Out in the fields, in a move described by one analyst as "pathetic", Arc Energy suspended trading in a bid to head off speculation over the much anticipated Hovea-2 well near Dongara, north of Perth.
As expected, the Dongara/Wagina section was not encountered, and Arc Energy and its partner Origin still remain positive after encouraging gas shows were found in the secondary objective, an onshore extension of the offshore Cliff Head discovery. Following logging and evaluation, a decision on the forward program will made over the next couple of days.
Stuart Petroleum told the market it had made a new oil pool discovery in the Cooper Basin with its Acrasia-2 well, which has helped the joint venture achieve its objective of two offtake points for oil production from the field. Both Acrasia-1 and Acrasia-2 wells will be flow-tested as soon as possible.
Kimberley Oil's workovers at its Blina oilfield near Derby is continuing despite initial mixed results as the company tries to raise production levels from the mature field.
The Nockatunga joint venture - Santos and Voyager Energy - will soon begin a coalbed methane exploration play in southwest Queensland after the two companies reached a farmout agreement this week.
In other CBM news, Melbourne-based Molopo Australia NL said a decision on the commercialisation of its Mungi and Harcourt CBM gas projects in Queensland's Bowen Basin could be made as early as November. This follows the spudding of the Mungi-4 well - the start of Molopo's final round of production test drilling on its promising CBM projects in the Bowen Basin west of Gladstone.
Meanwhile, Queensland Gas Company has increased its CBM activities in the Surat Basin after announcing it would acquire the remaining half stake in ATP 651P.
It seems that the steam is coming out of the development of Australia's vast natural gas reserves. According to industry insiders, commercial and bureaucratic hurdles are stymieing the expansion of the North West Shelf, Timor Sea and the PNG-Queensland gas pipeline amongst others.
Speaking of the PNG-QLD gas pipeline, a review of the project held this week in Melbourne has given it a much needed boost. The partners in the ExxonMobil-led project have decided to begin preliminary engineering work much to the chagrin of the pipeline's critics.
In the markets, Ensign has increased its interest in contract driller Australian Oil & Gas to 52.51% and in accordance with its bidder's statement, this will raise its offer to $2.70 for each AOG share and $1.50 for each option. Ensign will most likely emerge as the victor of the three-way bidding war for AOG, after being endorsed by the board.
American merchant bank Merrill Lynch has recommended a "strong buy" for BHP Billiton on the basis that it believes the petroleum arm of the resource giant was undervaluing its reserves.
Despite some bad news last week, this week Amity Oil decided to reward the shareholders who stuck by the company during its Turkish exploration and soon-to-be production phase with an issue of bonus options.
Colourful Perth entrepreneur and 'King of the Courtrooms' Danny Hill has announced he will turn one of his listed companies into an oil and gas developer. Many in the market believe Mr Hill is not interested in exploration but rather picking projects that are ready for development.
Exploration company Nexus Energy has appointed a new management made up of veteran oil field players in order to implement a revised growth strategy.
Its been a big week in overseas oil and gas. An Aussie delegation will head to Libya to look for opportunities in the oil and gas sector there, despite the country being on the US State Department's list of states that sponsor terrorism.
An Australian group comprising of Hardman Resources and imminent IPO, Global Petroleum, have announced this week they had won the right to explore for oil and gas off the controversial Falkland Islands, which was once the scene of a bitter war between Argentina and the UK.
While the Falklands was the scene of a hot war, relations between one time cold war enemies, Russia and the US, are rapidly warming. This week the first ever shipment of Russian oil arrived in the US. No doubt this would have Lenin, Stalin and Joe Mcarthy rolling in their graves.
Speaking of hot spots, India is looking to global hotspots such as the Sudan and Iraq in order to expand its source of energy.
Finally, dodgy bookkeeping while director of a Texas-based Harken Energy has come back to haunt George W Bush. Another member of his White House team, no less than the Vice President Dick Cheney, is also being investigated by the stock exchange watchdog over his conduct while director of oil services giant Halliburton.
