in length in the Amungee Member B-shale, with casing and cementing also complete.

    As noted previously for SS1H:

    • Logging of the Amungee Member B-shale formation indicates potentially higher porosity and gas saturation relative to other wells drilled targeting the same formation.
    • Initial evaluation confirms reservoir continuity of the Amungee Member B-shale over 150 kilometres between Amungee NW-2H (“A2H”) and Beetaloo W-1 wells. This includes a target development area of approximately 1 million acres where the shale depth exceeds 2,700 metres.
    • A stimulation program of up to 10 stages over a 500-metre section is planned to commence in the fourth quarter of 2023.

    The Helmerich & Payne (NYSE: HP) super spec FlexRig® Flex 3 rig will now be mobilised to the Amungee NW-3H (“A3H”) well site which will be drilled from the same pad as A2H.  The A3H well is the second of the two well programme in 2023 and will target the Amungee Member B-Shale at an estimated depth of 2,450 metres TVD (total vertical depth), with spudding of the well expected by the end of September 2023. Falcon Australia will participate at its full 22.5% interest.

    Philip O’Quigley, CEO of Falcon commented:

    “We are delighted to have successfully completed the SS1H horizontal well section and we now look forward to the next phase of operations with the stimulation and extended production testing of the well.  We will continue to update the market as results become available.”

    NOMAD Name Change

    The Company announces that its nominated adviser (NOMAD) and broker has changed its name from Cenkos Securities plc to Cavendish Securities plc following completion of its own corporate merger.

    Ends.

    Source: Falcon Oil & Gas Ltd

  • 14 Sep 2023 8:54 AM | Stephanie Berlin (Administrator)

    The Territory’s top engineers and engineering projects have been honoured at the 2023 Engineers Australia Excellence Awards – People & Projects Northern Division, which was held at the Darwin Hilton.

    “The Engineers Australia Excellence Awards are not just about celebrating the best of engineering. They remind us of the consistent impact engineers have on our daily lives, said Jan Irvine, Engineers Australia GM NT and SA.

    “These awards provide a platform to both highlight their groundbreaking work and advocate for the engineering profession, laying a foundation and inspiration for those coming after them. We are not just applauding their achievements, but also setting a standard and vision for the future of engineering.”

    Northern Project of the Year
    Jabiru Hybrid Renewable Project by EDL

    The Jabiru Hybrid Renewable Project was unanimously awarded this year’s Engineers Australia Project Award. This power system solution demonstrated community and cultural engagement in design, construct and operational phases and innovative optimized control systems maximizing solar and battery use with the security of diesel backup during periods of low solar penetration. With estimated savings of over 1.7million litres of diesel fuel, this project exemplifies a low-cost solution to many of Australia’s remote power challenges by delivering reliable, affordable and secure power to isolated communities.

    Northern Professional Engineer of the Year
    Krishnan Kannoorpatti

    Krishnan Kannoorpatti is an expert in materials, corrosion and manufacturing engineering. He has delivered over 70 research papers which have been widely cited, with many concepts being applied in the aviation and shipbuilding industries.  His passion for the engineering profession is exemplified by his participation and drive on technical committees and industry councils, and he has successfully pursued funding to further training outcomes for the next generation of advanced manufacturing engineers.

    Northern Emerging Professional Engineer of the Year
    Hooman Mehdizadeh Rad

    Hooman Mehdizadeh Rad is an emerging engineer with a passion for improving local outcomes for societal problems. Hooman has successfully navigated the pathway between academia and industry with his research into solar cell technology and zero energy buildings being widely published, with practical applications for both policy writers and manufacturers. He is an active leader on technical and industry committees and college board and his lobbying for grant funding has realised improved advanced manufacturing facilities for Charles Darwin University students.

    The Engineers Australia Excellence Awards seeks to recognise and reward outstanding achievement in engineering. Local winners will go on to represent their division at the national awards in Melbourne on 29 November 2023.

    Source: https://petroleumaustralia.com.au/

  • 13 Sep 2023 3:09 PM | Stephanie Berlin (Administrator)

    Australian Energy Producers has today been unveiled as the new name of the peak body of the nation’s explorers and producers of essential energy.

    Previously known as the Australian Petroleum Production & Exploration Association (APPEA), the change reflects the growth and evolution of Australia’s oil and gas industry and its important and long-term role in enabling the transformation of the nation’s energy system.

    Australian Energy Producers Chief Executive Samantha McCulloch said: “The world is changing, the energy system is changing and our industry has already expanded its focus beyond oil and gas exploration and development to also cover low-carbon fuels and net zero technologies.

    “Our members are leading energy producers, exploring and investing in oil and gas alongside the net zero building blocks of low-carbon hydrogen production and carbon capture, utilisation and storage (CCUS) technologies.

    “And we power millions of homes and businesses, both here and overseas, while delivering substantial economic benefits to Australia, supporting 80,000 jobs and contributing $16 billion to governments to fund services and infrastructure last year.”

    Australian Energy Producers Chair Meg O’Neill — who is also Chief Executive Officer and Managing Director of Woodside Energy — said the APPEA Board approved the change as a new phase in the history of the organisation, established as the Australia Petroleum Explorers Association (APEA) in 1959.

    “Our diverse membership today represents more than 170 companies that are central to Australia’s economic prosperity, our energy security and the transformation of our energy system,” Ms O’Neill said.

    “Our members will continue to build Australia’s energy and economic stories, overcoming technical and logistical challenges to find and produce essential energy, often in some of the most remote places on earth.”

    Ms McCulloch said the industry had a proud history shaping Australia and the region’s energy system over the past 60 years.

    “Our members are innovators who pushed the boundaries to establish our energy system and deliver substantial economic benefits to Australians,” she said.

    “Our industry helped build Australia, unlocking new economic opportunities that have made Australia a world leading energy supplier.

    “We understand our responsibility to contribute to the discussions, actions and success of the energy transformation and we have the workforce, expertise and infrastructure to help deliver secure, reliable and lower-emissions energy for Australia and our international partners.”

    Ms McCulloch said the annual flagship industry event, previously known as the APPEA Conference & Exhibition, would continue as the Australian Energy Producers Conference & Exhibition.

    “Next year’s conference and exhibition in Perth from 20-23 May will remain the premier platform for energy policy debate while showcasing the innovation, investment and expertise our sector brings to Australia’s energy transformation,” she said.

    Australian Energy Producers

    • 56 full members, covering around 95% of Australia’s oil and gas production
    • 117 associate members
    • See full membership here.

    Key industry facts

    • Gas provides 27% of Australia’s primary energy use.
    • Gas supplies about 40% of the energy used in Australian manufacturing.
    • 80,000 Australians directly and indirectly employed in upstream exploration and production.
    • $16.2 billion revenue delivered to Australian state and federal governments in 2022-23.
    • $92 billion LNG export revenue in 2022-23
    • $45 billion spent with Australian businesses in 2022-23.

    Source: Australian Energy Producers

  • 07 Sep 2023 1:59 PM | Stephanie Berlin (Administrator)
    Highlights
    • Core focus on delivering the AAPowerLink which will deliver green electrons to Darwin and Singapore customers
    • Well financed to progress key development activities
    • Deep pool of reputable prospective customers in NT and Singapore
    • Concurrently progressing onshore and offshore AAPowerLink priorities; divisional leaders appointed
    • Committed to working with Australian, Singaporean and Indonesian governments

    SunCable is moving forward with a renewed focus and robust plan to progress the Australia-Asia Power Link (“AAPowerLink”). SunCable is on a mission to deliver reliable, cost- competitive green electrons to customers in both Darwin and Singapore.

    Today marks the completion of the sale of SunCable’s assets, including the shares in its operating subsidiaries, to Grok Ventures (“Grok”).

    Grok believes SunCable is well-progressed and in a strong position to deliver the AAPowerLink project and is committed to working collaboratively with all stakeholders to realise the potential of this opportunity that will deliver significant benefits for Australia, Indonesia and Singapore.

    Mike Cannon-Brookes, Principal of Grok, said SunCable will be at the heart of Australia’s drive to become a renewable energy superpower:

    “The green energy transition remains the greatest economic opportunity of our time.

    “SunCable's AAPowerLink project has all the component parts to make the next great Australian infrastructure initiative possible. It will create more local jobs and support our green manufacturing and renewable energy industries. It’s set to deliver huge volumes of green energy to Darwin – powering a burgeoning green industry opportunity in the NT.

    “There’s huge upside for both Australia and our neighbours, Singapore and Indonesia. We look forward to working with our partners across Asia to drive this.”

    Renewed focus to deliver on SunCable’s potential
    To support SunCable’s focus, as well as to enable the most efficient and effective delivery of the AAPowerLink project, SunCable has reorganised into two project streams:

    • SunCable Australia: the onshore component of the AAPowerLink project comprising generation of renewable electricity anchored by what is expected to be the world’s largest solar array in the Northern Territory, delivery of these electrons to Darwin, and supplying the offshore component of the AAPowerLink as well as third party industrial power consumers located in/near Darwin. This development will be overseen by Quinbrook Infrastructure Partners, who have a proven track record of delivering and financing mega-scale renewable projects to power energy intensive customer operations.
    • SunCable International: the offshore component of the AAPowerLink project comprising the delivery of electrons via sub-sea cable to highly credit worthy global corporate offtakers in Singapore.

    Mark Branson will continue as Chief Development Officer of SunCable Australia and Mitesh Patel has been appointed as the Interim CEO and Chief Operating Officer of SunCable International.

    AAPowerLink has the ability to deliver ~6GW of firmed renewable energy in multiple stages. In the first stage, it is intended, that:

    • At least 900MW will stay in Australia, for supply to large industrial customers including those located in the Middle Arm Sustainable Development Precinct in Darwin, Northern Territory. The availability of competitively priced, 24/7 renewable electricity offers the opportunity to underpin a new wave of green industrial development in the region, supporting local jobs and the growth of sustainable new industries which could include hydrogen electrolysis, critical minerals processing, e-fuels and green data centres; and
    • 1.75GW to be delivered to Singapore and supply renewable energy to key customers.

    Subsequently, an additional 3GW of renewable electricity is planned for customers in Darwin, representing nearly ~4GW. This supply forms a key component of Australia’s ambition of becoming a renewable energy superpower.

    Jeremy Kwong-Law, CEO of Grok Ventures said Grok has a high degree of confidence SunCable and AAPowerLink will receive the required capital support as project milestones are reached:

    “Grok has always said we are willing to work alongside constructive partners who share our vision and help the AAPowerLink achieve its goals.

    “Once all milestones are reached and we reach financial investment decision (FID), we have a high conviction that large institutional investors and debt providers will fund the capital expenditure to construct the project.”

    Immediate Priorities
    SunCable’s immediate priorities are to progress the required regulatory approvals to advance the AAPowerLink. SunCable will lodge its submission to the Singaporean Energy Market Authority (EMA) to gain the energy import conditional licence required to deliver the AAPowerLink, later this month. SunCable is seeking to support Singapore’s stated objective of importing at least 4GW from low- carbon sources by 2035.

    Additionally, we will continue to engage with the Indonesian government to obtain the required licence to lay subsea cable through its territorial waters; and work with the Australian Government to support its ambitions.

    SunCable Australia is continuing to advance the key authorisations and approvals with the Northern Territory Government and the Traditional Owners of the project area.

    Through the due diligence process, Grok Ventures has obtained comfort that there is a deep pool of reputable prospective offtakers. To date, SunCable has received expressed interest of approximately 6x its first supply to Darwin, and over ~1.5x its supply to Singapore (reflecting 2.5GW of customer offtake interest).

    HV Cable Manufacturing & Testing Facility
    In addition to the AAPowerLink project, SunCable is set to establish an advanced High Voltage (HV) subsea cable manufacturing and testing facility, with AAPowerLink as an anchor customer. SunCable is in discussions with established global subsea cable manufacturers to jointly develop, construct and operate this facility.

    The new cable plant will see substantial new investment and create approximately 800 – 1000 direct jobs during the construction phase of the project. The operational phase will require over 400 long- term advanced manufacturing roles. This facility will expand the supply of advanced HV subsea cable globally and will be a critical enabler not only of SunCable but also for other high priority renewable generation and transmission projects, including offshore wind in Australia and around the world.

    Notes
    The Australia-Asia Power Link is SunCable’s flagship project and encompasses five key infrastructure components:
    1. Solar precinct: solar precinct in the Northern Territory with capacity of up to 20GW
    2. Overhead transmission line: ~800km HVDC overhead transmission line (OHTL) from the
    solar precinct to Murrumujuk (NE Darwin)
    3. Darwin converter site: terminal location for the OHTL and converts electricity from HVDC
    to HVAC for connection to Darwin, before being converted back to HVDC for
    transmission to Singapore
    4. HVDC subsea cable system: approximately 4,300km in length from Darwin converter site
    to Singapore
    5. Singapore converter site: The HVDC power is converted via a Voltage Source Converter
    (VSC) to connect to the local network

    To view full media release, click here.

  • 06 Sep 2023 11:37 AM | Stephanie Berlin (Administrator)

    Mosman Oil and Gas Limited (AIM: MSMN) the oil and gas exploration, development, and production company, announces the Year Three report on EP 145, its exploration block in the Amadeus Basin in central Australia, has been lodged with the Norther Territory Government.

    The current work schedule on the permit will be acquisition of seismic in early 2024, subject to funding and APAA and government approvals. Drilling would be considered after the seismic acquisition and processing.

    The Prospective Resource was announced on 24 October 2022 with “Best Estimate” per SPE PRMS of 440 Billion cubic feet (“Bcf”) Total Gas, including 26 Bcf of Helium and 26 Bcf of Hydrogen.

    The Company announced on 26 June 2023 that the NT Government has approved the extension of time to complete the Year Three work program until 21 August 2024.

    The full report will be posted on the Mosman website and an excerpt from the Executive Summary is below:

    EXECUTIVE SUMMARY

    Mosman completed Native Title negotiations, acquired Sacred Site Clearances (‘SSC’), Government permits and approvals and conducted geological fieldwork studies to complete the year 1 and 2 programs.

    Following the promising results of the field work the company made the decision to prioritize geotechnical understanding of the prospectivity by reprocessing all vintage 2D data within the permit and conducting a technical re-evaluation. This work was undertaken in addition to the permit work program commitments.

    The new data has highlighted additional, previously untested, prospectivity for hydrocarbons, helium and hydrogen in the deeper stratigraphy. The Year Three 2D seismic acquisition program has been designed to acquire data which will test the viability of the deeper prospectivity in EP145. The planning process has involved detailed discussions with the CLC, landowners and AAPA regarding acquisition techniques with significant delays occurring as a result of the Covid pandemic. AAPA approval for the survey was granted in December 2019 and Mosman submitted an application to the CLC to undertake a sacred site survey in early 2020 to be ready for seismic acquisition late 2020.

    Following this unforeseen delay Mosman has restarted the approvals process for the 2D seismic acquisition program and has been granted a CLC sacred site survey (March 2023) and submitted a new application to APPA as the previous certificate expired in December 2021. Whilst on ground activities could not be carried out Mosman has continued to undertake valuable planning and preparation for 2D seismic acquisition, which is the primary commitment for the Year Three work program. New technical evaluations have also been conducted with Amadeus Basin experts, Geognostics, using permit and regional geophysical and well data. This work has significantly improved understanding of the hydrocarbon, helium, and hydrogen prospectivity in EP145

    To view the full ASX announcement, click here.

    Source: Mosman Oil and Gas 

  • 06 Sep 2023 9:12 AM | Stephanie Berlin (Administrator)

    The agreement is set to create a new standard for how renewable energy projects can be developed in partnership with Northern Territory communities.

    Desert Springs Octopus has been created to lead the way on renewable energy projects that are developed on Country, by walking with community to co-design Australia’s energy future in the spirit of self-determination and reconciliation. This is done with a shared vision for Country and an acknowledgement of the restorative importance of this initiative for First Nations peoples.

    Desert Springs Octopus will work with Jawoyn and Larrakia Nation, to take advantage of the Territory’s excellent renewable energy resource by pursuing a near-term $1billion investment opportunity. This will provide grid connected renewable energy along the Darwin-Katherine Electricity System, with the potential to be backed by Government, Defence and mining offtake. The future will see DSO and First Nations community partners pursue development of green hydrogen projects, which are a key driver of the NT Government’s ambition for a $40 billion economy by 2030.

    They aim to achieve this by leveraging the significant land, natural renewable energy resources and access to NT export infrastructure.

    Michael Rotumah, CEO of Larrakia Nation, commented: “Larrakia Nation, which represents the Traditional Owners of the greater Darwin region, is ready to jump into this partnership with Desert Springs Octopus. We are grateful that Desert Springs Octopus heard our ambitions and aspirations to unlock our own economic independence and support more Larrakia people to create inter-generational wealth. We are looking forward to being a genuine partner in this exciting project that aligns with our values of protecting and caring for Country.”

    John Berto, CEO of Jawoyn Association, commented: “Working with Desert Springs Octopus will make Jawoyn Association a part of renewable energy projects on Jawoyn Country, helping us achieve economic independence. We see renewable energy as part of the future. Jawoyn want to pursue projects in this partnership to include caring for Country, and we welcome the creation of jobs and the chance to develop new skills for our people.”

    Jerome Cubillo, CEO of Northern Territory Indigenous Business Network, commented: “NTIBN is excited about the opportunities that Desert Springs Octopus is bringing to not only the Territory, but for Aboriginal businesses and traditional owners to have a genuine stake in these big opportunities on the lands of these two Traditional Owner entities. We see this as a game changer and a lighthouse model for others to follow. This is what real economic self-determination looks like.”

    Bevan Mailman, Co-Chair of Desert Springs Octopus, commented: “A new season has commenced, and Desert Springs Octopus welcomes the opportunity to set a new standard in relation to infrastructure development, based on walking closely with First Nations communities and building a future together.”

    Sam Reynolds, Managing Director, Octopus Australia, commented: “Desert Springs Octopus sits firmly within the Octopus concept of creating real and lasting Change. We believe that starting with Benefit Sharing Framework Agreements is the key to strong and enduring relationships with Indigenous communities, and we are proud to partner with Jawoyn and Larrakia Nation. Desert Springs Octopus are ready to pursue renewable energy projects alongside these communities and look forward to working with project partners and the NT government, to accelerate the transition to a future powered by renewables.”

    About Jawoyn Association

    The Jawoyn Association vision is to bring the Jawoyn people together as one nation, care for country and develop economic independence. They strive to improve the cultural, social and economic wellbeing of the Jawoyn people, while always caring for country. They represent and support the Jawoyn people and country through human services, land management, cultural and business enterprises, including the Nitmiluk National Park, for more than 30 years. Jawoyn Country spans 55,000 km2 north-west from the town of Katherine to Pine Creek, crossing the southern part of Kakadu National Park and Arnhem Land to Bulman, stretching across to the township of Mataranka in the NT.

    About Desert Springs Octopus

    Desert Springs Octopus (DSO) is a majority Indigenous owned company, a joint venture between Desert Springs Renewables and Octopus Australia. With a strong focus on northern Australia, DSO aims to work with government, industry, and local Indigenous communities in Australia to develop, construct, invest in, and operate renewable energy generation, including solar, wind, storage and hydrogen projects, with the potential for supply to Asia and other markets.

    About Octopus Australia

    Octopus Australia is a specialist renewable energy developer and fund manager in Australia. Octopus Australia has team of 40 professionals in Melbourne (HQ) and Sydney have a operating portfolio of $1.5bn and a development portfolio of $8bn across wind, solar and storage (large batteries). Our active approach means we are much more than just a financial investor, with a team that has a unique blend of skills and expertise across all facets of the renewable energy market, including investment, development, energy markets (data & analytics), grid and engineering, asset management, and community engagement.

    Source: Octopus Investments

  • 05 Sep 2023 5:30 PM | Stephanie Berlin (Administrator)

    Increased flow rates reported at C-3H

    • Carpentaria-3H (“C-3H”) has flowed gas at an average rate of 3.3 mmscf / day (3.8 TJ / day) over the first 30 days (“IP30”) following reopening
    • C-3H was brought back online on 3 August 2023 and has demonstrated the material benefits to productivity of soaking, through significantly increased gas flow rates
    • The C-3H “post-soak” average daily production rates have increased 30% over the IP27 “pre-soak" test conducted during Q1 2023
    • Flow testing is continuing at C-3H to further refine a production type curve before incorporating it into Empire’s ongoing Front-End Engineering and Design (“FEED”) process for the Carpentaria Pilot Project (“Pilot”)
    • C-3H and C-2H may be utilised as development wells for minimal incremental cost in future development scenarios including the Carpentaria Pilot Project
    • Planning for the Carpentaria Pilot Project continues to gather pace

    To view the full ASX announcement, click here.

  • 04 Sep 2023 9:31 AM | Stephanie Berlin (Administrator)

    Unlocking Singapore is a key step to achieving the Territory’s goal of a $40 billion economy by 2030.

    Singapore is currently the Northern Territory’s third largest trading partner, and a priority in our Governments International Engagement Strategy.

    This week, the Northern Territory Treasurer and Minister for Territory Development will travel to Singapore to meet with project proponents, investors, off-take parties, intermediaries and funders.

    Minister Lawler is travelling alongside NT Infrastructure commissioner Louise McCormick and will aim to attract investment into areas of water, gas, renewables, critical infrastructure and education.

    The visit is focused on engaging with strategic global investors relevant to our industry supply chain needs and markets.

    Some meeting include;

    • Sembcorp to discuss investment strategies and renewable energy investment opportunities in the NT
    • Energy Market Authority EMA regulator to explore possibilities of energy offtake from NT energy suppliers and provide an update on the Sun Cable project.
    • Keppel to discuss data plus and tropical data centre opportunities.
    • PSA Singapore, the world’s second largest Port Operator to explore areas of collaboration and investment.

    As Minister for Education, Minister Lawler will also meet with GIC and Centurion Corporation to discuss investment opportunities for student accommodation in the NT.

    Coincidently, 51 year 6 students from Larrakeyah Primary School will also be in Singapore visiting their partner school, Leeds International School.

    The Larrakeyah students, teachers and Minister Lawler will meet with the Australian High Commission in Singapore to talk about the collaborative arts projects that have been undertaken by the partner schools and view the art projects on display at the High Commission. 

    Quote attributable to Treasurer, Eva Lawler:

    “The Northern Territory has the potential to be a key player across many evolving sectors, and our counterparts from Singapore understand the opportunities which come with investing in the top end.

    “We are committed to creating a booming $40 billion economy by 2030 through promoting our strategic advantages, investment opportunities and brining new businesses to the Territory with key trading partners.

    “I am determined to develop the best strategic partnerships, which will deliver the best results for Territorians."

    Source: NT Government news room

  • 01 Sep 2023 12:27 PM | Stephanie Berlin (Administrator)

    The Territory Labor Government has today announced the appointment of Kelly Ralston to the position of Territory Investment Commissioner.

    The role of Territory Investment Commissioner is crucial to leading the Government’s plan to attract and secure private investment to the Territory, grow trade and reach a $40 billion economy by 2030.

    Kelly brings with her a wealth of experience in international business, investment attraction, trade promotion and economic development.

    She has held several executive leadership roles including as Deputy Chief Executive Officer of the Australian Trade and Investment Commissioner (Austrade) and as Senior Trade and Investment Commissioner in the Australian Embassy in Washington and in Houston, Texas.

    Kelly relocated to the Northern Territory in May 2022 where she took up the role of Chief Executive Officer of Jabiru Kabolkmakmen Ltd.

    She will commence at the start of October 2023.

    Quotes from Chief Minister Natasha Fyles

    “We know that attracting private investment to the Territory is key to growing a $40 billion economy by 2023. The role of Investment Commissioner is crucial in attracting this investment and promoting the Territory as the best place to do business. 

    “Kelly brings with her a wealth of experience in national and international trade and investment and I know she will be an incredible asset to the Investment Territory team.

    “We congratulate Kelly on her appointment.”

    Source: NT Government Newsroom


  • 01 Sep 2023 11:55 AM | Stephanie Berlin (Administrator)

    Central Petroleum Limited (ASX:CTP) (“Central”) advises that it has entered into a Memorandum of Understanding (MOU) with its Mereenie co-venturers and Twin Bridges LLC (Twin Bridges), a private US company specialising in helium appraisal and production, to progress a helium recovery unit (HRU) at its Mereenie field in the Northern Territory towards a final investment decision (FID).

    The proposed HRU project will target production of up to 60,000 scf of compressed helium gas per day, separating helium from the existing natural gas produced at Mereenie.

    Key Points

    • Central and its co-venturers at Mereenie will work with experienced US-based helium developer and producer, Twin Bridges, to progress the HRU project at Mereenie toward FID.

    (Central is operator of the Mereenie JV and holds a 25% interest via a subsidiary. Co-venturers include Macquarie Mereenie Pty Ltd (50%), NZOG Mereenie Pty Ltd (17.5%) and Cue Mereenie Pty Ltd (7.5%))

    • The proposed HRU project will:
      • Extract helium from the existing Mereenie gas stream using proven membrane technology.
      • Target production of up to 60,000 scf/d of compressed helium gas.
    • Preliminary technical studies and helium offtake negotiations have been completed indicating solid project economics, leveraging on the existing gas stream and infrastructure at Mereenie.
    • Under the terms of the non-binding MOU:
      • Twin Bridges will design, build, fund and own the HRU, accelerating commencement of helium production and increasing project value through access to their proven helium processing and marketing expertise.
      • Operating profit from the HRU project will be shared 50/50 between Twin Bridges and the Mereenie JV.
    • Indicative term contract pricing for helium gas is currently very strong, with the impending closure of the Darwin LNG plant making the proposed Mereenie HRU Australia’s sole source of domestically-produced helium.
    • Successful production of helium at Mereenie will also demonstrate the potential of the Amadeus Basin as a world-class helium resource, where Central has a material position in several large sub-salt prospects where relatively-high helium content has previously been measured.

    The MOU with Twin Bridges has a term of 12 months, with the parties working together to achieve the necessary design, engineering, commercial and financial milestones required to reach FID for the construction of the HRU at Mereenie. The MOU provides for up to an additional 12 months exclusivity for Twin Bridges, who will draw on their expertise in building similar plants in North America. If the project proceeds, Twin Bridges will design, build, fund and own the HRU plant which will be integrated with the existing Mereenie gas processing facility operated by Central. Twin Bridges will market the produced helium with offtake arrangements already well advanced.

    Preliminary financial modelling indicates solid project economics leveraging on the brownfield economics afforded by the existing gas stream and infrastructure at Mereenie and strong helium markets.

    It is proposed that the HRU will be sized to process up to 30 TJ/d of Mereenie gas, which typically contains over 0.2% helium, extracting up to 60,000 scfd of helium gas using proven membrane technology.

    The compressed helium gas is anticipated to be sold ex-field to a major helium aggregator and distributor in Australia. The Mereenie JV will share the operating profits from the HRU project on a 50/50 basis with Twin Bridges. The only domestic production of helium in Australia is expected to cease when the Darwin LNG plant closes later this year. The proposed Mereenie HRU project would then be the sole source of domestically-produced helium, helping to satisfy Australia’s strategic need for helium which is used in many critical health and technology applications.

    Additionally, successful production of helium at Mereenie will also demonstrate the potential of the Amadeus Basin as a world-class helium resource, where Central has a material position in several sub-salt prospects. Helium concentrations of 6% have been recorded at the Magee1 well and 9% at Mt Kitty. Central is seeking to drill several sub-salt appraisal/exploration wells in the Southern Amadeus to further test these prospects along with the promising Dukas lead. Seismic data will also be acquired at the Zevon lead to the north-west of the Mereenie field later this year to identify the location for a possible exploration well.

    “We are excited to be working with Twin Bridges to advance this opportunity to produce and sell the helium resource at Mereenie”, said Leon Devaney, Central’s Managing Director and CEO.

    “Helium is only produced at a handful of locations world-wide, so successful commercial production at Mereenie is likely to draw international attention to the unique and potentially vast helium resources of the Amadeus Basin. Helium is also found in our produced gas at Palm Valley and Dingo, and far higher helium concentrations have previously been encountered in sub-salt exploration wells throughout the basin. Having a partner like Twin Bridges gives us an advantage in creating value within our existing producing assets, but also potentially as a partner in exploring high-potential Amadeus Basin sub-salt prospects like Zevon”, he said.

    Source: New Zealand Oil & Gas 

    To view NZOG news release with Central Petroleum's ASX announcement attached, please click here.

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