Industry News

EP 98/117 Operational Update: A3H drilled in record time in less than 18 days

Highlights

• The Amungee NW 3H (A3H) well in 38.75 per cent owned exploration permit EP 98 has reached a Total Depth (TD) of 3,837 metres (12,589 feet), including a 1,100-metre (3,609 feet) horizontal section within the Mid Velkerri B Shale.

• The well intersected the target Mid Velkerri B shale at a total vertical depth (TVD) of 2,272 metres (7,454 feet) and encountered significant gas shows within the shale, in line with pre-drill expectation.

• Drilling took in 17.9 days (spud to TD), 20 days faster than the Amungee 2H (A2H) well, at an average daily rate of 214 metres per day (702 feet per day). This demonstrates the improved drilling efficiency of Helmerich & Payne, Inc.’s (H&P), (NYSE: HP), super-spec FlexRig® Flex 3 Rig.

• Total estimated cost for the drilling and cementing of the A3H well is A$12.6 million, in line with forecast and ~30 per cent lower cost compared to the A2H well. The stimulation program is planned for the second quarter of 2024, following the end of the Northern Territory wet season.

• Stimulation activities for the Shenandoah South 1H (SS1H) well in EP 117 are on track to commence in November 2023 with IP30 flow rates planned for early 2024, subject to successful completion of the stimulation program and weather delays.

Source: Tamboran Resources

To view the full ASX Announcement, click here.

Joint media release with Minister for the Environment and Water the Hon Tanya Plibersek MP.

The Australian Government is working to secure Australia's future water resources through a first of its kind stock take of the nation’s underground water reservoirs. 

The National Hydrogeological Inventory, developed by Geoscience Australia, has mapped Australia's major groundwater-bearing basins and geological provinces. 

The inventory paints a picture of the communities, industries and environments that rely on groundwater.

Minister for Resources and Minister for Northern Australia, Madeleine King said that despite Australia’s reliance on groundwater, experts still had a long way to go in their knowledge and understanding of groundwater systems. 

“Groundwater is critical to our national water security and for many areas of Australia has been the only constant source of water,” Minister King said. 

“The Inventory, developed through Geoscience Australia’s Exploring for the Future Program, will assist decision-making and help us plan future investment in groundwater.” 

Minister for Environment and Water Tanya Plibersek said that the Inventory was an example of how the Government is working to better understand and protect our environment for future generations.

“The impacts of climate change will leave lasting effects on surface water, so now more than ever we need to understand the lifecycle of groundwater,” Minister Plibersek said.

“The new National Hydrogeological Inventory will provide improved access to information on both shallow and deep groundwater systems which support regional and remote community water supplies, urban water supply and our precious plants and animals.”

Geoscience Australia’s Dr Steve Lewis, a groundwater geologist, said one of the most intriguing elements of groundwater is the occurrence of recharge - the process by which water moves downwards through the Earth's surface to become groundwater, recharging the aquifers within the basin.  

“Developing an understanding of groundwater recharge processes is fundamental for developing a water balance, and for the sustainable management of water resources,” Dr Lewis said.

“Most recently we have been studying recharge processes in the Great Artesian Basin through mapping surface and near-surface structures to understand how water enters the ground to recharge the basin aquifers. 

“This basin is the most significant hydrogeological system in the country covering more than 1.7 million square kilometres across Queensland, New South Wales, South Australia and the Northern Territory.

“For each hydrogeological region, a range of consistent and up-to-date information is compiled, relevant to understanding the geology, geography, hydrogeology including groundwater resources and systems,” Dr Lewis said.  

The new National Hydrogeological Inventory will collate these studies to provide a greater understanding of Australia’s water systems, allowing a national view of groundwater resources across Australia. You can view the inventory here.

Source: 

The Hon Madeleine King MP

Minister for Resources and Minister for Northern Australia

Exact Contracting will soon commence the next stage of upgrades to the Carpentaria Highway which will take place between chainage 50 km and chainage 109 km.

The upgrades will involve sealing, reconstructing, widening and lifting as well as flood immunity improvements. The road will be sealed to a two lane standard, offering substantial safety benefits for road users.

The next stage of construction will commence in early October 2023 and be completed in late 2024.

Construction will take place 7 days a week between the hours of 6am to 6pm. Some night works may be required.

Detours and traffic management will be in place at times throughout the project.

About the project

The Carpentaria Highway is a key access road to the town of Borroloola and surrounding regions, and an important service route for the pastoral, tourism, agricultural and mining sectors, including the Beetaloo Sub-basin.

$150 million has been allocated by the Australian and Northern Territory governments to deliver upgrades on the Carpentaria Highway over 4 years.

The upgrades to Carpentaria Highway will complement multiple strategic projects currently underway that aim to bring the Territory’s vision to become a world-class gas production, manufacturing and services hub to reality.

The benefits of the project include:

• improved efficiency and network reliability
• improved freight productivity and access to freight gateways
• improved road safety for all road users, in line with Towards Zero Road Safety Action Plan
• improved connectivity between people with jobs and services, and goods with markets
• improved flood immunity, thereby reducing annual road closures
• improved access to health and social services for remote and Aboriginal communities
• increased Aboriginal employment and business supplier use.

For further information, visit dipl.nt.gov.au/projects, email bmr.dipl@nt.gov.au or phone 08 8924 7118.

In 2019-20, the direct value of the maritime industry to the Territory's economy was $184 million, with the sector expected to grow to $347 million by 2030.

The new Maritime Industry Development Plan is being pulled together to provide a framework to grow the size, scope, capability and commercial sustainability of the Territory's maritime sector.

NT chief minister Natasha Fyles said the maritime sector is seen as a key enabler for a range of industries including oil and gas, defence and border protection, agribusiness, recreational and commercial fishing and tourism.

The industry currently employs 980 full time workers, which is anticipated to surge to at 1,490 by 2030.

The Maritime Industry Development Plan includes the development of the Marine Industry Park, Darwin Ship Lift, Middle Arm Sustainable Development Precinct and a holistic approach to ports throughout the Territory.

The Chief Minister said the Darwin Ship Lift and Marine Industry Park will become the centrepiece of the Territory's maritime industry, paving the way for hundreds of jobs and positioning Darwin as a major international and national player in the marine services industry.

She said the government's vision is for the Territory to be a leading hub for maritime service, supply and sustainment in the Indo-Pacific region.

The key focus areas include; developing strategic infrastructure by investing in maintenance, freight and connectivity-related infrastructure to drive future industrial expansion; growing the Territory's maritime industry and working together with industry, the Australian Government and the community to sustainably grow the maritime industry; and developing local capability and capacity by ensuring Territory businesses are positioned to take advantage of an expanding maritime industry; and

It will also focus on stimulating growth in the regions: Developing the regional maritime industry to unlock new opportunities for regional communities.

"The maritime industry delivers direct jobs, opportunities and investment for the Territory - employing close to 1000 full time workers, with that number anticipated to grow.

"Darwin is strategically significant, being centrally located on the Northern Australian coastline we have the capability to be the leading destination of new and current industries," Fyles said.

LNG support hub

In recent years the Territory has investigated the opportunity for it to be a major global gas supplier, delivering on increasing demands for clean, affordable energy and creating long-term economic growth and more jobs.

The government's vision its that by 2030 the Territory will be a world class gas production, manufacturing and services hub.

Supporting this, it has developed a 5 point plan to:

• expand Darwin's LNG hub

• grow the service and supply industry

• establish a gas-based processing and manufacturing hub

• grow local research, innovation and training capacity

• contribute to Australia's energy security.

It has also developed a goal that by 2025 local participation in the gas industry supply chain will be at least 50%.

This has been assessed to have the potential to add an additional $1 billion to the Territory economy over the next 10 years.

Source: Energy News Bulletin

The Australian Government has released a discussion paper and opened consultations on a national Future Gas Strategy. 

Minister for Resources and Northern Australia Madeleine King said Australia’s gas policy settings were important for Australia’s energy security, for business and industry, for the environment and for local economies. 

Minister King said the strategy, announced in the May Budget will help government, industry and households make decisions about the future role of gas.

“The Future Gas Strategy will ensure Australia has the long-term policy clarity needed to support decision across communities, industry and governments,” Minister King said. 

“The role of gas will change as the world decarbonises – both in Australia’s energy mix and in the energy use of our trading partners.”

Minister King said gas was essential to modern supply chains which connected Australia in complex ways with trade and investment partners, creating essential goods, services and jobs at home and abroad.

“We need to ensure gas demand decreases faster than supply through the energy transition,” Minister King said. 

“Gas shortages, supply disruptions and high prices are among the consequences of reducing supply faster than demand. 

“These consequences disproportionately impact those who can least afford them, worsening poverty and inequality.”

Minister King said the strategy would be informed by widespread consultations with industry, international trade and investment partners, and the Australian public.

The strategy is due to be finalised next year.

The discussion paper is available on the Department of Industry, Science and Resources consultation hub page.

Source: 

The Hon Madeleine King MP

Minister for Resources and Minister for Northern Australia 

Avenira Limited (ASX: AEV) is pleased to announce that it has entered into formal agreements with its technology partner Advanced Lithium Electrochemistry Ltd (‘Aleees’) (TWSE: 5227) granting Avenira with the right to use Aleees’ intellectual property for the manufacture and global distribution of Lithium Ferro Phosphate (LFP) cathode active material.

The two agreements, a License and Technology Transfer Agreement and a Subscription Agreement, were signed in Darwin in front of Northern Territory Chief Minister, Natasha Fyles and set out the terms for Avenira’s use of the technology for its LFP Battery Cathode Manufacturing Plant in Darwin. The formal agreements follow the signing of a non-binding MOU with Aleees in September 2022 to work towards the development of a Lithium Iron Phosphate (LFP) battery cathode manufacturing plant in Darwin using Avenira’s flagship Wonarah Phosphate Project1 .

Taiwan-based Aleees is a globally recognised LFP battery material manufacturer and one of the few companies outside China with complete LFP cathode material manufacturing capability and patents for electric vehicle and energy storage systems. Aleees has deep industry connections with offtakers in Asia and will provide management support during the development and operations of the LFP Plant.

Avenira and Aleees are working closely with the Northern Territory Government to establish Avenira’s proposed LFP Plant in Darwin’s Middle Arm Sustainable Development Precinct. The Avenira-Aleees relationship has the support of a three-way MOU with the NT Government2 , under which the Northern Territory Government has committed to work proactively with Avenira and Aleees to assist and advise where appropriate in relation to necessary infrastructure including water, energy, power, telecommunications, road, port and rail access and service requirements.

To view full ASX announcement, click here.

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

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/

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

• 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.