Crown Minerals - News

Unlocking New Zealand's Petroleum Potential

prices — Wed, 18 Nov 2009 10:30:00 +1300

“This government is committed to implementing a proactive and targeted plan to ensure that New Zealand is a highly attractive global destination for petroleum exploration and production investment,” said Mr Brownlee at the Biennial NZ Oil and Gas Outlook 2009 conference in Wellington today.

“New Zealand’s largely unexplored petroleum resource could be one of the country’s most significant economic opportunities. A successful and flourishing petroleum industry will be a significant and essential contributor to lifting New Zealand’s economic performance going forward and to improving the quality of life for all New Zealanders,” he said.

Currently the petroleum sector accounts for around $3 billion per annum of New Zealand’s export revenue. Should the estimated resources in our unexplored basins be developed, this could increase to $30 billion per annum in export revenue by 2025. Crown receipts alone could increase to more than $10 billion per annum over the next 40 years.

“The immediate focus must be on increasing exploration activity and improving the knowledge of our petroleum basins. The Government must be seen as pro-development of petroleum resources to attract major investments of global capital to support exploration activity”, said Mr Brownlee

In the last week, the MV Bergen Resolution has commenced a seismic survey of New Zealand’s frontier basins as an important part of the Government’s $20 million data acquisition programme to improve knowledge of our petroleum resources.

“Today I am releasing for feedback a proposed Action Plan setting out a series of additional actions that the Government will implement to assist the development of the petroleum sector in New Zealand”, said Mr Brownlee.

Development of the plan has been supported by five government-commissioned reports, which are also being made available for public comment.

The Action Plan and background reports are available on the Ministry of Economic Development’s website at www.med.govt.nz/petroleum-strategy

Feedback and comments should be made to petroleum-strategy@med.govt.nz by 5.00pm Friday 29 January 2010.

Source: Beehive.govt.nz

Offshore Northland Supplementary Data Now Available

prices — Tue, 10 Nov 2009 09:10:00 +1300

The new data pack contains the Crown owned lines (REI09 12, 20, 28 & STRANSSP 205 & 306). The Northland Block Offer closes 18 August 2010.

The Reinga Survey was a joint venture between Crown Minerals and CGGVeritas. This enabled a survey with greater coverage to be made than Crown Minerals would normally have acquired. The joint agreement allows for Crown Minerals to release selected lines while the remainder of the survey is available from CGGVeritas on commercial terms. Enquiries about the availability of the additional lines should be directed to Ian Edwards at CGGVeritas.

A full set of the Crown Minerals Reinga data including selected Crown owned Reinga seismic lines, gravity and magnetics and an interpretation report for the whole of the Reinga survey will be released around the time of the Block Offer over the Reinga Basin. The Reinga Block Offer is expected to be announced in December 2009, but is subject to Ministerial consent.

For more information visit the Northland Block Offer page.

To request a free copy of the supplementary data pack please email callum.skinner@med.govt.nz

For enquiries about the CGGVeritas data please contact Ian Edwards ian.edwards@cggveritas.com

Solid Energy says firming in coking coal prices will be positive

moriartyh — Fri, 06 Nov 2009 01:05:00 +1300

But he said the financial performance for the coming year will be behind the record result in the latest year to June 2009 where total revenue was over $1 billion for the first time and after-tax profit of $111 million was more than triple the 2008 profit of $34 million.

Solid Energy described the 2009 result as “disappointing” despite the record earnings because plummeting coal prices and deferred shipments from halfway through the year meant profit was less than half the earlier forecast.

Record international prices were achieved in the first five months of the year with hard coking coal at US$300/tonne. But by November international steel makers were running down coal stockpiles and cutting production. This was followed by cancelled or deferred export shipments for the rest of the financial year which impacted heavily on all parts of the business.

Solid Energy’s coal exports for the year were down slightly at 1.8 million tonnes (2008: 1.9 million tonnes) and domestic coal sales were 2.2 million tonnes (2008: 2.5 million tonnes).

An additional 0.2 million tonnes, the company’s 51% share of Spring Creek Mine sales lifted Solid Energy’s total coal sales for the year to 4.2 million tonnes (2008: 4.5 million tonnes).

International coking coal prices dropped by more than half in the April 2009 to March 2010 year to between US$120-130 a tonne.

Sources: Solid Energy and Lindsay Clark

Eastern looks to further expand Takitimu coal mine as demand grows

moriartyh — Fri, 06 Nov 2009 01:05:00 +1300

Eastern says in its 2009 annual report that the closure of Solid Energy's nearby Ohai mine in August 2009 has presented more sales opportunities for sub-bituminous coal in the southern South Island.

As well as the mine's major contract to supply up to 170,000 tonnes a year to dairy processor Fonterra for its Clandeboye plant near Timaru, other large customers are New Zealand Dairies and several dairy and food processing plants operated by the Talley's Group.

Eastern said a four hole drilling programme at Takitimu has now been completed to confirm resources as part of the next phase of mine planning.

A coal testing laboratory has also been established at Takitimu in conjunction with SGS Minerals who previously provided external coal testing facilities. Testing can now be conducted on site to the required standards rather than having samples dispatched to Wellington for analysis.

Sources: Eastern Corporation and Lindsay Clark

Maari now a 100 million barrel oil field with additional wells

moriartyh — Wed, 04 Nov 2009 01:05:00 +1300

This is twice as much as the 50 million barrels originally estimated for the main Moki sands reservoir at Maari.

This makes the OMV-operated Maari field the largest crude oil field to be found in New Zealand and twice the original 50 million barrels found at the Tui fields.

Richard Tweedie, chairman of Maari minority partner Cue Energy (and chief executive of another Maari partner Todd Energy) said the recent additional discoveries at Manaia and the Maari M2A sands plus the main Moki reservoir would together “amount to over 100 million barrels of recoverable oil."

Mr Tweedie said “Cue’s investment in the Maari field has created outstanding results."

OMV had earlier announced that the extended reach Manaia-1 appraisal well would be brought into commercial production after successfully completing a horizontal well into the Mangahewa Formation within the Manaia structure.

The 8 km-long well, the longest well ever drilled in New Zealand, was completed following a 48 day drilling programme. Manaia-1 well length is eight times as long as the Auckland Harbour bridge.

The well was drilled by the ENSCO 107 jack-up rig from the Maari wellhead platform Tiro Tiro Moana, which then transfers the oil via subsea flow lines to the floating production storage and off-take vessel, the Raroa, permanently anchored 1.5 km away.

Wayne Kirk, managing director OMV New Zealand, said the announcements of extra production from the two fields “are icing on the Maari cake.”

“The extra production from the two fields will add to the sizeable benefits the development is already providing the New Zealand economy.”

He said the Manaia well will now be tied into the Maari facilities with production due to begin over the next months.

Production from the M2A zone well in the Moki sands, 50 m above the main reservoir, is expected to begin by year end.

Another Maari partner, Horizon Oil said the additional reserves will serve to extend the peak rate production plateau of the field. The MR9 well to the M2A zone would produce intermittently when capacity was available.

OMV New Zealand said it would not comment on reserves or production flow rates until a full evaluation of both discoveries had been completed.

Horizon reported that the Manaia-1 horizontal well penetrated a Mangahewa section 1.5 km long with a net-to-gross of 60-70%.

Horizon said logs and gas ratio analyses confirm the presence of oil throughout the Manaia reservoir section. There was no revision to pre-drill oil-in-place estimates of 50-60 million barrels at this stage. Horizon said oil-in-place estimates for the Maari M2A zone were 30-40 million barrels.The two additional commercial zones would lengthen the time of the production plateau at Maari as well as extending the economic life of the field.

Horizon also said that there were also two further oil zones at Maari, not appraised in the current field development, but which have been penetrated by earlier exploratory wells. These were the deeper Mangahewa formation at Maari and the shallower Moki formation at Manaia.

Horizon said it expected these zones to be addressed later in the life of the field.

OMV holds a 69% interest in Maari and Manaia mining permits, Todd Energy 16%, Horizon Oil International 10% and Cue Energy Resources 5%. (Todd Energy also owns 27% of Cue).

Sources: OMV, Cue Energy, Horizon and Lindsay Clark

Kupe project construction completed and commissioning begins

moriartyh — Tue, 03 Nov 2009 01:05:00 +1300

The first raw gas from the offshore field will be introduced to the plant in the next few weeks effectively signalling the start of production from the Origin Energy-operated Kupe field. Final commissioning and ramp-up of production would follow.

However Origin Energy said that the expected gross capital cost of the Kupe project will be approximately NZ $1,330 million, around 10% higher than previously advised.

New Zealand Oil & Gas chief executive David Salisbury, whose company is a partner in Kupe, said that while the cost rise was disappointing, expected revenues from the liquids rich project have also increased since the project was approved. This would offset the higher costs of the project.

He said the development cost needed to be seen in the context of a field with revenues of several billion dollars.

Kupe will provide a solid income stream for the next 15 years, Mr Salibury said.

Once online the Kupe gas project will produce 20 PJ of sales gas per annum and provide up to 90,000 tonnes of LPG and 1.7 million barrels of condensate per annum.

Origin said construction of the two light crude storage tanks and truck receiving facilities at the Omata Tank farm and the associated export pipeline and ship export facilities at Port Taranaki are also essentially complete.

These facilities are now being commissioned ready to receive product once trucking of light crude from the production station commences.

Sources: Origin Energy, NZOG and Lindsay Clark

Cue Energy lists on New Zealand stock exchange

moriartyh — Tue, 03 Nov 2009 01:05:00 +1300

Cue Energy holds a 5% stake in the Maari and associated Manaia oil permits which together hold over 100 million barrels of recoverable oil. Todd Energy holds 16% of the Maari permit.

Cue Energy chairman Richard Tweedie, who is also managing director of Todd Energy, said: “Cue’s investment in the Maari field has created outstanding results."

He said the timing was right for Cue to enter the New Zealand market. Already 26% of the company’s shareholders are New Zealanders who together hold 40% of Cue Energy’s shares.

Cue’s other major shareholder is Singapore Petroleum (SPC) with a 16.31% shareholding.

Earlier this year PetroChina International, the listed arm of state-owned China National Petroleum Corporation, acquired all the shares in Singapore Petroleum and effectively became the second largest shareholder in Cue.

Cue Energy to date has oil production in three countries; New Zealand, Papua New Guinea and Indonesia and recently commenced gas production in Indonesia.

Sources: Cue Energy and Lindsay Clark

Comet Ridge plans aerial geophysics over Buller, Waikato permits

moriartyh — Tue, 03 Nov 2009 01:05:00 +1300

Comet Ridge’s wholly-owned New Zealand subsidiary Chartwell NZ is also to begin drilling the deep Macdonald-5C appraisal core well in early November near Greymouth.

Comet Ridge says, in its annual report, that Chartwell (which now is 100% owner of its 8,722 km² PEP 50279 in the Buller, Reefton, Murchison areas) decided on a detailed regional aeromagnetic survey after drilling the Painkiller Creek 1 well earlier in 2009 and finding the Buller Coal Measures were not developed though the well was close to an existing coal field.

“The well result highlighted the challenges to be faced in exploring this region due to the inherent rapid and abrupt changes within the coal measures”, Comet Ridge says in the report.

The first round of the regional aeromagnetic survey in late 2009 would determine the key areas. These would then be subject to a second more detailed aeromagnetic and aero gravity survey planned for the first half of 2010.

A similar regional aeromagnetic followed by detailed aeromagnetic and aerogravity survey acquisition is planned in the 3,667 km² PEP 50280 in north and east of Waikato. The Waikato surveys would be acquired at a similar time to the West Coast – late 2009 and the first half of 2010.

Chartwell’s earlier Matata 1 exploration corehole well within the Whangamarino Coalfield area in PEP 50280 had encountered a thicker-than-expected sedimentary sequence but insufficiently developed Waikato Coal Measures.

Comet Ridge says the Macdonald-5C appraisal core well in PMP 50100 near Greymouth is expected to begin drilling by early November. The well, which is operated by Chartwell in a joint venture with Wellington-based Macdonald Investments, will test the CSG potential of both the Brunner and the deeper Paparoa coal seam measures in the Dobson area near Greymouth.

In June Tor McCaul, managing director of Comet Ridge, told a coal seam gas briefing that the Chartwell joint venture planned a well into the Paparoa sequences, twice as deep as previous coal seam gas wells drilled into the Brunner. The well was planned as part of pilot wells.

Mr McCaul said the deeper seam appeared to have the right ingredients so potential existed there.

Sources: Comet Ridge and Lindsay Clark

Offshore oil and gas exploration season starts

moriartyh — Mon, 02 Nov 2009 01:05:00 +1300

”This latest seismic data acquisition will increase exploration activity across our frontier basins”, said Mr Brownlee.

"In 2008 oil was our third largest export earner and we have the opportunity to increase the value of this industry to our economy. The data acquisition initiative has the potential to open up new areas which are prospective for oil and gas" he said.

"Continuation of this initiative is vital if New Zealand is to maintain the current momentum of exploration activity. We have a vast offshore continental area of which New Zealand’s frontier basins cover an area of about 1.2 million square kilometres and may be capable of generating billions of barrels of oil".

The Bergen Resolution will make a short port call in Wellington and then head out into the Pegasus Basin to acquire approximately 3,000 km of 2D seismic data. Preliminary studies by GNS Science suggest this basin has considerable hydrocarbon potential.

The Bergen Resolution will then head south to the Great South Basin and Bounty Trough area to acquire approximately 4,000 km of seismic data. Reconnaissance data will also be acquired across the Challenger Plateau and Bellona Trough area, outer Taranaki Basin, and Northland East Slope Basin area where satellite oil seep detection surveys have identified natural oil seeps suggesting active petroleum systems are present in these areas.

"It is anticipated that exploration companies will also utilise this vessel to acquire further 2D and 3D seismic data", said Mr Brownlee.

"This summer is shaping up to be a busy period of exploration with some large seismic acquisition programmes and a large drilling campaign due to commence when the Kan Tan IV semi-submersible drilling rig arrives in New Zealand towards the end of this year."

In addition to the frontier basins work, Crown Minerals will also be advancing a variety of detailed geotechnical studies on the Taranaki Basin. The results of this work will assist moving forward exploration in the basin and accelerate the potential discovery of new oil and gas reserves.

Media contact: Stephen Parker, Press Secretary, 021 513 300

L&M CSG books 173 PJ of coal seam gas at Ohai

prices — Thu, 29 Oct 2009 09:10:00 +1300

The 3P (proven, probable and possible) resource estimate was conducted by Colorado-based MHA Petroleum Consultants LLC at L&M Coal Seam Gas’s PEP 38220.

The permit covers 57 km2 to the south and west of Ohai.

London-based Geoff Loudon, chairman of L&M Coal Seam Gas and an experienced international explorer who is a founding director of both Lihir Gold and Nautilus Minerals, said this resource confirmation paves the way for further significant resource extensions in the future as the company planned an aggressive exploration and appraisal programme across New Zealand.

“What is unfolding before us is not dissimilar to the pioneering days of Australia’s
coal seam gas sector.”

“Not only have we certified the country’s first CSG resource, we also have
independent opinions advising of the strong commercial viability of the assets.”

Christchurch-based L&M Coal Seam Gas is the largest individual CSG permit holder in New Zealand and is targeting 1,500 PJ of coal seam gas in both the North and South Islands.

The stock exchange-listed and Wellington-based associate company L&M Petroleum Ltd, is currently looking at acquiring all or part of L&M Coal Seam Gas.

Sources: L&M Coal Seam Gas and Lindsay Clark

Westech and NZOG ready to drilling Albacore-1 well

moriartyh — Tue, 27 Oct 2009 01:05:00 +1300

Albacore-1 will be drilled by the Ensco 107 jackup rig, which has been successfully drilling production wells at the Maari oil field.

Westech, a subsidiary of private Denver-based Energy Corporation of America, is the operator of the permit and until recently held a 90% interest in the permit (PEP 38491). NZOG joined the joint venture and Mighty River Power Gas Investments Ltd continues to hold unchanged the remaining 10%.

NZOG chief executive David Salisbury said his company’s assessment is that the central northern Taranaki basin is a very prospective part of the basin. There are three separate play fairways within PEP 38491 - a Pliocene Fan and two Mangaa sands - and it contains half a dozen interesting prospects.

He said the Albacore prospect contains three separate target zones that may contain hydrocarbons.

The Albacore-1 well will target structures recently defined by 3D seismic at depths of 1,400 to 1,800 m.

Mr Salisbury said NZOG's internal analysis is that Albacore is more likely to contain oil than gas and, if successful, could support an offshore development similar to Tui.

NZOG now has interests in seven permits in the offshore Taranaki Basin and one in the Canterbury Basin. NZOG will be participating in the drilling of at least four wells this summer.

Westech Energy also holds the onshore Hawkes Bay PEP 38346 in the East Coast Basin.

Source: NZOG and Lindsay Clark

AWE granted new permit immediately north of New Plymouth

moriartyh — Fri, 16 Oct 2009 01:05:00 +1300

The 2,850 km² permit, which AWE has named Parihaka, has a southern boundary that runs 10 km offshore from New Plymouth, and roughly parallel to the coast for 50 km from Waitara to Cape Egmont.

AWE and its two partners Mitsui E&P Australia Pty Ltd and Mighty River Power Gas Investments Ltd each hold a 33.3% share in the Parihaka permit.

Mitsui and Mighty River were both partners in a similar area covered by a smaller permit, PEP 38489, operated by Houston-based companies Pogo and then Plains Exploration until early this year.

One of the prospects Pogo had under consideration was Toro just a few kilometres offshore from New Plymouth city.

AWE now holds interests in 10 permits in offshore Taranaki including the Tui oil field.

The work programme for PEP 51558 requires 200 km of the 2D seismic data to be acquired in the first two years and an exploration well to be drilled in three years.

Sources: AWE and Lindsay Clark

Kea awarded onshore Northland permit around Kaipara Harbour

moriartyh — Fri, 16 Oct 2009 01:05:00 +1300

Kea chief executive Dr Dave Bennett said PEP 51339, covering an area of 2,157 km², was a longer term exploration project over the little explored onshore Northland Basin.

He said attention has focussed on offshore Northland with the Karewa gas discovery and now two further wells planned by Origin Energy next year.

Dr Bennett said an oil or gas discovery in the Kaipara permit could be readily developed, with gas being particularly well placed for power generation to the expanding Auckland electricity market.

Kea is operator of the permit on behalf of itself and two Australian alliance partners Rawson Resources Ltd, and Hardie Oceanic Pty Ltd.

The initial work programme will involve gravity and soil gas geochemical surveys. This would lead to seismic surveys over areas of greater interest with potential drilling within four years.

Sources: Kea Petroleum and Lindsay Clark

New joint ventures at Rise & Shine and Ophir gold prospects

moriartyh — Mon, 12 Oct 2009 01:05:00 +1300

At the Rise & Shine and Bendigo prospect area, located approximately 25 km northeast of Cromwell, Glass Earth Gold has entered into an option agreement with CanAlaska Uranium to acquire 70% of the common shares in its wholly owned subsidiary, Golden Fern Resources. Under the option Glass Earth will fund up to NZ$900,000 of exploration expenditures by 1 October 2011.

The prospective exploration permits in the area are held by Glass Earth, EP 40771 and EP 40748, and Golden Fern, EP 40481. These three exploration permits are surrounded by Glass Earth’s Prospecting Permit 39322.

In EP 40481 Golden Fern has a concurrent joint venture with OceanaGold (owner of the Macraes mine in Otago). Golden Fern has earned a 70% interest and has the right to earn up to 100%.

Glass Earth says that new interpretations of the Rise & Shine prospect shows that the gold bearing veins appear to be localised at the intersection of northeast and northwest oriented structures.

A pre-drilling exploration programme, would commence immediately, targeting both large tonnage/ounce resource in un-oxidised shear-related mineralisation and small, multiple, high grade, oxidised ore deposits.

Glass Earth said its 2007 ultra-detailed geophysical survey over Central Otago had highlighted the Rise & Shine and neighbouring Bendigo prospects.

At Ophir, north of Alexandra, Ophir Gold Ltd, a private company has entered into an option agreement that will allow Glass Earth Gold to acquire a 50% equity interest in Exploration Permit 40427 known as the Ophir prospect.

The Ophir project is a 640 ha area containing numerous highly prospective mineralised reefs, as well as near-surface gold bearing gravels.

The proposal amalgamates together the land positions of the more advanced resource position of Ophir Gold’s EP 40427 with possible extensions of structures into Glass Earth’s EP 40870.

Glass Earth will farm-in to EP 40427 by solely funding an evaluation study of a deposit in the joint venture area, spending NZ$250,000. If exploration is successful then installing a suitable processing plant on the chosen mining site.

Ophir Gold would reimburse Glass Earth for its 50% share of any plant acquisition costs out of 50% of its net profits from mining.

Sources: Glass Earth Gold and Lindsay Clark

New joint ventures at Rise & Shine and Ophir gold prospects

moriartyh — Mon, 12 Oct 2009 01:05:00 +1300

In EP 40481 Golden Fern has a concurrent joint venture with OceanaGold (owner of the Macraes mine in Otago). Golden Fern has earned a 70% interest and has the right to earn up to 100%.

Glass Earth says that new interpretations of the Rise & Shine prospect shows that the gold bearing veins appear to be localised at the intersection of northeast and northwest oriented structures.

Glass Earth said its 2007 ultra-detailed geophysical survey over Central Otago had highlighted the Rise & Shine and neighbouring Bendigo prospects.

The Ophir project is a 640 ha area containing numerous highly prospective mineralised reefs, as well as near-surface gold bearing gravels.

The proposal amalgamates together the land positions of the more advanced resource position of Ophir Gold’s EP 40427 with possible extensions of structures into Glass Earth’s EP 40870.

Ophir Gold would reimburse Glass Earth for its 50% share of any plant acquisition costs out of 50% of its net profits from mining.

Sources: Glass Earth Gold and Lindsay Clark

Crown Minerals - News

Unlocking New Zealand's Petroleum Potential

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