The Good Oil conference went off with a bang this week complete with hats, props and theme songs. Backgrounded against oil prices that are creeping towards US$30, and with a number of speakers boasting of recent successes, the event was far more upbeat that this time last year, notwithstanding the September 11 and Ansett collapse issues of the time. The best tip for the week was that Tony Barton would signing up for Toastmasters after a bemusing evening address left some in stitches and others scratching their heads.
Out in the field, in Mauritania, the Chinguetti partners have partly tested their discovery, flowing over 1500 barrels before sand encroached on the Chinguetti 4-2 well bore, restricting the oil flow. While it confused the market somewhat, the partners believe sand screens will prevent a recurrence when they go into production.
The Casino well looks like it has come up trumps for Santos and minnow partner Strike Oil, until bad weather set in. The partners say they will re-enter the well in the next day or two. So far the well has encountered over 60 metres of gross gas pay.
Oil production was due to start from the Hovea oilfield as soon as the latest drilling had been finished, Arc Energy said. It would be the first onshore oilfield in WA to be brought into production in the past 20 years.
Together with the nearby offshore Cliff Head, the Hovea oil discovery has opened up a big new oil fairway and rejuvenated exploration in the Perth Basin.
Staying in WA, a group of junior explorers have been awarded a new permit off the WA coast – WA 331P while the Federal Minister for Resources, Ian Macfarlane, announced the successful bidders for new exploration permits in Commonwealth waters off the WA coast.
In South Australia, the search for hydrocarbons in the Cooper Basin has intensified after a new exploration agreement was signed between Beach Petroleum and the Great Artesian Oil and Gas Company. The companies said they will begin a new round of exploration in this year’s fourth quarter.
In the markets, the Foreign Investment Review Board has given the Scots (ie First Tech) the all clear to takeover Fremantle-based marine technology company Nautronix.
Pancontinental Oil & Gas and Victoria Petroleum are both in the market raising money for continuing exploration efforts.
Junior explorer Cue Energy and natural gas pipeline company, Australian Pipeline Trust both reported big increases in profit. APT is continuing to lobby governments hard to get greater regulatory certainty for pipeline owners.
Lets not forget about our friends in the renewable sector. Hot dry rock geothermal company Geodynamics has officially listed on the Australian Stock Exchange this week, debuting at 50 cent and trading as high as 54c before finishing at 51c.
Another ambitious renewable player, Australian Biofuels, is looking to become a key supplier of ethanol for use in the transport industry and also looking to list on ASX next month. Their cause has been helped by the Australian Prime Minister announcing his support for the nation’s fledging bio-fuel and ethanol industry this week.
Talking about politicians, a war of words has erupted between state and federal governments over national energy reform with one State Minister calling Ian Macfarlane a “dill” and added he did not know what he was talking about in regard to Australia’s electricity market.
While the Australian Gas Light boss is calling for an end of state monopolies in the electricity sector, the WA Government will maintain one in that state’s residential gas market after agreeing with AlintaGas to keep out Western Power out for next five years.
Overseas, junior explorer Carnarvon Petroleum has started to dip into its finance facility in order to develop its central Thailand oil fields.
The Europeans are eyeing China’s biggest natural gas field while the Americans are helping to fund a study in building a natural gas pipeline in Indonesia. In New Zealand, Auckland-based Vector launched a full takeover bid for NZ’s largest energy distributor UnitedNetworks.
Finally, according to energy industry analysts, London-based Douglas-Westwood, the prospects for the global offshore industry are looking good, however punters should keep an eye on the offshore renewable sector, which will take-off if a number of proposals get up and running.
