THE CONFERENCE CALLER: The Resources Roadhouse was fortunate enough to score some time to hear about the state of the domestic and international oil and gas markets.
After he opened the conference we sat down for a quick chat with Argonaut director of research Micheal Eidne.
THE CONFERENCE CALLER: The Resources Roadhouse managed to grab a moent of Triangle Energy managing direor Rob Towner’s valuable time at the 2019 RIU Good Oil Conference.
During the June 2019 quarter, Cliff Head generated revenues of $6.89 million.
This was an increase of $760,000 from the previous quarter.
THE CONFERENCE CALLER: The opening morning of the RIU 2019 Good Oil Conference opened to a standing room only audience.
Wally Graham of The Resources Roadhouse managed to catch conference organiser Jaxon Crabb for a quick update.
THE CONFERENCE CALLER: With a healthy cash flow coming from its dominant holding (78.75%) in the offshore Cliff Head project in Western Australia, Triangle Energy (ASX: TEG) has been able to chase further growth opportunities in the Perth Basin.
The company has its eye on the prospective Xanadu oil field and is now awaiting the results of a recently conducted 40 square kilometre 3D seismic program.
Located offshore about 270km south west from the WA coastal town of Dongara – and 14km south of the Cliff Head oil field – Xanadu is a joint venture between Triangle (45%) and Norwest Energy.
Triangle is also completing the necessary approvals for the onshore Mt Horner l7 production licence, in which it holds a 50 per cent interest with farm out agreement partner Key Petroleum.
The PL overlies the Allanooka Terrace in the North Perth Basin (and is adjacent to the prolific Dandaragan Trough).
So far, multiple “attic” locations for infill development wells have been identified.
The JV partners now anticipate conducting a 50sqkm 3D seismic survey and drilling at least two in-fill development wells as soon as possible.
Additionally, the WA-based Triangle is looking at another growth opportunity – this time in Queensland’s Bowen Basin via its 35.47 per cent interest in State Gas, 80 per cent owner of the prospective Reid Dome gas project.
In 2018, two wells – Primero West 1 and Nyanda-4 – were successfully drilled, with the 1200 metre deep Nyanda encountering 40.4m of net coal seams as well as 25m of separate carbonaceous shales and thinner coal seams.
During the June quarter Cliff Head generated revenues of $6.89 million for project operator Triangle – a $760,000 increase over the March period due to higher production.
THE CONFERENCE CALLER: Being in the right address pretty much sums up Talon Petroleum’s (ASX: TDP) corporate strategy as it consolidates its presence in the UK North Sea.
During the June quarter the Perth-based company completed the acquisition of EnCounter Oil, giving it unfettered access to the highly prospective Skymoos and Rocket prospects.
Then, in late July, Talon announced two new developments regarding further holdings in the area.
First, it was granted (in a joint bid with ONE-Dyas E&P) a licence over Block 14/30b, wherein lies the Thelma, Louise and Buffalo prospects.
Best estimates for these targets are currently 29 million barrels of oil, 17mmbbl and 160 billion cubic feet of gas respectively.
Second, site survey activities over the proposed location of the Curlew-A appraisal well – in which Talon has a 10 per cent interest – was started on Block 29/7b by Corallian Energy.
Currently, Curlew-A’s gross 2C contingent resource for recoverable oil is 36.2mmbbl. According to Talon managing director Matt Worner, this acquisition was the company’s first piece of operational work since it established its UK North Sea strategy in 2018.
Moreover, it is deemed significant given it contains an estimated discovered resource of 39mmbbl and is close to nearby infrastructure.
Despite these developments, it’s the EnCounter acquisition which has arguably generated the most excitement amongst investors during 2019.
As it stands, Skymoos – which is a direct analogue to the Upper Jurassic Buzzard Field (the UK North Sea’s largest producing oil field) and is on trend with several developed oil and gas discoveries – has a best estimate prospective resources of 107mmbbl.
Meanwhile Rocket, with its potential resource of 27mmbbl, is a direct analogue to amplitude-supported oil fields to the north east.
THE CONFERENCE CALLER: Like other Perth Basin explorers, Norwest Energy (ASX: NEW) is reviewing the oil and gas prospectivity of its Western Australian onshore portfolio in light of the Waitsia gas discovery.
In particular, the company is approaching its 10.1 square kilometre Springy Creek oil prospect – which sits in the northern part of its EP368 Joint Venture (with Energy Resources) some 30km north east of Dongara – with renewed enthusiasm, and is now confident its geological chance of success is 25 per cent.
During July Norwest told the market that Waitsia, located 5km to the west of EP368, had “opened up an exciting new petroleum play within the basin by encountering a very significant hydrocarbon accumulation within the Lower Permian Kingia and High Cliff Sandstone formations”.
“The prospect offers significant potential for sizeable oil accumulations within both the Kingia and the High Cliff Sandstone formations which, based on well intersections in the wider region, are prognosed to incorporate thick, high-quality reservoir sand units at the prospect location at target depths of 2,470 metres and 2,570m respectively,” it said.
The greater Springy Creek structure, encompassing the southern and northern culminations, is an elongate north-south trending three-way dip closure with fault closure to the south.
Reservoirs within this structural feature could be sourced by oil migrating from the proven Kockatea Shale oil kitchen to the south. Furthermore, the prospect is situated within a structural setting comparable to that of the Mt. Horner oil field 15km to the west.
In terms of its Perth Basin offshore activities, Norwest – along with Triangle Energy (Global) – is conducting a 3D seismic survey of its Xanadu oil discovery 300km north of Perth.
Results for this work should available by October.
THE BOURSE WHISPERER: Venture Minerals (ASX: VMS) recently committed to the recommencement of mining activities at the company’s Riley iron ore mine in Tasmania.
The company’s managing diretor Andrew Radonjic spoke with the Resources Roadhouse at the RIU Resources Investor Roadshow in Melbourne.
CLICK ON THE PICTURE TO VIEW.
Venture Minerals made the announcement following completion of an updated Riley Iron Ore Mining Study with the associated Pre-Feasibility Study (PFS) delivering strong returns from a low capex two-year project, that the company believes to be well positioned to capture the current higher iron ore price environment.
In addition to completing the study the company, having previously signed a Binding Terms Sheet for the Riley Iron Ore Mine off-take with Prosperity Steel, has now signed a full off-take agreement for the Riley product for 100 per cent of the first two years of iron ore production.
First shipment of ore from the Riley Mine is currently planned for the fourth quarter of 2019, however the company indicated it was continuing to work on additional strategies to further reduce operating costs on the project before the first ore shipment.
These cost optimisation programs will focus on enhancing ore transport solutions.
“This is an exciting phase for the company as it moves from explorer to producer,” Venture Minerals managing director Andrew Radonjic said in the company’s announcement to the Australian Securities Exchange.
“The Riley Iron Ore Mining Study demonstrates the delivery of an exceptional Internal Rate of Return in excess of 300 per cent is possible by leveraging the relatively small capex required to commence production.
“Venture has brought together an experienced team with a blend of local knowledge that has built, managed and operated iron ore and other similar sized projects, thereby de-risking the execution phase of the Riley project.
“The Riley Iron Ore Mine will create 80 to 100 jobs and will be a boost for the economy of the West Coast of Tasmania.
“We look forward to commencing production shortly.”
Email: info@ventureminerals.com.au
Web: www.ventureminerals.com.au
THE CONFERENCE CALLER: Calima Energy (ASX: CE1) is in a farm‐in agreement involving oil and gas licences prospective for the Montney Formation in British Columbia (BC), Canada.
The Farm-in Agreement allows Calima to acquire a working interest of up to 55 per cent in the Montney project and operatorship of the project.
The company recently completed a three-well drilling campaign on its Calima Lands in BC, the results of which validated its early geoscience work, which predicted that the Calima Lands would be rich in gas, condensate (or light oil) and natural gas liquids.
“Our target was to match the results achieved by our regional neighbours who are established producers,” Calima Energy managing director Dr Alan Stein said.
“We believe our results show the potential to match or exceed the results of our immediate peer group.”
Results from the drilling campaign demonstrated a 35 per cent Well Recovery Increase taking the estimated ultimate recover of each well to 8.4 billion cubic feet (Bcf) per well.
Based on limited test results, the company conservatively estimated gas-to-liquids ratio conservatively estimated at 45 barrels per million cubic feet of gas (bbl/mmcf) with 65 per cent of the liquids being high-value condensate (priced at WTI).
Calima expects the liquids ratio to increase once the wells are cleaned up and on steady production.
Canada, and the Montney region, is a good place for an aspiring producer as it a global top five gas producer.
The Montney accounts for almost half of Canada’ gas and is one of North America’s most productive and lowest cost resource plays.
Production rates have been increasing in the region by 20 per cent per annum over the last three years.
THE CONFERENCE CALLER: Emperor Energy’s (ASX: EMP) major asset is the company’s 100 per cent-owned Vic/P47 exploration permit in the Gippsland Basin next to the BHP/ExxonMobil Kipper field in Victoria.
Emperor Energy recently announced an Independent Resource Statement for the Judith Gas Field within the VIC/P47 Exploration Permit, compiled by consultants 3D-GEO Pty Ltd.
3D-GEO assessed the gas-in-place and recoverable gas volumes in the Judith-1 gas discovery and Greater Judith Structure following the merging and reprocessing of the Northern Fields and 3D seismic surveys in VIC/P47 conducted in 2016/17.
The statement declared a 2C Contingent Gas Resource of 150 billion cubic feet (Bcf); and a P50 Unrisked Prospective Gas Resource of 1.226 trillion cubic feet (Tcf).
Using data from the Judith1 Well along with Seismic interpretation of the Judith Structure, 3D-GEO produced Dynamic Modelling Results for the Judith Structure.
These included:
• A Four well development model indicated an 80 million standard cubic feet per day (MMscf/d) production rate can be maintained for 32 years;
• Gas production modelled at 29Bcf per year with 934Bcf of Raw Gas produced across 32 Years; and
• Simulated flow rates are of enough capacity to supply a plant of equivalent capacity to the existing onshore gas processing plant at Orbost.
Emperor Energy has appointed Ocean Reach Advisory to find a suitable Exploration and Production Partner to participate in the exploration and development of the Judith Gas Field.
The company is seeking a partner of suitable financial and technical capability to assist in the drilling of an exploration well at the offshore Judith Gas Field by February 2021.
Based on successful exploration results the partner would then proceed with development of the field in conjunction with Emperor Energy.
THE CONFERENCE CALLER: Hazer Group Limited (ASX: HZR) is an ASX-listed technology development company undertaking the commercialisation of the Hazer Process, a low-emission hydrogen and graphite production process.
The Hazer Process takes natural gas and iron ore, two reasonably cheap feedstocks that are found in abundance within Australia.
The process uses these to generate hydrogen and synthetic graphite, two products that are currently high in both value and demand due to their global market applications.
“The core of our technology is the use of iron-ore as a low-cost catalyst for the gas decomposition reaction, which gives us a strong commercial advantage for accessing both hydrogen and high-quality graphite markets,” Hazer Group declares on its Web Page.
The process recently generated excitement when Hazer Group’s partner Mineral Resources (ASX: MIN) produced high-quality graphite at its Paddle Tube Reactor (PTR) Pilot Plant.
Hazer Group and Mineral Resources are developing a Mineral Resources owned and operated commercial scale synthetic graphite production facility based on the Hazer Process.
This involves a three-stage development program: Stage 1 is the development of a pilot scale facility capable of producing one tonne per annum of high-quality graphite.
Construction of this facility was completed in March 2019 and initial production runs under the pilot plant test program produced high-quality graphite with graphite product purity greater than 95 per cent TGC (Total Graphitic Carbon).
“The graphite purity achieved is the highest we have recorded to date by the Hazer Process,” Hazer Group CEO Geoff Ward said.
Mineral Resources will now undertake a detailed pilot plant test program of the PTR to establish the design and performance parameters of the commercial scale plant envisaged in Stage 2 and Stage 3.
