Page 8 - Oil&Gas-AustralAsia-2015-Issue-5
P. 8
A USTRALIA
Santos has rejected the initial offer create a new mid-cap oil player valued American Energy Partners.
much in the same way as Oil Search, at around US$83 million with a produc- Landbridge snapped up Armour with
however Santos is in a declining posi- tion capacity of 12.1 million barrels of an A$0.08/share improvement on an
tion with ballooning debt estimated to oil equivalent. initial A$0.12/share offer, securing the
top US$6.41 billion by next year due to The merger set to be completed early company’s acceptance for a total of just
the sharp drop in oil prices and a crash- next year would combine the two over $60 million. The offer swept aside
ing share price, going from US$10.69 companies’ overlapping assets in central an earlier agreement which would have
a share a year ago to below US$2.85 in Australia’s Cooper Basin with the po- seen AEP invest up to $130 million
September. tential to save around US$14.2 million exploring Armour’s McArthur Basin
Santos will move forward with its annually in production costs. tenements in central Australia over the
strategic review that was started in Chinese interest has also emerged next five years, with a view to earning a
August and is considering asset sales among local juniors. Landbridge, a 75 per cent stake in the vast area.
and cutting over 700 staff from its pool privately owned Chinese group which Analysts believe interest is now on
of over 3,000. in 2014 acquired Queensland-based potential mergers and acquisitions for
Mergers and acquisitions are also coalseam gas company WestSide, earlier other small onshore producers such as
increasing among juniors with Beach this month scuttled a proposed farm- Cooper Energy and Strike Energy, but
Energy and Drillsearch Energy an- in deal between Armour Energy and say the big deals will be in Papua New
nouncing plans for a merger that would US shale pioneer Aubrey McClendon’s Guinea’s LNG sector. §
Pilot buys in to the Northern
Perth Basin
Australian minnow Pilot Energy has to date, all located updip from the Western Australia, so that Pilot Energy
announced agreement with Caracal Ex- Dunnart-1 and 2 wells; both of which now holds a balanced portfolio of four
ploration Pty Ltd to purchase Caracal’s encountered good oil shows. conventional exploration projects offer-
13.058% interest in Exploration Permit Pilot Energy said EP437 provides par- ing the full range from low cost onshore
437, located within the northern Perth ticipation in low cost onshore oil and gas and oil/gas exploration (EP416/480
Basin. gas exploration, in a permit in which and EP437 respectively), through high
Exploration permit EP437 is situated on prospectivity has been identified within potential shallow water oil exploration
the west of the northern Perth Basin, a working petroleum system and along (WA-503-P) to very high potential
between the towns of Geraldton and trend from existing discoveries. deepwater gas and oil exploration (WA-
Dongara, ten kilometres to the north The proximity to infrastructure in this 507-P).
of the Dongara gas field and Jingemia/ part of the Perth Basin enables even Pilot Energy Chairman, Gavin Harper
Hovea oil fields and 20 kilometres to small oil discoveries to potentially be said the transaction represents Pilot
the north of the Cliff Head oilfield. commercialised. Energy’s fourth acquisition in under a
A number of wells have been drilled The company’s strategy is typically to year, all of which provide shareholders
to date, the results of which confirm a acquire large project working inter- with exposure to quality petroleum
working petroleum system within the ests as operator. In the case of EP437, exploration assets under favourable
permit. Pilot Energy regards the acquisition of commercial terms.
Pilot Energy’s preliminary interpreta- a minority, non-operated position as “We look forward to working with our
tion of existing well and seismic data justified, due to the fact it offers mid- new joint venture partners, Key Petro-
suggests the presence of a number of term drilling opportunities, at low cost, leum and Rey Resources, in exploring
shallow-depth prospects at the Bookara and provides a basis for possible future the permit.”
and Arranoo sandstone levels, located expansion in the northern part of the The joint venture interests in EP437
along a terrace structure and structural- Perth Basin. will be Key Petroleum with 43.471% (as
ly updip from the Dongara gas field. EP437 is complementary to the Com- operator), Rey Resources with 43.471%
Three prospects have been identified pany’s other exploration assets within and Pilot Energy will hold the remain-
ing 13.058% §
A A06 OIL & GAS ustral SIA NOVEMBER/DECEMBER 2015 www.oilandgasaustralasia.com
Santos has rejected the initial offer create a new mid-cap oil player valued American Energy Partners.
much in the same way as Oil Search, at around US$83 million with a produc- Landbridge snapped up Armour with
however Santos is in a declining posi- tion capacity of 12.1 million barrels of an A$0.08/share improvement on an
tion with ballooning debt estimated to oil equivalent. initial A$0.12/share offer, securing the
top US$6.41 billion by next year due to The merger set to be completed early company’s acceptance for a total of just
the sharp drop in oil prices and a crash- next year would combine the two over $60 million. The offer swept aside
ing share price, going from US$10.69 companies’ overlapping assets in central an earlier agreement which would have
a share a year ago to below US$2.85 in Australia’s Cooper Basin with the po- seen AEP invest up to $130 million
September. tential to save around US$14.2 million exploring Armour’s McArthur Basin
Santos will move forward with its annually in production costs. tenements in central Australia over the
strategic review that was started in Chinese interest has also emerged next five years, with a view to earning a
August and is considering asset sales among local juniors. Landbridge, a 75 per cent stake in the vast area.
and cutting over 700 staff from its pool privately owned Chinese group which Analysts believe interest is now on
of over 3,000. in 2014 acquired Queensland-based potential mergers and acquisitions for
Mergers and acquisitions are also coalseam gas company WestSide, earlier other small onshore producers such as
increasing among juniors with Beach this month scuttled a proposed farm- Cooper Energy and Strike Energy, but
Energy and Drillsearch Energy an- in deal between Armour Energy and say the big deals will be in Papua New
nouncing plans for a merger that would US shale pioneer Aubrey McClendon’s Guinea’s LNG sector. §
Pilot buys in to the Northern
Perth Basin
Australian minnow Pilot Energy has to date, all located updip from the Western Australia, so that Pilot Energy
announced agreement with Caracal Ex- Dunnart-1 and 2 wells; both of which now holds a balanced portfolio of four
ploration Pty Ltd to purchase Caracal’s encountered good oil shows. conventional exploration projects offer-
13.058% interest in Exploration Permit Pilot Energy said EP437 provides par- ing the full range from low cost onshore
437, located within the northern Perth ticipation in low cost onshore oil and gas and oil/gas exploration (EP416/480
Basin. gas exploration, in a permit in which and EP437 respectively), through high
Exploration permit EP437 is situated on prospectivity has been identified within potential shallow water oil exploration
the west of the northern Perth Basin, a working petroleum system and along (WA-503-P) to very high potential
between the towns of Geraldton and trend from existing discoveries. deepwater gas and oil exploration (WA-
Dongara, ten kilometres to the north The proximity to infrastructure in this 507-P).
of the Dongara gas field and Jingemia/ part of the Perth Basin enables even Pilot Energy Chairman, Gavin Harper
Hovea oil fields and 20 kilometres to small oil discoveries to potentially be said the transaction represents Pilot
the north of the Cliff Head oilfield. commercialised. Energy’s fourth acquisition in under a
A number of wells have been drilled The company’s strategy is typically to year, all of which provide shareholders
to date, the results of which confirm a acquire large project working inter- with exposure to quality petroleum
working petroleum system within the ests as operator. In the case of EP437, exploration assets under favourable
permit. Pilot Energy regards the acquisition of commercial terms.
Pilot Energy’s preliminary interpreta- a minority, non-operated position as “We look forward to working with our
tion of existing well and seismic data justified, due to the fact it offers mid- new joint venture partners, Key Petro-
suggests the presence of a number of term drilling opportunities, at low cost, leum and Rey Resources, in exploring
shallow-depth prospects at the Bookara and provides a basis for possible future the permit.”
and Arranoo sandstone levels, located expansion in the northern part of the The joint venture interests in EP437
along a terrace structure and structural- Perth Basin. will be Key Petroleum with 43.471% (as
ly updip from the Dongara gas field. EP437 is complementary to the Com- operator), Rey Resources with 43.471%
Three prospects have been identified pany’s other exploration assets within and Pilot Energy will hold the remain-
ing 13.058% §
A A06 OIL & GAS ustral SIA NOVEMBER/DECEMBER 2015 www.oilandgasaustralasia.com
