Industry News

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 

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

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.

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

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

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.

SS1H intersects 90-metres of high quality Mid Velkerri B Shale in ‘core’ Beetaloo Basin

Highlights

• The Shenandoah South 1H (SS1H) well in EP 117 has reached a Total Depth (TD) of 3,300 metres, intersecting approximately 90 metres of high quality Mid Velkerri B Shale with strong dry gas shows. This represents the thickest section of Mid Velkerri B Shale seen in the Beetaloo Subbasin depocenter to date.

• Tamboran’s new Helmerich & Payne (NYSE: HP) super spec FlexRig® Flex 3 rig reached TD of the pilot hole in 21.5 days, drilling at 153 metres per day. This is a new record for wells drilled below 3,000 metres in the Beetaloo Sub-Basin.

• Logging of the Mid-Velkerri B Shale formation indicates higher porosity and gas saturation relative to offset wells, consistent with the Marcellus Shale in the US.

• Initial evaluation confirms reservoir continuity of the Mid Velkerri B Shale over 150 kilometres between the Amungee 2H and Beetaloo W1 wells. This includes a target development area of approximately 1 million acres where the shale depth exceeds 2,700 metres.

• Tamboran will commence drilling of a 1,000-metre horizontal section within the shale formation ahead of a stimulation program of up to 10 stages over a 500-metre section, which is planned for Q4 2023.

To view full ASX announcement, click here.

We are excited to announce our rebrand to GR Production Services (GRPS).

GR Production Services (formerly Upstream PS) has been delivering valued production services to the energy and resources industries for more than 25 years.

GR Production Services CEO Cameron Wills said “With the resources industry and the needs of our clients evolving over time, so too have our capabilities and expertise. Rebranding to GR Production Services reflects our increased range of capabilities and services whilst aligning our brand with that of our parent company GR Engineering Services Ltd (GRES) (ASX:GNG). GR Production Services is strategically positioned to deliver quality, reliable services to our clients”.

GRES MD Tony Patrizi said “In 2014, we strategically acquired Upstream PS and have been pleased with the consistent performance of the business to date. This timely rebrand to GR Production Services provides strength to our GR brand along with a bright future of growth and enhanced range of opportunities."

GR Engineering Services are confident that rebranding Upstream PS to GR Production Services aligns operational services with GR Engineering’s process engineering, design and construction experience.

This provides the energy and resources sector with a unique offering which facilitates the delivery of outsourced solutions across the value chain. From the design and construct phase, through to the operations, maintenance, optimisation and final decommissioning phases.

Learn more: https://www.grps.com.au

The Middle Arm Sustainable Development Precinct has potential to power the NT economy and provide energy advantages for Australian and international markets into the foreseeable future.

Should the NT and Commonwealth government’s initial vision for the project be realised, it could deliver tens of billions in investment dollars and economic activity to the Territory coupled with tens of thousands of jobs.

The precinct is being promoted as a blueprint for future Australian industrial hubs offering energy providers a sustainable, modern and hi-tech alternative.

It will be largely powered by renewables and the industries based there will reflect the Territory government’s target to reach a net zero economy by 2050

Middle Arm by air October 2022. Picture by Wayne Zerbe

Middle Arm will foster critical minerals processing which is the future of energy transition through products such as batteries, as well as advanced manufacturing.

It’s hoped solar and future fuels such as blue and green hydrogen would ultimately power the businesses based there.

As well, a carbon capture and storage facility will trap at least 90 per cent of emissions at the source and provide options for international and Australian producers to store carbon.

The precinct will be master-planned so infrastructure, services, engineering and environmental approvals create certainty for industry through a clear process.

The NT government announced in June the names of the five initial proponents who want to be based at Middle Arm.

The Land Development Corporation has announced BMD Urban Pty Ltd, as the successful tenderer to complete construction works for Stage 1 of Kittyhawk Estate.

That planning has also included extensive environmental and marine studies to minimise any impact and safeguard the environment including Darwin Harbour.

They are French renewable operator Total Eren, Fortescue Future Industries, critical minerals start-up Tivan, natural gas operator Tamboran Resources Ltd and critical minerals company Avenira.

The Middle Arm Sustainable Development Precinct is a 1500ha package of land with parcels belonging to the NT government and the Land Development Corporation.

About 500ha of land has been given over to the first tranche of five projects with about 300ha of that at the Kittyhawk Estate at Middle Arm owned by the Land Development Corporation. About 30ha at Stage One is serviced and ready for development.

INPEX is currently the biggest tenant at Darwins Middle Arm. Picture: Glenn Campbell

Avenira and Fortescue are proposing projects at Kittyhawk while the remaining 200ha is located on Crown Land, managed under the Crown Lands Act.

The so-called first five at Middle Arm have been given ‘not to deal’ rights by the NT government for up to 12 months to determine whether to proceed with their particular project.

The precinct is expected to be largely powered by renewable and solar sources, has supplies of water needed to produce green hydrogen, nearby onshore and offshore gas sources and access to critical minerals and rare earths for renewables.

One of the first five companies, Tivan, announced on Thursday it had secured a six-month extension with the NT government to develop a Tivan processing facility, giving it an 12-month ‘not to deal’ provision.

Concept for the Middle Arm hydrogen hub by Total Eren.

The NT government has been working for five years on key aspect including common-user infrastructure such as modular offload facilities, jetties, storage and a pipeline network and will continue significant planning and consultation to ensure the precinct’s success

More than 200 studies have already been undertaken around design and project advancement and its proximity to Darwin Port and Darwin International Airport is an enormous selling point.

Middle Arm is near some of the world’s fastest growing economies and is expected to leverage off its proximity to South-East Asia and the Indo-Pacific.

The government points out that 45 per cent of global population lives directly to the Territory’s north, and that same region produces the same percentage of greenhouse gas emissions.

The Commonwealth government has contributed $1.5bn equity into the project.

Source: NT NEWS

Highlights

• In accordance with the 2014 Falcon Oil and Gas Limited (Falcon) farm-in agreement, Tamboran has given notice to Falcon that all farm-in commitments have been fully satisfied, having reached the associated cost carry commitment.

• All parties have committed to fully fund their full working interest of future cash calls at Shenandoah South 1H (SS1H) in EP 117, which commenced drilling on 01 August 2023.

• Falcon remains carried for a net A$6.8 million (A$3.4 million net Tamboran) consideration for future drilling activities, following an agreement to waive its pre-emptive rights, as announced by Tamboran on 12 October 2022.

To view the full ASX announcement, click here.